The Charities Directorate estimates that a straightforward application for Charity Registration typically takes two months. However, this expedited timeline is a rarity, applying to only about 1% of charity applications.
For the majority of applications, where the CRA (Charities Directorate) has follow-up questions, the process can extend to six months. It's important to note that due to these additional queries, the actual timeline often stretches to 7-8 months.
If you opt to engage a lawyer to handle your charity application, it's essential to inquire about the expected timeline, from the retention date to the application submission with the CRA.
We've received feedback from clients who initially engaged other law firms and shared how their application was delayed for several months, despite their urgent requests to expedite the process.
This unfortunate situation underscores the fact that charities cannot issue tax receipts until their registration is complete.
This limitation significantly curtails their fundraising options and, more importantly, hampers their ability to provide crucial assistance to those in need. It's a stark reminder of the importance of timely registration.
Undertaking the registration process with patience and attention to detail is a wise move, as it can prevent delays or rejection of the application. Collaborating with an experienced charity lawyer or consultant can ensure that the application is complete and accurate and that any follow-up questions from the CRA are promptly addressed.
The advantages of registering as a charity in Canada are substantial.
Registered charities are granted tax-exempt status and can issue tax receipts to donors, a powerful incentive for fundraising. Furthermore, charitable status can boost an organization's reputation and credibility, making it easier to secure grants and other forms of support.
These benefits underscore the importance of the registration process and can serve as a strong motivation to complete it.