The Income Tax Act does not define "charity" and Canada uses a common law definition, namely purposes that fall within the four "heads" of charity: the relief of poverty, the advancement of education, the advancement of religion,[3] or other purposes that benefit the community in a way the courts have said are charitable.
However, it is important to note that the Canada Revenue Agency (CRA) does not recognize CED activities as distinctly charitable in and of itself.
[13] Other notable Canadian leaders in the field supporting charities to engage in CED and social enterprise development are Tonya Surman, Mitchell Kutney, David LePage [14] and Bruce Campbell.
The mission of the Charities Directorate is: "... to promote compliance with the income tax legislation and regulations relating to charities through education, quality service, and responsible enforcement, thereby contributing to the integrity of the charitable sector and the social well-being of Canadians.
In order to maintain their status under the Income Tax Act, charities must comply with basic requirements on:[27] Effective January 2012, the Income Tax Act was amended to provide that charities and registered Canadian amateur athletic associations ("RCAAAs") may have their registration refused or revoked, or be suspended from issuing official donation receipts, if an "ineligible individual" acts as a member of the board of directors, a trustee, officer or like official, or controls or manages the operation of the organization.
Both cases can also extend to offences not involving dishonesty, but are nonetheless relevant to the operation of the charity or association.
There have been some concerns expressed about the misuse of Canadian charitable resources from the media,[30] government, and the public.
[32] In July 2010 there was widespread coverage of the fraud of Ashley Kirilow, a young Ontario woman who shaved her head, her eyebrows, and plucked out her eyelashes in order to represent herself, on her facebook page, as a cancer sufferer, so she could solicit donations to support her recovery.
[33][34] While this was not a question relating to activities of a charitable organization, commentators speculated on the chilling effect her fraud would have on online donations.
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