•3.
Must be operated for non-profit purposes
•NPOs must in fact be operated exclusively for
social welfare, civic improvement, pleasure, recreation or any
other purpose except profit
•This
is the criteria that is the subject of the most uncertainty for
NPOs, particularly with respect to NPOs making money
•CRA is
generally of the view that an NPO can engage in commercial activities and earn an unintentional profit, but if it would be unable to undertake its not-for-profit activities but for its profitable activities, the organization cannot be an NPO because it has a profit purpose (Document 2009-033731) - details later
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