Sep 2019 Charity & NFP Law Update
Application Form T2050 to be Phased Out
As part of the Canada Revenue Agency’s (“CRA”) rollout of the Charities IT Modernization Project (CHAMP) under way since June 1, 2019, the CRA implemented a new online application for charitable status through the CRA’s My Business Account (“MyBA”). During the early days of implementation of the online application process, the CRA has been continuing to accept applications using Form T2050, Application to Register a Charity Under the Income Tax Act. However, the CRA will no longer accept the T2050 Form after September 30, 2019. There are differences in the questions contained in the online application form and the T2050 Form. Those who do not wish to use the online application may obtain from the CRA a paper form of the application (Form T1789).
To assist with filing applications online, the CRA has recently added more information on the CRA’s MyBA webpage and has posted a webpage to guide applicants through the application process. The information includes directions on setting up MyBA, as well as tips about the online application form and tips to avoid delays. For example, to guide applicants, the CRA notes that applicants will need to provide detailed information for each charitable activity, either currently carried out or proposed to be carried out. It further indicates that multiple individuals can take turns logging in to complete different sections of the form. Further, once an application has been submitted, applicants will be able to log into MyBA to review their application status.
Applicants should also be aware that the online application has not been updated to reflect the new PPDDA regime that replaced the previous “political activities” regime under the Income Tax Act. In this regard, the CRA has indicated that the online application will be revised to reflect the new rules in November 2019. Prior to this, applicants will need to follow the CRA’s instructions on the CRA’s webpage on how to complete the application as if it concerned PPDDAs rather than political activities, rather than following the wording in the online application itself.