Open Letter to Eliminate the “Own Activities” Requirement for Charities
February 2021 Charity & NFP Law Update
Published on February 25, 2021

By Theresa L.M. Man

A number of charity lawyers across Canada have prepared an open letter entitled Making It Easier to Do Good: Doing Away with the “Own Activities” Requirement (the “Letter”). The Letter, released on February 19, 2021, summarizes key concerns with the “own activities” rules governing charities, and urges “legislative and regulatory reform to better facilitate the work of the charitable sector in Canada.” It indicates that the key barrier to the efficient operation of charities is the “own activities” requirement under the ITA, which “imposes artificial constraints on charities’ ability to work with third parties that do nothing to further this legitimate objective” of furthering the charity’s charitable purposes. To this end, the Letter supports the revision of the rules regarding charitable work through non-qualified donees, both domestically and abroad. Amendments to legislation to eliminate the “own activities” requirement have also been proposed through draft legislation in Bill S-222. The issues surrounding the current regime and draft legislation are discussed in greater detail in Charity & NFP Law Bulletin No. 486.

 

Read the February 2021 Charity & NFP Law Update