On December 8, 2016, Canada Revenue Agency (“CRA”) released a new guidance entitled: Relieving Conditions Attributable to Being Aged and Charitable Registration (CG-026) dealing with charities that provide housing to their beneficiaries (“Guidance”). It replaces CRA’s Policy Statement CPS-002, Relief of the Aged that was released on July 6, 1990 (“Previous Policy”). This Bulletin provides an overview of the new Guidance.
The new Guidance provides a much needed and helpful update on the Previous Policy, clarifying what CRA considers charitable for Canadian charities serving the aged. For example, almost half of the Previous Policy (paragraphs 9 to 15) are in relation to the provision of housing for the aged, which are now superseded by CRA’s guidance entitled: Housing and Charitable Registration (CG-022) dealing with charities that provide housing to their beneficiaries.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 396.