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Question.

How does an organization become a charity?

Answer.

An organization can become a charity by applying for status as a registered Canadian charity. The detailed requirements are set out in the rules of the Income Tax Act. The process is started by sending in form T2050 and the information which that form requires. The most important information is a statement of activities and a budget or statement setting out how the activities are to be achieved in the first year of operations.


 

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