Canada also permits a variety of charities (including public and private foundations). Charitable status is granted by the Canada Revenue Agency (CRA) upon application by a nonprofit; charities are allowed to issue income tax receipts to donors, must spend a certain percentage of their assets (including cash, investments and fixed assets) and file annual reports in order to maintain their charitable status. In determining whether an organization can become a charity, CRA applies a common law test to its stated objects and activities. These must be: COUNT 5
QSN1 Who grants a charitable status to an NPO in Canada? ANS1 Canada Revenue Agency (CRA) QSN2 What are donors to receive from a NPO? ANS2 income tax receipts QSN3 How does an NPO keep their charitable status? ANS3 file annual reports QSN4 How does the Canada Revenue Agency decide who can have a charitable status? ANS4 a common law test to its stated objects and activities QSN5 What kinds of assets must the NPO spend in order to keep it's charitable status? ANS5 cash, investments and fixed assets