Summary Policy

Date
June 9, 2003

Reference Number
CSP - P12

Key Words
Profit motive - Business (related business)

To qualify for registration as a charity, an organization's governing document must include a non-profit clause that forbids the distribution of profits to its proprietors, members, shareholders, trustees or settlers, both during its lifetime and on its dissolution.

A registered charity can charge a fee for its services. Any profits derived from its services must be devoted to its charitable purposes.

• Related Business, CSP - R05.
• Alberta Institute on Mental Retardation v. Her Majesty the Queen, [1987] 3 F.C. 286.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 149.1(1).