Summary Policy

Date
October 25, 2002

Reference Number
CSP - R05

Key Words
Related business

Under the Income Tax Act, charitable organizations and public foundations can carry on related businesses that accomplish or promote their charitable objects. A related business is a commercial activity (i.e., revenue-generating) that is either related to a charity's purposes, or substantially run by volunteers.

• Business, CSP-B02.
• What is a Related Business? CPS-019.
• Related Business, CPC-002.
• Related Business, CIL-1992-002, CIL-1995-009, CIL-1995-010, CIL-1996-008, CIL-1998-001, CIL-1999-021, CIL-1999-025, CIL-2000-003, CIL-2000-006, CIL-2000-015, CIL-2002-007.
• Alberta Institute on Mental Retardation v. M.N.R., [1987] F.C. 286.
• Earth Fund v. Canada (Minister of National Revenue) (2002 FCA 498), 2002-12-16 (http://www.fca-caf.gc.ca/index_e.shtml).
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 149.1(1).