Under the Taxation Act, registered charities (This link will open a new window) and other donees are required to:
- file an information return
- spend, before the end of the subsequent taxation year, a minimum amount known as the disbursement quota, if it received gifts from another organization with the same fiscal status and with which it is not dealing at arm’s length (This link will open a new window)
- keep adequate registers, including all official receipts issued to donors, and retain them for audit purposes.
Sanctions may be imposed on organizations that do not meet their obligations.