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Obligations of Charities

Registered Charities have legal obligations they must meet to keep their status as registered charities. These obligations ensure that charities are using their resources to do charitable work.

The main obligations of a charity are to...

  • file the Registered Charity Information Return within 6 months of their fiscal year-end
  • use all its resources (money, people, property) for its charitable purposes and activities
  • control and direct the use of all of its resources
  • meet its annual spending requirement
  • keep adequate books and records and make them available to the Charities Directorate on request
  • issue complete and accurate donation receipts for all donations
  • maintain its status as a legal entity
  • inform the Charities Directorate of changes to the way the charity operates or its legal structure

Charity Information Return

Charities must complete and file an Information Return every year. This provides the Charities Directorate with financial and other information about the charity's activities in the past year.

Spending Requirements for Charities

Charities have to spend their resources mainly on charitable activities with some for administration. If a charity has property that is not being used for one of these activities a % of the value of that property must be spent each year on charitable activities or administration.

Books & Records for Charities

Charities are required by law to keep a number of books and records and safeguard those books and records against loss or destruction.

Donation Receipts

If a charity is going to issue a donation receipt for a gift that are certain rules that need to followed about how the valuer of the gift is determined and certain information required on the reciept itself.

Monitoring Charities

The Charities Directorate monitors charities to make sure they are living up to their obligations. There are financial and other consequences if a charity does not fulfill its obligations.

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