Maintaining Charitable Status and Filing T3010 2025 — How to Stay Compl

In 2025, CRA continues to strictly regulate the distinction between charitable and political activities. While charities may advocate for causes, political involvement remains limited to non-partisan education and policy dialogue. Crossing the line can lead to suspension or revocation of charitable status. Mackisen CPA Auditors Montreal helps organizations maintain compliance while effectively promoting their missions within CRA’s guidelines.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 149.1(6.2): Defines acceptable public policy dialogue and development activities (PPDDAs) for charities.
CRA Policy CPS-022: Establishes limits on political activities and guidelines for non-partisan advocacy.
Charities Registration (Security Information) Act: Grants CRA authority to revoke status for violations of political neutrality.
Taxation Act (Quebec) Section 1000: Mirrors federal compliance requirements for provincially registered charities.
CRA T3010 Schedule 7: Requires annual disclosure of PPDDAs and political expenditures.

Key Court Decisions

Canada Without Poverty v. Canada (2018): Recognized charities’ right to engage in limited advocacy aligned with their charitable objectives.
Environmental Defence v. The Queen (2020): Affirmed that policy dialogue is acceptable when it educates the public rather than promotes partisanship.
Right Now v. Canada (2019): Confirmed CRA’s power to suspend charities for partisan activity, even on social media.

Why CRA Targets Political Activity

CRA audits charities to ensure resources are not diverted to partisan purposes. Triggers include social media posts endorsing candidates, lobbying activities without registration, and unreported advocacy spending. Mackisen reviews communication policies and disclosures to safeguard against CRA misinterpretation.

Mackisen’s Strategy

1. Activity Audit — Review all communications, partnerships, and expenditures for political neutrality.

2. Policy Development — Draft CRA-compliant advocacy and public policy policies.

3. Recordkeeping — Maintain detailed logs of PPDDAs for CRA reporting.

4. T3010 Compliance — Report advocacy expenditures accurately on annual filings.

5. CRA Representation — Manage correspondence during audits or compliance reviews.

Real Client Experience

A Montreal environmental charity was flagged for partisan posts. Mackisen implemented a communication review system and retained full charitable status. A Quebec education foundation under CRA review for advocacy spending passed compliance after Mackisen clarified PPDDAs within their filings.

Common Questions

Can charities support political parties? No, any partisan activity is prohibited.
Can we lobby for legislation? Yes, if the activity educates and aligns with charitable purposes.
What happens if we cross the line? CRA may suspend or revoke charitable status.

Why Mackisen

Mackisen CPA Auditors Montreal ensure charities remain compliant while engaging effectively in public advocacy. Our experts monitor activity, prepare filings, and train boards on CRA-compliant communication. Call Mackisen CPA Auditors Montreal today for your 2025 Charity Compliance Consultation. The first meeting is free and designed to protect your organization’s reputation and status.