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YOU MAY be thinking about sending your children to camp this summer.
Many religious organizations operate summer camps, which usually include some
sporting activities. A recent policy statement from Canada Revenue Agency (CRA)
provides some indication as to whether these activities will be considered ‘charitable’ at law.
In order for an organization to qualify for charitable status, all of its
purposes must be charitable at law and it must be established for the benefit
of the public.
The purposes of the organization must fall into one or more of the following
four categories: relief of poverty; advancement of education; advancement of
religion; or other purposes beneficial to the community, that are considered
charitable at law.
Previously, the Supreme Court of Canada held that “the promotion of amateur sports involving the pursuit of fitness” did not fall under the vaguely defined fourth category of being beneficial to
the community.
The recent CRA statement, however, states that “when a recognized charitable purpose is furthered through activities that
include sport, or where sport is an incidental and ancillary activity only,
[an] organization can potentially qualify for charitable status.” This means the sporting activities must directly further an organization’s work of relieving poverty, advancing education, advancing religion or
fulfilling a beneficial purpose.
Alternatively, the sporting activities may be ancillary and incidental to the
main purpose, which means that “only a very small portion of the organization’s total resources (personnel, funds, and property) are devoted to the sport
activities in question.”
CRA gives examples of activities that may qualify as furthering a recognized
charitable purpose, for each of the four categories.
Summer camps having a sports component and operated for low-income participants
could potentially qualify under the relief of poverty category. Additionally, sports as part of an educational program can qualify under the
advancement of education category.
Under the fourth category, activities as part of a youth program for building
self-esteem or used for therapy or rehabilitation purposes, could also be
acceptable.
The policy points out that religious organizations sometimes carry out sport
activities that are ancillary and incidental to their charitable purpose of
advancing religion.
A religious camp may offer some sports in addition to the main religious
activity. For these organizations, CRA warns that, “it must be clear that the sport element has not become a collateral
non-charitable purpose.”
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But how do sporting activities become a “collateral non-charitable purpose” for religious organizations? When they do not directly further an organization’s spiritual teachings; and when they use more than a very small portion of the
organization’s personnel, funds and property.
So must religious camps suddenly stop playing sports? Not necessarily. One can
argue that teaching children sports helps them see sports and competition as
gifts from God and examples of his creation at work.
Furthermore, a full understanding of Christianity recognizes that faith ought to
apply to every area of one’s life, including sports.
Responding to these gifts with praise and thanksgiving and recognizing God’s sovereignty over all things, including sports, are valuable lessons. Teaching
them to children is really a lesson in living as Christians.
Given that courts have previously defined the advancement of religion as not
only the promotion of spiritual teachings but also “the maintenance of the spirit of the doctrines and observances upon which [they]
rest,” it is not hard to see how teaching these lessons could further the advancement
of religion.
So how does this affect your decision to send your children to summer camp? It
probably doesn’t. You will not get a charitable receipt for the camp fees, since you and your
children are receiving a benefit.
But it will affect those who run summer camps, particularly if they are, or want
to be, a registered charity able to offer charitable receipts for their
fundraising activities.
Since the promotion of sports per se is not a charitable purpose, they need to
make sure any sporting activities are used to further, or are merely ancillary
and incidental to, a recognized charitable purpose.
Written by Ian Moes, of Kuhn & Company; and Micaela Carlson, an articling student.
July 2009
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