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AFP submits related business comments to the CCRA

(Oct. 30, 2002) AFP has submitted formal comments to the Canada Customs and Revenue Agency (CCRA) regarding its guidelines on related business. These guidelines relate to when and how charities are able to operate for-profit businesses not directly related to their charitable mission.

Under the current guidelines, in order for a business to be considered 'related,' it must be both linked and subordinate to a charity's purpose and mission. AFP is asking the CCRA to revise its guidelines, eliminate the focus on linkage (which AFP believes to be an unfair and unworkable) concept, and focus on subordination. AFP is recommending that any business should be considered 'related' if it is subordinate to the charity's purpose and all profit from the business be directed towards fulfilling the charity's mission.

A copy of the comments can be found under Attachments below. If you have any questions, please contact the AFP Public Affairs Department at paffairs@afpnet.org or (800) 666-3863.

Attachments

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