On August 27, 2014, CRA noted that they have the authority to refuse or revoke the registration of a Registered Charity and to suspend the Organization’s receipting privileges when an “ineligible individual” is a Board Member or controls or manages the Organization.
Generally, an individual is ineligible if he/she:
- has been convicted of an offence:
- related to financial dishonesty; or
- relevant to the operation of the organisation;
- was connected to an organisation whose registration was revoked for a serious breach of the requirements for registration. The connection was as:
- a director, trustee, officer, or like official;
- an individual in a position of management or control; or
- a promoter of a tax shelter and participating in that tax shelter caused a revocation of an organisation's registration
Action Item: Review the registered charity’s Board Members and Directors for “ineligible individuals”. On a go-forward basis, make it a policy to ask potential new Board Members and Directors if they are “ineligible individuals”.