Crystal Kids lost charitable status last year
Crystal Kids, an Edmonton organization that runs a drop-in centre for high-risk youth, continues to fundraise despite losing its charitable status last year.
Last November, the Canada Revenue Agency revoked the organization’s charitable status for failing to file a return for 2012.
As a result, the charity no longer qualifies for exemption from income tax as a registered charity, it cannot issue official donation receipts, and may be subject to revocation tax, the CRA says.
However, Crystal Kids has continued to hold fundraising events, such as a golf tournament and a community car and bike show.
Despite its status revocation by the CRA, Crystal Kids still maintains its charitable gaming licence, said Holly Gray with the Alberta Gaming and Liquor Commission. This means Crystal Kids can still raise funds through charity bingos, which are provincially regulated.
CRA says warnings would have been given
Bryan LaFleche, president of the board of directors, said Crystal Kids has been telling potential donors about the change in status.
However, two sponsors of a fundraiser in June weren’t aware of the issue until they were contacted by CBC News on Monday.
According to the CRA's website, registered charities are generally contacted several times if they fail to file their tax return on time.
The CRA says it sends out a computer-generated reminder to file three months after the return is due, followed by an email reminder one month later.
Seven months after the charity’s fiscal period ends, the CRA sends a notice of intention to revoke registration.
A final notice is sent out 10 months after the charity’s fiscal period ends, which sets the effective date of licence revocation.
However, LaFleche told CBC News he couldn’t understand why CRA took action, because Crystal Kids sent in the required documents.
He said he expects the issues will be resolved within the next few months, allowing the group to regain its charitable status.
He thinks the group will then be allowed to issue tax receipts for the donations it has received over the past year.
