The growth of activity by non-profit and charitable organizations in Canada has stimulated discussion about the best way for such groups to handle their financial affairs in the interests of transparency and public accountability. These standards help clarify financial position, operations and changes in assets, cash flow, treatment of capital assets, disclosure of contributions and their restrictions, relationships of control or influence or beneficial interest among entities. Some argue that there is little or no distinction between churches and other non-profit organizations, such as clubs and associations, and therefore should be treated in exactly the same manner. These organizations are exempt from income tax, but do not have the right to issue receipts for charitable tax credit purposes to their donors. Their rationale is that churches exist to help individual believers meet their religious and spiritual needs - an aspect of human life that is so fundamental to the dignity of the individual that the state needs to make sure conditions exist for people to practise their faith.
Exemptions serve several tax purposes, as noted above.
The exemption for different organizations may achieve any or all of the possible purposes. 1.4 Tax Compliance Tax compliance in this area has to do with churches and church bodies maintaining their charitable registration, as noted in the following section. Clarity about whose mission the project is, where control lies, and routine, good record-keeping and reporting should suffice. For a copy of the complete text contact your local United Church Book Room, Presbytery Resource Centre or the Toronto Book Room.