The Canada Revenue Agency (CRA) has issued a new guidance on Community Economic Development Activities and Charitable Registration, replacing the previous guidance in 1999. The guidance explains that the law in Canada does not recognize community economic development (CED) as a charitable purpose. However, activities related to CED may be charitable when they directly further a charitable purpose and organizations that carry out CED activities may be eligible for charitable registration under the Income Tax Act. Generally, CED activities involve improving local economic opportunities and social conditions. The guidance explains that CED activities generally fall into five areas:
- activities that relieve unemployment;
- grants and loans;
- program-related investments;
- social businesses for individuals with
- community land trusts.
Further description and details of activities are described in the guidance, along with definitions for social finance and social enterprise.