Fact Sheet

Designation as a national arts service organization and as a registered national arts service organization

A. Introduction

Designation by the Minister of Canadian Heritage constitutes recognition that a nonprofit organization is considered a national arts service organization by the Government of Canada.

Registration by the Minister of National Revenue enhances the designation by permitting organizations to issue official donation receipts with the same benefits as registered charitable organizations.

Registered National Arts Service Organizations must fulfil a number of obligations under the Income Tax Act which are outlined in this document.

B. Eligibility Criteria for Designation

  1. Status – Non-profit organization

  2. Purpose – The promotion of the arts on a nation-wide basis through activities such as sponsoring arts exhibitions or performances, conducting workshops and development programs relating to the arts, or organizing and sponsoring conferences, competitions and special arts events.

  3. Membership – The organization must demonstrate that it represents in one or both official languages of Canada, the community of artists in one or more recognized sectors of the arts.

C. Eligibility Criteria for Registration

The organization must meet all other criteria applicable to registered charitable organizations.

D. Process

Recognition as a registered national arts service organization is a two-step process:

  1. designation by the Minister of Canadian Heritage as a national arts service organization, and;
  2. registration by the Minister of National Revenue.

However, organizations need only to apply to the Minister of Canadian Heritage. Once the organization qualifies for designation, the Minister of Canadian Heritage will inform the organization and forward the necessary documentation to Revenue Canada, Taxation, for consideration. The Minister of National Revenue will inform the organization whether or nor it meets the criteria for registration. It is the registration as a national arts services organization that allows the organization to issue receipts for gifts received which provides the donor with a tax credit in the case of an individual, or reduction of taxable income on the case of a corporate donor. Registration also exempts the organization from paying income under Part 1 of the Income Tax Act.

E. Designation and Registration

Prior to making a final decision not to designate or register the organization, the relevant department will send a letter to the applicant explaining why it will likely not qualify. The organization has 60 days from the date of the letter to make further submissions before a final decision is made.

A refusal by the Department of Canadian Heritage to designate your organization as a national arts service organization is not subject to appeal under the Income Tax Act. However, your organization could invoke "judicial review". In the case where your organization is so designated, but Revenue Canada, Taxation decides not to register it, you may appeal the refusal to register by filing a Notice to Appeal with the Federal Court of Appeal.

F. Revocation of Designation and Registration

Designation and/or registration can be revoked. If it appears that there are ground for taking such action, the relevant department will send a letter to the organization explaining why it appears that the organization's designation or registration may seemingly be revoked, and the organization has 60 days from the date of the letter to make submissions. If the organization does not respond or fails to satisfy the relevant department's concerns within that period, it may be informed by registered mail of the department's final decision and the reasons why the designation or registration is being revoked.

If the Department of Canadian Heritage decides to revoke an organization's designation, such a decision is not subject to appeal under the Income Tax Act. However, an organization could resort to "judicial review". If Revenue Canada, Taxation decides to revoke its registration, the organization may appeal to the Federal Court of Appeal within 30 days of the final decision.

G. Registered Charity and Registered National Arts Service Organization

An organization cannot be registered as both a charity and a registered national arts service organization at the same time. Organizations currently registered as charities who wish to become registered national arts service organizations must apply for this new status to the Department of Canadian Heritage. Organizations should include a letter addressed to Revenue Canada, Taxation requesting voluntary revocation of their charitable status should they meet the requirements of a registered national arts service organization.

After designation, and if the organization meets the criteria for registered national arts service organization status, Revenue Canada, Taxation, will revoke the organization's charitable status and simultaneously register it as a registered national arts service organization.