Prevention and relief of poverty.

• Date: 01 September 2016
• Author: Broder, Peter

A couple of years ago, the refusal of the Canada Revenue Agency (CRA) to allow Oxfam Canada to include prevention of poverty in its objects if it wanted to retain its status as a registered charity drew widespread press attention. The CRA took the position that relief or alleviation of poverty was a recognized charitable purpose, but that prevention of poverty was not.

Last June the Federal Court of Appeal (FCA) upheld that position in Credit Counselling Service of Atlantic Canada v. Minister of National Revenue. That case concerned the work of a group that provided research and education on credit-related concerns, as well as professional financial and debt counselling services. The counselling services were available to the clients without evaluation of their financial circumstances, so potentially assisted people in avoiding rather than escaping poverty.

The decision is clear authority for the proposition that prevention of poverty is currently not a recognized charitable purpose in Canada, and thus cannot be stated as the (primary) purpose of an entity eligible for registration. With respect, however, the decision provides little clarity on some essential aspects of charity law in addressing poverty. No...