Prescribed conditions of a national arts service organization

To be registered by the Canada Revenue Agency, a national arts service organization must meet the conditions listed in Regulation 8700 of the Income Tax Act. Generally, the organization must:

• be a non-profit organization;
• represent, in an official language of Canada, a community of artists from one or more of the following sectors, that is, theatre, opera, music, dance, painting, sculpture, drawing, crafts, design, photography, the literary arts, film, sound recording, and other audio-visual arts;
• make no part of its income payable to, or available for the personal benefit of, any proprietor, member, shareholder, trustee, or settler. Exceptions include payments for services rendered, or an amount in respect of a scholarship, bursaries, etc.;
• devote all of its resources to the purposes (objects) and activities described in its application for designation / registration;
• have more than 50% of its directors, trustees, officers, or other officials deal with each other at arm's length;
• have no more than 50% of its property, at any time, contributed or paid by one person or members of a group of persons who do not deal with each other at arm's length. Exceptions include:
  • Her Majesty in right of Canada, a province, or a territory;
  • a municipality;
  • a registered charity that is not a private foundation;
  • any non-profit organization; and 
• confine its activities to one or more of the activities listed in Regulation 8700 of the Income Tax Act.

Date modified:

2014-04-23