role in combating the financing of terrorism in support of the Charities Registration (Security Information) Act. Advantages of registered charity status There are many advantages of being a registered charity under the Income Tax Act including: being able to issue "official donation receipts" for gifts to the registered charity which may assist a Canadian donor in reducing the amount of federal and provincial tax payable. For a donor in a high marginal tax rate in Canada, their donation can result in a reduction in taxes of between 40-60% of the donation depending on the province of the taxpayer and type of property donated. it is easier to receive funds from certain entities such as other Canadian registered charities (e.g. foundations) or being a registered charity may be a condition of applying for grants from business or government etc. there are reputational advantages to being a registered charity. other advantages including reductions in property tax, exemptions and rebates under the GST/HST system. In light of the substantial advantages of being a registered charity there are some restrictions, limitations and obligations of being a registered charity which are discussed below. Basic requirements for maintaining registered charity status in Canada In order to maintain their status under the Income Tax Act, charities must comply with basic requirements on: Maintaining charitable registration Engaging in allowable activities Keeping adequate books and records Issuing complete and accurate donation receipts Meeting the disbursement quota Filing the annual information return Maintaining the charity's legal status Changing the charity's mode of operation or legal structure Obligations and entitlements relating to GST Avoiding terrorist abuse Strengthening of regulatory powers Effective January 2012, the Income Tax Act was amended to provide that charities and registered Canadian amateur athletic associations ("RCAAAs") may have their registration refused or revoked, or be suspended from issuing official donation receipts, if an "ineligible individual" acts as a member of the board of directors, a trustee, officer or like official, or controls or manages the operation of the organization. An "ineligible individual" is someone who: has been found guilty of a relevant criminal offence for which the individual has not received a pardon; has been found guilty of a relevant offence within the last five years; was a director, trustee or like official of a charity or association during a period in which the charity was engaged in conduct that constituted a serious breach of the requirements