27 November 2011 CTF National Conference CTF Roundtable, 2011-0426111C6 - 2011 CTF Question re NPOs -- summary under Paragraph 149(1)(l)

In the course of answering questions pertaining to CRA's Non-Profit Organization Risk Identification Project, comprising the random auditing over three years of 1440 of the 39,000 entities claiming NPO status and possible legislative recommendations, CRA was asked about the treatment of events connected to an NPO's not-for-profit activities where the event itself generates a profit:

Whether profit is incidental depends on the amount involved and the scope and nature of the activities compared to the operations of the organization as a whole.

The amount of the profit, both in absolute dollars and especially relative to the organization's other revenues and expenses, is relevant.

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