As of February 27, 2016, Cloth for a Cause is no longer a registered charity. It’s been a long process to get to this point, almost as long as the process to register as a charity.
Why did we voluntarily give up our registration?
We learned that the being a charity was a road block to helping those who need our help.
The Canada Revenue Agency has strict guidelines on what is deemed a charitable activity to safeguard the interests of generous donors and ensure that donations are used in the manner intended. For Cloth for a Cause our mission is to relieve poverty by providing cloth diapers. To meet the requirements of a registered charity, we were required to ensure applicants met a monetary representation of “poverty”.
In a country as large and diverse as Canada, with extremes in differences in cost of living between areas even within provinces and territories, quantifying an income figure that represents “poverty” is extremely difficult. Asking applicants to provide proof of income continues to put us in a position that we are not comfortable continuing. We want to say “You could use a hand, here let us loan you diapers to get you going” rather make applicants feel they need to prove they need our help.
After great deliberation and careful thought, we made the decision last year to no longer be a registered charity. We will continue to be a non-profit organization and continue on with our existing goals. The main difference is we will no longer be providing a receipt for tax purposes for donations.
We have many generous past and current donors, sponsors and supporters and we look forward to continuing to work with you as we move forward making a difference, where it all begins.