What is an ineligible individual under CRA rules and can they still serve on a charity's board?

An "ineligible individual" is a Canada Revenue Agency concept under the Income Tax Act that generally captures someone who has been convicted of a relevant criminal offence — such as one involving fraud or financial dishonesty — or who was a director, officer, or otherwise controlled a charity (or similar organization) whose registration was revoked for serious cause, or suspended, within a set period. The concept exists to give CRA a tool to keep people with a documented history of relevant wrongdoing away from controlling a charity's governance.

Having an ineligible individual involved does not automatically disqualify that person from ever serving on any board as a matter of general law, but it gives CRA discretion to refuse to register a new charity, or to suspend or revoke the registration of an existing one, where an ineligible individual is a director, officer, or otherwise in a position of control.

Because this determination affects the charity's own registration, not just the individual, boards should be cautious when recruiting anyone with a relevant history and should ask candid questions during recruitment rather than discovering the issue later during a CRA review or audit.