First Reference company logo

Inside Internal Controls

News and discussion on implementing risk management

machine cogs image

Charities

The charities and the Canada Elections Act amendments series

Two major changes to the field of political participation received royal assent on December 13th, 2018: changes to the charities’ political activities rules in the Income Tax Act, and changes to the Canada Elections Act.

 

, , ,

Changes in Ontario to director remuneration

The new provisions of Ontario Regulation 112/18 that amends O. Reg. 4/01 (Approved Acts of Executors and Trustees) under the Charities Accounting Act modify the existing Ontario common law rule that prohibited a charity from making payments to a director (or any person related to him/her) for any reason (other than reimbursement of expenses) without first obtaining a court order.

 

, , ,

Cy-près distributions: Uses and controversies

Cy-près distributions disburse settlement funds or damages awards to charities or other public interest organizations in circumstances where it is impractical to distribute the funds to class members.

 

, , ,

Implement effective governance practices in not-for-profits

There are increasing pressures on not-for-profit boards to implement effective governance practices. The growth in the sector and the increase in financial, cybersecurity, and other risk factors have fuelled pressures on not-for-profits to be more accountable to its members, donors and other stakeholders.

 

, , , , , , , , ,

No good deed goes unpunished

Fundamentally, charities are actors in society as are any others. We all have a duty of care to some degree to our neighbors. Indeed, generally the closer the relationship the higher the standard of care one expects. Consequently, charities need to be aware that even in the pursuit of charitable activities, they could be liable if their activities do not take into account the safety and the potential damage of their actions to either their beneficiaries or to their patron donors.

 

, , , , , ,

Ontario court strikes down limits on non-partisan political advocacy by charities

An Ontario court decision rendered on July 16th may completely change the rules about political advocacy by Canadian charities. The decision struck down the law limiting a charity’s non-partisan political activities. This affects every Canadian charity hoping to get public support for policies relevant to its charitable purposes and activities.

 

, , , ,

Upcoming deadlines and changes for charities and other not-for-profits

Charities and not-for-profit organizations need to be aware of some upcoming changes to rules and laws.

 

, , , ,

Charity checklist: What to do if your charity is audited

The best defence against negative audit consequences is proactive compliance with the Income Tax Act. Charities should take care to familiarize themselves with the rules in the Act and ensure that they demonstrate compliance with these rules.

 

, , ,

30 months in jail for facilitating false donation tax scheme

While donors to fraudulent donation schemes may not be morally innocent, their culpability does not reach the level of the promoters of these schemes. It is refreshing to see the CRA prosecuting those responsible, rather than merely reassessing and penalizing taxpayers.

 

, , ,

Wine(ing) about donations

A recently released decision of the Tax Court of Canada illustrates some of the problems in donating gifts in kind and their valuation.

 

, , , ,

Legal issues for charities and NPOs on social media networks

It is recommended that an organization implement policies and procedures that minimize the legal risks associated with using social media. This includes training protocols to educate volunteers and employees on these risks.

 

, , , , , , ,

Forewarned is forearmed: Questions you should ask before joining a board of directors

Serving as a director of a charity or NPO can be an enriching and exhilarating experience. Many Canadians contribute to the betterment of their community by the hours volunteered when serving on a board of directors. However, there are some things to watch out for before joining a charity’s board of directors.

 

, , , , , , , ,

Back to school: A new world for foreign universities

The system of rules imposed on registered charities are complex and are imposed both on the collection of revenue and its spending. In theory, all of these rules now apply to foreign universities.

 

, , , , , , , ,

Back to school: A new world for foreign universities

The system of rules imposed on registered charities are complex and are imposed both on the collection of revenue and its spending. In theory, all of these rules now apply to foreign universities.

 

, , , , , , , , , , ,

Senate of Canada to study charitable sector

On January 30th, 2018, the Senate of Canada passed a motion to appoint a Special Committee of the Senate to review issues related to the charitable sector in Canada. The Senate confirmed that the Committee’s general mandate will be to examine “the impact of federal and provincial laws governing charities, non-profit organizations, foundations, and other similar groups, and to examine the impact of the voluntary sector in Canada.”

 

, , , , ,

Previous Posts