In January 2017, the CRA released its Report on the Charities Program 2015–2016, which provides interesting insights into Canada’s charitable sector. A common thread weaving through issues related to obtaining and maintaining charitable status is the need to create, maintain, and report/file information required by the Charities Directorate and the Income Tax Act.
Many people feel that New Year’s resolutions are passé, particularly since so many resolutions go unachieved each year. But, a resolution is essentially a plan to tackle something of importance, and planning is often half the battle. The following are 4 resolutions that can help strengthen charities and other not–for–profits in 2017.
Given that many (although certainly not all) not-for-profit corporations (“NFPs”), both charitable and non-charitable, have a December year end and are preparing for their year end financial reporting, we thought it timely to provide a reminder about the financial disclosure requirements contained in their governing corporate legislation.
In September, we received a number of inquires from charities that received alarming letters from the Canada Revenue Agency’s Charities Directorate with regard to keeping their registered charity status under the Income Tax Act.
On April 22, the government of Ontario announced that it will develop a long-term plan for its partnership with the not-for-profit sector in collaboration with the Ontario Trillium Foundation.
I recently read a couple of articles dealing with the relationship between not-for-profit organizations and the Canada Revenue Agency, particularly with respect to fraudulent charitable tax receipts and what non-profits can do about accidental profits.
Now that the financial reporting standards for public companies and private enterprises have been settled, the Accounting Standards Board is turning its attention to not-for-profits. The board’s objective is to ensure that accounting standards for not-for-profit organizations “are responsive to the diverse nature of the sector, allow for comparability between the private and public sectors and provide decision-useful financial statements for the multiple and varied users of these statements.”