As a condition of charitable registration, charities are required to keep proper books and records. This requirement not only enables the Canada Revenue Agency (“CRA”) to audit charities efficiently, but it also ensures that charities are able to justify and validate the information provided on their T3010, Registered Charity Information Returns. One of the most common […]
The Ontario Ministry of Finance is proposing a new regulation under the Employer Health Tax Act, to include special Employer Health Tax rules for registered charities. The new regulation could be effective as early as January 1, 2017.
Whether it is assisting Syrian refugees to settle in Canada or helping those fleeing from floods and fires, the goodwill of the people and charities in Canada always make headlines. In times of disaster, it seems many charities want to raise money and get on the bandwagon to help those in need. Although this may be a laudable goal for charities that want to show their benevolence, sometimes it could simply get them into trouble.
As an Executive Director, there are many different areas that need your attention on a daily basis: strategic direction, fundraising, stakeholder engagement, employee and volunteer management, media relations and grant applications, just to name a few.
With all of these factors to manage, keeping up with changes in legal compliance and CRA requirements may not be perceived as a top priority. However, failing to pay attention to compliance can leave your organization vulnerable to the risk of financial penalties and have a negative impact on your reputation.
I want to highlight a couple of recent issues you may want to consider.
The deadline for registered charities (and eligible, similar entities) to submit property tax rebate applications for 2015 is the last day of February, 2016. Given the many variables that may be involved in an application, and the opportunities for early submission and therefore earlier cashflows, now is a good time to get started on rebate applications.
The Income Tax Act confers on the CRA a broad range of powers to audit Canadian taxpayers, including registered charities and not-for-profit organizations (“NPOs”). Some examples of those audit powers that have been conferred on CRA include the power to inspect books and records, as well as to compel taxpayers to respond to requests for information or obtain third-party records at CRA’s request (potentially subject to CRA having received judicial authorization for the request).
The holidays are upon us and it is time to take a well deserved break. We are signing off for 2014 with a list of the top 10 most read posts published in 2014. Although Canada’s anti-spam legislation dominated the list, accessibility, internal controls and charities were also very topical.
Typically, because charities are subject to so much regulation and not-for-profits comparatively little, most focus from the sector tends to fall on the former. However, there are changes both recent and expected that not-for-profits should be planning for.
The Ontario government passed Supporting Small Businesses Act, 2013 (formerly Bill 105). The changes mean 88 percent of private-sector employers in Ontario effective January 1, 2014, are now be exempt from paying the Employer Health Tax (also know as a payroll tax or EHT).
According to data obtained from Corporations Canada, as of September 1st, only 1,663 out of approximately 25,000 corporations have made the corporate changeover to the Canada Not-for-Profit Corporations Act . Recognizing that many of these corporations are inactive, that still leaves thousands of corporations to continue by the October 17, 2014 deadline.