We assist Canadian charities, their staff and boards of directors, to understand their legal and ethical obligations when operating a Canadian registered charity and provide insights and information to non-Canadian charities interested in operating or fundraising in Canada.
The charitable sector in Canada has become more challenging. It is highly competitive with over 86,000 Canadian registered charities. As well donors, regulators, media, the public as well as other stakeholders, have increasingly high expectations of charities and how they operate. We assist charities in Canada grapple with these important legal and standards issues.
The Chartered Professional Accountants of Canada (CPA Canada) have released today a booklet entitled 20 Questions Directors of Not-for-Profit Organizations Should Ask about Mergers. It is written by Andrea Cohen Barrack, CEO of the Ontario Trillium Foundation (OTF), Canada’s largest granting foundation, and Mark Blumberg, a charity lawyer and partner at Blumberg Segal LLP and editor of www.globalphilanthropy.ca, www.canadiancharitylaw.ca, smartgiving.ca and charitydata.ca
In a 44 page cost decision Pizzitelli J. discusses how much costs should be given to CRA (the Respondent) with respect to the abusive charity gifting tax scheme, GLGI, that he had previously provided a judgment in. The hearings on the case were over 25 days - certainly quite a thorough vetting of the issues. You can read the full GLGI cost decision here. Pizzitelli J. notes:
"While I appreciate the Promoter may bear the direct responsibility for the sham it has perpetrated on the Appellants and the Canadian public at large and benefited to the extent of millions of dollars in cash contributions, the Appellants and Bound Appellants did blindly or willingly jump on the Program train in expectation of receiving a net cash advantage from their donation. As I indicated in paragraph 88 of my Reasons in this matter: ..When otherwise good people turn a blind eye to the obvious reality surrounding them, they cannot lay blame on others for the consequences that follow from the fraud or sham of others. They certainly should not expect the Canadian public to fund their losses. Accordingly, I am not prepared to limit liability for costs solely to the Promoter as requested by the Appellants and Bound Appellants."
The Canadian Charity Law Association is delivering some upcoming webinars. Registration is free but space is limited.
Here is the Blumbergs' Submission to Finance Committee in August 2016 on transparency and accountability.
The Charities Directorate of the Canada Revenue Agency ('CRA') recently developed an infographic to help charities remember their T3010 filing deadlines. CRA is in the process of introducing new and different ways to encourage voluntary compliance for Canadian registered charities. The T3010 is an annual filing that must be completed annually by registered charities within six months of the charity's fiscal year end.
In May 2016 we found out that Cathy Hawara, the Director General of the Charities Directorate, had received a promotion and become the Deputy Assistant Commissioner of the Legislative Policy and Regulatory Affairs Branch of the CRA. Cathy had been Director General of the Charities Directorate for approximately six years.