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.
Many Canadian non-profit corporations don't know about the Canada Not-for-profit Corporations Act (“CNCA”) which came into force in 2011 and requires that all existing Canada Corporations Act (CCA) non-profit corporations must transition to the CNCA by October 17, 2014. Corporations that do not make the transition by the deadline will be assumed to be inactive and will be dissolved by Corporations Canada. Industry Canada has indicated that the deadline will not be extended and that they will start sending out Notice of Pending Dissolution in October of 2014.
In the Holst case the Honourable Justice Judith Woods rejected certain taxpayers alleged donations to a church. She noted:
This Thursday, Bill 85 - An Act to amend various companies statutes and to amend other statutes consequential to the Not-for-Profit Corporations Act, 2010 will enter its Second Reading by the Ontario Legislature and then be referred to a Standing Committee. This Bill, which had its first reading on June 5, 2013, proposes some amendments to the Ontario Not-for-Profit Corporations Act ("ONCA"). This Bill is similar to the earlier version. There has been a significant delay of the implementation of ONCA and passing this Bill will be an important step in moving the process forward.
CRA recently released a letter which discusses the taxation of amounts donated to a private charitable foundation by parents to assist teachers with certain costs, in particular if the parent donations result in a taxable benefit for the teachers.
CRA recently released a letter that discusses whether monthly payments from a US charitable trust paid to a former employee are taxable.
I have stopped caring about the numbers from Stats Can on charitable giving because they are so out of whack with reality. I think that the note to reader is more important than the numbers. If you would believe the Stats Can version of events Canadians are giving less. In 2011 they gave $8.5 billion and in 2012 they gave $8.3 billion which is a decline of 1.9% according to Stats Can.