Articles

Canadians are increasingly asking “How Much Should A Canadian Charity Spend on Overhead?”  Is this the right question?

89% of charities issue inappropriate receipts according to statistics from the CRA when they audit charities.  Other than non-filing the T3010 this is the greatest reason that charities face revocation.  Here is my paper that I delivered to the Ontario Bar Association (OBA) Institute 2011 entitled Top Receipting Concerns for Canadian Registered Charities. 

Here is a revised version of the Canadian Charity Law Checklist by Mark Blumberg.  In addition to reminding charities of questions to ask, it also provides links to relevant resources.

CRA has just released a new guidance called “Canadian Registered Charities Carrying out Activities Outside Canada”.  http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/tsd-cnd-eng.html  Although the name indicates “foreign activities” this document deals with a lot more than foreign activities.  It covers the relationship between a Canadian charity and any non-qualified donee, whether in Canada or abroad.  If a Canadian charity has dealing with, for example, a non-profit that does not have charitable status then the same rules apply as a Canadian charity dealing with a foreign entity.  Essentially, almost all organizations outside of Canada are non-qualified donees.  If you are going to transfer resources to them you need to maintain “direction and control” over those resources.  This document helps a Canadian charity understand what is required for direction and control. Failure to maintain direction and control can result in a 105% penalty of the amount transferred and/or revocation of charitable status.

In this article I discuss how Canadian charities can work with other Canadian or International Organizations that are not registered Canadian charities as long as they maintain direction and control of the Canadian resources.

So much is written about legal issues relating to charities in Canada. In this article I try to distill the ten most important things you need to know about charity law in Canada.

The title is self-explanatory.  CRA’s website is a valuable resource for anyone involved with charities.  As a charity lawyer I am at the website daily and encourage others to make use of the material and information.

Charities, by virtue of their reputation and access to resources, in some cases make a tempting target for terrorists who are trying to acquire funds and/or legitimacy. Canadian charities need to be diligent in ensuring that their resources are used appropriately and not diverted to non-charitable uses, including terrorism. This article provides some basic guidance as to steps a Canadian charity can take to avoid having their resources misappropriated for terrorism or other inappropriate uses such as fraud.

Here is a sample contractor agreement for a Canadian registered charity conducting foreign activities I prepared it for the Capacity Builders Charity Law Information Program (CLIP) in order to assist charities with understanding what such an agreement could look like.

Canadian Charities and Foreign Activities -This article published in The Philanthropist describes the permissible structured relationships and agreements, review a number of cases dealing with Canadian charities operating abroad, and highlight some of the challenges facing Canadian charities that have foreign activities.