September 09, 2009

CRA provides commentary on Gifts to Certain Charitable Organizations Outside Canada and IC84-3R5

CRA has provided some more detail on how organizations are included in Attachment to IC84-3R5, Gifts to Certain Charitable Organizations Outside Canada.  There are only about 5 organizations left on the list and perhaps this policy commentary will encourage the Canadian government, and especially CIDA and DFAIT, to consider adding a few more foreign charities to the list.

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September 03, 2009

The Nonprofit Starvation Cycle in Stanford Social Innovation Review

This article entitled The Nonprofit Starvation Cycle at http://www.ssireview.org/articles/entry/the_nonprofit_starvation_cycle/ discusses “overhead” or “indirect expenses” and how various factors play in to charities not investing enough in infrastructure which results in less efficient organizations that cannot effectively serve their beneficiaries.  About a year ago I wrote an article encouraging Canadian charities to spend more on “overhead” and that article is at: http://www.globalphilanthropy.ca/index.php/blog/comments/how_much_should_canadian_charity_spend_on_overhead/

September 02, 2009

Canadian charities and holding shares of subsidiary corporation carrying on business

This CRA letter deals with “whether a charity’s status is at risk where the charity holds shares of a subsidiary corporation carrying on a business involving rental and sale of real estate”

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September 01, 2009

Canadian charities and intermediate sanctions by the Canada Revenue Agency

It used to be that if a registered charity was non-compliant CRA either revoked the charity or could do little about the non-compliance.  The times have changed.  With the introduction of “intermediate sanctions” CRA now has lots more flexibility in how it deals with non-compliance.  For example if you issue a receipt that contains false information CRA can fine the charity 125% on the eligible amount stated on the receipt.  If a Canadian charity working with a foreign charity (or other non-qualified donee) does not maintain direction and control over transfers of funds and resources then such behaviour can land a charity with a 105%-$110% penalty on the amount of the transfer.  Ouch!.

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