Here is a copy of my presentation CRA’s Fundraising Guidelines –Legal, Ethical and Practical Issues A presentation to the Association of Fundraising Professionals (AFP) GTA Congress 2009 in Toronto
CRA announced that “Enhancements have been made to the Alphabetical index of topics, including the addition of summary policies (CSPs).” You can find the Alphabetical Index of Topics at http://www.cra-arc.gc.ca/chrts-gvng/chrts/a-tpcs-eng.html
An article I wrote entitled “CRA Guidance on Fundraising: AN OPPORTUNITY TO IMPROVE FUNDRAISING PRACTICES IN THE SECTOR” was published in PERSPECTIVES ON CANADIAN PHILANTHROPY by the Offord Group. The publication can be downloaded from http://www.theoffordgroup.com/
In Registered Charities Newsletter No. 24 Summer 2005 the CRA discusses the status of certain First Nations groups as qualified donees. The qualified donee status is important as organizations that are qualified donees can issue “official donation receipts”. If you have questions about whether your First Nations group is a qualified donee you can call the Charities Directorate of the CRA.
I am often asked “When should a Canadian charity not issue a “official donation receipt” (tax receipt)?” First of all Canadian charities do not have to issue tax receipts - however, if they are going to issue official donation receipts, commonly known as tax receipts, then the registered charity must ensure that it is only issuing the receipt for a “gift” and subtracting any “advantage” that the donor may receive. If in doubt call CRA or contact a charity lawyer. Here is a list of transactions that generally do not result in a tax receipt being issued.
I recently attended the Interaction Forum held in Washington, D.C. on July 6-9, 2009. The Interaction Forum is the largest gathering of US ngos involved with development. I met some very interesting people and learned quite a lot. Here are some of my learnings from the Interaction Forum ...
Valuation is complicated but don’t rely on the donor to tell you the value or use some optimistic number. If a charity provides an official donation receipt for a donation of pharmaceuticals to a donor that charity is obliged to determine the fair market value. If you can order similar pharmaceuticals internationally at 1% of the cost it is difficult legally (and perhaps unethical) to claim a far higher Canadian value or “wholesale” value in Canada. This can result in a charity losing its charitable status. You might find The International Drug Price Indicator Guide helpful http://erc.msh.org/dmpguide/index.cfm?search_cat=yes&display=yes&module=dmp&language=English&year=2008 Here is the print version of the International Drug Price Indicator Guide. http://erc.msh.org/dmpguide/pdf/DrugPriceGuide_2008_en.pdf
You can find the Nantel v. The Queen (TCC) decision in French at http://decision.tcc-cci.gc.ca/fr/2009/2009cci599/2009cci599.html According to the headnote it involved the valuation of a donation to a charity of a number of pieces of art that were bought by the donor about 10 years before the donation to a charity. CRA disputed the donors valuation and ultimately brought in their own valuator. Court had problems with two valuators brought in by the donor and court accepted the valuation by the CRA’s valuator which was approximately 1/6 of the donor’s valuators’ opinion.
After the new Canada Not-for-profit Corporations Act comes into force (probably around 2011) Canadian federal charities under the Canada Corporations Act that wish to continue existing will have a further three years to continue (essentially to covert) under the new Canada Not-for-profit Corporations Act
No. The new Canada Not-for-profit Corporations Act requires that corporations have members however the board of directors and the members can be identical as is often the case with Canadian charities.
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If you require legal advice with respect to Canadian or Ontario non-profits or charities please contact Mark Blumberg at .(JavaScript must be enabled to view this email address) or at 416-361-1982 x237 www.canadiancharitylaw.ca