July 08, 2010
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 documents 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 transfered and/or revocation of charitable status.
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July 07, 2010
Here is a sample contractor agreement for a Canadian registered charity conducting foreign activities. One of the elements of having direction and control for a foreign intermediary is to have a written agreement. Therefore it is important that charities have such a written agreement.
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The CRA has just released a revised version of their document “Donations to Prescribed Universities Outside Canada”. It has helpful information for foreign universities interested in being designated a “prescribed university”. Although this document just hints at it - it is vitally important that these prescribed foreign universities strictly follow the Canadian rules dealing with providing an official donation receipt for a “gift”. Failure to do so could result in your donor not getting the Canadian tax benefits they had hoped for. As well prescribed universities can be removed from the list and if that happens it is unlikely they will ever be recommended for return. I have prepared webinars and presentations on the subject if you are interested and if you want a basic webinar on appropriate receipting you can find it at: http://www.capacitybuilders.ca/clip/clip.php
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July 04, 2010
Here is the Blumbergs Canadian Charity Law List - June 2010 -if you would like to be on our mailing list you can do so at: http://www.globalphilanthropy.ca/index.php/pages/subscribe/ If you find the information useful please forward to friends. There is no charge and you will receive about 1 e-mail per month or two.
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July 01, 2010
Here is a note by Wayne D. Gray and Lydia Wakulowsky of McMillan on Bill 65, the Ontario Not-for-Profit Corporations Act, 2010. It provides a short summary of the legislation.
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