I wrote to the BC Financial Services Authority on May 4, 2020, asking for some clarifications relating to their Information Bulletin entitled “Charitable Donation of Life Insurance Policies in British Columbia” which we covered here. On May 8, 2020, they responded to my questions. Here are the questions and their responses.
1) What is a bona fide charity? I assume this is something other than a registered charity. In other words not all registered charities are bona fide? Do you have any indicators of what is not a bona fide charity?
BCFSA is not in the position to provide a legal definition as to what are bona fide charities or define a legitimate charitable organization as we do not regulate charities. Our mandate is to administer the Insurance Act (IA) and the Financial Institutions Act. As explained in the bulletin, BCFSA supports legitimate charitable giving activities so donating and accepting insurance policies as a result of proper estate or financial planning is considered acceptable
2) Can you give some examples of inappropriate activities that charities should avoid?
Section 152 of the IA is in place to protect vulnerable policyholders in difficult circumstances from exploitation by unscrupulous parties. If there is evidence that supports a breach, we will review and consider specific circumstances on an individual basis.
3) What you mean by “practices harmful to the public”?
An example of activity or practice that is harmful to the public may include, but is not limited to, the use of artificial charities to exploit a vulnerable policyholder, leaving them uninsured and at risk of being denied for insurance in the future.
Related Posts
January 14, 2021
Going the Extra Mile: The Liability of Foreignness in U.S. Foundation International Grantmaking to Local NGOs
I recently ran across a very good article entitled: "Going the Extra Mile: The Liability of Foreignness in U.S. Foundation International Grantmaking…
January 13, 2021
Blackbaud’s “Tax Receipting and the Top Compliance Issues for Canadian Charities” delivered by Mark Blumberg
Mark Blumberg will be delivering a webinar for Blackbaud on "Tax Receipting and the Top Compliance Issues for Canadian Charities". Here is further…
January 2, 2021
La Presse Inc. is first registered journalism organization registered under new category of qualified donee
La Presse Inc. is now the first registered journalism organization registered under new category of qualified donee. You can see it listed here. As…