Today the Ministry of Health and Long-Term Care issued a Directive on Hospital Naming. Hospitals in Ontario will want to review the Directive carefully. Also here is the Hospital Naming Approval Process. Thanks to Ken Mayhew, Government Relations Liaison of AFP Canada for forwarding the documents.
[UPDATED RECEIPTING KIT 2018] We have just released our updated Blumbergs' Receipting Kit 2017. The Blumbergs' Receipting Kit 2017 is for Canadian registered charities and other qualified donees who wish to issue official donation receipts under the Income Tax Act (Canada), which are sometimes referred to as "tax receipts". It has a general description of how receipting should be conducted and then copies of documents and resources from the CRA and elsewhere that relate to receipting.
Mark Blumberg will be delivering two upcoming Chartered Professional Accountants of Ontario (CPA Ontario) charity programs: Charity Fundraising and Receipting Rules - A Primer for Accountants and T3010 and Transparency in the Charitable Sector.
There were supposed to be 2 important changes taking place on July 1, 2017 with Canada’s anti-spam legislation (CASL).
Mark will be presenting to the AFP GTA Congress on November 20-22, 2017 on "T3010 and Transparency in the Charitable Sector".
The recent decision of Ploughman v. The Queen, 2017 TCC 64 deals with a "third-party civil penalty" against Mr. Ploughman for his involvement in what CRA refers to as "abusive charity gifting tax shelter" but this decision refers to as a "donation program". The court dealt with an appeal of the assessment of the third-party civil penalty and rejected Mr. Ploughman's appeal.
On the CRA database it has become apparent that CRA has recently revoked the charitable status of two religious organizations that conduct significant foreign activities. We have put in a request to CRA for information on why they were revoked. Unfortunately under the current rules even if CRA is aware of a problem with a charity it can only advise the public AFTER formal revocation has taken place. So the details available at this point are very sparse.
Canada has a mechanism to recognize certain foreign universities for purposes of donations. It is probably the most generous tax incentive system of any country in the world. Essentially if you are a degree granting university outside of Canada and you have 2 Canadian students generally studying at your university/college then you can apply to get on a list maintained by the Canada Revenue Agency. Once you are on the list you are considered to be a "qualified donee". That means you can issue Canadian official donation receipts under the Income Tax Act (Canada). WIth such status a Canadian who donates to your prescibed foreign university obtains the same benefits - of between 40 - 70% as if they had donated to a Canadian university.
We have just released our Blumbergs' Canadian Charity Sector Snapshot 2015. Lots of interesting statistics and information on the Canadian charity sector. As well if you want information on individual charities or want to sort charities based on about 20 criteria checkout our charity data site at www.charitydata.ca.
The Vancouver Sun is reporting that North Shore Rescue is suing the Search and Rescue Society of B.C. over allegations that the latter groups has been using the name of the North Shore Rescue to raise money. It will be interesting to see what happens with the lawsuit. Here is the article "Charity denies wrongdoing in lawsuit over search-and-rescue fundraising". There is also a CBC article entitled "SARBC 'extremely shocked' over North Shore Rescue fundraising lawsuit".
The Federal Trade Commission (FTC) and National Association of State Charities Officials (NASCO) are organizing a conference called "Give & Take: Consumers, Contributions, and Charity" on Tuesday March 21, 2017. It will be in Washington but it will be live streamed for free for those who are interested. The live link will be available on the day of the conference.
The CRA has added a page on cause-related marketing page to the receipting part of their website. The CRA seems largely concerned that in some cases no official donation receipt should be issued when there is a cause related marketing arrangement between a Canadian charity and a for-profit company.
In August 2016 we launched a website to improve transparency on Canadian registered charities. It is at www.charitydata.ca We have just made a number of improvements to the website.
The CRA released a report today entitled Report on the Charities Program. It has lots of useful information on the charity sector, regulation of charities, statistics relating to the Charities Directorate and various new developments.
We are proud to present the Blumbergs’ Snapshot of the Ontario Charity Sector 2014. The data subset used is the CRA's 2014 T3010 data but only for registered charities based in Ontario.
Here is our article "Total revenue received from all sources outside Canada by Canadian Registered Charities in 2014". It provides a list of Canadian charities that received foreign income in their 2014 fiscal year. Foreign income for Canadian charities has risen to $1.8 billion - making it an important and growing source of revenue for Canadian charities.
The Federal Court of Appeal has dismissed an appeal from the Opportunities for the Disabled Foundation v. The Queen (FCA).
Many non-profits and charities are not aware of the charitable fundraising regulations in Alberta. If a non-profit or charity is fundraising in Alberta and meets specific criteria under the Charitable Fundraising Act (the 'Act'), it may need to be registered. Generally, if a Canadian non-profit or charity intends to raise or raises more than $25,000 in Alberta from individuals in a financial year then the non-profit or charity would need to register under the Act.
The Excise and GST/HST Rulings Directorate of the CRA released a ruling in October 2015 which discusses the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to a charity event.
[LINK TO UPDATED ARTICLE] Here is an article by Kate Robertson and Mark Blumberg on "Foreign Universities Applying for Prescribed University Status in Canada". It may be helpful for foreign universities that are looking to fundraise in Canada.
I will be presenting a webinar for Charity Village on January 28, 2016 on Top 20 Compliance Issues for Canadian Charities.
I recently contacted Industry Canada and they advised that as at December 18, 2015 there were 19,997 not-for-profit corporations under Canada Not-for-profit Corporations Act (“CNCA”) . The figure includes new incorporations, continuances from the CCA and continuances from other acts/jurisdictions. The number of continuance have slowed down with less than 50 per month being submitted to Industry Canada. The number of continuances to the CNCA was 12,525 as at December 5, 2015. There are also 3,163 not-for-profit corporations still under the Canada Corporations Act (“CCA”)
There has been a large amount of scrutiny of fundraising practices in the UK over the last number of years and especially the last few months. The Charity Commission of England and Wales has published new draft guidance "which states more clearly than ever that trustees must take responsibility for the fundraising undertaken by their charities."
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.