As discussed on this blog there were a large number of provisions in the June 6, 2011 Canadian Federal budget that will affect charities and other qualified donees and the CRA has placed some information on their website to help those who wish to understand the budget provisions.  Finance and CRA are looking for comments and suggestions on the budget provisions.

“Message from the Director General

Budget 2011 – Changes for registered charities and other qualified donees

The 2011 federal budget, presented by the Minister of Finance on June 6, 2011, proposes several measures affecting registered charities and other qualified donees. The measures are intended to enhance accountability and transparency, as well as to curb potentially abusive arrangements and practices.

Specifically, the budget proposes to apply many of the existing registered charity rules to registered Canadian amateur athletic associations (RCAAAs). It also proposes new eligibility requirements for individuals who are directors or who control or manage registered charities and RCAAAs. In addition, certain other qualified donees will be subject to new record-keeping requirements, and there are rule changes affecting particular types of gifts. Finally, the Department of Finance Canada has also announced that it will be consulting on a budget proposal to change the definition of an RCAAA. Anyone interested in providing feedback on the proposed definition change has until August 31, 2011, to do so. Comments can be submitted to the Department of Finance Canada.

The rule changes affecting particular types of gifts are applicable after March 21, 2011. The remaining measures will come into effect on or after the later of January 1, 2012, and the date the implementing legislation receives royal assent. Complete details on all of the proposals can be found at www.budget.gc.ca.

The Charities Directorate will respond to these changes as quickly as possible. Our Client Services Section is ready to answer questions about the new measures and can be reached at 1-800-267-2384. In addition, questions and answers on the new proposed measures have now been posted on our Charities and Giving Web pages, and more information will be provided as it becomes available.

Finally, I invite you to direct any specific comments relating to the new measures to Reforme_2011_Reform@cra-arc.gc.ca. Your input will help us develop future guidance products.

Please continue to check the Charities and Giving Web pages for updates.

Cathy Hawara
Director General
Charities Directorate”

The frequently asked questions are located at http://www.cra-arc.gc.ca/gncy/bdgt/2011/qa20-eng.html