On July 28, 2023, we wrote a blog Will Canadian registered charities need to file T3 forms for “express trusts” beginning next year? In that article dealing with express trusts or certain restricted gifts, we discussed how CRA had provided an administrative exception to registered charities filing the T3 when they include the assets of the express trust on their T3010.   We also discussed the lack of transparency by registered charities and how that could create issues in Canada and outside of Canada.

 

I noted in that blog:

So, the short answer to the question is that we don’t yet know what CRA’s position is. To be clear, it is not the Charities Directorate of CRA that is making this decision. I anticipate further communication from CRA on this issue over the next few months. At that point, once CRA has provided some clarity, we will know what the status of the issue is.

 

My position has not yet changed.  I am hoping that there will be some communication – preferably before the end of the year in which CRA clarifies their position.   Also possible is Finance could be more explicit in their legislation, but a CRA clarification would be just fine.

 

My advice from July 28, 2023, still stands – in summary (and not to go into all 16 points), charities need to be sure they know about all of their restricted gifts, even before focusing in on the T3 issue.   CRA needs to ask more questions on the T3010 about restricted gifts, as I have been suggesting for many years, or any resolution of this issue is only going to be temporary.

 

What I do find interesting is the degree to which the charity sector can mobilize on something that affects mainly large charities (such as the AMT changes) but is impotent when other even more important issues are facing the sector.