Facebook LIKE    Twitter TWEET    Forward Forward

Canadian Charity Law List

June 2020

FEATURED

Fundamentals of Running a Canadian Charitable Organization/Operating Charity 2020 - July 10

There are almost 86,000 Canadian registered charities.  About 74,500 are “charitable organizations” that conduct their own activities whether by using volunteers, employees or intermediaries that are not charities.  Some charitable organizations even make gifts to other charities.

The COVID-19 pandemic has had a huge impact on the charity sector – including some charities having to shut down, others seeing large increases in revenue and many needing to change the way they operate.  For many charities what was fine last year is not at all adequate this year.

This program on July 10, 20020 will focus on compliance issues with an emphasis on those specifically relevant to charitable organizations that are registered charities in Canada.

It is vital that directors and staff of charitable organizations understand their legal obligations to avoid problems such as compliance agreements, penalties, revocation, and directors and officers becoming ineligible individuals.

If you register and are unable to attend you can still access the recording for 30 days after the event.

[If you are involved in running a private or public foundation you might find this other event more helpful]

This course has never been offered before and we hope that it will provide very good value for Canadian operating charities.

Read More


Fundamentals of Running a Private or Public Foundation in Canada 2020 - July 17

Private and Public Foundations are an important part of the Canadian charity sector. With the COVID-19 pandemic, there have been increasing demands on them to show flexibility and to ramp up giving.   There will probably be increased scrutiny of foundations over the next few months.

This program on July 17, 2020 will focus on compliance issues with an emphasis on those specifically relevant to running a private or public foundation that is a registered charity in Canada.  While some foundations give out a small amount each year – others are giving hundreds of millions.  Large gifts might have been $10-20 million a few years ago but are now $100 million and over.

There are over 10,000 foundations (5800 private and 5000 public) and CRA is increasingly auditing them as CRA prioritizes higher risk registered charities with higher assets and expenditures for audits.  It is vital that directors and staff of foundation understand their legal obligations to avoid problems such as compliance agreements, penalties, revocation, and directors and officers becoming ineligible individuals.

[If you are involved in running an operating charity you might find this other event more helpful]

This course was originally offered in September 2019 and it is being offered for the first time online here.

Read More


Some compliance trends or task over the next 6 months for Canadian registered charities

Here are a number of trends or compliance suggestions for charities over the next six months.

Read More


New course on restricted gifts in Canada by Mark Blumberg

We recently launched a new course on restricted gifts for Canadian charities: “Restricted Gifts – Managing the Opportunities and Dangers of Restricted Charitable Gifts“.  For every course, I need to have a picture and for this one, I picked a horse. Why a horse you might ask? Is it because one of my staff loves horses. Perhaps. But truthfully it is because there are two different extremes when it comes to thinking about a gift to a charity. One can be summarized as “don’t look a gift horse in the mouth” – the donor is wonderfully generous, whatever they want we should give them, we should not ask too many questions and we should not seem in any way to be ungrateful. On the other hand, is the image of the trojan horse – literally a donor through a “generous” gift causing tremendous problems for a charity. Whether it is because the donor has a sketchy reputation, the donor is a very controlling personality and wants to continue controlling the funds or the donor has very specific ideas about how the funds should be spent which are at odds with those within the charity or may even seem like a great idea today but in a year or two perhaps not so much. In the age of COVID-19 we see how tens of billions of dollars are inaccessible to help – often because of poorly thought through restricted gifts.

Read More


Ontario gradually reopening under Stage 2 - will have impact on NPOs and charities

Ontario is gradually reopening. In the Ontario government’s A Framework for Reopening our Province: Stage 2 the Ontario government sets out its plan for reopening. Charities should pay careful attention to requirements that relate to their activities.

Read More


Canadian Red Cross offering grants to NPOs, PPE for charities and NPOs

The Canadian Red Cross is still making grants to non-profit organizations who are assisting vulnerable Canadians dealing with COVID.  If you are a non-profit that is not a charity you can apply here.   For registered charities, you can apply at either the United Way or Community Foundations of Canada.   Here is a PDF illustrating the granting programs from CRCS, CFC and UWC.

The Canadian Red Cross is also providing personal protective equipment (PPE) to both non-profits and charities with training on usage of the PPE

Read More


CRA's Online Charity Application losing Corporate Documents

If you have submitted an online charity application using CRA’s Digital Services for Registered Charities, you may have received or may still receive a letter saying that your application is incomplete because they never received your organization’s corporate documents. This is in spite of the fact that the corporate documents are a required attachment to the application and that you most certainly triple checked your application for completeness before submitting. It appears to be a glitch in CRA’s system that many applications are not going through with the Corporate Documents attachment. CRA is aware of the issue and is looking into fixing this.

Read More


Charities Directorate Business Resumption Plan and Audits

CRA has just published its plan for the resumption of full activities.  In this article, we discuss the resumption of the Charities Directorate as well as their audits.

Read More


CNCA changes to allow for extensions for AGMs etc in Bill C-17 has first reading

The Federal government has brought in a new bill C-17 dealing with various COVID issues. One, in particular, we have discussed is making changes to the Canada Not-for-profit Corporations Act (“CNCA”) in our note “Federal government proposal to increase time limits under various Federal acts including CNCA“.

Read More


Which Canadian charities spent money on foreign activities in 2018 and how much did they spend?

In our note Which Canadian charities spent money on foreign activities in 2018 and how much did they spend we recently reviewed the T3010 information for 2018. It provides a list of Canadian charities that spent the most of foreign activities. The total amount claimed is about $3,756,814,368 or 3.75B. Keep in mind that additional funds are spent by Canadian charities for example when making gifts to “qualified donees” that are foreign universities registered with CRA or UN agencies and they are not included in this document.

Read More


Which Canadian charities received the most revenue from the Federal government in 2018?

Here is our article Which Canadian charities received the most revenue from the Federal government in 2018?   In 2018 the Federal government provided $8.3 billion to the whole Canadian charity sector.

Read More


Which Canadian charities received the most revenue from Provincial Governments in 2018?

Here is our article Which Canadian charities received the most revenue from Provincial Governments in 2018?  In 2018 the various provincial governments provided $170 billion to the Canadian charity sector.

Read More


Which Canadian charities received the most revenue from Municipal Governments in 2018?

Here is our article Which Canadian charities received the most revenue from Municipal Governments in 2018?  Municipal governments in Canada provided over $10 Billion to Canadian charities in 2018.

Read More


Pre-budget consultations for the 2021 budget - due August 7, 2020

The Federal Finance Committee has announced a pre-budget consultation. It is probably a waste of time but if you are interested you can participate by submitting a brief by August 7, 2020. Here is a news release.

Read More


Update on the new Ontario Not-For-Profit Corporations (ONCA) and regulations

The Ontario government has asked for comments on regulations affecting the new Ontario Not-For-Profit Corporations (ONCA). The deadline was Monday, June 22.

ONCA consultation:  Proposed regulations to support proclamation of the Not-for-Profit Corporations Act, 2010 (also here is a PDF of the proposed regulations)

Read More


COVID-19 and AGMs for Federal non-profit corporations under the Canada Not-for-profit Corporations Act (“CNCA”) - UPDATED

The COVID-19 crisis is forcing some non-profit organizations and registered charities to rethink the timing and manner of conducting their annual general meeting of members (AGM).  Every organization is different, and a one-size-fits-all approach does not apply. For those who wish to request an extension of the six-month timeframe for holding AGM’s and also a requirement to provide financial statements to members at least 21 days ahead of the AGM, Corporations Canada has just implemented a streamlined process that can be used to request an extension.  Here is our updated article COVID-19 and AGMs for Federal non-profit corporations under the Canada Not-for-profit Corporations Act (“CNCA”)- May 13, 2020 which reflects the new process for requesting the AGM and financial disclosure extensions.

Read More


Blumbergs' COVID-19 FAQs for Registered Charities and Non-profits

We will have updated our COVID-19 FAQs section on our CanadianCharityLaw.ca website. The FAQ section will deal with common issues affecting Canadian registered charities and non-profit corporations during the COVID-19 pandemic.

Read More


New Course on Canadian Charities Working with Non-Charities in Canada

We have just prepared a new course on Canadian Charities Working with Non-Charities in Canada. Here is information on the new course and how to register.

There has been a lot of misinformation around the ability of Canadian charities to work with non-charities in Canada during the COVID-19 crisis. This course explains the rules for working with non-charities, even in times of crisis such as these.

Read More


COVID-19 and AGMs for Ontario non-profit corporation under the Ontario Corporations Act (“OCA”)

The COVID-19 crisis is forcing some non-profit organizations and registered charities to rethink the timing and manner of conducting their annual general meeting of members (AGM). Every organization is different, and a one-size-fits-all approach does not apply.   We are assisting organizations with numerous challenges in dealing with COVID-19 and if your organization requires assistance let us know.  As the situation is evolving on an almost daily basis, we may update this article.

Read More


Ontario government notice on electronic signatures and electronic under the Ontario Corporations Act

The Ontario government has put out detailed requirements in a notice dealing with new methods of filing under the Alternative Filing Methods for Business Act, 2020.   This will affect about 50,000 Ontario non-profit corporations under the Ontario Corporations Act and allow for electronic signatures and electronic filings of documents.   Here is the notice.

For many Ontario corporations under the Ontario Corporations Act, they should probably consider moving to Federal jurisdiction under the CNCA.  We have a number of articles discussing this issue.

Read More


Special purpose fundraising for COVID-19 – be careful what you ask for!

Many groups are doing special purpose fundraising for COVID-19 in which they are specifically soliciting or accepting for COVID-19 related programs.  Charities have to be careful of a number of issues when fundraising for a specific purpose.

After having worked with many groups in different types of disasters, the challenge is not only when you are fundraising you want to be successful in bringing in large amounts of money or gifts-in-kind but you also wish to be effective in spending those funds or distributing those gifts-in-kind.

Read More


CharityData.ca has been updated - check it out! More information on Canadian registered charities

We do regular updates of the portal CharityData.ca. Recently we just added more T3010 data including updated partial 2019 data and all of 2018 data.  We are now using 2018 data for searches and there are about 84,000 charities on the system.  So when you search the site, it is using as the base year charities listed in 2018.  The 2019 partial data reflects about 31,000 charities that were available in March 2020 before the CRA Charities Directorate had to shut down due to the COVID-19 pandemic.

Read More


CRA’s Charities Listing vs. Blumbergs’ Charity Data 2020

With changes in May 2019 in which CRA removed about 10 years of public information from the Charities Listing, the differences between the CRA’s Charities Listing and the Blumbergs’ CharityData.ca portal have grown. This article will try to show you some of the major differences between the two databases and why depending on what you want to do you might need to access both of them.

Read More


The Privacy Commissioner Releases tips for videoconferencing and privacy

The Office of the Privacy Commissioner of Canada has recently released some tips for ensuring that you protect your organization’s privacy, as well as the privacy of those you meet with. While we are still practicing social distancing, it is a good idea to read and follow these tips for any internal or external virtual meetings.

Read More


CRA

CRA Charities Directorate announces extension of T3010 filing deadlines until December 31, 2020 in response to COVID-19

The CRA announced on March 20 that registered charities filing deadline for the T3010 that were or will be due from March 18, 2020, till December 31, 2020, will only be due on December 31, 2020. This will be a welcome relief for many registered charities in Canada. As well, this will be a relief to many accountants who need to do audits of charities that would have to be completed prior to the completion of the financial statements and filing of the T3010. This will reduce some of the stress on registered charities who may not even have access to their offices because they are working from home etc.

Read More


CRA notice on charity applications – yes CRA is processing charity applications

CRA has been processing charity applications during the COVID pandemic – even when they were “shut down”.   This recent CRA notice advises charities that if they have a deadline to respond to on a charity application that the deadline will be extended (makes good sense) and that charity applications will not be closed just because there is no response.  Keep in mind that this is a dual-edged sword – if you take longer to respond to CRA’s requests your charity application will also take longer.  It also discusses other aspects of the notice for charity applications.

Read More


Further extension for T2 and T1044 filing deadlines for June, July and August 2020 filers

CRA has previously announced that the T2 Corporation Income Tax Return (the T2) and T1044 Non-Profit Organization (NPO) Information Return for non-profits and others that was due between March 18, 2020 and June 1, 2020 can be filed on June 1, 2020. Now CRA has also announced that T2s and T1044s that are due in June, July or August 2020 can be filed on September 1, 2020.

Read More


Upcoming Events and Programs:

Blumbergs’ online courses on certain charity law issues;

Fundamentals of Running a Canadian Charitable Organization/Operating Charity 2020;

Fundamentals of Running a Private or Public Foundation in Canada 2020;

Upcoming Canadian Charity Law Association webinars.


Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

Mark Blumberg

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.

mark@blumbergs.ca
416.361.1982