We assist Canadian charities understand their legal and ethical obligations when operating charities in Canada or abroad and provide insights and information to non-Canadian charities interested in operating or fundraising in Canada.
The charitable sector in Canada has become highly competitive. There are over 86,000 Canadian registered charities. Donors, regulators, media, the public as well as other stakeholders, have increasingly high standards for charities and their operations. GlobalPhilanthropy.ca will assist non-profits and charities in Canada in trying to be transparent, legal, ethical and effective.
As we have noted before the "List of registered foreign charitable organizations that have received a gift from Her Majesty in right of Canada" had lost all of its charities. Then the "Bill, Hillary & Chelsea Clinton Foundation" was added and now the Woodrow Wilson International Center for Scholars has been added. Both were previously on the list.
The Federal Court of Appeal recently heard a case dealing with an organization that had applied for charitable status and been denied by the Charities Directorate of CRA. There were a number of grounds for refusal including that "the plan to build and maintain a sanctuary and sculpture park, would not advance religion or education in the charitable sense." The FCA did not accept the appellant organization's arguments that the decision was "unreasonable, procedurally unfair, and in violation of sections 2(a), 2(b), and 15 of the Canadian Charter of Rights and Freedoms".
Groups interested in international development and humanitarian assistance may want to review the new call for proposals from the Foreign Affairs, Trade and Development Canada (DFATD).
Industry Canada has started the long and arduous process of notifying corporations under the Canada Corporations Act that have NOT continued to the CNCA that they will be dissolved. Industry Canada has sent notices of pending dissolution to the CCA corporations. Industry Canada's Monthly Transactions for November include a list of which corporations have received such notices of pending dissolution.
Ian Ford and Norma Ford appealed a Tax Court of Canada 2014 decision relating to taxation years going back to around 1999 -2001. The decision notes that "Ian Ford and Norma Ford participated in an art donation program operated by Canadian Art Advisory Services. They purchased pieces of art for a particular price and then donated the art to a charity. For each donation they received a receipt for an amount that exceeded the amount that they paid for the art." Needless to say CRA did not accept the valuation and donation receipts. CRA assessed the Fords in 2002 and then reassessed them in 2012. The Fords argued that it was unfair that the reassessment happened so many years after the transaction. The FCA did not agree. The interesting part was that the legal arguments the Fords were making would have actually increased their taxes!
Here is a copy of Ontario Bill 8, Public Sector and MPP Accountability and Transparency Act, 2014. Of particular concern is the Broader Public Sector Executive Compensation Act, 2014 (the "Act"). According to the act, "The purpose of this Act is to manage executive compensation in the broader public sector by authorizing the establishment of compensation frameworks applicable to designated employers and designated executives." The act applies to hospitals, boards of education, universities, colleges, other post-secondary institutions, community care access corporations to name a few and also any other board, council, corporation, foundation or organization that is prescribed Ontario government. It does not apply to for-profit corporations. The Act only applies to "designated executives" who make cash compensation of $100,000 or more. It does not apply to unionized employees. The Ontario government may provide directives requiring disclosure of salaries, bonuses, incentive plans, allowances, agreements, compensation policies and compensation studies to name but some of the items.