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May 21, 2010

CRA presentation “Major Non-Compliance Issues” by Danie Huppé-Cranford for ICFO May 2010

Here is a copy of the powerpoint slides from a presentation delivered by Danie Huppé-Cranford to the International Committee on Fundraising Organizations (ICFO) Annual General Meeting, May 14, 2010 entitled “Compliance Overview - Major Non-Compliance Issues”.

May 19, 2010

Presentation to ICFO by Bryan McLean Director of Policy, Planning and Legislation Division, CRA

Here is a copy of a presentation given by Bryan McLean, Director of the Policy, Planning and Legislation Division, of the Charities Directorate entitled Policy Priorities for the Charities Directorate, Canada Revenue Agency.  The presentation was delivered at the International Committee on Fundraising Organizations Annual General Meeting, on May 14, 2010 in Kitchener.

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May 17, 2010

CRA releases its Guidance on “Upholding Human Rights and Charitable Registration”

CRA has just released its guidance “Upholding Human Rights and Charitable Registration”.  Any Canadian charity dealing with human rights issues will want to read this document.

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May 15, 2010

Canadian charities understanding accountability, transparency and evaluation - helpful document

If you are trying to understand how accountability, transparency and evaluation apply to your Canadian charity this document from One World Trust entitled Pathways to Accountability: A short guide to the GAP Framework may be very helpful.

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May 15, 2010

Blumbergs Canadian Charity Law List - May 2010

Here is the Blumbergs Canadian Charity Law List - May 2010.  My apologies for the length of this newsletter - it is the March, April and May newsletter in one!  As well quite a bit has happened recently and I have been very busy.  If you want to keep up to date and are not already signed up to my newsletter you may want to sign up at:  http://www.globalphilanthropy.ca/index.php/pages/subscribe/

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May 13, 2010

Adomphwe, R.K. v. The Queen (TCC) - Canadian case on purchasing receipts and charity fraud

This case is interesting because it is about a simple scheme that involved people buying from tax preparers charity tax receipts for 10% of the face value of the donation receipts.  This is not the usual complicated tax frauds involving sophisticated counsel, complicated trust and loan arrangements, major law firm opinions and constitutional arguments that the courts have found to be “without merit”. This is an opportunity to take a peek into a more mundane type of charity fraud.  In addition to the court finding there were no “gifts” the court also reiterated the importance of making sure the actual receipts have all the mandatory information and that it is correct. “[48] If the requirements as to the nature of the information that a receipt must contain are not met, the receipt must be rejected, with the result that the holder of the receipt loses tax benefits. Accordingly, even though a taxpayer may have made a gift of a painting, he or she cannot claim the potential deduction if the appraisal and the receipt issued for the gift do not comply with the requirements of the Act and the Regulations made thereunder.”

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May 12, 2010

Bill 65, Not-for-Profit Corporations Act, 2010 - will affect 55,000 Ontario non-profit corporations

The Ontario government introduced Bill 65, Not-for-Profit Corporations Act (Ontario), 2010.  This act will replace the Ontario Corporations Act which deals with non-profit corporations.  The bill passed first reading today.  Some of the bullet points sound interesting - will have to review the bill.  Here is a copy of the bill:  Bill_65,_Not-for-Profit_Corporations_Act_(Ontario),_2010.pdf
Here are some of my updates on the Ontario Not-For-Profit Corporations Act and the federal Canada Non-Profit Corporations Act (CNCA) http://www.globalphilanthropy.ca/index.php/blog/category/new_canada_not-for-profit_corporations_act_federal_corporations/

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May 11, 2010

CICA Not-for-Profit Director Alert entitled Increasing Public Scrutiny of Not-for-Profit Orgs

Here is an interesting publication from the Canadian Institute of Chartered Accountants (CICA) entitled “Increasing Public Scrutiny of Not-for-Profit Organizations: questions for directors to ask.”  I like this question “Does the organization have a sufficiently robust set of policies related to areas that are the most likely foci of scrutiny, such as: a. compensation (including salary, bonuses, benefits and pensions), b. procurement, c. hiring and employment, d. travel, hospitality and expenses. e. fundraising

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May 11, 2010

Conference in Toronto on “What’s Next?” for Sustainable Development in the 21st Century

This conference on June 11, 2010 may be of interest

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Topics: News | Global Giving | CIDA

May 11, 2010

Winnipeg Police suggestions “Protect Yourself Against Charity Frauds”

Here is a short list of suggestions from the Winnipeg Police “Protect Yourself Against Charity Frauds”

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May 10, 2010

CRA revokes charitable status of Henvey Inlet First Nation Community Support Organization

The Canada Revenue Agency announced the revocation today of the charitable status of Henvey Inlet First Nation Community Support Organization.
Apparently issued $44 million in receipts.  Apparently transferred 99% of the receipted amount to the tax shelter promoters as fundraising fees and investments in off-shore accounts. The latest T3010 filing describes the activities as “Construction of various capital projects for community development purposes, including the construction of a summer camp for children and other initiatives.”

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May 10, 2010

CRA revokes the charitable status of Canadian Charity “The Orion Foundation”

The CRA announced today the revocation of charitable status of The Orion Foundation.  Receipted $91 million dollars.  Spent $70,000 on charitable activities.  Who would run a charity like this?  The directors were according to the 2008 T3010 information on the CRA site: James Arion,  Grant Young (Director and Executive Director), and director Bert Levy.  The 2008 T3010 describes ongoing activities as “Programs to assist children in need and the disabled To supply pharmaceutical to HIV and AIDs infected individuals in Africa”.  It had “Professional and consulting fees” of $499,000 for 2008.  I am interested to know which law firm and accounting firm represented these guys.

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May 08, 2010

US lawyer facing 10 years for tax, charity fraud

I thought this short article was interesting.  “Karoly had steered a $500,000 donation he made to the Lehigh Valley Community Foundation to his church - which forwarded most of it back to Karoly.”

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May 07, 2010

Government of Canada Response to Natural Disasters Abroad - presentation from Foreign Affairs

Here is a copy of a presentation by the Government of Canada entitled “Response to Natural Disasters Abroad”.  It was delivered May 5 to Philanthropic Foundations Canada (PFC) by Foreign Affairs and International Trade Canada.  This presentation will give one an idea of the process and thinking of the Canadian government in dealing with disasters such as the earthquake in Haiti.

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May 07, 2010

Message that AFP weighing merger with Partnership for Philanthropic Planning, formerly called NCPG

I received an e-mail today that AFP was looking at merging with PPP, which was formerly the National Committee on Planned Giving.  In Canada we have AFP and also CAGP, the Canadian Association of Gift Planners.  I wonder whether AFP in Canada and CAGP will also merge?

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Topics: News

May 05, 2010

Changes to what you must report on Form T3010B, Registered Charity Information Return

CRA has put out a notice on changes to the T3010 as a result of the March 2010 Federal budget.  Here is the PDF I created of the CRA notice: Changes to what you must report on Form T3010B, Registered Charity Information Return

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May 05, 2010

Holy Web changes Batman - Charities Directorate changing URLs

CRA is updating their charities and giving links.  So this http://www.cra-arc.gc.ca/chrts-gvng/chrts/chrts-menu-eng.html will become this www.cra.gc.ca/charitiesandgiving   I will really miss those long and impossible to remember URLs - ok may be I do actually remember them!  Here is more information from CRA.

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May 05, 2010

What happens when a Canadian non-profit no longer qualifies for non-profit status -see CRA letter

Here is a CRA letter that discusses “What happens when a 149(1)(l) entity no longer qualifies for the tax exemption?” and various related issues.  Here is the PDF CRA_letter_on_what_happens_when_a_149(1)(l)_entity_no_longer_qualifies_for_the_tax_exemption.pdf

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May 05, 2010

“Dodging dubious donations – from yachts to barrels of books”

Here is an article entitled “Dodging dubious donations – from yachts to barrels of books” by John Webster Hochstadt who is the editor of Gift Planning in Canada.  It discusses the importance of having good policies such as a gift acceptance policy and the importance of declining questionable gifts.  http://www.canadianfundraiser.com/newsletter/article.asp?ArticleID=3297&ClientID=13785

May 04, 2010

CRA publishes Questions and Answers on 2010 Budget and Disbursement Quota changes

The CRA has released a Question & Answer on the Disbursement Quota Reform contained in the Canadian 2010 Federal Budget.  You can read the Q&A at http://www.cra-arc.gc.ca/gncy/bdgt/2010/chrt-eng.html

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May 02, 2010

MANGO’s Top Tips on the Warning Signs of Fraud in Charities

Here is Mango (Management Accounting for Non-governmental Organisations) Top Tips on the Warning Signs of Fraud in Charities - MANGO is a UK organization that provides valuable training and resources in financial management.

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May 01, 2010

CRA letter on charitable donation of publicly listed shares and whether gift

Lengthy letter from CRA on “Whether donations to registered charities of shares listed on a designated stock exchange constitute gifts for the purpose of the deduction for gifts under subsection 110.1(1) of ITA?” and the answer is yes.

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May 01, 2010

When is Fundraising considered to be “Conduct that is a main or independent purpose of the charity”?

There has been some confusion over when conduct that is a main or independent purpose of the charity in terms of CRA’s Fundraising Guidance.

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May 01, 2010

Is a foundation created to fundraise for a Canadian charity main purpose fundraising?

In the fundraising guidance it talks about registered charities cannot have fundraising as a main purpose.  Some people are confused by this.  What about a hospital foundation, university foundation or other foundatioon that spends almost all of its time fundraising and then gifting over the funds to a Canadian registered charity.

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May 01, 2010

Latest Charity Tax Shelter Information from CRA - further decline in charity tax shelters

In Cathy Hawara’s presentation to the Canadian Bar Association on April 30, 2010 in slide 15 she notes the most up to date statistics on charitable gifting tax shelters.  “The scope of the problem is significant; the CRA estimates that since 2003 there has been approximately: 172,300 participants, $5.4 billion in claimed donations.  The Charities Directorate has revoked 35 charities and RCAAAs for participating in tax shelter schemes. 2006 to 2009 saw participation drop by 80% to 10,800 individuals and the amount of “donations” drop by 76% to $284 million.”

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

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Charity Lawyer 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
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