Budget 2010, Disbursement Quota Changes and Anti-Avoidance Provisions

April 01, 2010 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, What's New from the Charities Directorate of CRA, Canadian Charity Law

There are some that are wondering how the budget, revisions to the disbursement quota, some changes to the T3010 and new anti-avoidance will affect their charity.  Cathy Hawara, the Acting Director General of the Charities Directorate recently provided some information, requested feedback and will be putting out a “Questions and Answers” on the subject shortly.

http://www.cra-arc.gc.ca/chrts-gvng/chrts/bdgt2010-eng.html

Budget 2010 – Changes for Charities On March 4, 2010, the Minister of Finance presented the 2010 Federal Budget, which proposed several measures affecting registered charities.

Specifically, the Budget proposes significant changes to the disbursement quota calculation and related concepts, as well as strengthened measures to ensure tax-assisted funds are expended on charitable programs. These changes affect charities with fiscal periods ending on or after March 4, 2010. You can find details at http://www.budget.gc.ca.

The Charities Directorate is acting to respond to these changes as quickly as possible.

Due to the proposed changes to the disbursement quota calculation, we will have to make certain changes to Form T3010B, Registered Charity Information Return. These changes will affect the way charities complete the return. In the short term, we will include a page of instructions with the T3010B return packages we are mailing out to charities starting in April 2010.

Our Client Services section, at 1-800-267-2384, is able to answer questions relating to the new measures. Questions and Answers will also be posted on our “Charities and Giving” Web pages. We will provide more information as it becomes available.

You are also invited to send comments relating to the new measures to . Your input will help us develop other guidance products. Please continue to check our Web pages for updates and additional information.

We are taking the necessary steps to ensure that the proposed measures are implemented efficiently and effectively. 

Cathy Hawara
Acting Director General
Charities Directorate

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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.

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