What's New from the Charities Directorate of CRA

May 29, 2015

CRA updates guide Registering a Charity for Income Tax Purposes T4063(E)

The CRA in May 2015 updated their guide Registering a Charity for Income Tax Purposes T4063(E).  The Guide is the main source of information from CRA to assist the public with charity applications.  The main change between the 2013 version of the Guide and the 2015 version of the Guide is how CRA treats draft applications for charitable status.  Here is a redlined comparison of Registering a Charity for Income Tax Purposes T4063(E) comparing 2015 to 2013.

read more

May 28, 2015

CRA letter on tax exempt status of affordable housing provider

CRA recently released a letter that discusses the tax implications of an affordable housing provider (an entity described in paragraph 149(1)(l) of the Income Tax Act (the “Act”)) that wanted to provide long-term leasing of its parking spots to a business owned by one of its board members. The housing provider intended to lease excess parking spots and charge the same rate that it charged to its tenants.   The housing provider did not anticipate receiving a significant amount of rental income from leasing the parking spots.

read more

May 23, 2015

Canadian Charities Conducting International Activities (2015)

Here is an article entitled Canadian Charities Conducting International Activities (2015). It will be of interest to Canadian charities that are, or considering, operating outside of Canada.

May 21, 2015

Fundamentals of International Activities by Canadian Registered Charities

Over 5000 Canadian registered charities operate outside of Canada and they cumulatively spend around $3 billion per year on foreign activities.  The Fundamentals of International Activities by Canadian Registered Charities is a 1/2 day presentation with charity lawyer Mark Blumberg which discusses international activities by Canadian charities and related regulatory issues.  The first Fundamentals of International Activities by Canadian Registered Charities will be held on Tuesday September 22, 2015 from 1PM-4PM. Some charities operating abroad are not aware of, or compliant with, their legal requirements and foreign activities has been an area that has been scrutinized by CRA in its audits and can result in revocation of charitable status if the rules are not followed.

read more

May 21, 2015

Fundamentals of Political Activities by Canadian Registered Charities

The involvement of charities in political activities has been a major story since 2012. The 2012 Federal Budget introduced new reporting requirements for charities for 2013 but does not fundamentally affect the ability of charities to engage in political activities. Significant resources have been provided to the Charities Directorate to audit charities who conduct political activities. On Tuesday September 22, 2015 we will conduct a 1/2 day program from 9AM-12PM entitled Fundamentals of Political Activities by Canadian Registered Charities.  

read more

May 18, 2015

Presentation to the Université de Montréal Charity Law Conference 2015

I was delighted to present as part of a panel at the Université de Montréal Charity Law Conference 2015 on May 8, 2015.  The panel was entitled The Modern Charities Regulator and my presentation was entitled "Overview of the Regulatory Environment in Canada for Registered Charities".

read more

May 18, 2015

Article in Bottom Line “Ontario non-profits await new legislation” by Mark Blumberg

The Bottom Line recently published an article entitled Ontario non-profits await new legislation by Mark Blumberg.  The article discusses options for Ontario non-profits including waiting for ONCA or moving forward to the new CNCA and skipping ONCA altogether. 

read more

May 18, 2015

Court decides former registered charity IRFAN cannot use funds to pay further legal costs

In a decision on April 9, 2015 in the Federal court The Honourable Madam Justice Mactavish dealt with an issue of whether The International Relief Fund for the Afflicted and Needy (Canada) ("IRFAN") could use funds to pay past and future legal costs.   IRFAN used to be a registered charity and then lost its charitable status and finally was in April 2014 added as a listed terrorist entity.   Such listing effectively freezes the assets of IRFAN.   IRFAN was alleged to have provided resources to Hamas, which is a listed terrorist organization.   

read more

May 17, 2015

CBC says “Giving Tree Foundation to be stripped of charity status”

CBC recently reported in an article "Giving Tree Foundation to be stripped of charity status: Charity that gives $2M a year to children's causes faces demise after tax review".  CBC notes "The group has a relationship with EquiGenesis Corp., a company that designed a complicated donation tax strategy that helped the Giving Tree Foundation quickly raise millions of dollars after it was re-organized five years ago."

read more

May 17, 2015

Toronto Star article on Fraser Institute and political activities

In a recent Toronto Star article entitled "Critics say Fraser Institute letter highlights ‘enormous lack of clarity’ in charity-audit rules" the Toronto Star discusses a letter from the Fraser Institute to supporters. The article raises some interesting points but I have some concerns with the article as well.

read more

May 14, 2015

Upcoming Webinars for the Canadian Charity Law Association

The Canadian Charity Law Association is delivering some upcoming webinars.  Registration is free but space is limited. 

read more

May 12, 2015

CRA releases updated GST/HST Information Sheets for Charities

CRA has recently released an updated Information Sheet on GST/HST Guidelines for Charities. The Information Sheet provides basic information on how the GST/HST applies to many issues commonly faced by charities and replaces the previous Information Sheet from June 2011.

CRA has also released an updated Information Sheet on 'How a Charity Completes Its GST/HST Return'.  This Information Sheet explains how a charity that is a GST/HST registrant calculates its net tax and completes its GST/HST return and replaces the previously Information Sheet from June 2011.  
 

read more

April 28, 2015

Fundamentals of Receipting by Canadian Charities [SOLD OUT]

Properly issuing official donation receipts has been challenging for many registered charities.  According to the CRA, 89% of registered charities that are audited are not correctly issuing official donation receipts.  Issuing incorrect receipts can result in revocation or penalties. It is easier to do it right than fix problems later! Here is a new half-day program from Blumbergs entitled "Fundamentals of Receipting by Canadian Charities".

read more

April 24, 2015

Political Activity Audits and the CRA Program Update 2015

We have blogged about the CRA Program Update 2015 separately but wanted to focus here on what the update provides in terms of information on the political activity audits of CRA's Charities Directorate.  CRA should be commended for publishing a program update.  I am certainly not aware of any regulatory requirement that they need to, but the program update does provide useful information for the charity sector.  In the program update you have to read pretty far into the 5000 word document to see the "Charities and Political Activities" update but it is important so we have created a separate blog post. 

read more

April 23, 2015

Sowa v. Canada - FCA dismisses appeal of disallowed donation

Sowa v. Canada involves an alleged donation of $10,250 in 2006 by Emily Sowa.   The Tax Court of Canada "doubted the truthfulness of the appellant’s claim that she donated $10,250.00."   Also the purported receipt did not contain all the required elements.  The FCA did not find any error on the TCC's part and dismissed the appeal with costs.

read more

April 23, 2015

SCC denies leave to appeal in Humanics Institute case

The case of Humanics Institute v. Minister of National Revenue deals with the refusal of CRA to register an organization as a charity in the category of advancement of religion.  The Humanics Institute had lost in the Federal Court of Appeal and now the Supreme Court has denied them leave to appeal.  

read more

April 21, 2015

2015 Federal Budget and its Impact on Canadian Charities

Today the Federal government released its budget.  There were a few items that will impact charities and non-profits in Canada.  Here are the actual provisions in the 2015 Federal budget that impact charities.

read more

April 20, 2015

Blumbergs’ Snapshot of the Canadian Charity Sector 2013

We have just released the Blumbergs' Snapshot of the Canadian Charity Sector 2013 as part of the Sean Blumberg Transparency Project.   The database covers about 83,000 of the 86,000 registered charities in Canada that had filed their T3010 and were processed into CRA’s Charity Listing database by December 2014. 

read more

April 17, 2015

Largest Canadian Registered Charities by Employment Compensation

We prepared an article on the largest Canadian charity employers.  The article is entitled "Largest Canadian Registered Charities by Employment Compensation"

read more

April 10, 2015

CRA’s Charity Program Update 2015 - provides useful information on the charity sector and regulation

The Charities Directorate of CRA has released the Charity Program Update 2015.  We will discuss the update in this note, except for the parts dealing with political activities which we will discuss here.

read more

March 24, 2015

CRA letter on qualifying as a municipal or public body performing a function of government

CRA recently released a letter which discusses whether a park qualifies as a 'municipal or public body performing a function of government'  in Canada within the meaning of paragraph 149 (1) (c) of the Act. CRA concluded that they would require additional information on the park in order to make a determination that the park would qualify and would be accountable to the public, the province and the municipalities from which it was created.

read more

March 11, 2015

CRA letter on tax treatment of post-doctoral fellowship and travel conference allowance

CRA recently released a letter which discusses the proper tax treatment of a post-doctoral fellowship and a travel/conference allowance received from a trust administered by a registered charity.

read more

March 11, 2015

CRA letter on gifts made by will

CRA recently released a letter which discusses whether a gift by will of marketable securities provided to a Foundation would be deemed to have been made immediately before the death of the donor.  CRA concluded that the gift did constitute a gift by will made immediately before the death of the donor under subsection 118.1 (5) of the ITA.  The letter appears to have been written before the 2014 budget, which will have an impact on the bequests are dealt with in estates where the testator died on or after January 1, 2016.     

read more

March 09, 2015

CRA makes available a Political Activities PowerPoint Presentation for registered charities to use

As part of their educational mandate to encourage charities to be compliant with their legal requirements, including when conducting political activities, the Charities Directorate has released a "Political Activities PowerPoint Presentation" that registered charities can use internally to understand the limits of political activities.  There is both the presentation and the speakers notes.    

read more

February 25, 2015

CRA releases CG-022 Housing and Charitable Registration Guidance

The CRA on February 6, 2015 released a new guidance entitled CG-022 Housing and Charitable Registration Guidance.  It covers a number of issues relating to housing including how housing can be used to relieve poverty and the provision of specially adapted housing for those with disabilities. It sets out a number of specific pieces of information that would need to be provided if an organization is applying for charity status to be able to show that the provision of housing is charitable.  Existing housing providers should also be able to show that information if they ever audited.  

read more

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

Contact

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
Download vCard

Connect

Locate

Blumberg Segal LLP
Barristers & Solicitors
#1202 - 390 Bay Street
Toronto, Ontario
M5H 2Y2 Canada

Charity Law List

Join Blumbergs' non-profit and charities newsletter
View recent issue: May 2015