In this article “CRA’s Consultation on Foreign Activities: What is New and Interesting with Canadian Charities Conducting Foreign Activities” I discuss what is new in the draft consultation.

In this article I discuss how Canadian charities can working with other Canadian or International Organizations that are not registered Canadian charities as long as they maintain direction and control of the Canadian resources.

So much is written about legal issues relating to charities in Canada. In this article I try to distill the ten most important things you need to know about charity law in Canada.

The title is self explanatory.  CRA’s website is a valuable resource for anyone involved with charities.  As a charity lawyer I am at the website daily and encourage others to make use of the material and information.

Charities, by virtue of their reputation and access to resources, in some cases make a tempting target for terrorists who are trying to acquire funds and/or legitimacy. Canadian charities need to be diligent in ensuring that their resources are used appropriately and not diverted to non-charitable uses, including terrorism. This article provides some basic guidance as to steps a Canadian charity can take to avoid having their resources misappropriated for terrorism or other inappropriate uses such as fraud.

Canadian Charities and Foreign Activities -This article published in The Philanthropist describes the permissible structured relationships and agreements, review a number of cases dealing with Canadian charities operating abroad, and highlight some of the challenges facing Canadian charities that have foreign activities.

32 ideas for managing risk with volunteers.

Most Canadian charities that lose their registered charity status have lost it for one reason - that is non-filing of the T3010 Registered Charity Information Return.

Canadian charities generally cannot just gift funds to foreign charities.  This article discusses appropriate direction and control over foreign activities and projects by Canadian charities. 

In April 2008, CRA released a Consultation on proposed policy regarding fundraising by Registered Charities (RC4456-e) (“Fundraising Consultation”).  This document is a relatively short six page overview, and CRA has recently provided charities with a more detailed document entitled “Background information for proposed policy on fundraising by Registered Charities” which is 29 pages (“Background Document”).  The background document provides greater detail, further definitions of terminology and CRA’s positions on various points.  In this article I will discuss the content of the Fundraising Consultation and Background Document, discuss and analyze the criticisms from others of these documents, and provide my own comments.

Here is my article on Canadian Private and Public Foundations and International Activities.  In this article I suggest 4 ways that Canadian Private and Public Foundations can carry on foreign charitable activities outside of Canada or assist with humanitarian relief or international development. 

This 29 page article will attempt to assist Canadian charities who are conducting or interested in conducting programs outside of Canada with some of the legal issues that they may face. It will discuss the statutory and regulatory framework for Canadian charities operating abroad, describe the permissible structured relationships and agreements; review a number of cases dealing with Canadian charities operating abroad and highlight some challenges facing Canadian charities that have foreign activities.  Canadian charities need to be aware of the rules that govern their foreign activities, some of which are contained in RC4106 (Registered Charities: Operating Outside Canada),  in order to comply with Canada Revenue Agency requirements and to avoid deregistration, intermediate sanctions, negative publicity etc. 

So much is written about legal issues relating to charities in Canada. I thought I would try and note the ten most important things you need to know about charity law in Canada.

In this article I discuss various options for non-Canadian non-profits and charities interested in fundraising or operating in Canada.

This article discusses certain ‘charitable’ gifting schemes which threaten to undermine the public and regulators confidence in the charitable sector. This article also discusses a plan to deal with this problem.

There are many options for foreign universities who are interested in fundraising in Canada and I have discussed 6 different options. It is time to think of your alma mater or your parent’s alma mater and how Canadians can support these universities.

This article provides practical ideas for Canadian charities and non-profits to avoid involvement with terrorism and money laundering.

Here is a copy of a presentation I recently delivered on promoting bequests to charities.  As charities seek to diversify or increase revenue, bequests become an even more important potential source.  It covers some of the advantages and disadvantages with using bequests, whether an organization should create a bequest program, 16 steps to setting up a planned giving program that emphasizes bequests, as well as legal, ethical, and practical issues to keep in mind. 

Here is a copy of a presentation I recently delivered to a number of Canadian charities in Ottawa entitled “Legal Issues for Canadian Charities Conducting Foreign Activities and International Development”.

Here is a copy of a paper I wrote a few years ago on Charitable Remainder Trusts (CRT) in Canada.  The CRT vehicle is extensively used in the US and less so in Canada.  There is a concern that if the rules for CRT are made more favourable this will result in greater immediate tax benefits to a few wealthy people, but not much benefit for Canadian charities for decades to come if at all.

On July 2, 2008 the Lobbying Act came into force and many non-profits and charities are completely unaware of its existence or its effect on their activities.  Lobbying is defined broadly under s. 7 of the Lobbying Act and includes the development of any legislative proposal by the Federal Government, or lobbying on the passage, defeat or amendment of any bill or resolution, advocating for amendments to any regulation, “the development or amendment of any policy or program of the Government of Canada”, or “the awarding of any grant, contribution or other financial benefit by or on behalf of Her Majesty in right of Canada”. Canadian non-profits and charities that do political advocacy or lobbying with the federal government need to consider whether their activities fall within the requirement to register under the Lobbying Act.  This article may be helpful in understanding whether a charity or non-profit must register.

Here is my draft article entitled Mergers and Amalgamations within the Canadian Non-Profit and Charity Sector.  In this article I discuss “Why consider merger?”, problems and issues with mergers and amalgamations, legal mechanics of a merger, and CRA views on merger.  Non-profits and charities are increasingly working together and one of the many options available and most integrated form of cooperation is an amalgamation, merger or a consolidation.  Any comments and thoughts would be appreciated.

I recently delivered a presentation to a number of international development charities in Ottawa entitled “Encouraging Bequests While Avoiding Legal and Ethical Issues”.  It covered issues such as the CRA Fundraising Policy and its effect on planned giving and bequests, 15 steps to create a basic planned giving program with or without money, 18 legal concerns with bequests to avoid, and 6 ethical issues with bequests and planned giving to be aware of.  A copy of the presentation is in PDF here.

This article discusses the T3010 and the importance of filing it accurately and on time.

In this article I discuss the issue of whether Canada has too many charities or too few.  If one still wants to create a charity, some of the considerations and practical details of how one does establish a Canadian registered charity.

This article provides information and suggestions as to how a Canadian charity should, and should not, deal with CRA audits.  It also discusses possible CRA responses and the likelihood of each response. 

Canadian charities operating in Zimbabwe need to be extremely careful.  It is not the place for a new and inexperienced charity to begin foreign operations.  In fact, only Canadian charities with substantial experience in difficult international operations should even consider operating in Zimbabwe.  It is one of the most difficult countries to carry out charitable operations by virtue of the very difficult political, security, human rights and economic situation and the resultant Canadian and international sanctions.  This article will set out some information on the Zimbabwe Sanctions including the full text of the Act and Regulations governing the sanctions.

This article will discuss the changes in the New 2008 T2050, Application to Register a Charity Under the Income Tax Act, and the guide T4063 Registering a Charity for Income Tax Purposes.

Here is my updated list of Top Ten Canadian charity law issues.  Although there are many important and interesting legal issues that Canadian charities face these are some the most important issues to focus on before getting lost in the charity law forest. 

This article discusses considerations in setting up a registered Canadian charity and how to establish the charity.

This article discusses how Canadian charities can obtain legal services in a way that will not break the bank.  This is a big problem.  According to the T3010 statistics a majority of charities spend zero on professional services which services include legal and accounting services.  This is far from desirable if one thinks that accountability, transparency, good governance and compliance with the laws are important.

Here is a copy of my article ‘Bequests - Avoiding problems with the ultimate planned gift’ which was presented at a recent Ontario Bar Association Conference.

Here is a copy of my presentation to the Canadian Association of Paralegals on Establishing a Canadian Non-Profit or Charity - Avoiding practical, legal and ethical problems.

This article discusses the difference between an acceptable intermediary relationship between a Canadian charity and a foreign charity or NGO (a structured arrangement) and an unacceptable arrangement such as a conduit.

This article discusses the T3010 and the importance of filing it accurately and on time.

I recently delivered a presentation to a number of international development charities in Ottawa entitled “Encouraging Bequests While Avoiding Legal and Ethical Issues”.  It covered issues such as the CRA Fundraising Policy and its effect on planned giving and bequests, 15 steps to create a basic planned giving program with or without money, 18 legal concerns with bequests to avoid, and 6 ethical issues with bequests and planned giving to be aware of.  A copy of the presentation is in PDF here.

Here is my draft article entitled Mergers and Amalgamations within the Canadian Non-Profit and Charity Sector.  In this article I discuss “Why consider merger?”, problems and issues with mergers and amalgamations, legal mechanics of a merger, and CRA views on merger.  Non-profits and charities are increasingly working together and one of the many options available and most integrated form of cooperation is an amalgamation, merger or a consolidation.  Any comments and thoughts would be appreciated.

On July 2, 2008 the Lobbying Act came into force and many non-profits and charities are completely unaware of its existence or its effect on their activities.  Lobbying is defined broadly under s. 7 of the Lobbying Act and includes the development of any legislative proposal by the Federal Government, or lobbying on the passage, defeat or amendment of any bill or resolution, advocating for amendments to any regulation, “the development or amendment of any policy or program of the Government of Canada”, or “the awarding of any grant, contribution or other financial benefit by or on behalf of Her Majesty in right of Canada”. Canadian non-profits and charities that do political advocacy or lobbying with the federal government need to consider whether their activities fall within the requirement to register under the Lobbying Act.  This article may be helpful in understanding whether a charity or non-profit must register.

Offshore tax havens are very detrimental to the Canadian tax base and under cut our social programs.  However, the effect of offshore tax havens on the developing world is far more devastating.  I was reading a very good article by Peter Gillespie of the Canadian charity Inter Pares called “Going Offshore”  You may also find it interesting and it is located at http://www.interpares.ca/en/story/gone_offshore.php  It reminded me that a long time ago I wrote on paper on offshore tax havens and it is located at THE OECD’S REPORT ON HARMFUL TAX COMPETITION: Is ‘Harmful Tax Competition’ Actually Harmful? in which I look at the defenders of tax havens and apologists for the wealthy not paying their fair share and refute the arguments that they make. 

Here is a copy of a paper I wrote a few years ago on Charitable Remainder Trusts (CRT) in Canada.  The CRT vehicle is extensively used in the US and less so in Canada.  There is a concern that if the rules for CRT are made more favourable this will result in greater immediate tax benefits to a few wealthy people, but not much benefit for Canadian charities for decades to come if at all.

Industry Canada on June 13, 2008 has introduced Bill C-62 - a new Canada Not-for-profit Corporations Act (NFPC) to replace the Canada Corporations Act (CCA).  This bill will be of particular interest to Canadian charities that are incorporated federally under the Canada Corporations Act.  In this article I discuss 12 highlights including one significant concern for Canadian charities that operate abroad. 

Here is a copy of a presentation I recently delivered to a number of Canadian charities in Ottawa entitled “Legal Issues for Canadian Charities Conducting Foreign Activities and International Development”.

Here is a copy of my recent article Global Philanthropy Growing as World Shrinks which appeared in the CAGP Toronto 2008 Supplement Your Guide To Giving Back.

In these files we list every country and the individual Canadian charities that operate in those countries according to the 2006 T3010 information.  By providing this information charities and donors will be aware of which organizations operate in each country.  This will assist charities interested in beginning a new operation to identify a source of information on a particular country or perhaps to partner with that Canadian charity instead of going it alone.  Although the Canadian Council for International Co-operation (CCIC) has a good map on its website (http://www.ccic.ca/) with information on which countries each of its members operate in, the map only covers their 100 or so members and not the 12,000 or so other organizations that operate outside of Canada.

Here is a copy of Neil Cochrane’s presentation Fundraising Policy Overview to the CAGP in April 2008.

Here is a copy of my article discussing the Consultation on proposed policy on fundraising by Registered Charities RC4456

April 3, 2008 - CRA has just released the latest T3010 information which is for the year 2006 and it shows another large increase in funds spent by Canadian charities operating abroad. In fact in 2006 Canadian charities spent over $2.3 billion.  That is an increase of about $214 million over 2005 or about 10%. 

Here is a copy of a presentation I recently delivered on promoting bequests to charities.  As charities seek to diversify or increase revenue, bequests become an even more important potential source.  It covers some of the advantages and disadvantages with using bequests, whether an organization should create a bequest program, 16 steps to setting up a planned giving program that emphasizes bequests, as well as legal, ethical, and practical issues to keep in mind. 

Imagine has revised its Code of Ethics (or Ethical Fundraising and Financial Accountability Code) and in this article I review the changes and provide a critique of the strengths and weaknesses of the Imagine Canada’s Code of Ethics.

This article provides practical ideas for Canadian charities and non-profits to avoid involvement with terrorism and money laundering.

Here is a copy of my recent presentation on the legal requirements for Canadian charities operating abroad. The presentation discussed CRA positions and documents, case law, and various other legal, practical and ethical issues that a Canadian charity may face.

An Ipsos Reid poll suggests that Canadian donors have low levels of trust of “international development” charities.  This article will attempt to explain why and suggest how to increase levels of trust.

The Globe & Mail article I referred to above on Canadian disaster relief charities not complying with the rules provides one of many illustrations of the importance of Canadian charities understanding and complying with CRA guidelines on Canadian charities operating outside of Canada. If you make it through this giving season with your fingers crossed and without any scrutiny then consider in the new year having a informal legal audit of your foreign activities. It is the best gift you can give to your charitable loved one!

In this article I discuss the importance of remittances by Canadian residents to foreign countries. Canada is the third largest country in terms of remittances at $6.3 billion, after the US at $61B and the UK at $6.6B. The impact of these flows of funds can be substantial and the charitable sector should consider encouraging those who remit to donate to charities instead so that the funds can have a broad public purpose and be efficiently spent on long-term goals such as education.

There are many options for foreign universities who are interested in fundraising in Canada and I have discussed 6 different options. It is time to think of your alma mater or your parent’s alma mater and how Canadians can support these universities.

This article discusses certain ‘charitable’ gifting schemes which threaten to undermine the public and regulators confidence in the charitable sector. This article also discusses a plan to deal with this problem.

In these files we list every country and the individual Canadian charities that operate in those countries according to the 2005 T3010 information.  By providing this information charities and donors will be aware of which organizations operate in each country.  This will assist charities interested in beginning a new operation to identify a source of information on a particular country or perhaps to partner with that Canadian charity instead of going it alone.  Although the Canadian Council for International Co-operation (CCIC) has a good map on its website (http://www.ccic.ca/) with information on which countries each of its members operate in, the map only covers their 100 or so members and not the 12,000 or so other organizations that operate outside of Canada.

This brief article looks at how many Canadian Charities operate in each foreign country. The Top Five countries of operation are the United States (964), Mexico (423), India (356), Haiti (285) and the Philippines (191). It is no surprise that the US is number 1 as many charities are involved with US charitable activities or use US agents, although some of the other rankings are interesting.

This article discusses a Canadian legal perspective on Planned Giving Internationally. It was written by Mark Blumberg and recently appeared in “Your Guide to Charitable Giving and Estate Planning”, a supplement that appeared in the Globe and Mail on Friday May 11, 2007 and was produced by the Greater Toronto Area Roundtable of the Canadian Association of Gift Planners.