Canadians are increasingly asking “How Much Should A Canadian Charity Spend on Overhead?”  Is this the right question?

89% of charities issue inappropriate receipts according to statistics from the CRA when they audit charities.  Other than non-filing the T3010 this is the greatest reason that charities face revocation.  Here is my paper that I delivered to the Ontario Bar Association (OBA) Institute 2011 entitled Top Receipting Concerns for Canadian Registered Charities. 

Here is a revised version of the Canadian Charity Law Checklist by Mark Blumberg.  In addition to reminding charities of questions to ask, it also provides links to relevant 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.

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.

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.

[Here is an updated version of the article ]http://www.globalphilanthropy.ca/images/uploads/Canadian_Charities_and_Terrorism_-_Preventing_Abuse_of_Your_Favourite_Charity.pdf] This article provides practical ideas for Canadian charities and non-profits to avoid involvement with terrorism and money laundering.

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.