Canada Revenue Agency publishes sample T3010B and sample financial statements - very helpful

The CRA has just published a sample: T3010B, Registered Charity Information Return, with accompanying forms and financial statements.  This will be very helpful to charities as the T3010B is a new form.

Sample Financial Statement for Canadian Charity on CRA website

If you are looking for a sample financial statement for a Canadian charity CRA has just published one of their website.  Every Canadian charity in addition to filing the T3010 Registered Charity Information Return needs to file with that return a financial statement. 

CRA charity webinars take off -now webinar on T3010B on June 3 2009

CRA has been piloting charity webinars recently. I understand that they have had a very good reception and that on the last e-mail announcement 400 people signed up in less than 2 hours.  Here is information on their past webinars and future ones if you are interested.

CRA Releases Registered Charity Newsletter 32 - discusses new applications, T3010B, webinars,

Here is the latest CRA Registered Charity Newsletter # 32.  It includes an extensive discussion on applications for charity status and how to improve your application and avoid unnecessary delays.  It sets out the procedures that CRA will follow upon receiving a charity application. 

Triumphant Church of Christ Intl. v. The Queen (FCA) -quick revocation not denial of natural justice

This case deals with a church who lost its charitable status for lack of proper record keeping.  We learn from this case that because CRA moves quickly to revoke status does not mean that the “requirements of natural justice and procedural fairness” are not respected.  In this case the court found that the appellant was given several opportunities to respond to the concerns that CRA and they in their response did not satisfy CRA.

Christ Apostolic Church of God Mission International - compliance agreement and revocation

In the Christ Apostolic Church of God Mission International v. Canada (National Revenue) (2009 FCA 162) A-287-08, Date: May 20, 2009 the Federal Court of Appeal upheld a revocation by the Canada Revenue Agency of this church’s charitable status.  This church had signed a “compliance agreement” and then the CRA withdrew the compliance agreement after an audit that showed non-compliance by the church.  The court concluded “It was open to the Minister, after reviewing the audit report, to conclude that the appellant’s non-compliance was so substantial that it could not be remedied by the promises made by the appellant in the compliance agreement.”  Organizations that sign a compliance agreement must remember they will be held to a high standard and they must be extra careful to abide by the provisions of the compliance agreement. As well if you sign a compliance agreement during an audit and at the end of the audit the CRA or the Minister after receiving the report decide that the conduct was particulary problematic they may revoke the compliance agreement and move to take away the charity’s status.  Many charities view a compliance agreement as the end of their worries - in fact signing a compliance agreement is the beginning of a path of having to run a charity at a much higher level than what was done before or you will almost certainly in the near future lose your charitable status. 

CIDA to initiate consultations in near future, according to Minister Bev Oda

In an article in Embassy Magazine CIDA Minister Bev Oda say that “she plans to hold extensive consultations over the coming months on how to make the agency work better.” 

T3010A and T3010B CRA forms now saveable and fillable

CRA just advised that certain T3010 forms on their Charities and Giving Web site, have been improved so that they are now saveable in addition to being fillable.  By downloading the fillable/saveable PDF version of the form charities can save their work as they go, print the completed form and mail it to the Charities Directorate.

What is a Good Canadian Charity?

What are the hallmarks of a good charity.  Boy that is hard.  Easier to know what are the hallmarks of a bad charity.  Well luckily the UK Charity Commission has come up with the following 6 hallmarks for a good charity.  Except for the English accent, these hallmarks would seem to be equally relevant and useful here in Canada.  Staff and directors of charities might find it useful to read the hallmarks and ask ‘does our charity live up to this?’.  By the way this is not pass/fail - it is more a matter of continual improvement no matter how good we are.

Canada Announces “New Effective Approach to its International Assistance”

CIDA Minister Bev Oda announced today “A New Effective Approach to Canadian Aid”.  Here is the press release and below it is the speaking notes.  CIDA will be focusing on increasing food security, stimulating sustainable economic growth, and securing the future of children and youth.

The House of Holy God - all that is sweet is not always charitable

Another title could be “Maple Syrup Business is not always charitable”.  Many American comedians were concerned with the departure of George Bush that they would not have jobs, or at least their jobs would become more difficult.  Never fear- if there is nothing to laugh at in the US you can always come up to Canada.  In The House of Holy God case the courts had to work really hard to decide whether a charity registered for advancement of religion could be solely engaged in the business of producing and selling maple syrup and maple syrup products.  The court found on the particular facts that the maple syrup business with paid employees is not a related business, and because it was run by paid employees (not 90% volunteers) it was not allowable.  The Court noted “In particular, the record does not contain any evidence that the carrying on of a maple syrup business is an element of religious doctrine.”  Registered charities need remember that even if all of the profits of the business are dedicated to charitable objects that does not make it a related business that can be carried out by the charity.  The Court did not find CRA’s conclusion that the maple syrup business is not a related business unreasonable. 

CIDA announces partnership with Save the Children to fight Malaria and Pneumonia

CIDA announced today $20 million in funding for malaria and pneumonia treatment to Save the Children.  The press release notes that this will “will make a difference and directly benefit approximately 1,100,000 children under five. This initiative of Save The Children is expected to save up to 45,000 children’s lives.”

Foreign Barriers to Foreign activities by Canadian charities

There is an interesting article in a newsletter entitled Global Trends in NGO Law published by the International Center for Not-for-Profit Law.  In this article it discusses how many countries are restricting charities and philanthropists from funding projects or operating on their soil. 

Holy Alpha and Omega Church of Toronto Case - fraudulent tax receipts

This case is not that interesting except for the facts.  A church is accused of being involved with the fraudulent sale of official donation receipts, CRA is revoking their charity status, the church is asking for a stay of the revocation, CRA is asking to put in another affidavit and the court is saying no more affidavits lets get to the hearing.  I guess we will find out how this turns out. 

Charitable receipts for orchestra trip and annual membership dues for orchestra

CRA in this letter to a charity outlines their position that a charity can issue official donation receipts for amounts when fixed amounts are paid by persons participating in an organized orchestra trip as long as all advantages are subtracted from the value of the donation receipt.  As well where annual membership dues are paid by members towards the general operations of the Orchestra they can receive a official donation receipt minus the advantage.  I think at some point CRA should develop a more robust position on when it is appropriate for a charity to be paying for travel expenses.  This is an area of concern - we saw Universal Aide but there are a lot more complicated situations were charities are issuing donation receipts for expensive international travel and it is more in the grey zone.  When in doubt, either as to the amount of an advantage or the appropriateness of issuing a tax receipt, a charity should not issue a tax receipt or contact CRA and get their advice.

CRA successfully attacks abusive charity gifting tax shelters

According to CRA In 2008, the value of charity tax shelter gifting arrangements has been reduced by 1/2.  This is an important victory for CRA in curbing some of the more extreme charity tax shelter arrangements.

CRA Consultation on Protection of Human Rights and Charitable Registration

The CRA has just released a Consultation on proposed Guidance on the Protection of Human Rights and Charitable Registration  CRA is asking those interested to provide comments on the draft guidelines.  The consultation will be of particular interest to those involved with human rights or the issue of political versus charitable.  The consultation will close on July 31, 2009.  The consultation can be found at:
http://www.cra-arc.gc.ca/chrts-gvng/chrts/cnslttns/ghrg-eng.html

CRA cracking down on charities not filing financial statements with T3010

Canadian charities must file a copy of their financial statement along with the T3010 Registered Charity Information Return.  In the past CRA was not as strict about this requirement but now they are following up on it more as people can ask CRA for a copy of a charities financial statement and CRA needs to make it available.  Make sure you file your financial statements along with the T3010 or you will get a notice like this ...

Mergers and Amalgamations within the Canadian Non-Profit and Charity Sector - in The Philanthropist

Here is my recent article Mergers and Amalgamations within the Canadian Non-Profit and Charity Sector

The Philanthropist - excellent legal and philanthropic resource is now free

The Canadian legal and philanthropic publication The Philanthropist is now both online and FREE.  You just need to register and will find some very good articles on different issues affecting charities and non-profits in Canada.  You can reach the website at:  http://www.thephilanthropist.ca/index.php/phil/index  While you are at it you can check out my new article on Mergers and Amalgamations within the Canadian Non-Profit and Charity Sector. 

Clergy Residence exemption does not apply to religious leader at religious school

Is a rabbi at a Jewish school entitled to the clergy residence exemption?  Although he may be a member of the “clergy” he is not in charge of, or ministering to, a diocese, parish or congregation, according to this CRA income tax ruling.

OECD acknowledges “Tax haven crackdown will benefit developing countries”

The OECD acknowledges that “a crackdown on tax havens and cross-border tax evasion will help developing countries to raise more revenues to pay for much-needed schools, roads and hospitals…”  The OECD also says that “improving the effectiveness of developing countries’ tax systems is the “new frontier” in development policy”.  While trade and aid are important, tax policy and tax enforcement is vital for developing countries governments to provide basic services.

Nicholas Offord presentation on Fund Raising - Key Challenges & Issues for the Future

Here is a very interesting presentation by Nicholos Offord of the The Offord Group entitled Fund Raising - Key Challenges & Issues for the Future.  It is located at http://www.oltca.com/Library/Events/cts09_mp10.pdf  Although focused on health care fundraising he brings in comes with some interesting statistics that we should of interest to charities especially in these more difficult times.  “The average charity growth rate was 32% between 2001 and 2006”  Across the board having revenue increase by 32% is impressive for charities although one can ask is this sustainable?  Slide 13 cover “Highest Priority Charitable Sector” and for around 9% international was highest priority.

Global Philanthropy and Remittances 2009 Report from Canada - Remittances skyrocket

Supreme Court dismisses appeal with costs for Choson Kallah Fund of Toronto

The Supreme Court of Canada has dismissed an appeal with costs by the Choson Kallah Fund of Toronto to a Federal Court of Appeal decision which I had written on previously at:
http://www.globalphilanthropy.ca/index.php/blog/cra_revokes_choson_kallah_fund_of_toronto/ and http://www.globalphilanthropy.ca/index.php/blog/canada_revenue_agency_deregistering_record_number_of_questionable_canadian_/ and
http://www.globalphilanthropy.ca/index.php/blog/millennium_charitable_foundation_case_fca_not_impressed_with_charity_tax_sh/  This is an important victory for those who do not want the charity sector in Canada to be overrun by tax avoidance and evasion schemes.  It also shows that with abusive charity tax schemes the Supreme Court is prepared to allow CRA to immediately revoke the charitable status rather than allowing them to keep their status while appealing all the way to the Supreme Court.