Safety of Canadian Humanitarian Workers - important for people, reputation and funders

In 2009 I attended the Interaction Forum held in Washington, D.C.  The Interaction Forum is the largest gathering of US and international NGOS involved with international development.  I met some very interesting people and learned quite a lot.  One of the important themes of the conference is that security is increasingly important concern for charities doing international operations – security for your employees, expat workers, national staff and beneficiaries.  To summarize, for those who do not want to read more than one paragraph - aid organizations who don’t not take security seriously probably should be getting out of the humanitarian aid area.  Your employees will not want to work for you, funders will not want to fund you and you may be unnecessarily endangering the lives of national staff and beneficiaries.  I was reminded of this a couple of weeks ago when I reviewed a large CIDA draft contribution agreement - what was interesting was that in project conducted in a moderately dangerous country about 1/4 of the contribution agreement related to security and safety. 

Tax shelter gifting arrangement revocations

In Newsletter 33, CRA identified various registered charities that have had their registered charity status revoked for involvement in tax shelter gifting arrangements.

CRA accepting comments on Guidance CPS-028, Fundraising by Registered Charities, till April 2010

The CRA noted in Newsletter 33 that they are accepting comments on their new Guidance CPS-028.

Donations to Prescribed Universities Outside Canada - CRA updates publication

The CRA has updated its publication “Donations to Prescribed Universities Outside Canada”  http://www.cra-arc.gc.ca/E/pub/tg/rc191/rc191-09e.pdf 

Department of Finance Releases Annual Tax Expenditures and Evaluations Report for 2009

Tax expenditures are projections of the lost revenue of all special federal tax measures designed to support the economic and social priorities of the Government and they include things like donation tax credits, GST rebates for charities etc.  Here is the 2009 report.  Remember there are a lot of caveats with these numbers including but not limited to these are the federal costs (not provincial, municipal costs), in some cases hospital and universities are treated separately from registered charities. 

CRA Income Tax Technical News No. 41 - rulings on proposed legislation, definition of tax shelters

CRA Income Tax Technical News No. 41 was released December 23, 2009 and discusses rulings (opinions) on proposed legislative amendments, the definition of “Tax Shelter” – Subsection 237.1(1) and donation of flow-through shares – subparagraph 38(a.1)(i), subsection 248(35) through (41) and section 237.1

Being Good at Doing Good Charity Conference in Toronto - preliminary speakers list revealed

I am helping organize the CLIP conference Being Good at Doing Good: Safeguarding Yourself and Your Charity in a Complex World Feb. 22-23, 2010 in Toronto.. It promises to be a very exciting and affordable two day conference with many interesting speakers from around the world providing thoughts on governance, ethics, financial management, internal controls and foreign activities for Canadian charities. Here is a partial list of speakers that was just posted http://www.capacitybuilders.ca/clip/documents/SpeakerListing_Dec15.pdf and if you want to register you can go to http://www.capacitybuilders.ca/clip/clip-news.php  For updates see http://www.capacitybuilders.ca/clip/conference/index.php 

Financial Action Task Force Report on Terrorist Financing

Here is a copy of a report on terrorist financing entitled Financial Action Task Force Report on Terrorist Financing

Some resources on money laundering and terrorism that may be helpful to charities in Canada

From the basic to the indepth there are numerous resources on the web that can help Canadian charities avoid money laundering and terrorism.

Report on combatting abuse of non-profit organizations for terrorism-need transparency in NPO sector

Here is an interesting report from the Financial Action Task Force (FATF) on COMBATING THE ABUSE OF NON-PROFIT ORGANISATIONS International Best Practices from 2002.  It highlights the importance of transparency in non-profit sectors and financial management in thwarting abuse of charities.

Sample Fraud Avoidance Policy for a Canadian non-profit organization

Here is a sample fraud policy from the UK Charity Finance Directors’ Group.  While Canadian non-profits and charities do not need to have a fraud avoidance policy this example may be of use to some and certainly being aware of the content is advisable.  It is estimated that fraud costs Canadian non-profits at least 5% of revenue. 

Preventing fraud in Canadian Not for Profit Organizations

Here is an interesting booklet from the CSAE and RBC on Preventing_fraud_in_Not_for_Profit_Organizations.pdf

Ontario Bar Association Charity and Not-For-Profit Law - A primer for lawyers sitting on boards

I will be co-chairing this morning session on February 16, 2010.  I will also be delivering a presentation on “Top 15 Legal and Ethical Concerns for Charities in Ontario - Red, White and Yellow Flags”

Recent presentations that I have delivered for the Charity Law Information Program (CLIP)

Here are copies of the handouts for a number of recent presentations that I have delivered for the Charity Law Information Program (CLIP)

Gifts of Canadian Cultural Property to Canadian charities

Cultural property is one type of gift that a donor can make to a charity.  Certain certified cultural property has certain additional benefits associated with its donation. 

CRA releases Registered Charities Newsletter No. 33 - information on receipting

Registered Charities Newsletter No. 33 was just released by the CRA today.  It has some very useful information on receipting.  Also CRA will be accepting submissions with respect to the fundraising guidance before April 2010.  If you have ideas for improvements send them to CRA - I am also interested in this issue and if you want to send me a copy that would be great.  CRA also discusses charities involved with abusive tax schemes. 

Charitable Gifts Act (Ontario) is no longer

On December 3, 2009 there was a Third Reading of the Good Government Bill (C-212) and it was carried and the bill passed.  Royal Assent was given to the Good Government Act, 2009 on December 15, 2009 and therefore the Charitable Gifts Act (Ontario) is no longer.

Is your Canadian charity’s staff person an employee or independent contractor?

Whether a staff person is an employee or independent contractor is an important distinction that can have huge ramifications for charities and their boards of directors.  To understand CRA’s position you should review RC4110 Employee or Self-employed? at http://www.cra-arc.gc.ca/E/pub/tg/rc4110/  Charities that mistakenly classify people as independent contractors when in fact they are employees can be on the hook for the source deductions plus interest and penalties.  If the charity does not have the funds then board members can be jointly and severally responsible.  If in doubt call the CRA or speak to legal counsel. 

Is your Canadian charity’s staff person an employee or independent contractor?

Whether a staff person is an employee or independent contractor is an important distinction that can have huge ramifications for charities and their boards of directors.  To understand CRA’s position you should review RC4110 Employee or Self-employed? at http://www.cra-arc.gc.ca/E/pub/tg/rc4110/  Charities that mistakenly classify people as independent contractors when in fact they are employees can be on the hook for the source deductions plus interest and penalties.  If the charity does not have the funds then board members can be jointly and severally responsible.  If in doubt call the CRA or speak to legal counsel. 

United Jewish Appeal (UJA) Charity Law Seminar - January 14, 2009 at Lipa Green Centre

Standing Committee on Finance Report on Pre-Budget Consultation -references to charities, volunteers

The Standing Committee on Finance released its Pre-Budget Consultations 2009 and it is located at   The Report, tabled in the House on Wednesday, December 9, 2009.  Below are excerpts relating to charities.  For the full text see below.

Completed T3010B is now available online at the CRA website - great tool for transparency

I am so excited and it is not that I am going away on vacation today for a week.  The new T3010B Registered Charity Information Return, which is filed by Canadian charities for fiscal year ends beginning January 1, 2009 are now available online.  Until yesterday it was only the T3010A (the old registered charity information return) that was available.  There is a lot of additional information in the T3010 that is really exciting and provides stakeholders in the charity sector greater information on the individual charities and by aggregation the whole sector.

CRA’s Fundraising Guidelines –Legal, Ethical and Practical Issues -AFP GTA Congress 2009

Here is a copy of my presentation CRA’s Fundraising Guidelines –Legal, Ethical and Practical Issues A presentation to the Association of Fundraising Professionals (AFP) GTA Congress 2009 in Toronto

Charities Directorate enhances alphabetical index of topics to include summary policies (CSPs).

CRA announced that “Enhancements have been made to the Alphabetical index of topics, including the addition of summary policies (CSPs).”  You can find the Alphabetical Index of Topics at http://www.cra-arc.gc.ca/chrts-gvng/chrts/a-tpcs-eng.html

The Offord Group - Perspectives on Canadian fundraising - article on CRA Guidance on Fundraising

An article I wrote entitled “CRA Guidance on Fundraising: AN OPPORTUNITY TO IMPROVE FUNDRAISING PRACTICES IN THE SECTOR” was published in PERSPECTIVES ON CANADIAN PHILANTHROPY by the Offord Group.  The publication can be downloaded from http://www.theoffordgroup.com/

First Nations Groups and qualified donee status

In Registered Charities Newsletter No. 24 Summer 2005 the CRA discusses the status of certain First Nations groups as qualified donees.  The qualified donee status is important as organizations that are qualified donees can issue “official donation receipts”.  If you have questions about whether your First Nations group is a qualified donee you can call the Charities Directorate of the CRA.

When should a Canadian charity not issue a “official donation receipt” (tax receipt)?

I am often asked “When should a Canadian charity not issue a “official donation receipt” (tax receipt)?”  First of all Canadian charities do not have to issue tax receipts - however, if they are going to issue official donation receipts, commonly known as tax receipts, then the registered charity must ensure that it is only issuing the receipt for a “gift” and subtracting any “advantage” that the donor may receive. If in doubt call CRA or contact a charity lawyer.  Here is a list of transactions that generally do not result in a tax receipt being issued. 

Interaction Forum 2009 – the learnings of a Canadian charity lawyer in Washington, D.C.

I recently attended the Interaction Forum held in Washington, D.C. on July 6-9, 2009.  The Interaction Forum is the largest gathering of US ngos involved with development.  I met some very interesting people and learned quite a lot.  Here are some of my learnings from the Interaction Forum ...

http://www.socialfinance.ca/ provides useful information on social enterprise in Canada

Karim Harji and his team of bloggers at http://www.socialfinance.ca/ cover everything from CSR to social enterprise to philanthropy.  They are trying to expand the development of a social finance marketspace in Canada.

How does a Canadian registered charity know the value of a pharmaceutical donation for development?

Valuation is complicated but don’t rely on the donor to tell you the value or use some optimistic number.  If a charity provides an official donation receipt for a donation of pharmaceuticals to a donor that charity is obliged to determine the fair market value.  If you can order similar pharmaceuticals internationally at 1% of the cost it is difficult legally (and perhaps unethical) to claim a far higher Canadian value or “wholesale” value in Canada.  This can result in a charity losing its charitable status. You might find The International Drug Price Indicator Guide helpful http://erc.msh.org/dmpguide/index.cfm?search_cat=yes&display=yes&module=dmp&language=English&year=2008  Here is the print version of the International Drug Price Indicator Guide. http://erc.msh.org/dmpguide/pdf/DrugPriceGuide_2008_en.pdf