Canadian Charity Law

Upcoming Charity Law Workshops in Calgary and Edmonton, Alberta

Here are some upcoming charity law, governance and internal controls workshops I am delivering in Calgary and Edmonton.  Calgary Foreign Activities Brochure, Calgary Charity Law Workshops Brochure, and Edmonton Charity Law workshops Brochure.  For information on all upcoming workshops and webinars see: http://www.capacitybuilders.ca/clip/clip.php

Bill C-300 Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act

The purpose of the proposed “Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act” is to “ensure that corporations engaged in mining, oil or gas activities and receiving support from the Government of Canada act in a manner consistent with international environmental best practices and with Canada’s commitments to international human rights standards.”  If you want to read the text of the proposed act see:  http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=3658424&Language=e&Mode=1&File=27#1 

Risk Mitigation and Corporate Social Responsibility in Africa Seminar

I will be making a presentation on Legal Structures for Canadian Companies Carrying out CSR Abroad at the Risk Mitigation and CSR in Africa Seminar which will be held in Toronto on Thursday October 22, 2009.  This full-day seminar is geared towards people doing business, or thinking of doing business, in Africa. The program is supported by the Department of Foreign Affairs and International Trade Canada, HATCH, MineAfrica, the Ontario Ministry of Economic Development and Trade. 

For more information please see Risk_Mitigation_and_Corporate_Social_Responsibility_in_Africa_Seminar.pdf

One World Trust launches a global database of civil society self-regulatory initiatives

According to their site “One World Trust, a London based think tank, has launched a portal on civil society self-regulation which includes a database listing over 320 initiatives (codes of conduct, certification schemes, working groups, self-assessments and information services) across 80 countries. Each initiative has a unique page with summaries of its content; contact details; areas and types of activities the initiative addresses; a list of participant organisations; compliance, monitoring and sanctioning mechanisms; among others.” 

Charities Back on Track 2008-09 - UK report details problems with some UK charities

The UK Charity Commission has published an interesting report entitled Charities Back on Track 2008-09 which looks at various investigations involving UK charities and “financial mismanagement, trustee duties and responsibilities, vulnerable beneficiaries, and inappropriate political activities and campaigning.”  The number of serious incidents has increased - perhaps an indication of better reporting rather than increased misbehaviour.  As in Canada it is only a small number of chariites who are comitting serious misconduct - however, the damage that those few charities can cause to the sector can be substantial. 

New OECD handbook boosts anti-money laundering efforts and helpful for Canadian charities

The OECD Money Laundering Awareness Handbook for Tax Examiners and Tax Auditors can be found at:
http://www.oecd.org/document/46/0,3343,en_2649_33767_43841326_1_1_1_1,00.html

Canadian Charities to receive easier access to their info with CRA My Business Account (MyBA) access

The Charities Directorate of CRA has just announced that Canadian Charities can receive easier access to their info with CRA My Business Account (MyBA) access.

Software for Canadian Charities that can prepare the T3010 Registered Charity Information Return

If you are looking for software for a Canadian charity that also prepare the T3010B Registered Charity Information Return you may find this link at the CRA website helpful http://www.cra-arc.gc.ca/chrts-gvng/chrts/lst-eng.html  The link is of a “List of companies authorized to produce a customized T3010 form “.

CRA updates Small and Rural Charities Initiative (SARC) status

CRA on October 7, 2009 updated the status of the “Small and Rural Charities Initiative (SARC)”.  Although 2/3 of Canadian charities are “small” (under 100,000 in income) or “rural” (by postal code) the SARC initiative has resulted in some very important changes that will affect almost all charities.  Here is a link to the updated status report http://www.cra-arc.gc.ca/chrts-gvng/chrts/cmmnctn/src/pgrss/menu-eng.html

CRA’s Most Common Mistakes with the T3010B Registered Charity Information Return

CRA has posted a piece on “Avoiding common mistakes when filing the T3010B return” at http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rtrn/mstksb-eng.html

Banyan Tree Foundation affidavit by Vern Krishna makes interesting reading

Vern Krishna, a very respected Canadian tax lawyer, a few months ago provided an interesting affidavit on the lawsuit against Fraser Milner Casgrain and others with respect to the Banyan Tree Foundation at http://www.classactionlaw.ca/content/claims/Rochester/Supplementary%20Motion%20Record%20re%20Vern%20Krishna%20Affidavit.pdf  All allegations have yet to be proved in court

Foreign Contractors of Canadian Registered Charities Carrying Out the Canadian Charity’s Projects

Here is an article entitled “Foreign Contractors of Canadian Registered Charities Carrying Out the Canadian Charity’s Projects – A Very Simplified View of the Process” that I wrote for the Capacity Builders Charity Law Information Program (CLIP)
http://www.capacitybuilders.ca/files/resources/Foreign_Contractors_of_Canadian_Registered_Charities_Carrying_Out_the_Canadian_Charity__s_Projects_1253585049.pdf

CRA’s Consultation on Foreign Activities: What is New and Interesting for Canadian charities

Here is an article entitled “CRA’s Consultation on Foreign Activities: What is New and Interesting with Canadian Charities Conducting Foreign Activities” that I wrote for the Capacity Builders Charity Law Information Program (CLIP) “http://www.capacitybuilders.ca/files/resources/What_is_New_and_Interesting_With_Canadian_Charities_Conducting_Foreign_Activities_1253668442.pdf

The Do No Harm Handbook - a useful tool to analyze the impact of humanitarian assistance on conflict

Any humanitarian relief organization that will operate in a conflict or post-conflict area should review “The Do No Harm Handbook (The Framework for Analyzing the Impact of Assistance on Conflict) which is located at: “http://www.cdainc.com/dnh/docs/DoNoHarmHandbook.pdf

Canadian charity statistics

I am compiling a list of statistics relating to Canadian charites.

Mark Blumberg and CLIP on Twitter to discuss Canadian charity law

I have started a small twitter channel at http://twitter.com/canadiancharity or http://twitter.com/statuses/user_timeline/71976300.rss  It will focus on Canadian charity law issues and especially educational efforts to inforrm charities of their legal obligations.

CRA Removes Guide RC4108, Registered Charities and the Income Tax Act from their website

The CRA has recently removes Guide RC4108, Registered Charities and the Income Tax Act from their website.  It was quite out of date and they have now placed the relevant material in other places on their website.

Fundraising by Canadian registered charities

CRA in June 2009 released its Guidance on Fundraising by Canadian charities.  You can see the document in English at:  http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cps/cps-028-eng.html and in French at:
http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cps/cps-028-fra.html 

Holy Alpha and Omega Church of Toronto - PartII - CRA wins case on injunction, direction and control

In an earlier blog (http://www.globalphilanthropy.ca/index.php/blog/comments/holy_alpha_and_omega_church_of_toronto_case_-_fraudulent_tax_receipts/) I had noted the case of Holy Alpha and Omega Church of Toronto.  The Federal Court of Appeal heard the matter in September 2009 and here is the decision http://decisions.fca-caf.gc.ca/en/2009/2009fca265/2009fca265.html  The case involved a charity that CRA alleged was not complying with a number of requirements for a registered charity including but not limited to:  they did not maintain adequate books and records;  they did not have an agreement with a foreign intermediary over substantial amounts of funds sent to Ghana and therefore could not show that they had “direction and control” over their own resources; and they did not maintain proper control over tax receipts and a large number were missing.

William Harper’s “Some Top CRA Compliance Issues”

Here is an article at Imagine Canada’s website on “Some Top CRA Compliance Issues” by William Harper http://nonprofitrisk.imaginecanada.ca/files/insuranceinfo/en/publications/bill_harper_sept_2009.pdf

Preparing your Canadian Registered Charity for a CRA Audit

If you anticipate that your charity is going to be audited by the Charities Directorate of CRA you may wish to review my article Canada Revenue Agency (CRA) Audits and Canadian Registered Charities at http://www.globalphilanthropy.ca/images/uploads/Canadian_Charities_and_Audits_by_the_Canada_Revenue_Agency.pdf  Here is a copy of an example of a Required Information and Documentation Letter from CRA which gives you an idea of some of the information that the CRA may initially request.

CCCC Submission on CRA Consultation on the Proposed Guidance on Activities Outside of Canada

The Canadian Council of Christian Charities (CCCC) has provided their submission to the Canada Revenue Agency’s (CRA) on the CRA’s proposed guidance on foreign activities (the “CRA Consultation on the Proposed Guidance on Activities Outside of Canada for Canadian Registered Charities”).  The CCCC is an umbrella organization of over 3,000 member charities and you can find their response at: http://www.cccc.org/releases/2009-09-22-CCCC_Response.pdf

To read the consultation document go to: http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cnslttns/ccrc-eng.html

Third Canadian Conference on Social Enterprise in Toronto

Here is some information on the Third Canadian Conference on Social Enterprise in Toronto in November.

Canadian charities and fundraising contracts - factors to consider before signing

The Ontario Public Guardian and Trustee has produced a charity bulletin entitled Charitable Fundraising: Tips for Directors and Trustees.  In that bulletin they list in “Appendix A: Factors to Consider Before Signing a Fundraising Contract”. 

CRA supports additional charitable organizations’ innovative educational and training projects

The CRA has announced contribution funding for eight new projects under the Charities Partnership and Outreach Program (CPOP).  One of the announced projects will be handled by the Ontario Community Support Association under its Charity Law Information Program (CLIP).  The CLIP project announced today has two aspects.  First, to educate Canadian charities about the requirement of gifting only to other qualified donees.  This affects Canadian charities who transfer resources to organizations that are not qualified donees, whether such organizations are inside Canada or outside Canada (foreign activities). It will emphasize the importance of having proper structured arrangements with local and foreign intermediaries (agents, partners, contractors etc)  The second part of the project is to increase the financial management capacity of the charitable sector and to avoid misuse of charities assets including with fraud, money laundering, terrorism and excessive private benefit.  For more information see http://www.capacitybuilders.ca/clip/clip.php

Ten Most Useful Features of the Canada Revenue Agency’s Charity Directorate Website

In this article I wrote for the Charity law information program it discusses the Ten Most Useful Features of the Canada Revenue Agency’s Charity Directorate Website for Charities.  If you have not recently visited the site you might find that CRA has added a lot of practical and easy to understand information for charities.

Charity Law Information Program (CLIP) Toronto workshops on charity law and risk management Oct 6/09

I will be delivering two workshops in Toronto on October 6, 2009 for the Charity Law Information Program (CLIP) of CapacityBuilders.  For further information see the Toronto Brochure and registration information for CLIP.

OCSA 2009 Great !deas Conference in Toronto - strategic planning, social enterprise speakers

The main page for the OCSA 2009 Conference is at http://www.ocsa.on.ca/Conference/2009/index.html  The program is at http://www.ocsa.on.ca/Conference/2009/program.html  I thought I would highlight a few interesting speakers namely Seb Elsworth, from the UK Association of Chief Executives of Voluntary Organisations(ACEVO) who will be discussing “Business Development: $ and Sense of Building Your Business”.  As well, Robert (Bob) Harrington, MSW/LCSW, of La Piana Consulting based in California will be talking about “Real Time Strategic Planning within a Constantly Changing Environment”.  Cynthia Armour will also be talking about the board’s role in fundraising and also fundraising in hard times.  Far less interesting, I will be talking about top 15 charity legal compliance risks.  There will also be a number of presentations on pandemic preparedness.

CRA provides commentary on Gifts to Certain Charitable Organizations Outside Canada and IC84-3R5

CRA has provided some more detail on how organizations are included in Attachment to IC84-3R5, Gifts to Certain Charitable Organizations Outside Canada.  There are only about 5 organizations left on the list and perhaps this policy commentary will encourage the Canadian government, and especially CIDA and DFAIT, to consider adding a few more foreign charities to the list.

The Nonprofit Starvation Cycle in Stanford Social Innovation Review

This article entitled The Nonprofit Starvation Cycle at http://www.ssireview.org/articles/entry/the_nonprofit_starvation_cycle/ discusses “overhead” or “indirect expenses” and how various factors play in to charities not investing enough in infrastructure which results in less efficient organizations that cannot effectively serve their beneficiaries.  About a year ago I wrote an article encouraging Canadian charities to spend more on “overhead” and that article is at: http://www.globalphilanthropy.ca/index.php/blog/comments/how_much_should_canadian_charity_spend_on_overhead/