We have just launched our 3rd online course - this one is entitled "Fundraising from Canada: A course for groups outside of Canada". It is geared towards those outside of Canada thinking about fundraising in Canada and the options for structures that will assist including establishing a Canadian registered charity.
Many people in Ontario are wondering what the status of ONCA is. I just wrote this email to MGCS and look forward to hearing more and sharing it with the sector.
Elections Canada in late August 2019 updated their guide Political Financing Handbook for Third Parties Financial Agents and Auditors, which updates the last version of the guide which was published in June 2019.
The Tyee, an online magazine, recently posted an opinion piece by Tom McMahon entitled "Why Environmental Groups’ Attack on Elections Canada Is Wrong, and Dangerous". It is a very thoughtful piece from an individual who has a good understanding of electoral regulation. It cautions that the attack on Elections Canada was wrong and dangerous and that we must be careful what we ask for. It discusses changes in the US that led to a less than desirable political situation south of the border and he asks some environmentalists to "consider the dangerous door they are opening".
CANADALAND recently had a podcast which dealt with a number of topics but one of them was charities, political activities, Elections Canada and the upcoming Federal election. The podcast was called "#227 Scandal? What Scandal?". In the podcast Jesse Brown is joined by Sandy Garossino, a former Crown prosecutor and columnist for the National Observer. The discussion on charities and political activities takes place around 25:08 minutes in.
Private and Public Foundations are an important part of the Canadian charity sector. The Blumbergs' Fundamentals of Running a Private or Public Foundation in Canada will focus on compliance issues with an emphasis on those specifically relevant to running a private or public foundation that is a registered charity in Canada. While some foundations give out a small amount each year – others are giving hundreds of millions. Large gifts might have been $10-20 million a few years ago but are now $100 million and over. On September 17, 2019, we will be hosting a full-day event on public and private foundations. Register here.
STEP Canada had a CRA Roundtable on June 6-7, 2019 and they discussed a number of topics. One issue of interest to charities and philanthropists is Question 2 dealing with alter ego trusts and donations. Essentially CRA takes the position that if an alter ego trust is required to distribute its funds to a charity then such funds are not a charitable donation and not entitled to an official donation receipt. If on the other hand the trustees have discretion and there is donative intent then it could be a charitable contribution.
The Canadian Charity Law Association is delivering some upcoming webinars. Registration is free but space is limited. Topics are subject to change.
There has been a lot of media and social media coverage over the last few days about non-profits and charities and the rules around their involvement in the upcoming election. To my dismay, much of it has been inaccurate. While I am quite used to misinformation on the obligations of charities what is most interesting is the way in which "serious" media organizations such as CBC apparently made no attempt to actually check what the rules are and have put forward ridiculous ideas such 'if a charity registers as a third party with Elections Canada they could lose their charitable status'. As well while there are some new rules in the Canada Elections Act the main rules dealing with third party registration during an election have been around for decades.
CRA in June 2019 brought in a new charity application system under their CHAMP modernization program. Here is our article Making sense of CRAs new online Canadian charity application system which discusses the new system and also provides a paper copy of the questions on the new system. Some people, including professional advisors, have had challenges with the new system and hopefully this article will be of assistance.
We have a directory dealing with applications for charity status. If you wish to apply for charity status in Canada and need legal assistance you can retain our law firm to assist. Here is information on how to contact us. We have 9 lawyers who focus on working with non-profits and charities that are based in Canada and abroad.
On June 24, 2019, the Federal Court of Appeal upheld CRA's decision to revoke Many Mansions Spiritual Centre, Inc. ("Many Mansions")'s charitable status in Many Mansions Spiritual Centre, Inc. v Canada (National Revenue).
On June 28, 2019, the Tax Court of Canada released its decision Promised Land Ministries v the Queen, in which it upheld CRA's decision to suspend the registered charity Promised Land Ministries ("PLM")'s receipting privileges for one year for failing to maintain adequate books and records over a foreign activity by the Canadian charity. This case is vital reading for any Canadian charity conducting foreign activities because of its extensive discussion of books and records and foreign activities.
Join us on Monday October 7, 2019 in Toronto for the 8th Annual Blumbergs' Canadian Charity Law Institute. We will be featuring a number of speakers covering different legal and compliance issues affecting Canadian charities and non-profits. It will be a full day packed with practical legal and ethical compliance information geared toward charities, professional advisors and those interested in regulatory issues affecting charities and the non-profit sector. Space is limited.
The price is $275 for the day. It includes breakfast, lunch, breaks, coffee and drinks, HST and handouts. There are early bird specials if you sign up early enough including the super early bird which expires July 31. For more information or to register here is a link to the Blumbergs' Canadian Charity Law Institute 2019.
We have created two new online courses for those outside of Toronto who are not able to easily attend our programs. They might also be helpful to those in Toronto who cannot wait for our next session as they sometimes only occur annually. Online course are never going to be the same as in-person courses but for many they are far easier to access and more convenient. You can do an online course at your pace and redo sections if you wish.
The first course is "Should We Establish a Canadian Social Enterprise, Non-Profit or Charity and How to Do It?". The course is $149 and you can register at https://charity-law.teachable.com/
The second course is "Receipting for Canadian Registered Charities". The course is $225 and you can register at https://charity-law.teachable.com/
Canadian charities now have more options for doing certain transactions online using the CHAMP system. Charities should look into accessing their CHAMP account.
Here is our article on "Objects of registered charities in Canada are sometimes not charitable". Objects are very important and often Canadian charities don't understand that even though they are a registered charity their objects may not actually be charitable.
The Senate has had a standing committee that has been looking at the voluntary sector in Canada. They released their report today. The report is entitled Catalyst for Change: A Roadmap to a Stronger Charitable Sector. It is over 189 pages long and has 42 recommendations.
I have just completed 4 years on the CRA's Technical Issues Working Group. Most people don't even know that it exists. The Technical Issues Working Group is fondly known as TIWG and pronounced like 'twig'. It is an opportunity twice a year for CRA, Finance, certain charities and professional advisors to discuss technical and other issues affecting the sector.
Here is our article "Comparison of the CRA’s Charities Listing and Blumbergs’ CharityData.ca" which looks at the two main public and free sources of data on registered charities in Canada.
There are a large number of Ontario non-profit corporations under the Ontario Corporations Act (“OCA”). As you may know, the Ontario government has stated that it is targeting to replace the OCA with the new Ontario Not-For-Profit Corporations (ONCA) at the beginning of 2020. ONCA has been delayed a number of times and although the Ontario Ministry announced it is targeting 2020, it is not certain that ONCA will necessarily be brought in by that date. On May 29, 2019 we asked the Ontario Government if there was any update or anything new with respect to ONCA and we heard on May 31, 2019 "We have no additional updates to share with you at this time about the Not for Profit Corporations Act."
Here is a Q&A from CRA about the new journalism qualified donee category.
CRA has recently updated its Charities Listing and the most notable change is the fact that they have reduced the amount of information available on each Canadian registered charity. The Charities Listing used to have up to 15 years of data for each charity, but now that has been reduced to only the last 5 years of data for each charity. There are concerns that this change reduces transparency and accountability within the charitable sector. While the information is still technically publicly available, now anyone who would like to review older data must first submit a request form to CRA and wait a few weeks instead of that information being instantly available.
CRA is set to introduce its online system for organizations applying for charitable status. Once this system is available on June 1, 2019, paper applications will no longer be accepted and organizations will only be able to apply for charitable status online using CHAMP. We suggest that if you are currently working on a charity application it may be best to complete it and file the application with CRA before May 31 to avoid having to re-input all the information on the T2050 form into the online system and potentially avoid any initial delays or issues associated with the new system.
Properly issuing official donation receipts has been challenging for many registered charities. According to the CRA, 89% of registered charities that are audited by CRA are not correctly issuing official donation receipts. Issuing incorrect receipts can result in revocation or penalties. It is easier to do it right than fix problems later! We are pleased to announce that we will be hosting a 3-hour event Fundamentals of Receipting by Canadian Charities on Monday, June 10, 2019 at 8:30 am. Click here for more information and to register for this event.
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.
mark@blumbergs.ca 
416.361.1982
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