Canadian Charity Law

We are pleased to announce that we have recently updated our CharityData.ca website to include nearly all T3010 2017 data and some of the 2018 data.

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We have created a course entitled "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/   Here is an overview of the course:

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The compliance requirements and restrictions on private foundations in Canada are frequently misunderstood, even by those who run large private foundations.   Here is our article Fallacies about private foundations in 2019 that might be helpful in dispelling these myths. 

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David Callahan recently reviewed Rob Reich's new book "Just Giving: Why Philanthropy is Failing Democracy and How It Can Do Better." in an article "Impossible to Justify" A Political Scientist Takes on American Philanthropy".  The review and the book are a further wake-up call that there are concerns in the public about philanthropy.    We can wait for people to become more cynical of the charity sector or we can act now to prevent that.   It is definitely worth reading David Callahan's review.  

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We are pleased to announce that we will be hosting Blumbergs' Canadian Charity Law Boot Camp again on Monday April 8, 2019. This is a one-day boot camp on compliance and standards issues for Canadian registered charities. You can register for the program here. 

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The Canadian Charity Law Association is delivering some upcoming webinars. Registration is free but space is limited. Topics are subject to change. 

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The Swiss Aga Khan Foundation has been added to the list of "Foreign charities that have received a gift from Her Majesty in right of Canada".  They have not been on the list for a number of years.  We have discussed this category previously.   There are only 3 groups at the moment on the list. 

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The Charity Commission of England and Wales has significant material to help charities understand the importance of putting in place systems and implementing them to safeguard charity beneficiaries, as well as staff and volunteers.   Sometimes the issue is framed in terms of "vulnerable" beneficiaries such as children or the elderly but similar principals apply to employees, volunteers, suppliers etc.  The issue has been covered recently in the media and for Canadian charities, there is little guidance on the topic from the CRA.

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On Thursday December 13, 2018, Bill C-86 received Royal Assent. Within this Bill, there are several changes to the Income Tax Act related to charities, especially with regards to political activities.  The change allows Canadian registered charities to conduct public policy dialogue and development activities (PPADA) connected to the legal purpose of the charity as long as they are not directly or indirectly partisan.   We are awaiting guidance from CRA on how they will interpret the new provisions on political activities.  Also the CWP decision will probably one day end up in the Supreme Court of Canada and perhaps they will have a thing or two to say about political activities and how purposes and activities relate to registered charity status.  

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As of November 14, 2018, CRA will no longer send out the peel and stick barcode labels with the T3010 annual information return package. These stickers were on the back of Form TF725, Registered Charity Basic Information Sheet. Charities will continue to receive Form TF725, on which they will be able to verify and make changes to their telephone number, fax number, email, website address and/or mailing address.

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The CRA released today their Report on the Charities Program 2016 to 2018.  They note: "We made the report shorter by reducing the amount of text and added more visuals. The report is now easier to understand and has a more modern look."  There is far less information in this report than previously provided which is unfortunate.   Although with all the crazy changes Finance is coming up with on political activities I am surprised that CRA had the time to prepare this report at all. 

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On Wednesday November 28, 2018 I presented to the Senate Committee on Finance in Ottawa. My presentation dealt with Bill C-86, Budget Implementation Act, 2018, and specifically the proposed changes to the rules and regulations on political activities carried out by charities within the Bill. 

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Here is our article "Informal Risk Reviews are Excellent Value for Money for Registered Charities"

The Government of Canada recently announced that it will now be using the Market Basket Measure (“MBM”) to measure Canada’s poverty line. Previously, Canada did not have an official measure of poverty; rather MBM was used along with Low Income Cut-Off (‘LICO’) and low income measure (‘LIM’). With Canada’s First Poverty Reduction Strategy, announced in August 2018, the Federal Government needed an official poverty measure to guide this new strategy.

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On Monday November 19, 2018 I presented to the Special Senate Committee on the Charity Sector in Ottawa.  My presentation dealt with a number of areas especially transparency of non-profits and registered charities, good charity regulation, and political activities by charities.

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Here is our article Finance 2018 Fall Economic Statement and its Impact on Canadian Charities, Journalism and Social Finance.   

There have been a number of articles in the media on a Catholic school in Toronto called St. Michael’s College School over the last week and a number of recent incidents involving sexual assault and what the National Post describes as "Broomstick sexual assault".  St. Michael's College School is a registered charity.  Here is information on our Charitydata.ca website on St. Michael's College School. 

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Here is the new Canadian Charity Legal Checklist.  For those who are interested in reviewing legal compliance for their registered charity they may find the checklist helpful.  

Canadian registered charities must file their Registered Charity Information Return (Form T3010) on an annual basis within 6 months of their fiscal year end.  Generally, CRA will send the T3010 package (which includes the peel-off labels) to the Charity’s mailing address within a month of a Charity’s fiscal year end.  And if not yet filed, CRA will send a Reminder to file the T3010 to registered charities by regular mail after the initial T3010 package was sent. 

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The Companies Branch of the Ontario Ministry of Government and Consumer Services (“MGS”) is very heavily backlogged at the moment.  Estimated times for processing applications that generally would have taken 6 – 8 weeks are now taking 4 or more months! 

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The CBC today covered the issue of Canadian pro sports teams and their fundraising charities in "Pro sports charities hoarding cash, overspending on fundraising, watchdog says".   This is a follow on to the coverage by the Toronto Star from 2010. 

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There have been large changes over the last week in the rules for Canadian registered charities and political activities.  Here is our article Finance Changes to Political Activities and Canadian Charities.

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Even with the Ontario Not-for-Profit Corporations Act ("ONCA") looming, we are still seeing recently incorporated non-profits that are set-up under the Ontario Corporations Act ("OCA"). Here is an article on some of the reasons why this is generally not a good idea, and why it is better for our clients to set up new entities under the federal Canada Not-for-profit Corporations Act ("CNCA").

On October 25, 2018 the Department of Finance posted Legislative Proposals Notice of Ways and Means Motions and Explanatory Notes which among other things change the rules for Canadian charities carrying out political activities.

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For many reasons a charity may decide that it is beneficial to change its fiscal year.   CRA has guidance on how to request such a change and now CRA has published an infographic on the topic.