Global Giving

January 24, 2018

CRA Questions on Charities Assisting Those Affected by the Conflict in Syria

In our note "CRA Questions on Charities Assisting Those Affected by the Conflict in Syria" it includes some common questions and answers from CRA on charities assisting those affected by the conflict in Syria.   

January 09, 2018

Top 68 CRA Reasons for Denying your Canadian Registered Charity Application

In this article "Top 68 CRA Reasons for Denying your Canadian Registered Charity Application" we have obtained from CRA a list of some of the most common and not so common reasons for CRA to be concerned with a charity application.   

January 09, 2018

Upcoming Blumbergs’ Events for 2018 - Bootcamp, T3010 and Receipting

Understanding legal compliance for registered charities is not easy but Blumbergs is offering 3 exciting new upcoming events in 2018 that will help.  We will have our Canadian Charity Law Bootcamp in April which provides a full day overview of charity law regulation.  Then in June we will have a half-day Fundamentals of the T3010 and Transparency for Canadian charities.  In September we will have the half-day Fundamentals of Receipting by Canadian charities.  Inaccurately completing the T3010 and improperly issuing receipts are the two most common compliance concerns for registered charities and these educational programs are designed to help charity directors, staff, and volunteers to tackle these challenges.  

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January 01, 2018

Canadian charities operating outside of Canada and Sanctions

If you are a Canadian charity operating outside of Canada you need to pay attention to whether there are sanctions relating to a particular country, business, organization, individual etc.  You can see an updated list of at the Consolidated Special Economic Measures Act Sanctions List and here is a list as of October 19, 2017.

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December 16, 2017

Canadian Charity Foreign Activity Legal Checklist - Working with Foreign Charities or Intermediaries

Here is a new checklist from Blumbergs that will assist Canadian registered charities either interested or currently conducting foreign activities.  It is called Canadian Charity Foreign Activity Legal Checklist - Working with Foreign Charities or Intermediaries 2017.

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October 28, 2017

Prescribed foreign universities can have their qualified donee status be revoked by the CRA

Canada has an unusually generous system in which foreign universities that have a couple of Canadian students studying there can obtain the equivalent of Canadian registered charity status with almost none of the obligations. Here is an article describing that process.  However, CRA can remove charities from the list if they don't continue to meet the requirements (for example to have the 2 students) or they don't respond to CRA requests every 5-10 years for confirmation of information. 

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October 28, 2017

Charity Commission releases guidance on “grant funding an organisation that isn’t a charity”

The Charity Commission of England and Wales has released a guidance Grant funding an organisation that isn’t a charity. It sets certain standards when an English charity provides a grant to a group that is not a charity such as a non-profit or social enterprise, businesses or foreign groups that is not "or may not be" a charity.  In Canada when a Canadian registered charity gives funds to a "qualified donee" it is typically relatively straightforward and simple, however, when a Canadian charity transfer funds or resources to a non-qualified donee such as a foreign charity then these sort of rules apply.  In Canada it is called having a "structured arrangement" with direction and control. I will discuss the Canadian rules at the end.

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September 15, 2017

CRA letter on transfers of property by a corporation to its sole shareholder

CRA recently released a letter that discusses whether a transfer of property by a corporation to its shareholder that is a private foundation is a gift for purposes of section 38(a.1) of the Income Tax Act (Canada) such that the taxable capital gain from the transfer would be zero.

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August 30, 2017

Australian national risk assessment into the NP sector discusses terrorist financing and AML

An interesting new report from The Australian Charities and Not-for-profits Commission (ACNC) as well as the Australian Transactions Reports and Analysis Centre (AUSTRAC) published on August 28, 2017 looked at "the risk of money laundering and terrorism financing in the not-for-profit sector, key vulnerabilities and risk indicators of high-risk organisations, groups of high-risk organisations that will benefit from targeted outreach and support, vulnerabilities that could be exploited to support terrorism, and a strategy to counter these vulnerabilities".

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July 27, 2017

NYT coverage of Canadian donation to NS gallery and CPERB process

The New York Times recently had an article Canada Debates Whether Gift of Leibovitz Photos Is Also a Tax Dodge which discusses a donation of photographs taken by Annie Leibovitz.  There was also coverage in the CBC, another CBC and Toronto Star.   The story is fascinating as it involves celebrities, tax incentives, valuation, and cultural property all in one.    

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July 23, 2017

Coverage of recent revocations of two charities by the Canada Revenue Agency

Global News recently had coverage entitled "Government revokes group’s charity status, audit cites possible funding of Pakistani militants" which discusses two recent revocations of Canadian charities.

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June 18, 2017

Charities, Regulation and Donors - some international perspectives from the CCLA

The Canadian Charity Law Association (CCLA) is pleased to present: Charities, Regulation and Donors - some international perspectives on June 22, 2017 at 8:30AM in Toronto.  The 1/2 day program will cover 4 thought provoking topics (see bios below) and have two excellent international guests.  The room can only hold 33 people so if you are interested book quickly.

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June 16, 2017

Largest Gifts from Canadian Charities to Foreign Qualified Donees for 2015

There are over 294,000 records of Canadian charities gifting to qualified donees in total (both within and outside of Canada).  We reviewed the list and have compiled a list of gifts over $1.3 million to foreign qualified donees only for 2015.   Here is the "Largest Gifts from Canadian Charities to Foreign Qualified Donees for 2015".

June 14, 2017

Largest Gifts from Canadian Charities to other Qualified Donees for 2015

Here is a article "Largest Gifts from Canadian Charities to other Qualified Donees for 2015" with a list of all gifts over $1,000,000 from the 2015 T3010 Registered Charity Information Returns from one registered charity to another qualified donee.

May 27, 2017

Blumbergs’ Canadian Charity Law Institute 2017 - save the date!

We are pleased to announce the Blumbergs' Canadian Charity Law Institute 2017 will be on Monday October 16, 2017. Further details will follow.  Registration and early bird information is here.  

April 23, 2017

Which Canadian registered charities spent the most on foreign activities in 2015?

April 22, 2017

CRA recently revokes registered charity status of 2 large religious groups doing foreign activities

On the CRA database it has become apparent that CRA has recently revoked the charitable status of two religious organizations that conduct significant foreign activities.  We have put in a request to CRA for information on why they were revoked. Unfortunately under the current rules even if CRA is aware of a problem with a charity it can only advise the public AFTER formal revocation has taken place.  So the details available at this point are very sparse.  

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April 11, 2017

Carleton MPNL PhilanthroTHINK: The Future of Charity Regulation on April 28, 2017 in Ottawa

Carleton University has a Master of Philanthropy and Nonprofit Leadership (MPNL).  They do some very interesting programs relating to the non-profit and charity sector.  On April 28, 2017 they will be holding a one day program entitled The Future of Charity Regulation: Lessons from International Experience.  You can find out more information here.

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April 02, 2017

Universities and Colleges fundraising in Canada - a great mechanism to fundraise effectively

Canada has a mechanism to recognize certain foreign universities for purposes of donations.  It is probably the most generous tax incentive system of any country in the world.   Essentially if you are a degree granting university outside of Canada and you have 2 Canadian students generally studying at your university/college then you can apply to get on a list maintained by the Canada Revenue Agency.   Once you are on the list you are considered to be a "qualified donee".  That means you can issue Canadian official donation receipts under the Income Tax Act  (Canada).  WIth such status a Canadian who donates to your prescibed foreign university obtains the same benefits - of between 40 - 70% as if they had donated to a Canadian university.

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March 30, 2017

Blumbergs’ Canadian Charity Sector Snapshot 2015

We have just released our Blumbergs' Canadian Charity Sector Snapshot 2015. Lots of interesting statistics and information on the Canadian charity sector.  As well if you want information on individual charities or want to sort charities based on about 20 criteria checkout our charity data site at www.charitydata.ca

March 18, 2017

Australian charity commission to crack down on inappropriate political activities by charities

This recent article in The Guardian entitled Charity regulator to crack down on political advocacy after complaints discusses how the Australian Charities and Not-for-profits Commission (ACNC) has cracked down on certain political activities by charities in Australia and how the ACNC is asking for less secrecy and more transparency in dealing with charity compliance issues.

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March 16, 2017

FTC & NASCO Conference on Consumer Protection Issues and Charitable Solicitations - online/free

The Federal Trade Commission (FTC) and National Association of State Charities Officials (NASCO) are organizing a conference called "Give & Take: Consumers, Contributions, and Charity" on Tuesday March 21, 2017.   It will be in Washington but it will be live streamed for free for those who are interested.  The live link will be available on the day of the conference.  

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March 11, 2017

IRFAN Canada makes application to Federal Court to remove terrorist designation

A number of Canadian charities have been revoked by CRA for supporting terrorism in addition to other concerns. One of those organizations was The International Relief Fund for the Afflicted and Needy (Canada) or IRFAN Canada. It lost its charitable status in 2011.  Subsequently in 2014 it was added to the list of terrorist organizations maintained under the Criminal Code.   Apparently a request had been made by IRFAN Canada to the Minister of Public Safety to de-list the applicant from the list of terrorist organizations. On December 22, 2016, the Minister of Public Safety denied the request.  Now IRFAN Canada has made an application to Federal Court for judicial review to set aside the denial.

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March 04, 2017

Charity Commission concerned that “poor due diligence and monitoring put charity assets at risk”

The Charity Commission of England and Wales recently released an Inquiry Report on a UK charity that identified concerns with fundraising and foreign activities.  There were a number of concerns raised but perhaps most interesting is the discussion around due diligence and internal controls, and specifically "receipts, invoices or other documentation to support the project expenditure".   

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February 26, 2017

CRA updates information sheet for prescribed university applications

CRA recently updated their guidance with respect to becoming a prescribed university outside of Canada. There are about 600 foreign prescribed universities and they can issue official donation receipts similar to a Canadian registered charity.  The updated CRA publication (RC 191) includes some revisions to the information that CRA requires for applications for prescribed university status (eligibility criteria however has not changed). The main change is that CRA only asks for 5 years information on Canadian students at the foreign university and not 10 years as they had previously requested.  

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Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Charity Lawyer Mark Blumberg

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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