What's New from the Charities Directorate of CRA

March 28, 2019

CRA announces upcoming changes to the T3010 and T2050, removing Political Activities

On March 15, 2019, CRA announced that there will be changes to the T3010 Annual Return and the T2050 Application to Register a Charity to account for the recent changes to the political activities rules for Canadian registered charities. Instead of reporting on their political activities, charities will report their public policy dialogue and development activities (PPDDAs). According to CRA, registered charities will have less to report for PPDDA than they previously reported for their political activities. The changes to the T3010 and T2050 are set to come in November 2019. Until the changes are made, CRA has provided instructions on how to fill out the current T3010 and T2050 for PPDDA. 

read more

March 25, 2019

Blumbergs’ International Philanthropy Conference 2019 (SOLD OUT)

We are pleased to announce that we will be holding a full-day event on international philanthropy on April 12, 2019: Blumbergs' International Philanthropy Conference 2019. See below for more details and we hope to see you there.

read more

March 25, 2019

Blumbergs’ Canadian Charity Law Boot Camp 2019 (SOLD OUT)

The Blumbergs' Canadian Charity Law Boot Camp will be held 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

read more

March 19, 2019

Canadian Federal Budget 2019 and its impact on non-profits and charities

Finance Minister Morneau delivered the 2019 Federal Budget today.  Here is our article "2019 Canadian Federal Budget - How will it affect the Canadian charitable sector?"

Finance has already released a Fall Economic Statement that did contain a number of initiatives relating to the charity sector and you can see our article "Finance 2018 Fall Economic Statement and its Impact on Canadian Charities, Journalism and Social Finance".   

March 13, 2019

US’s College Admission Scandal involves American Charitable Foundation

There has been a lot of coverage of the college admission scandal in the United States, in which many celebrities and wealthy executives paid large sums of money (some over $1 million US) to cheat their children's way into top universities. While some will focus on which celebrities participated and corruption in the competitive admissions processes, we shouldn't overlook the fact that money involved in this scheme was funnelled through an American 501(c)(3) corporation, which is a charitable organization. This means that in addition to cheating the system, taking a spot from a deserving and qualified but less wealthy student, and continuing privilege of the rich and famous, some participants in this scheme were getting tax deductions for their bribe money.

read more

March 08, 2019

Good news on charity compliance education from CRA - the ‘Road Shows’ are coming back!

The CRA announced today a number of different matters including "The Government is providing up to $5.3 million in new funding over the 2018–2019 to 2023–2024 period for the CRA to enhance sector outreach and education. This will include reinstating in-person information sessions and introducing videoconference information sessions for charities across Canada."   It is so well hidden in the press release I barely noticed it!   

read more

March 08, 2019

CRA Minister Responds to changes in Political Activities of Charities

Today CRA has released the Minister of National Revenue's response to the recent changes on Political Activities by Canadian registered charities. The Government has announced that this is their final response to the Report of the Consultation Panel on the Political Activities of Charities, which came out March 31, 2017. It has taken the Government almost 2 years to release its final response on the report which came out at the end of March 2017!  This report was promised for the summer of 2017 so I guess we can chalk this up to the Canadian government has never been so efficient at putting out announcements as in the week that the PM is being skewered on SNC-Lavalin.  I wonder if the Liberals will release the religion guidance they have been hiding for 4 years (and the Conservatives for many years before that).  

read more

March 08, 2019

Minister of National Revenue press release on the Advisory Committee on the Charitable Sector (ACCS)

The Minister of National Revenue, the Honourable Diane Lebouthillier put out a news release on March 7, 2019 dealing the new Advisory Committee on the Charitable Sector (ACCS).  I was expecting details in the budget but receiving these details today by press release was a bit surprising.  Forgive me for being a bit cynical in this time of the SNC-Lavalin affair in Ottawa I can only imagine that there is pressure on civil servants to put out lots of releases and information to distract, I mean focus, the attention of people on what is really important! 

read more

March 03, 2019

Registered Charities and CRA Charity Audits

The Canada Revenue Agency’s (CRA) Charities Directorate is the de facto regulator of Registered Charities in Canada and they audit between 600 and 800 charities per year.   This article Registered Charities and CRA Charity Audits will help you understand the process for dealing with a CRA charity audit and the likely outcomes.   

February 27, 2019

CRA letter on rebate donation program

Here is the text of a recent CRA letter on a rebate donation program and whether donors can claim a tax deduction.  Not surprisingly CRA was not prepared to confirm that a donation receipt can be issued and these sorts of matters very much depend on all the facts that are relevant.   That being said CRA does lay out some of the matters to consider.   

read more

February 27, 2019

Kaul v. The Queen - Tax Court of Canada and appraisal of FMV when gifting scheme

In the Tax Court of Canada case Kaul v. The Queen, CRA denied certain claims for tax credits relating to an art donation scheme.  The taxpayers appealed and the Tax Court of Canada sided with CRA.  There is lots of discussion around valuation reports, fair market value and art work. 

read more

February 27, 2019

CRA releases Q&A on public policy dialogue and development activities by charities

The CRA recently released a question and answer document on the December 2018 political activity changes and the new guidance on public policy dialogue and development activities by charities.  Here is the Q&A

read more

February 27, 2019

CRA updates info sheet “How a Charity Completes Its GST/HST Return”

The CRA has recently updated its info sheet "How a Charity Completes Its GST/HST Return".  Here is the CRA document.  

February 27, 2019

Revised P113 - Gifts and Income Tax 2018 - deals with tax benefits of donating to charities

The CRA document P113 - Gifts and Income Tax 2018 is a helpful guide to the tax consequences of donations to registered charities and qualified donees.  It has been recently updated.    

read more

January 30, 2019

CRA revokes charity that spent almost 200m on foreign activities over last 5 years

Global News journalist Stewart Bell recently wrote an article "Government revokes charity status of Canadian Jewish group that supported ‘foreign armed forces’".  The articles discusses the recent revocation of the Canadian registered charity Beth Oloth Charitable Organization.  You can see detailed information on Beth Oloth at www.CharityData.ca.  It is quite clear from this Charitydata webpage that this organization went from having very little revenue to spending in the last few years over $200 million and apparently spending over 193m outside of Canada.

read more

January 21, 2019

CRA releases draft guidance “Public policy dialogue and development activities by charities”

The CRA today released its draft guidance "Public policy dialogue and development activities by charities".   This guidance will replace CRA's Guidance CPS-022, Political activities.  The CRA is asking for feedback on this draft administrative guidance and providing until April 23, 2019 for that feedback.  Here is a PDF of the draft guidance and here is a link to the draft guidance on the CRA website.  We will be providing further information on this draft to our clients and on our blog.  

January 14, 2019

Course - Should We Establish a Canadian Social Enterprise, Non-Profit or Charity and How to Do It?

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:

read more

January 13, 2019

Fallacies about private foundations in 2019 - an article on the many myths about private foundations

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. 

read more

January 08, 2019

Addition to “Foreign charities that have received a gift from Her Majesty in right of Canada”

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

read more

December 14, 2018

Bill C-86 Receives Royal Assent

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.  

read more

December 13, 2018

CRA announces the end of the T3010 charity annual return barcode stickers

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.

read more

December 04, 2018

Charities Directorate releases Report on the Charities Program 2016 to 2018

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. 

read more

November 29, 2018

Standing Senate Committee on Finance and their review of Political Activities - November 28, 2018

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. 

read more

November 24, 2018

Informal Risk Reviews are Excellent Value for Money for Registered Charities

November 24, 2018

Special Senate Committee on the Charity Sector and Mark Blumberg’s testimony November 19, 2018

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.

read more

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

Contact

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
Download vCard

Connect

Locate

Blumberg Segal LLP
Barristers & Solicitors
#1202 - 390 Bay Street
Toronto, Ontario
M5H 2Y2 Canada

Charity Law List

Join Blumbergs' non-profit and charities newsletter
View recent issue: July 2019