It is important that any intermediary have the capacity to do the job and that there be a “strong expectation” that the funds or resources transferred from the charity will be used appropriately. In CRA’s Guidance “Using an Intermediary to…
The most common types of intermediaries are agent, contractor, joint venture, and co-operative participant. Here is further information on each of them. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: 4.1. What…
Understanding “direction and control” is very important for understanding the permissible relationships between a Canadian charity and a non-qualified donee. CRA’s guidance sets out how a charity should have “direction and control”. In CRA’s Guidance “Using an Intermediary to Carry…
How and how much direction and control varies depending on the circumstances. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: “5.1. How should a charity direct and control the use of its…
One of the measures of control is that a Canadian charity monitor and supervise its activities carried on by the intermediary. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: “5.4. What is…
A Canadian registered charity needs to have a “real, ongoing, active relationship with its intermediary.” Part of that is that a Canadian charity should be apprised of developments and be involved in decision making about the project as it evolves.…
One of the measures of control is that a Canadian charity should provide periodic transfers of funds to an intermediary. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: 5.6. What are periodic…
A Canadian charity’s activities, when carried out by an intermediary, must be distinguishable from the intermediaries activities and in some cases a Canadian charity should ensure that its intermediary segregates its funds. In CRA’s Guidance “Using an Intermediary to Carry…
It is very important that charities not only do “good work” but that they can show afterwards that they do good work. In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes: “6. Keeping…
Can a Canadian registered charity carry out capacity-building activities within Canada with a non-qualified donee such as a non-profit without charitable status? The short answer is perhaps and it has to be done very carefully. In CRA’s Guidance “Using an…
Yes. A Canadian charity can use an intermediary in Canada to carry on its own activities as long as the Canadian charity maintains direction and control over how its funds are used. On June 20, 2011 the Charities Directorate of…
CRA has just released a new guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada”. This guidance covers the rules for when a Canadian registered charity provides resources to a group in Canada that is not another…
The CRA has added three new webinars to their website on “Activities outside Canada”, Political activities and a T3010-1: Line by line review. The CRA webcasts are available at:
The Ontario Ministry of Consumer Services has recently updated its website pages on the new Not-for-Profit Corporations Act, 2010 with a small amount of information on the act. The new act will be of interest to Ontario non-profit corporations but…
In the case of News to You Canada v. The Queen (FCA) the Federal Court of Appeal dealt with a charity application that CRA had refused to register and the Federal Court dismissed the organizations appeal. Here is a copy…
Here is an article in the National Post entitled “Breakaway Anglicans lose last legal avenue to claim ownership of church buildings, land”
Here is a copy of a presentation I recently delivered entitled Collaboration, Cooperation and Merger in the Canadian Charitable Sector. Here is the description: Collaboration, Cooperation and Merger in the Canadian Charitable Sector – 90 min Canadian charities are looking…
Here is a copy of my presentation on Top 20 Legal and Ethical Issues for Canadian Registered Charities. Here is also a copy of Blumbergs Canadian Charity Legal Checklist (June 6, 2011) Top 20 Legal and Ethical Issues for Canadian…
Another CRA letter on why particular association does not qualify for the tax exemption contained in paragraph 149(1)(l) of the Act because “The Association is operating a retail operation with the intention of earning a profit.” Here is the CRA…
Here is a CRA letter on donation to a public body performing a function of government in Canada, which is a type of qualified donee namely certain First Nations groups, and the situation where the donor directs the gift to…
As discussed on this blog there were a large number of provisions in the June 6, 2011 Canadian Federal budget that will affect charities and other qualified donees and the CRA has placed some information on their website to help…
Here is a copy of a CRA press release on a tax preparer who has been sentenced to 3 years in jail for issuing $34 million of official donation receipts as part of a charitable donations scheme. Canada Revenue…
Today at 4 Finance Minister Jim Flaherty delivered a budget which was similar to his last proposed budget with a few tweaks. In March, as well as today, there were about 25 pages of material relating to charities Here are…
I will be giving a presentation to the CGA-Ontario on The Top Compliance Issues Facing Not For Profit Organizations and How to Deal with Them at the CGAO Not-for-Profit Symposium Flyer. You can obtain more information on the CGA-Ontario Not-for-Profit…