Why it matters that the Supreme Court decision reinforced the existence of hidden contracts in charity/nonprofit governance
Covenants, which lawyers call contracts, lie at the heart of many of the world’s religions. If we reflect on the Kendrick brothers’ film, Courageous, contemporary North American culture is similarly attracted to the use of resolutions or covenants between not […]
Corporations Act (Ontario) amended to remove class vote to continue share capital social clubs
As previously reported, Bill 139 proposed to amend Ontario’s Corporations Act to remove the requirement of share capital social clubs (“Social Clubs”) to obtain approval from each class of shareholders in order to effect a continuance under one of the […]
Trust reporting rule – A new (and unnecessary) compliance burden for registered charities?
The Canada Revenue Agency has clarified on November 10, 2023 that charities are not required to file T3 information returns for internal trusts. Please see our November 10, 2023 Social Impact Newsletter article for more information. As part of seeking […]
Distributing dividends to members? Your non-profit’s tax-exempt status may be at risk
The Canada Revenue Agency (“CRA”) reminds certain non-profit organizations (“NPOs”) that distributing funds received by them as taxable dividends will jeopardize their tax-exempt status. In CRA View 2018-0776681E5 (dated March 30, 2023) (“CRA View”), the CRA clarified the tax implications […]
Administrative dissolution of charities and not-for-profits introduced by Corporations Canada
This July, Corporations Canada will begin issuing administrative dissolutions to not-for-profit (“NFP”) corporations governed by the Canada Not-for-profit Corporations Act (“CNCA”), that have not filed their annual returns for three (3) or more consecutive years. Corporations Canada requires every active […]
Social purpose real estate projects
Social purpose real estate projects: The goals Social purpose real estate development is an endeavor that seeks to address challenging and pressing issues such as affordability of suitable housing and access to rental space in communities across Canada. The goals […]
Important changes for BC societies taking effect in May 2023
This past weekend, parts of British Columbia were as hot as 27 degrees—a first for 2023. But springlike weather wasn’t the only change greeting British Columbians at the end of a dreary April. The Government of BC announced that new […]
Charitable donations by an estate and “substituted property”
In a previous article,[1] we discussed amendments to the Income Tax Act (Canada) (the “Act”), enacted in 2015, that significantly changed the rules for testamentary charitable gifts made in 2016 and future tax years. One of the requirements introduced as […]
Alberta’s revised Trustee Act: Implications for charities and non-profits
Alberta’s Trustee Act was recently overhauled and revised. Bill 12, which revised the original act, received Royal Assent on April 29, 2022 and came into force on February 1, 2023 (the “Act” or the “New Act”). The Act attempts to […]
Testamentary charitable giving and the graduated rate estate: A refresher
Forms of testamentary charitable giving Charitable gifts made by testators through their wills can take many forms: outright legacies or bequests; a gift of all or part of the residue of the estate; a contingent gift to be made in the […]
2023 Federal Budget: Highlights for the Charitable and NPO Sector
On March 28, 2023, the Honourable Chrystia Freeland tabled a new federal budget (the “2023 Budget”). The 2023 Budget sets out the Government of Canada’s spending priorities for the years ahead. These priorities include making life more affordable, investing in […]
Birhane v. Medhanie Alem Eritrean Orthodox Tewahdo Church preaches important lessons for Ontario charities and not-for-profit organizations and their directors
Introduction The recent Ontario Superior Court of Justice (the “Court”) decision in Birhane v. Medhanie Alem Eritrean Orthodox Tewahdo Church (“Birhane”) reflects the importance of organizations upholding their electoral procedural requirements as required by corporate law and governing documents. This […]
Budget 2023 and changes to the alternative minimum tax: Be careful when donating publicly listed securities
High-net worth clients who plan to donate publicly listed securities (e.g. public company shares, ETFs, mutual fund units, etc.) to charity should be aware—and wary—of proposed tax changes in the 2023 Federal Budget. Introduced in 1986, the federal alternative minimum […]
2023 Canada Federal Budget: A Summary
Canada’s Minister of Finance (and Deputy Prime Minister) tabled Canada’s federal budget for 2023 (“Budget 2023”) on March 28, 2023 (“Budget Day”). While there is good news insofar as Budget 2023 does not propose any increases in tax rates or […]
Miller Thomson submits comments on draft guidance on registered charities marking grants to non-qualified donees
On November 30, 2022, the Canada Revenue Agency (“CRA”) released a draft guidance on how it would enforce the recent amendments to the Income Tax Act (Canada) that now permit charities to provide grants directly to non-qualified donees. CRA encouraged […]
Amending statements of purpose: Special considerations for Ontario charities
When purposes need to be amended The Ontario Not-for-Profit Corporations Act, 2010 (“ONCA”) was proclaimed into law on October 19, 2021. The ONCA replaces Part III of the Ontario Corporations Act and significantly modernizes the legislation that governs non-share capital […]
New year, new disbursement quota
Update: Since the initial release of this article, Bill C-32 received Royal Assent on December 15, 2022. Since Federal Budget 2022 was released back in April, the charitable sector has been awaiting confirmation that the proposed increase to the disbursement […]
CRA releases draft guidance on new qualifying disbursements rules, invites feedback
The CRA’s Charities Directorate has issued its long-awaited draft guidance on “Registered charities making grants to non-qualified donees“. The Income Tax Act was amended on June 23, 2022 to include new rules on “qualifying disbursements” (Read our previous article on […]
Revisiting the “new” testamentary donation rules
The legal landscape for testamentary charitable gifts underwent a significant sea-change in 2015. In that year, amendments to the Income Tax Act (Canada), R.S.C. 1985, c.1 (5th Supp.) (“Tax Act”) were implemented that apply to deaths occurring on or after […]
Governance issues involving contractors and employees
A recent Alberta case highlights the governance issues boards can find themselves facing when overseeing their employees and contractors, and the tricky distinction between independent contractors and employees. In Gerling v. Camrose Regional Exhibition & Agricultural Society, 2022 ABCA 210, […]
Navigating the Ontario Business Registry for Ontario non-share capital corporations
The ONCA and OBR Ontario’s Not-for-Profit Corporations Act, 2010 (“ONCA”) came into force on October 19, 2021. It modernizes the legal framework for Ontario’s not-for-profit corporations (also known as “non-share capital corporations”). Most non-share capital corporations that were previously governed […]
2022 MasterCard rule changes applicable to subscription payments
MasterCard has recently proposed changes to its credit card processing rules which, if implemented, will impact a broad range of “merchants” including non-profits and charitable organizations. Given that these changes appear to be a reaction to legislative changes in other […]
Official guidance on charitable donations of life insurance in Alberta
On May 27, 2022, Alberta’s Superintendent of Insurance (“ASI”) published an Interpretation Bulletin on Charitable Donations of Life Insurance (PDF) (the “ASI Bulletin”). The purpose of the ASI Bulletin is to outline how a life insurance policy can be donated […]
Important dates and reminders for charities
The ever-shorter August days remind me that autumn is around the corner and that most of 2022 is over. In 2022, the Government of Canada had proposed several significant changes to charity law, which we summarized in our special issue […]
What does Quebec’s updated language law mean for not-for-profits and charities?
1. What is the Charter? What is Bill 96? Quebec’s Charter of the French Language (the “Charter”) was adopted in 1977. It made French the everyday language of Quebec and imposed language regulations in most public settings. On June 1, […]
Agricultural and horticultural organizations and the ONCA
Agricultural and horticultural organizations in Ontario differ from most other Ontario non-share capital corporations, as their governance requirements are set out in two different acts: the new Ontario Not-for-Profit Corporations Act, 2010 (the “ONCA”) and the Agricultural and Horticultural Organizations […]
The new qualifying disbursements rules: An improvement?
The proposed qualifying disbursements rules have since changed since the publication of this article. Please refer to Miller Thomson LLP’s article, ‘Funding non-qualified donees just got one step easier for Canadian charities’ dated June 6, 2022, which summarizes the latest […]
Funding non-qualified donees just got one step easier for Canadian charities
It might soon be easier for Canadian registered charities to give funds directly to non-qualified donees in Canada and abroad. Currently, Canadian registered charities can use their resources only on their “own activities” or on gifts to other qualified donees. […]
5 tips arising from Ontario Divisional Court’s denial of property tax exemption for lands owned by places of worship
Ontario’s religious organizations are used to relying upon Ontario’s Assessment Act’s property tax exemptions for lands owned by a church or religious organization and used as “a place of worship and the land used in connection with it.” The Divisional […]
Donations of time and money do not create a trust: A look at Mee et al. v. Y.M.C.A.
A recent decision of the Ontario Superior Court of Justice was unequivocal in its refusal to recognize a trust in certain recreational lands owned by the YMCA. The court did not mince its words. It said to find otherwise would […]
2022 Federal Budget Review
Introduction The 2022 Federal Budget was tabled in the House of Commons on April 7, 2022 by the Honourable Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance. With a Foreword that began with a thank you to Canadians […]
Charity lawyers strongly support Bill S-216
A group of 42 prominent charity lawyers have signed a second open letter (PDF) in order to voice their full support for the adoption of Bill S-216: Effective and Accountable Charities Act (the “Bill”). As of February 22, 2022, the […]
2022 Federal Budget: Highlights for the Charitable and NPO sector
Introduction On April 7, 2022, the Honourable Chrystia Freeland tabled a new federal budget (the “2022 Budget”). This is only the second federal budget since the beginning of the COVID-19 pandemic and a lot has happened since the 2021 federal […]
( Available in French only )
Résumé des mesures du budget fédéral affectant les organismes de bienfaisance et sans but lucratif
La ministre des Finances et vice-première ministre fédérale, Chrystia Freeland, a déposé le budget fédéral le 7 avril, 2022. Le budget propose des changements qui concernent les organismes de bienfaisance et les organismes sans but lucratif. En bref, le budget […]
Report on the Charities Program 2020 to 2021
The Report on the Charities Program provides a snapshot of the Canadian charitable sector and an update on the Canada Revenue Agency’s (“CRA”) Charities Directorate’s activities during fiscal year 2020 to 2021. According to the Charities Directorate’s administrative data for […]
Key considerations for gift agreements
It is not necessary to have a gift agreement in order to make a gift. However, it is important for charitable gifts and charitable pledges made by donors to charities be documented. A gift agreement provides evidence that a gift […]
The Societies Amendment Act, 2021: Time to update your operating system
Every once in a while, my phone reminds me that it’s time to update its operating system. As I have learned the hard way, ignoring those updates can only cause headaches later. Phones on older operating systems not only miss […]
What is a charitable purpose? Jim Crerar Charitable Trust (Re)
What is “charity” in a legal sense has developed through judge-made common law. The definition is an important one as organizations that are registered charities must be constituted and operated exclusively for charitable purposes. It is also important for charitable […]
Helping the crisis in Ukraine: Be careful making these 4 assumptions
Canadians are concerned about the ongoing military conflict and humanitarian crisis in Ukraine. Donors and charities are looking for ways to help – fast. Despite the urge to help quickly, Canadian donors should refresh themselves on the rules of giving […]
Can not-for-profit organizations run a business?
One matter that comes up from time to time, and with increasing frequency in the past few years in response to a decrease in available funding, is the extent to which, as a means to generate revenue, non-profit organizations (“NPOs”) […]
Update on Bill S-216: The Effective and Accountable Charities Act
A year ago, Senator Ratna Omidvar tabled a bill (originally Bill S-222) proposing changes to the Income Tax Act (Canada). The changes would allow charities to collaborate with other organizations more efficiently, furthering the potential to create positive impact in […]
Filing obligations under BC Land Owner Transparency Act
Effective November 30, 2020, the British Columbia (“BC”) Land Owner Transparency Act (“LOTA”) came into force, bringing into existence the new BC Land Owner Transparency Registry (“LOTR”). This is a publicly searchable registry containing names, citizenship and other information of […]
More provincial oversight: Recommendations from the Allan Inquiry regarding non-profits and charities
On October 21, 2021, over two years after Steve Allan (“Allan” or the “Commissioner“), a Calgary-based forensic and restructuring accountant, was appointed as commissioner of the public inquiry into anti-Alberta energy campaigns, the commission’s 657-page Report was released. Mandate of […]
$17 million estate gift to private foundation not eligible for tax credit: Lessons from last-minute tax planning
The Tax Court of Canada decision in Odette (Estate) v the Queen[1] demonstrates two equally important principles. The first is the need to carefully review complex provisions of the Income Tax Act (Canada) (the “ITA”) when developing a tax plan. […]
When old bylaws stop you from using BC’s new virtual meeting option: The Farrish 2021 case
As 2021 comes to a close, BC societies should be aware of recent changes in the law that will affect their bylaws and processes. Farrish v. Delta Hospice Society and virtual meetings In May 2021, the BC Government amended the […]
Over ten years in the making: Proclamation of the Ontario Not-for-Profit Corporations Act, 2010
The long-awaited Ontario Not-for-Profit Corporations Act, 2010 (the “ONCA”) will be proclaimed on October 19, 2021, replacing the Ontario Corporations Act (the “OCA”). Passed by Ontario Legislature back in 2010, the ONCA will come into force after numerous delays due […]
CRA issues helpful clarification on NPO reserves
A non-charitable, non-profit organization is required by the Income Tax Act of Canada to be “operated for a purpose other than profit.” In the past, the CRA has suggested that any accumulation of surplus by an NPO beyond its immediate […]
Extension for BC Land Owner Transparency Act
We recently published a newsletter article on the British Columbia (“BC”) Land Owner Transparency Act (“LOTA”) which described how pre-existing owners of an interest in land need to file transparency reports with the Land Owner Transparency Registry. On November 2, […]
Not-for-Profit legislative update from Alberta
Over the past year, there have been a number of significant legislative changes affecting the not-for-profit sector in Alberta. Some key updates to be aware of include: Amendments to all incorporating legislation allowing organizations to hold virtual meetings; Amendments to […]
Advisory Committee on the Charitable Sector releases third report
The third report of the Advisory Committee on the Charitable Sector (the “ACCS”) released on July 15, 2021 (the “Report”), expands on the Committee’s first report and second report, adding a series of recommendations for reforming the relationship between charities […]
Ontario Not-for-Profit Corporations Act comes into force on October 19, 2021
Earlier today, the Ministry of Government and Consumer Services (“Ministry”) announced that the Ontario Not-for-Profit Corporations Act, 2010 (“ONCA”) will come into force on October 19, 2021. The coming into force of the ONCA has been long anticipated by the […]
Canada Elections Act: What you can do without registering
In our last article, we discussed the registration requirements that may apply to charities and non-profits that carry on certain regulated activities, including election advertising, election surveys, and partisan activities (in the case of non-profits). For more information about the […]
Public messaging during an election period: You may need to register ASAP
Under the Canada Elections Act, there must be a general election on the third Monday of October in the fourth calendar year after the last general election. However, the Prime Minister may ask the Governor General to call an election […]
Advisory Committee on the Charitable Sector focuses on reconciliation, national data strategy, and charity designations in second report
The second report of the Advisory Committee on the Charitable Sector released on April 28, 2021 (the “Report”) expands on its first report, adding eight recommendations for sector reforms. The Advisory Committee on the Charitable Sector (the “ACCS”), established in […]
Two very welcome Federal Court of Appeal decisions
The Federal Court of Appeal has now overturned two separate decisions of the Minister of National Revenue denying the applications of two sports organizations for registration as registered Canadian amateur athletic associations (“RCAAA”). One decision involved an appeal by an […]
Consenting to proposed budget amendments
Among the few technical tax measures affecting the charitable and non-profit sector proposed in the federal budget tabled on April 19, 2021 (the “2021 Budget”), one of the proposed budget amendments expands the ability for the Minister of National Revenue […]
Reminder regarding tax shelters and gifting arrangements
On May 5, 2021, the Canada Revenue Agency (the « CRA ») circulated a warning for Canadian taxpayers, reminding them to exercise caution when participating in gifting arrangement schemes. The timing of this communication could mean that the tax authorities […]
Of singular importance: The singular ‘they’ and other gender-neutral writing
Language evolves to fit social needs. With growing public demand for gender equality and recognition of diverse gender identities, there is an increasing practical and ethical argument for gender-neutral writing. Gender-neutral writing, which avoids categorizing the subject as either male […]
Charities and non-profits can now pre-register for free COVID-19 workplace rapid testing
According to the Government of Canada, up to 50% of COVID-19 transmission may be through people without symptoms. Regular workplace testing can help keep staff and clients safe. Charities and non-profits can now pre-register to receive free rapid tests for […]
Environmental funding in Canada’s 2021 Federal Budget
Canada’s 2021 Budget announced funding and initiatives which will have bearing for three areas of the environmental sector: (1) climate change; (2) clean tech; and (3) conservation of land and waters. These new investments will have direct and indirect impacts […]
2021 Budget support for affordable housing
This article outlines the proposed funding in Canada’s 2021 Budget for affordable housing initiatives. With market prices skyrocketing while the employment rate plummets, Canada’s housing crisis is deepening amid the COVID-19 pandemic. The rising housing costs coupled with decreased job […]
Federal Budget 2021: Support for seniors
The COVID-19 pandemic has strained our long-term care facilities across the country like never before. As families anxiously await the time when they can once again see their loved ones living in long-term care homes, organizations in the space work […]
2021 Federal Budget Edition
Introduction The federal budget was tabled by Finance Minister Chrystia Freeland on April 19, 2021 (the “2021 Budget”). This is the first federal budget in two years and the first during the COVID-19 pandemic. The 2021 Budget focuses on the […]
Ontario extends ability for not-for-profit corporations to hold electronic meetings until December 31, 2021
On April 6, 2021, Ontario passed Regulation 251/21 under the Corporations Act, further extending the temporary legislative provisions permitting Ontario not-for-profit Corporations to hold Member, Board and Board Committee meetings electronically from May 31, 2021 until December 31, 2021. These […]
CRA’s views on charitable remainder trusts
Introduction Charitable remainder trusts have been popular in the U.S. for some time but not as widely used in Canada as a result of differences in our tax regime. A charitable remainder trust involves an individual who wishes to make […]
Advisory committee on charitable sector: Report 1
On January 29, 2021, the Advisory Committee on the Charitable Sector issued its first report to the Honourable Diane Lebouthillier, Minister of National Revenue and Bob Hamilton, Commissioner of the Canada Revenue Agency. Established in 2019, the Advisory Committee is […]
Charity lawyers publish open letter
A group of prominent lawyers have published an open letter urging the government to change the rules that govern how Canadian registered charities are permitted to work with third party organizations in Canada and around the world to further their […]
A step forward for charities: Senator tables Bill to reform restrictive rules
Early last week, Senator Ratna Omidvar tabled Bill S-222, The Effective and Accountable Charities Act (the “Bill”), to break down barriers for Canadian charities working with other organizations, both in Canada and abroad. The Bill, if enacted, will bring age […]
Claiming home office expenses due to the COVID-19 pandemic
The Canada Revenue Agency (the “CRA”) announced in December new measures designed to simplify the ability of taxpayers to deduct employment expenses related to remote working. These new measures are a simplified method to calculate the deduction with a flat […]
Reminder to file your Federal Annual Return Filings
A lot has happened in the past year and it is easy to forget about maintaining corporate records. This serves as a reminder that non-profits that are subject to the Canada Not-for-profit Corporations Act (the “CNCA”) are required to file an annual […]
Donation of ecological or cultural property – timing is everything: Lessons from Yellow Point Lodge Ltd. v. Canada, 2020 FCA 195 (CanLII)
The recent Federal Court of Appeal (FCA) decision in Yellow Point Lodge Ltd. v. Canada, 2020 FCA 195 (CanLII) (Yellow Point) is a reminder that timing can be everything when making donations of ecologically sensitive land or Canadian cultural property. […]
Gifts of life insurance in Ontario: MPP introduces bill amending the Insurance Act
An Ontario MPP recently introduced a private Member’s bill that would amend the Ontario Insurance Act[1] (the “Act”). The amendment purports to amend the prohibition on trading and trafficking in insurance policies so that it does not apply if the […]
CRA releases guidance on relief of poverty and charitable registration
On November 27, 2020, the Canada Revenue Agency (“CRA”) released CG-029, a new Guidance on relief of poverty and charitable registration. This Guidance, which replaces Summary policy CSP-P03, Poverty, explains CRA’s administrative policy on charity law, including the criteria an […]
Policing fake news and other updates: CRA finalizes CG-027, Public policy dialogue and development activities by charities
On November 27, 2020, Canada Revenue Agency’s (“CRA”) Charities Directorate announced the release of five new and updated administrative guidances. Among these guidances is CG-027, Public policy dialogue and development activities by charities (the “Guidance”), which provides CRA’s interpretation of […]
New CRA guidance on advancement of education and charitable registration
As announced in our recent News Alert, the Canada Revenue Agency’s Charities Directorate announced the release of five new and updated guidance documents on November 27, 2020. This includes CG-030, Advancement of education and charitable registration (the “Guidance”). This new […]
CRA revises guidance on using an intermediary to carry on a charity’s activities within and outside of Canada
On November 27, 2020, the Canada Revenue Agency (“CRA”) released updated versions of CG-004, Guidance on using an intermediary to carry on a charity’s activities within Canada, and CG-002, Guidance on Canadian registered charities carrying on activities outside Canada. While […]
News Alert: Canada Revenue Agency releases new and updated guidances for charities
Canada Revenue Agency (“CRA”) has released the following new and updated guidances for registered charities: “CG-030, Advancement of education and charitable registration” which replaces multiple CRA policy statements and commentaries as set out therein; “CG-029, Relief of poverty and charitable […]
News Alert: BC government announces Parliamentary Secretary of Community Development and Non-Profits
On Thursday, November 26, 2020, the new B.C. government announced its cabinet members and parliamentary secretaries. This included the appointment of Niki Sharma as the Parliamentary Secretary – Community Development and Non-Profits. This is the first time charities and non-profit […]
BC introduces benefit companies
On June 30, 2020, British Columbia became the first Canadian jurisdiction to permit corporations to incorporate as benefit companies. The concept of benefit companies or benefit corporations originated in the U.S. A benefit company is a for-profit corporation with a […]
Reminder: T3010 Registered Charity Information Return filing extension coming to an end!
In light of the COVID-19 pandemic, the Charities Directorate extended the filing deadline to December 31, 2020 for all charities with a Form T3010 Registered Charity Information Return due between March 18, 2020 and December 31, 2020. Normally, charities are […]
What charities and NPOs need to know following the AGA v Ethiopian Orthodox Tewahedo Church of Canada Decision
Introductory Thoughts In January 2020, the Court of Appeal for Ontario released its judgment in Aga v Ethiopian Orthodox Tewahedo Church of Canada (“Aga”). This decision considers whether the written constitution and by-laws of a voluntary religious corporation form the […]
Gifts of life insurance
Gifts of life insurance have long been one of the recognized ways in which donors can make gifts to charities. Recent communications from the BC Financial Services Authority (“BCFSA”) brought into question the validity of these types of gifts. Much […]
How to hold members’ and directors’ meetings despite COVID-19: A provincial overview
This article was updated on April 24, 2020 Provinces across Canada have declared states of emergencies or public health emergencies, and issued restrictions on mass gatherings. These restrictions range from banning all gatherings to limiting the number of people who […]
The COVID-19 Pandemic: Key considerations for charity and non-profit governance
The situation around COVID-19 is changing rapidly. Schools nationwide have suspended classes, organizations are requiring staff to work at home remotely and governments across the country have required the cancellation of certain events. “Social distancing” has quickly become the new […]
Governance considerations for unincorporated associations that will pay off in the long run
Charities and non-profits are often faced with the question of whether to incorporate. Our simple answer is this: prevention is the best medicine. While members may have the best of intentions, a lack of forethought can have catastrophic outcomes. Any […]
New privacy law could apply to all non-profits – Ontario government launches consultations
On August 13, 2020, the Ontario Government (the “Government”) launched consultations on establishing provincial privacy legislation for the private sector. As one of the stated goals is to expand the scope and application of private sector privacy law to non-commercial organizations such […]
How does Ontario’s termination of the COVID Emergency affect annual members meetings and other corporate meetings of Ontario Corporations Act corporations?
The author would like to acknowledge the contributions of Jane Huang. Some of Ontario’s not-for-profit and charitable corporations may be wondering whether and how the end of the COVID-19 Emergency in Ontario changes their ability to hold virtual members and […]
Ransomware attack on cloud-services provider affects charities and not-for-profits
A company that supplies cloud fundraising and accounting software to the charity and not-for-profit sector announced yesterday that it experienced a ransomware attack in May 2020. Blackbaud is the company behind such programs as Raiser’s Edge NXT, eTapestry, and The […]
Reopening Ontario’s places of worship: Some considerations
Church, synagogues and temples eager to re‑open for worship were undoubtedly excited by Ontario’s announcement on Monday, June 8, that places of worship would be allowed to open with physical distancing measures in place and attendance limited to “no more […]
BC’s Lobbyists Transparency Act – New registration and reporting requirements
On May 4th, the Lobbyists Transparency Act came into effect, increasing registration and reporting requirements for all organizations (including not-for-profits) that lobby provincial employees or public office holders in British Columbia. “Lobbying” is defined broadly. It includes attempting to influence […]
Business Income Tax Measures
Small Business Tax Rate Currently, as a result of the small business deduction, the first $500,000 per year of qualifying active business income of a Canadian-controlled private corporation (“CCPC”) is subject to a federal income tax rate of 11%. Consistent […]
The Case of the Missing Records – Part 2
This is second in a series of articles about how to deal with deficiencies in corporate records. In Part 1, we addressed the importance of conducting thorough searches of any available records and evidence of past corporate decisions and actions. […]
Corporations Canada releases simplified process to extend deadline to call annual meeting
Non-profit corporations incorporated federally under the Canada Not-for-Profit Corporations Act (“CNCA”) will benefit from a newly simplified process under which they can apply to extend the deadline for calling and holding their 2020 annual general meeting. CNCA corporations are required […]
Should Your Organization Stay under the ONCA or Continue to the CNCA?
Recently, the Ontario Ministry of Government and Consumer Services (the “Ministry”) released an update regarding the status of the Ontario Not-for-Profit Corporations Act, 2010 (“ONCA”). The latest news is that the Ministry will give at least 24 months’ notice before […]
Gifts of Cultural Property
Donors can get special tax benefits when they make a gift of cultural property. A gift of cultural property is a gift of property that meets two criteria: the property is of “outstanding significance by reason of its close association […]
Enforceability of e-signatures during COVID-19 pandemic
While the COVID-19 pandemic is having an enormous impact on Canadian organizations, including those within the charitable and non-profit sector, they must continue to operate despite the “physical distancing” measures imposed by the government. This is especially true given that […]
Charities Return (T3010) filing deadline extended as Charities Directorate suspends operations
The Charities Directorate has announced that Canadian registered charities will have until December 31, 2020 to file their annual Registered Charities Information Return (the T3010). The announcement applies to any registered charity required to file their return between March 18, […]
Relief plan in the works for the “entertainment industry” and other funding for arts, culture, and sports organizations
On Friday, April 17, federal Heritage Minister Steven Guilbeault announced that the Government plans to give $500 million to the “entertainment industry”, which he defined as including arts, culture, and sports organizations. The Minister specifically mentioned “non-profits” as being possible […]
How not-for-profits can hold emergency or required meetings despite COVID-19 distancing
The charity and not-for-profit sector has been affected by the COVID-19 pandemic as much as the rest of society. In some provinces, there has been a Declaration of Emergency, and people are prohibited from assembling together. Some charities, such as […]
(Another) Update on COVID-19 pandemic economic and tax measures for charities and not-for-profits
This topics in this article are changing rapidly as the COVID-19 crisis unfolds. As such, we encourage you to check with Miller Thomson LLP’s Social Impact group for timely updates. Canada’s federal government continues to announce new economic measures and […]
COVID-19 pandemic economic and tax measures for charities and not-for-profits
Canada’s federal government continues to announce new economic measures to help stabilize the economy during the COVID-19 pandemic. Outlined below are the measures announced thus far by the federal government, along with expansions to existing programs, that are available to […]
Accessing restricted funds amidst the COVID-19 crisis
The COVID-19 pandemic and resulting measures to encourage and enforce social distancing have resulted in a severe economic slowdown that is widely expected to lead to a deep recession, if not worse. This downturn has hit charities hard. Foundations have […]
CNCA annual return extension and annual meetings
Corporations Canada has issued the following two publications in light of the COVID-19 outbreak: Corporations Canada extends annual return deadlines to September 30 for federal corporations during the COVID-19 outbreak – issued April 1, 2020 Here is the link. Corporations […]
Directors of not-for-profits and charities – resignation, removal and replacement
An effective board of directors is key to the success of any charity or not-for-profit entity (“NFP”). A frequent concern is what to do about directors who, for whatever reason, are no longer appropriate for the organization. This article provides […]
Proclamation of ONCA postponed
The Ontario Ministry of Government and Consumer Service’s Director of Policy and Governance formally advised today that the implementation of the Ontario Not-For-Profit Corporations Act, 2010, S.O. 2010 (“ONCA”) will be delayed beyond “early 2020”. The ONCA was passed in […]
Food donation laws in Canada
At this time of year, many charities ask for donations that can be provided to needy families in the form of Christmas hampers. Other charities are preparing to serve holiday meals to the poor and homeless. Many offices and apartment […]
Best Practices for Membership Associations
There are many types of member-based organizations. These include trade and industry associations, community associations, lobbying groups, as well as non-profit social and athletic clubs. While they have many differences, common to each of these entities is a broad membership […]
Advocacy by Canadian Not-For-Profits – Lobbying Rules and Election Advertising
Canadian charities will be aware that there is now no limit on the resources a Canadian charity can devote to “Public Policy Dialogue and Development Activities” (PPDDAs). PPDDAs are non-partisan activities a charity carries on to participate in the public policy […]
Key Considerations When Accepting Donations and Sponsorships from Cannabis Companies
While cannabis was legalized last fall, there are considerable restrictions on producing, distributing, consuming and advertising cannabis, cannabis accessories and cannabis services in Canada. Although federal cannabis legislation does not restrict industry players from making monetary donations to registered charities […]
Supreme Court of Canada Upholds Common Interest Privilege Rule
The Supreme Court of Canada recently rejected a leave application of the Canada Revenue Agency, meaning the much heralded decision in Iggillis Holdings v Canada (MNR), 2018 FCA 51 is good law. Confirmed is the Federal Court of Appeal’s conclusion […]
Co-operatives as Charities and Not-for-profits
Co-operatives are legal entities owned and run by, and for, their members. There are over 9,000 co-operatives in Canada, with over 18 million members. Most of them operate businesses. Not all of them are business enterprises – many co-operatives are […]
Registered Charity T3010 Mailing Address Change
To meet their obligations under the Income Tax Act (Canada), all registered charities must file a Registered Charity Information Return (T3010) on an annual basis within six months of their financial year end. Canada Revenue Agency has issued an update […]
Canadian Income Tax on US Charities
How does a US charity make sure that it does not pay Canadian tax? By applying for an exemption letter from the Canada Revenue Agency (CRA). In Canada, only a charity that is a Canadian registered charity is exempt generally […]
Supreme Court of Canada Upholds Decision to Deny Accreditation to Trinity Western University Law School
On June 15, 2018, the Supreme Court of Canada released its much-anticipated decisions in Trinity Western University v. Law Society of Upper Canada (2018 SCC 33) and Law Society of British Columbia v. Trinity Western University (2018 SCC 32). The […]
Record Keeping Obligations of Ontario Charitable and Not-for-Profit Corporations
This article provides an overview of the current recordkeeping obligations of Ontario registered charities, such as school board foundations, under the Ontario Corporations Act (“OCA”), the not-yet-enacted Ontario Not-for-Profit Corporations Act, 2010 (the “ONCA”), and the federal Income Tax Act […]
Privacy Law Primer for Alberta Charities and Non-Profits
In Alberta, both federal and provincial privacy statutes govern the collection, use and disclosure of personal information. These are the Personal Information Protection and Electronic Documents Act (PIPEDA) and the Alberta Personal Information Protection Act (PIPA), which impact for-profit entities […]
NPO Tax Returns – Late Filing
Incorporated non-charitable not-for-profit organizations (“NPOs”) must file a T2 tax return with the Canada Revenue Agency (“CRA”) just like a taxable for-profit corporation. Additionally, each NPO, regardless of organizational form, that meets certain financial thresholds must file a T1044 Non-Profit […]
Restricted Gifts – What Happens When the Condition of the Gift Can No Longer Be Fulfilled?
Donors frequently provide gifts to charities to be used for a specific purpose or toward specific programs/initiatives. These gifts are commonly referred to as restricted gifts and, by accepting such gifts, charities are obliged to apply the gift pursuant to […]
Replacing Donation Receipts
From time to time a charitable tax receipt needs to be replaced. The procedure for issuing replacement receipts depends on whether the first receipt was lost, spoiled or needs to be cancelled due to a return of the gift. Lost […]
CRA Comments on NPO Issues Facing Sports Clubs and Associations
Two recent CRA technical interpretations offer guidance into the CRA’s views on issues affecting sports clubs and associations operating as non-profit organizations (“NPOs”). As part of an ongoing audit project, the CRA is reviewing the operations of a wide range […]
CRA Releases Guidance on Charitable Trust Requirements
On August 15, 2011, the CRA released Guidance CG-009 concerning the requirements of a charitable trust. Registered charities (charitable organizations, public and private foundations) can be established as corporations, unincorporated associations and charitable trusts. While a trust can be used […]
Applications for Exemption Under the Canada-United States Income Tax Convention
Charities and non-profit organizations in Canada and the U.S. that derive income from across the border should consider the application of the Canada-U.S. Tax Convention (the “Treaty”) and whether it may be possible to obtain an exemption from taxes that […]
Reference Letter Liability
Charities and non-profit organizations that provide reference letters to departing and former employees need to ensure that they are aware of the possible legal implications that such letters entail. An inaccurate or defamatory employment reference could be the subject of […]
When Do Naming Rights Constitute an Advantage?
Where a donor makes a significant gift to a charity, it is not uncommon for the donor to request, or the charity to offer, naming privileges in connection with the gift. This often consists of naming a building, or portion […]
Refusing Membership
The recent decision of the Ontario Superior Court of Justice in Re London Humane Society serves as a useful reminder to charities, not-for-profits, and their directors about the rules and considerations applicable to a decision to change membership policies and […]
Major Asset Transfers Between Charities: Corporate Law Considerations
From time to time registered charities may find themselves in situations, often driven by economic considerations, where they are considering whether to cease carrying on certain elements of their operations. While a straightforward wind-down may be possible in some circumstances, […]
Ademption: Beware the Potential Failure of Gifts
Introduction Professionals involved in the preparation of Wills should be made aware of the potential consequences of the doctrine of ademption. Put simply, the doctrine provides that you cannot bequeath what you do not own. For example, if a testator’s Will […]
Tax Consequences of Returning Gifts
Occasionally a charity or a donor will want to return a gift. For example, a charity may wish to return a gift to a donor whose association with the charity may harm the charity’s reputation or where the gift turns […]
Transfer of Charitable Donation Tax Credits
The CRA has extended its administrative position with respect to the transfer of donation tax credits from one spouse or common law partner to the other. In a technical interpretation released by the CRA on September 13, 2010 (CRA document […]
Tax Treatment of Non-Profit Organizations
A CRA technical interpretation released earlier this year addresses several issues related to the tax treatment of non-profit organizations (NPO). In the document, CRA reviews the treatment of the income of an NPO upon the loss of NPO status, the […]
In Camera Board Meetings May Not Always be Private
The Supreme Court of Canada recently held that what happens at in camera meetings may not stay at in camera meetings. Boards of directors may meet in camera (meaning “in chambers”, or privately), in order to discuss particularly sensitive issues, […]
Tax Treatment of the Provision of Rent-Free Leases to Charity
Charities are occasionally offered the opportunity to use the property of another person free of charge. This may include the provision of rent-free office or parking space, or the use of physical resources such as cars or equipment. In some […]
Time Limits for Claiming Public Service Bodies’ GST/HST Rebate
In a recent edition of Excise and GST/HST News, the CRA summarized the timing issues that apply to eligible public service bodies (PSB) when claiming PSB rebates for GST/HST paid on eligible purchases. A PSB is defined as a charity, […]
Charities and NPOs exempt from FATCA
In March 2010, the United States enacted the Foreign Account Tax Compliance Act (FATCA), which requires non-U.S. financial institutions to report to the United States Internal Revenue Service (IRS) on the details of “U.S. Reportable Accounts” held by U.S. taxpayers. […]
Trustees, failure to act & personal liability – a reminder of what it means to be a fiduciary
The recent decision of the Ontario Court of Appeal in Penman v. Penman (119 O.R. (3d) 128) serves as a good reminder to trustees of their duties and responsibilities when acting as trustee and the consequences of failing to act […]
CRA Comments on Tax Treatment of Fundraising Event Organized by an Individual
A technical interpretation published recently by the CRA addresses the tax treatment of fundraising events organized by individuals. While many of the factual details of the event are redacted from the published document, the technical is nonetheless revealing of certain […]
Considerations on Winding Up a Charity
We are asked from time to time to assist with the dissolution of an existing registered charity. However, often we suggest to our clients that it might be better for them to either amalgamate the existing charity into another charity […]
The Volunteer Relationship
Many charities and not-for-profit organizations depend on the dedication and hard work of their volunteers. Volunteer contributions can include fundraising, promotion and advocacy, governance, and service delivery. As such activities are often integrated with day-to-day operations, and integral to an […]
A Review of Qualified Disability Trusts
Bill C-43, which received Royal Assent on December 16, 2014, introduces a new type of trust to benefit disabled individuals – the “qualified disability trust” (“QDT”). Accordingly, QDTs will apply to the 2016 and subsequent taxation years. The main benefit […]
Issues with Naming Societies and Not-For-Profits in Canada
One of the first things a not-for-profit is faced with on incorporation is what name it will have. Names are important because they play a role in developing an organization’s reputation. A name can also cause issues for an organization, […]
The Corporation was Dissolved – What Can We Do?
Corporations under the Canada Corporations Act were required to continue under the Canada Not-for-profit Corporations Act before October 14, 2014. This process requires corporations to pass articles of continuance and file them with Corporations Canada. Corporations that have not taken […]
Summary of CRA Filing Requirements for Tax-Exempt Corporations
There are a number of persons besides Canadian registered charities and non-profit organizations that have special tax-exempt status under the federal Income Tax Act (Canada) (the “Act”). These persons are listed in a section of the Act called “miscellaneous exemptions.” […]
Why Do We Need Members? We Have a Board…
Our incorporated charity and non-profit clients often wonder why they need members. Organizations with few governance participants, either because they are small or because they are controlled by a small group, sometimes wonder if they may operate with only a […]
An In-depth Look at Nova Scotia’s New Community Interest Companies
Earlier this month, Nova Scotia announced the coming into force of the long awaited Community Interest Companies Act (“CICA”). This new law allows new and existing businesses incorporated under the Companies Act (Nova Scotia) (“CA”) to apply for designation as […]
Overview of Record Keeping Obligations for Non-Profit Organizations and Registered Charities
While non-profit organizations and charities are usually busy carrying out the purposes of their organization, record keeping often takes a back seat to other priorities. However, good record keeping practices by a non-profit organization or a registered charity should not […]
CRA Revises Position on the Retention of Church Envelopes
As a condition of charitable registration, charities are required to keep proper books and records. This requirement not only enables the Canada Revenue Agency (“CRA”) to audit charities efficiently, but it also ensures that charities are able to justify and […]
