Charities in Canada are not allowed to bestow undue benefit, a situation where an individual, corporation, or other entity receives a tangible benefit from their involvement with a particular charity. This is a very important issue for charities to understand since the penalty for giving an undue benefit is 105% of the benefit for a first offence a…

The federal government recently released their 2010 budget, which contained some big changes for Canadian charities. What will likely affect charities the most is the removal of the 80/20 disbursement quota and changes to the capital disbursement quota. In this podcast, Adam and Maggie discuss the implications of these changes and how your charity …

Late last year, the C.D. Howe Institute published a white paper written by Adam Aptowitzer where he argued that because the federal government does not have the necessary jurisdiction to regulate charities, it is forced to use the registration system, through the Canada Revenue Agency, to enforce regulations more generally. This podcast provides fu…

Have you filed your charity information return (T3010B)? Although charities don't have to file income tax returns, filing their information return is one of the most important responsibilities that a charity has. A failure to file results in the Canada Revenue Agency revoking a charity's registered status. In this podcast, find out what might cause…

Are you prepared to meet all your legal requirements in 2010? Find out the top three things you should be aware of for 2010, as well as other factors such as insurance, employment agreements, privacy policies. Additionally, this podcast covers a list of resources for organizations that find themselves missing something on the checklist. Legal check…

Are you thinking of starting or joining an umbrella group that oversees other organizations? If so, it's vital that you understand all the legal ramifications, including charitable status, following provincial and federal regulations, disbursement quotas, and basic terminology. Umbrella groups can certainly provide a variety of benefits to member o…

Unemployment rates continue to climb across Canada, and with nonprofits struggling to raise funds, more and more organizations are looking at the difficult decision of laying off staff. Find out the legal aspects related to layoffs and employee terminations, how the law protects employees, and what your organization must do before letting go of sta…

When an organization in Canada seeks incorporation, it is necessary for them to have a consitution, bylaws, and letters of patent in place. In this podcast, Adam explains each of these terms, describes what types of information must be included in each document, and suggests where organizations can go for more information on preparing them. Bylaws,…

In 2010, both British Columbia and Ontario will begin using a harmonized sales tax. This change will have an impact on nonprofits and charities in many different ways, including with regards to federal tax exemptions and disbursement quotas. Listen to this podcast to find out whether your organization will have to pay more in taxes, how your admini…

Many Canadian nonprofits belong to some type of international association and gain valuable benefits from doing so. But membership in an international organization does carry with it some legal ramifications, making it vital for nonprofits to know their rights and responsibilities. In this podcast, Adam and Nicole discuss how this type of membershi…

Appearing before a government committee can be a nerve-wracking experience for many nonprofit leaders and employees. But nonprofits and charities have a unique role to play in helping to inform government in all levels, especially since so many across Canada have access to research and information that is just not available elsewhere. This podcasts…

The Canada Revenue Agency (CRA) recently released a new Guidance on Fundraising document, with the purpose of educating charities on what is considered appropriate, and legal, with regards to fundraising activities. Since the CRA will be auditing charities' fundraising activities based on the regulations set out in this new guidance, it is vital th…

As of May 2009, the Canada Revenue Agency (CRA) replaced the Registered Charity Information Return with a new form, the T3010B. The new form contains far more detailed content, and because of the nature of the questions it is essential that the form is filled out properly. This podcast also discusses the new application for registered charity statu…

Understanding how the Goods and Services Tax (GST) works is important to all Canadians. In this podcast, find out exactly what the GST is and how it works, whether it is similar to PST in some provinces, as well as how to register for a GST number and how to get a GST tax return. Introduction to the Goods and Services Tax…

The Income Tax Act requires charities, as nontaxable entities, to spend a certain percentage of their income each year on charitable activities. In this podcast, find out more about these disbursement quotas, what happens when a charity doesn't comply with their disbursement quota, and how long-term projects fit into the equation. CRA disbursement …

In this podcast, we continue the discussion of disbursement quotas that began in Part 1 and explore such topics as how to calculate your disbursement quota, whether or not an accountant is necessary, how foundations amass large endowments, and the definition of "enduring property". CRA disbursement quotas: Part 2…

With investors throughout the world facing the economic crunch of volatile markets, charities might expect to see a decrease in gifts of shares or stock, and may even feel uncomfortable talking to their donors about the potential of such gifts. In this podcast, find out how the downturn in the stock market affects these types of donations from the …

When it comes to compliance with tax laws, many charities feel slightly in the dark. But an understanding of the CRA Charities Directorate and its regulations is of utmost importance if your charity is to avoid an audit, investigation, or even revocation of its charitable status. In this podcast, find out when a charity should communicate with the …