Drawing the Line on the CNCA’s Financial Requirements The new Canada Not-for-Profit Corporations Act (“CNCA”) introduces a quagmire of financial rules based on two new class divisions that interact in inexplicable ways. This head-scratching setup will likely leave smaller federally-incorporated charities wondering where exactly they fall in terms of important auditing requirements. Although the answer […]
Donation of Intellectual Property Rights Can Be Controversial By Brent Randall Intellectual property rights, which include trade-marks, copyrights and patents, are frequently transferred or licensed between parties. Generally, ownership of intellectual property allows the owner to profit by way of royalties, licensing fees or sale of the rights. The right to profit from intellectual property […]
Unanimous Members’ Agreements: A New Era in Not-for-Profit Management The new Canada Not-for-Profit Corporations Act makes a general attempt to regulate not-for-profit corporations in a manner similar to the Canada Business Corporations Act. As part of this vision, it allows non soliciting corporation (generally those that are not supported with public funds) to enter into […]
Santa’s Philanthropy Santa considers himself to be a Canadian resident for income tax purposes. He grumbles and files his income tax return like everybody else. One of his new elves used to be an accountant who left it all behind to be an elf. He has looked at Santa’s income tax returns for the past […]
Tough Ruling in Non-Profit Distribution to Members By Arthur Drache C.M., Q.C. A recent ruling letter[1] from the CRA takes a fairly hard line on the distribution to members, a position which in our view can certainly be disputed. The following is the fact situation. A non-profit organization provides, among other services, internet services to […]
Fundraising by Charities – CRA does not mean Business The CRA has not changed its position on fundraising by charities. The new and improved Fundraising by Registered Charities Guidance, CG-013 issued by the CRA on April 20, 2012, is still their last word on the subject. However, some charities still need to be reminded that […]
Why Jurisdiction Matters to Corporate Finances: CNCA vs. ONCA While Federal not-for-profit corporations are still adjusting to the new Canada Not-for-profit Corporations Act (CNCA), their Provincially-incorporated counterparts in Ontario are about to face a similar change when the Ontario Not-for-profit Corporations Act (ONCA) comes into force later this year. The two pieces of legislation are […]
Lessons on Political Activity – From New Zealand By: Adam Aptowitzer Over the past few years the charity sector has become used to Federal budget announcements designed to put increased restrictions on its operations. Budget 2012 was exceptional only in that it provided an additional $ 8 million over two years to ensure compliance with […]
Accumulation of Profits in a Non-Profit Organization By Arthur Drache A ruling letter released by the CRA at the end of 2012[1] offers some pithy comments on the situation where a non-profit organization has accumulated significant surpluses. The document has been so redacted vis a vis the factual background that details are sketchy but the […]
How to Structure Community interest corporations By Brent Randall This past May, British Columbia became the first province in Canada to approve a new business model that is focused on the social economy rather than profit. The province’s Business Corporations Act will be amended to include definitions and provisions relating to “community contribution companies”. Nova […]