Securing legal and operation nexus between Canadian charities and overseas counterparts In an earlier article we discussed the means by which parent non profits can maintain control of subsidiary non profits as part of the credit proofing approach to protecting assets. The same principles and solutions can be applied to foreign charities that maintain operating […]
The Dire Consequences of Failing to ‘Continue’ to the New Federal Not-for-profit Corporations Act Federal not-for-profit corporations take heed: you have a deadline of October 17, 2014, by which to switch over (or “continue”) to the new Canada Not-for-profit Corporations Act. The changeover period has been running since 2011 and this year is your last […]
Corporate Art Collections Have you ever walked into a corporate office or professional firm only to find yourself admiring the art? Though some businesses rent art to avoid the capital outlay required to purchase it,[1] many take advantage of the capital cost allowance (CCA) to build their own private collection. Hopefully, a better understanding of […]
When Opportunity Knocks Should You Even Open the Door? By: Adam Aptowitzer Charities are like any other actors in society, opportunities arise and they should be considered. Some will be discarded and others will be pursued. For charities though, the evaluation of opportunities must be made with the additional consideration of the constraints placed upon […]
NPO Rental Income by Arthur Drache, C.M. Q.C. A recent CRA ruling [1] dealt with the question as to whether the rental of vacation properties to non-members would jeopardize the tax exempt status of an entity described in paragraph 149(1)(l) of the Income Tax Act. Paragraph 149(1)(l) provides an exemption from Part I tax for […]
Not-for-Profit Report is a Call to Action By: Adam Aptowitzer For many years, increasingly stringent regulation of the charity sector pushed oversight of the not-for-profit sector off the list of priorities. There was not even any good data on the number of not-for-profit organizations (NPOs) in existence, because the CRA did not compel them to […]
Disbursment Quota Presents Unique Challenges for Charitable Trusts The Income Tax Act requires every registered charity (including organizations, private foundations, and public foundations) to meet a disbursement quota every year or risk losing its registration. Of the various structures that can hold charitable registration, charitable trusts may face particular obstacles in meeting their quota. How […]
Charities May Be Non-Soliciting Regular readers will be aware that the Canada Not-for-profit Corporations Act (CNCA) classifies not-for-profit corporations as either soliciting or non-soliciting. Generally speaking, a corporation becomes soliciting when it receives more than $10,000 in public money during its last financial year. This distinction is important because the requirement for appointing a Public […]
Donation of Appreciated Shares by a Corporation by Arthur Drache, C.M. Q.C. We were recently asked what the impact of the 1996 budget changes relating to charities had upon corporate donors, and in particular, on private holding companies. Basically, the same proposals apply as they would to individuals with the obvious exception that corporations don’t […]
Organizations pondering taxable subsidiaries to run a social enterprise Any organization that has been pondering a taxable subsidiary to run a social enterprise but has been uncertain about the suggestion may want to investigate the new community contribution company that is now allowed in the province of British Columbia. Those organizations that have hesitated because […]