For an organization to be registered as a charity, its purposes must fall within one of four categories, one of which is the advancement of religion. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains how "religion" is defined for these purposes, why it is considered a charitable object, and how fringe cults fit into the mix.
Understanding charitable objects: The advancement of religion (MP3)
For an organization to be registered as a charity, its purposes must fall within one of four categories, one of which is the relief of poverty. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains the type of organization that is eligible for this designation, and the kinds of poverty relief that may not qualify.
Understanding charitable objects: The relief of poverty (MP3)
For an organization to be registered as a charity, its purposes must fall within one of four categories, one of which is the advancement of education. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what types of activities qualify as advancement of education and which do not.
Understanding charitable objects: The advancement of education (MP3)
In order to maintain their status, registered charities must comply with a number of rules and regulations. Those that do not face sanctions, or worse, deregistration. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what types of infractions are subject to penalty, the intermediate sanctions that the CRA recently introduced, and what you can do if you don't agree with their ruling.
Competition for nonprofit funding is increasing all the time, and many organizations are turning to business ventures to generate additional revenue. While this has proved very successful for many, registered charities must walk a fine line with the Canada Revenue Agency (CRA). Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains the types of businesses that a registered charity can and can't operate, and some of the key questions an organization should ask itself before beginning such a venture.
Canada and the United States share the longest undefended border in the world and we consider ourselves to be good neighbours, but when it comes to cross-border donations things can get a bit tricky. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains which organizations can issue charitable tax receipts for donations to the US (and vice versa), and which donors can claim these receipts, as well as what happens when charitable foundations want to send funding across the border.
Because they serve the public, nonprofits need to be as accountable and transparent as possible. This means that all documentation and procedures should be in order and reviewed regularly by an outside party. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what a legal audit entails, what a lawyer will be looking for, and the common issues that are uncovered during the process.
Every charitable organization is governed by a board of directors, but these people aren't just figureheads. They are ultimately responsible for the success or failure of the nonprofit they serve. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what directors are actually liable for, what happens to a director who is found liable, and what protections organizations can put in place for their directors.
Applying for charitable status through the Canada Revenue Agency can be a long and sometimes arduous process. But it will go a lot more smoothly if you are properly prepared. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what organizations must do before they apply, how to avoid common mistakes on your application, and what happens if your request is rejected.
There are lots of worthy causes out there and you might be a champion for one of them, but should you start a nonprofit organization to support that cause, and what do you need to know if you do decide to give it a go? Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains the difference between a charity and a not-for-profit, the benefits of incorporation, minimum board member requirements, and federal versus provincial incorporation.
Registered charities are required by law to distribute the bulk of their receipted revenue to causes or activities in line with their charitable mission. But the numbers aren't always as cut and dried as one might expect. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, discusses the rules of thumb for the disbursement quota, what happens when there is a disbursement quota shortfall, and how to deal with generated income.
Charities exist to serve the public good in one form or another, but when it comes to politics, their role is severely limited. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, discusses the role charities can play in the political process without risking their charitable registration. He also explains what constitutes partisan politics and the penalties charities face if they engage in such activities.
The federal Conservatives presented their 2007 budget on March 19th and there was some good news for charities, namely the elimination of capital gains tax on the donation of publicly-listed securities to private foundations. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what this will mean for charities, plus highlights some of the other budget announcements that affect Canada's nonprofit sector.
Although charities are exempt from paying taxes, the Canada Revenue Agency still requires them to fill out paperwork, namely the Registered Charity Information Return, better known as the T3010. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains the purpose of the T3010, when it has to be filed, who gets to see it, and what you need to know about including sensitive information on the form.
We hear all the time how our world has become a global village, how we can reach out to people across the planet in a matter of seconds. This is true for charitable organizations as well, many of which focus on international causes. But it's a complicated undertaking, with rules and procedures that must be followed. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what Canadian charities must have in place before they can operate overseas and what they can and can't do once they are there.
While cash donations are always welcome, many charities are also happy to accept gifts in kind. However, unlike cashing a cheque, it's not always clear what the value of a gift in kind actually is, which makes filling out a charitable tax receipt that much harder. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains who is responsible for determining the fair market value of such gifts, how that assessment is carried out, and the risks involved if charities aren't diligent about the process.
To receipt or not to receipt, that is the question. Well, actually, that's just one of the questions that crops up when a charity receives a donation. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, reviews the CRA requirements for official donation receipts, the penalties for non-compliance, and some of the common questions that charities face when accepting gifts from donors.
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