Providing third-party information to the CRA

When audited by the Canada Revenue Agency, charities may find themselves being asked to provide third-party information. Third-parties can be as varied as the charity's donors or employees, and when the CRA requests information, a charity has little choice but to hand it over. Listen now to learn more about situations where third-party information may be requested, the impact of a charity's privacy policy on such a request, as well as a charity's liabilities with regard to the accuracy of the information they provide.

Providing third-party information to the CRA

What you need to know about CRA compliance agreements

Compliance agreements are really just agreements made by an organization to comply with the law. How does this affect charities? Typically, compliance agreements occur between charities and the Canada Revenue Agency (CRA), often following an infraction. Find out exactly what a compliance agreement is, when the CRA might issue one, and what happens if a charity violates a compliance agreement.

What you need to know about CRA compliance agreements

Dealing with the CRA Charities Directorate

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 CRA Charities Directorate, best ways to contact the directorate, the role of the ombudsperson, and common mistakes when dealing with the directorate.

Dealing with the CRA Charities Directorate

Corporate vs. individual donations

On the surface, the difference between a corporate and an individual gift might seem quite negligible. However, it is important for charities to be aware of the differences between these two types of gifts so that they can ensure they are meeting all of their legal obligations. Find out more about tax credits vs. tax deductions, corporate donations as a business expense, and corporate sponsorships and charitable contributions in this podcast.

Corporate vs. individual donations

Wills and charitable bequests as a planned giving option

One of the most popular forms of a planned gift is a charitable bequest. But often charities don't fully understand the legalities involved in accepting a bequest. In this installment of our miniseries about the legal side of planned giving, Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, outlines what to expect in the way of taxes, what steps you should take if your charity is named in a will, and how to turn down a charitable bequest.

Wills and charitable bequests as a planned giving option (MP3)

Private securities as a planned giving option

Planned (or deferred) giving can be an excellent way to donate to charity, but not everyone understands the many options available to them...and that includes the charities! In this installment of our miniseries about the legal side of planned giving, Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what a private security is, the benefits of donating securities to charity, and the tax pitfalls you should be aware of.

Private securities as a planned giving option (MP3)

RRSPs as a planned giving option

Planned (or deferred) giving can be an excellent way to donate to charity, but not everyone understands the many options available to them...and that includes the charities! In this installment of our miniseries about the legal side of planned giving, Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, weighs in on whether or not it is a good idea to donate your RRSPs to charity, the tax consequences upon doing so, and the complications a charity may face when accepting RRSPs.

RRSPs as a planned giving option (MP3)

Having a lawyer on your board of directors

Nonprofit organizations are often encouraged to include a lawyer on their board of directors. Afterall, what group couldn't benefit from some free legal advice now and then. But it's not quite as simple as that. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains when it is a good idea to have a lawyer on your board of directors, what an organization can and can't expect from a lawyer serving on its board, and the conflicts of interest that may arise.

Having a lawyer on your board of directors (MP3)

The CRA's model objects

The Canada Revenue Agency (CRA) recently published a list of model objects (charitable purposes) that nonprofit organizations can consult before applying for charitable status. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what these model objects are, and how they may help organizations get through the registrations process more quickly and with less difficulties along the way.

As the CRA website states, "If an organization uses a model object, the CRA will usually not need to discuss the wording of the object with you. This may speed up the decision making processes."

The CRA's model objects (MP3)

Flow-through shares as a planned giving option

Planned (or deferred) giving can be an excellent way to donate to charity, but not everyone understands the many options available to them...and that includes the charities! In our miniseries about the legal side of planned giving, Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, offers advice on accepting and giving planned gifts. In this installment, he explains what flow-through shares are, how they can be used in tax planning, and how charities can benefit from gifts of flow-through shares.

Flow-through shares as a planned giving option (MP3)

Charitable remainder trusts as a planned giving option

Planned (or deferred) giving can be an excellent way to donate to charity, but not everyone understands the many options available to them...and that includes the charities! In our miniseries about the legal side of planned giving, Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, offers advice on accepting and giving planned gifts. In this installment he explains what a charitable remainder trust (CRT) is, how CRTs are used in tax planning, and how donors can get tax credits now for shares donated after death.

Charitable remainder trusts as a planned giving option (MP3)

Life insurance as a planned giving option

Planned (or deferred) giving can be an excellent way to donate to charity, but not everyone understands the many options available to them...and that includes the charities! In our new miniseries about the legal side of planned giving, Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, offers advice on accepting and giving planned gifts. In this installment he explains the advantages of life insurance as a planned gift, when receipts can be issued for such a gift, and the different types of life insurance policies that are currently available.

Life insurance as a planned giving option (MP3)

Can nonprofit directors be compensated financially?

The directors who serve on a nonprofit board do so voluntarily. But there are instances when directors are financially compensated for their time and effort. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains when this may be allowed, the legal penalties for improper compensation, and the best ways to maintain transparency in the boardroom and beyond.

Can nonprofit directors be compensated financially? (MP3)

What happens when a charity shuts down?

The founding of a new charity is often a cause for celebration, but when an organization decides to close its doors for good, people aren't as vocal about the process. Still, there are steps involved and legal requirements that must be met. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, discusses some of the reasons why charities dissolve, what is required to do so, and what to consider when facing this decision.

What happens when a charity shuts down? (MP3)

Art donations as a planned giving option

Planned (or deferred) giving can be an excellent way to donate to charity, but not everyone understands the many options available to them...and that includes the charities! In our miniseries about the legal side of planned giving, Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, offers advice on accepting and giving planned gifts. In this installment, he explains how art is appraised for tax receipt purposes, the advantages of lending art to a charity, and the special considerations for Canadian art.

Art donations as a planned giving option (MP3)

How donors can make the most of their assets

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.

How donors can make the most of their assets (MP3)

Understanding the public benefit test

Your organization may be doing great work in the community, but would it pass the CRA's public benefit test? Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what the test is and what it actually means to provide 'tangible' benefits to the public.

Understanding the public benefit test (MP3)

Sports as a charitable object?

The Supreme Court of Canada ruled last year that sports organizations below the national level do not qualify as registered charities. The ruling is the result of a case involving the Amateur Youth Soccer Association (AYSA), which operates at the provincial level. Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, discusses the promotion of soccer and fitness as a charitable object, and the likelihood of obtaining charitable status for sports organizations.

Sports as a charitable object? (MP3)

Understanding charitable objects: Benefit to the community

For an organization to be registered as a charity, its purposes must fall within one of four categories, one of which is "other purposes beneficial to the community in a way the law regards as charitable". Adam Aptowitzer, a lawyer with the Ottawa-based law firm Drache LLP, explains what this encompasses, and what doesn't fit into this category.

Understanding charitable objects: Benefit to the community (MP3)