Monday, April 5, 2010

Understanding undue benefit

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 and 110% of the benefit for a second offence. Although there are many examples of how charities can get into trouble with undue benefit, a common difficulty that charities should watch for is member and non-member pricing.

Understanding undue benefit