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

How HST will affect Canadian nonprofits

In 2010, both British Columbia and Ontario will begin using a harmonized sales tax. This change will have an impact on nonprofits and charities in many different ways, including with regards to federal tax exemptions and disbursement quotas. Listen to this podcast to find out whether your organization will have to pay more in taxes, how your administration costs may drop, and how the HST might affect your clients and donors.

How HST will affect Canadian nonprofits

Turning a business idea into a charitable organization

Setting up and running a charitable organization can be a tricky business, so it's important to ensure that you're always on the right side of the law. In this podcast, Adam and Nicole discuss the question of turning a business idea into a charitable venture, whether it is a good idea, and what you need to know if you are going to proceed.

Turning a business idea into a charitable organization

Getting back your GST

Now that you understand what the GST is and how it affects charities, it's important to take a look at how a charity can go about getting back the GST that they paid out during the year. This podcast discusses which charities are eligible to reclaim their GST and what they need to claim on a yearly basis, explains the Public Service Bodies Rebate, and outlines other types of GST rebates that charities should be aware of.

Getting back your GST

How the GST affects charities

After last month's podcast you should be armed with a good understanding of just what the GST is. This month, we discuss the unique effect that the GST has on charities, the importance for the organization and its directors to understand their liabilities with regards to the GST, and how to determine whether a charity should register with a GST number.

How the GST affects charities

Introduction to the Goods and Services Tax

Understanding how the Goods and Services Tax (GST) works is important to all Canadians. In this podcast, find out exactly what the GST is and how it works, whether it is similar to PST in some provinces, as well as how to register for a GST number and how to get a GST tax return.

Introduction to the Goods and Services Tax

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)