Articles & Cases
Blumbergs Canadian Charity Law List - April 2008 Edition
April 05, 2008
1) 2006 Was a Good Year for Canadian Charities That Operate Outside of Canada
CRA has just released the latest T3010 information which is for the year 2006 and it shows a banner year for spending by Canadian charities operating abroad. In fact in 2006 Canadian charities spent over $2.3 billion. That is an increase of about of over $214 million compared to the 2005 numbers or about a 10% increase. Here is my article on
the 2006 increase in Canadian charity spending outside of Canada which also includes a list of Canadian charities that spent over $1 million outside of Canada.
2) New CRA consultation on fundraising
The CRA has just released a consultation document on its proposed policy on fundraising. In this article I discuss the new CRA policy. As well there are links to a copy of a presentation on April 1, 2008 by Neil Cochrane and Peter Broder of the Charities Directorate of the Canada Revenue Agency to the Ontario Bar Association entitled CRA Fundraising Policy Overview. . There is also a link to the Consultation on proposed policy on fundraising by Registered Charities RC4456-e. Although RC4456 is only a 6 page document apparently there will be another document forthcoming that is about 40 pages in length that will add to the overview document.
3) Has the regulation of Canadian registered charities operating outside of Canada become increasingly burdensome over the last few years?
I often read commentators talking about the ‘increased burden’ placed by Canada Revenue Agency on Canadian charities operating abroad or the ‘increasingly complicated’ administrative rules. I then scratch my head and wonder what increased burden and what increased rules? In this article I discuss how CRA has not modified RC4106 since the year 2000 (almost 8 years) and CRA has in fact provided greater leeway to registered Canadian charities operating abroad.
4) Foreign Universities Fundraising In Canada
CRA has recently prepared two publications that will be of interest to foreign universities fundraising in Canada and Canadian students studying at certain prescribed foreign universities. These publications are entitled Donations by Canadians to Prescribed Universities Outside Canada (RC191-07) and Information for Educational Institutions Outside Canada (RC190-07).
5) Bequests in Canada - Creating a Planned Giving Program
Here is a copy of a presentation I recently delivered on promoting bequests to charities. As charities seek to diversify or increase revenue, bequests become an even more important potential source. The presentation covers some of the advantages and disadvantages of using bequests, whether an organization should create a bequest program, 16 steps to setting up a planned giving program that emphasizes bequests, as well as legal, ethical and practical issues to consider.
6) Under a Microscope –Transactions that Draw the Attention of the CRA by Blaine Langdon of CRA
“Under a Microscope –Transactions that Draw the Attention of the CRA” is a really useful discussion of issues relating to donations and receipting - a problem area for many Canadian registered charities. It is a Powerpoint presentation delivered by Blaine Langdon of the Charities Directorate of the Canada Revenue Agency.
7) Donation of Medicines by Canadian Pharmaceutical Companies to the Developing World
The Canadian Federal Budget delivered in March 2007 provided an additional tax incentive to Canadian pharmaceutical companies to provide drugs to certain Canadian registered charities as long as the drugs will be used outside of Canada. I discuss this tax incentive and some better ideas for helping those in need in developing countries obtain medications.
Upcoming presentations
I will be delivering a couple of presentations dealing with charities over the next 6 weeks:
Planned Giving in a Global World, Vancouver. Friday April 25, 2008 Time: 2:00-3:15 p.m. In this session, we will discuss basic information that those involved in fundraising and planned giving need to know to allow for planned gifts in support of charitable activities outside of Canada. Topics will include the legal requirements and restrictions for Canadian charities operating abroad; examples of charities losing their status for non-compliance with CRA requirements; different organizational models for charities operating abroad; common mistakes and concerns with charities operating outside of Canada; and an overview of recent developments and flexibility in charities operating abroad.
In the OBA Continuing Legal Education Program "Righting Wills IV: Essential Tips for Practitioners" on Wednesday, May 14, 2008 I will be delivering a presentation on "Bequests in Wills to Charities: Avoiding Legal and Ethical Problems when Supporting Good Causes" and it will cover • Why bequests are important, when to use them and their drawbacks • 15 common legal mistakes and 5 ethical concerns for lawyers in dealing with bequests • Sample language for bequests to charities and related issues.
If you require legal services with respect to non-profits or charities please contact myself at mark@blumbergs.ca or at 416-361-1982 x. 237
For further information on legal resources for Canadian Non-Profits and Charities please visit the Blumbergs' Canadian Non-Profits and Charities page or www.globalphilanthropy.ca
Hope that you found the above material helpful and please feel free to forward the e-mail newsletter to anyone who you think may be interested. They can also sign up to the BLUMBERGS non-profit and charities law newsletter, among other newsletters, at Blumbergs' Newsletter Page
Mark Blumberg
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Mark Blumberg, B.A., LL.B., LL.M., TEP
Blumberg Segal LLP
Barristers & Solicitors
390 Bay Street, Suite 1202
Toronto, Ontario, M5H-2Y2
Tel. (416) 361-1982 ext. 237
Fax. (416) 363-8451
Email: mark@blumbergs.ca
URL: http://www.blumbergs.ca/non_profit.php
URL: http://www.globalphilanthropy.ca/
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