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Greetings!

 

Welcome to the July 2011 edition of the Charity Law Insights. 

 

Since our last newsletter which came out the same day as the Federal Budget (take 2) we have had a chance to digest some of the implications for charities (and were not distracted by an election) and we present some of our thoughts in this newsletter.

 

At the same time, we have been treated to a new guidance by the CRA on working with intermediaries in Canada and discuss that below. You will also notice an article by Yvonne Chenier of our Calgary office on Bill C-28, the 'Anti - Spam' law; and by Joel Sector on the new Federal Corporate Act for charities and not for profits.

 

As usual, we hope you find our newsletter 'insightful'.
  
Yours truly,
Drache Aptowitzer LLP

By: Arthur Drache C.M., Q.C. 

One of the new provisions related to the non-profit sector will potentially create some compliance problems for foreign universities and the myriad "friends of" organizations which raise funds in Canada for such institutions.

In the words of the Budget, the proposals are designed "to enhance transparency and accountability and provide greater certainty to donors, Budget 2011 proposes that qualified donees be required to be on a publicly available list maintained by the Canada Revenue Agency.

 

For more information click here:

 

The Pandora's Box of Charitable Donation Incentives

Adam Aptowitzer 
We try to keep editorial comments about happenings in the charity community to a minimum, but the second coming of Budget 2011 does give us reason to break from the ordinary. Readers will recall that the post election Federal budget was almost identical to the pre election budget with two major differences (at least at they relate to charities). The most substantive change was the adoption of a pre election proposal to have the House of Commons Standing Committee on Finance evaluate the charitable donation incentives contained in the Income Tax Act.  

 

For further information click here:

Operating Domestically with an Intermediary

Adam Aptowitzer 

Canadian charities operating domestically often draw upon a local pool of volunteers, or partner with other registered charities to fulfill their charitable objects and in doing so generally gloss over the legal requirement to maintain control and direction over their assets. In some cases though, charities must work with non charities to accomplish their charitable objects. This interaction raises questions about the circumstances in which a charity can transfer funds to a non charity. A new guidance from the Canada Revenue Agency attempts to provide some direction in the area.

 
 

 

For further information click here:

Bill C-28 Canada's Anti-Spam Law - Coming Soon to a Computer Near You 
 

Yvonne Chenier

To advise a not-for-profit organization on Bill C-28, Canada's Anti-Spam Law (the "Act"), one really has to be an expert or seek expert counsel in many areas of law, not to mention someone who can see into the future to know what the full extent of this new regime will be once the regulations have been published. This law passed by the Government of Canada on December 10, 2010, will likely come into force sometime this year.

 

For more information click here:

New Regime for Federal Not-for-Profits Is Coming Soon
 Joel Secter

One way or another, most layers and accountants have a connection to a federally incorporated not-for-profit or registered charity. You may recall that in the summer of 2009, Parliament passed new legislation governing federally incorporated non-share capital corporations for the first time since 1917. The Canada Not-for-profit Corporations Act ("CNCA"), which is set to replace Part II of the Canada Corporations Act ("CCA") later this year, is intended to implement modern corporate governance rules for federal not-for-profits and clarify the roles and responsibilities of members, directors, officers and other interested parties. What follows is an overview of the CNCA to help those of you who will soon be drafting articles of continuance and by-laws under the new regime.  

 

For more information click here:

___________________________________________________________ 
Drache Aptowitzer LLP
Ottawa
226 MacLaren Street
Ottawa, Ontario K2P 0L6 
T. 613.237.3300  F. 613.237.2786

Calgary
West Tower - Sun Life Plaza
144 - 4th Ave. S.W.
Suite 1600
Calgary, AB T2P 3N4

T. 403.536.7442  F. 403.800.3094