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Greetings!

 

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

 

Even as we enter the 'dog days of summer' there are still topics of interest for the sector.

 

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

By: Arthur Drache C.M., Q.C. 

Most people who give some thought to the rules relating to charities carrying on businesses think that the primary purpose of these rules was to limit the ability of tax-exempt organizations to compete in the market place with taxable entities.

 

But they are wrong.

 

To read the full article click here:

 

Hidden Implications of  Compliance Agreements Revisited
Adam Aptowitzer
Most charities will be unfamiliar with compliance agreements - but some that are familiar with them are finding that they wish they were not. Compliance agreements are offered by the Directorate to charities which, in the Directorate's opinion, are guilty of transgressing some provision of the Income Tax Act. The agreement usually stipulates that the charity will no longer engage in the activity or behaviour which led to the transgression in the first place. According to the guidelines which attempt to make sure the punishment fits the crime, compliance agreements fall somewhere between a 'slap on the wrist' and jail time. Often, the alternative to signing a compliance agreement is revocation of the charity's status and so signing the agreement, if offered, is generally a foregone conclusion.   

 

To read the full article:

Do Your Programs Entitle Families to a Tax Credit?
 

Yvonne Chenier

 

Organizations that put on children's programing should check to see if they can help families take advantage of a new tax credit.  The Government of Canada has just released details about the Children's Arts Tax Credit (CATC), announced in the 2011 federal budget (www.cra.gc.ca/artscredit). This new tax credit, available starting in the 2011 tax year, is similar to the Children's Fitness Tax Credit that has been available for a few years now.   

 

 

To read the full article click here:

 

 

 

Written Resolutions in Lieu of Meetings
 Joel Secter 

 

Federally incorporated non-share corporations can expect many changes when the new Canada Not-for-profit Corporations Act (the "CNCA") comes into force. For example, the directors and members of non-profits will be able to pass resolutions in lieu of holding meetings (if signed by all the directors or members entitled to vote on the resolution at the meeting). This practice has not been acceptable since the late 1990s when Corporations Canada determined that written resolutions in lieu of meetings are not permitted under the Canada Corporations Act (the "CCA"). Although there are inherent benefits to transacting business at meetings, the change will undoubtedly be welcome news to organizations for which the requirements to have the directors and members in the same place at one time is cumbersome.

 

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