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Greetings!

 

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

 

Much has happened in the charity world since our last newsletter. In particular, the Canada Not for Profit Corporations Act was proclaimed in force on October 17th, 2011. While we have written about the subject many times before, now would be an appropriate time to remind our readers that those of you who are federally incorporated have three years from October 17th, 2011 to file the appropriate paperwork to continue under the new law and avoid dissolution of your corporation. (If you are unsure if your corporation is federally incorporated click here).

 

While continuing under the new act can be done relatively easily, there are a variety of provisions which the prudent organization will want to consider prior to doing so. Failure to consider these new provisions could result in significant trouble for the new organization down the road once it realizes that these provisions are not to their liking. As they say, "a stitch in time saves nine".

 

Given the importance of this issue to the sector, Drache Aptowitzer LLP is pleased to announce the creation of a website dedicated to the new act. The new website address is www.notforprofitcorp.ca. There you will find information that will help you review your options and decide the appropriate course of action for your organization.

 

If you have any questions about continuing under the new act please feel free to contact one of our team.

 

As always, we trust that you will find this issue of Charity Law Insights and our new website informative, readable and insightful.

  

Yours truly,
Drache Aptowitzer LLP

New Rules for Canadian Municipalities and Foreign Universities
By: Adam Aptowitzer 
Adam Aptowitzer

It may come as a surprise to some, including those affected by it, but donations to Canadian municipalities and certain foreign universities result in tax credits similar to gifts to Canadian registered charities. While all municipalities have this ability only foreign universities which meet certain criteria qualify (for a current list of the universities click here). In the case of municipalities, at least in the past, there were no ongoing compliance requirements and their status as tax receiptable organizations could not be revoked. Indeed, even foreign universities had little reason to worry about having their status revoked. However, recent changes to the Income Tax Act threaten to change the status quo quite dramatically.

 

To read the full article:

By: Arthur Drache C.M., Q.C. 

One would expect that all registered charities (and other organizations which issue receipts for gifts) would be fully aware of the rules relating to what the receipt must contain. While the requirements seem to be just administrative, it must be borne in mind that the issuing of an improper receipt is grounds for revocation.

  

To read the full article click here:

 
New Beginnings.  The Canada Not-For-Profit Corporations Act
 

Yvonne Chenier

Any time there is a policy shift or change in legislation in the area of not-for-profit law, it gives organizations an excuse to ponder whether any of the changes affect their organization. As you will read elsewhere, the Canada Not-For-Profit Corporations Act has recently become the law federally for not-for-profits who choose to organize themselves at a federal level. Organizations that were incorporated under the old legislation - the Canada Corporations Act Part II - will have to review this new legislation to see if there are any steps they have to take immediately or in the near future.  However, other organizations across Canada may want to view this legislation as well to see if there is anything in it for them.


To see the rest of this article click here:  
Top Ten Things You Should Know About the New Federal Law
By: Joel Secter Joel Secter  

For the first time since 1917, there is new legislation governing federal not-for-profit corporations, including those that are registered charities. The much anticipated Canada Not-for-Profit Corporations Act ("NFP Act") finally came into force on October 17, 2011 after receiving Royal Assent on June 23, 2009. To mark the occasion, here are the top ten things you should know about creating and maintaining a not-for-profit corporation under the new federal law.

  

For more information click here:

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