Welcome to 2011's final edition of Charity Law Insights.
2011 turned out to be a year of surprises brought about mostly by the Federal budget. Regular readers will recall our discussion of (amongst other things) the new ineligible director rules, the new treatment of RCAAAs and of course the virtual elimination of the donation of flow through shares to charities.
The first proposed budget of 2011 was also one of the elements that led to the fall of the government in March. This in turn precipitated the death of the justly maligned Bill C-470 (although we now live in fear of its zombie like resurrection).
The budget also tasked Parliament with a review of the tax incentives for charitable giving, and we have just received word that these deliberations will take place by Parliament's Finance Committee beginning in mid January 2012. Given the current economic climate, and previous experience, the sector has every reason to be concerned that these deliberations will change the playing field, and not for the better. (Although it bears mentioning that not since the 1930's have charity sector issues been taken so seriously at Parliament).
Looking back at our predictions for 2011 we realize with the benefit of hindsight that some of them were correct but not enough to embolden us to make new predictions for 2012. Nevertheless, you can rely on your team at Drache Aptowitzer LLP to continue to provide you with analysis and guidance about the issues facing the sector as the year unfolds.
The entire team at Drache Aptowitzer LLP takes this opportunity to wish you the very best of the holiday season and a happy, healthy and prosperous 2012.
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