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Maintaining Your Charitable Status

The recent notice that the Canada Revenue Agency (CRA) had revoked the charitable status of a high profile charity watchdog raised many eyebrows. There is certainly some irony that an organization that promotes good governance would lose its charitable status for failure to file its annual tax return, but this is hardly a unique situation. In 2009-10 (the last year information is available for) CRA revoked 593 charities, for the same reason.

 

This is a good reminder that charitable status comes with obligations, one of which is to file an annual financial return, generally known as the T3010. While organizations may need to do some work to convert their financial statements to correspond to the information required on the form, it is hardly an onerous requirement in exchange for the privilege of issuing tax receipts for donations. Yet failure to file a return is the most common reason for revoking charitable status.

 

Why does this happen? In some cases it may be that the organization has stopped operating without notifying CRA; in others, especially with small volunteer-based organizations, information including the need to file may get lost as Board members change. 

 

One of the most useful things an organization can do to is to build the review of the T3010 into the annual Board calendar. It not only avoids the penalties associated with de-registration, but it is simply good governance practice. Organizations have six months to file their return after their year end. CRA sends a reminder a month before this due date and follows up with charities that have not filed their return on time. CRA only revokes charitable status if the charity has not complied within this grace period - about 10 months after their year end.

 

There are a number of resources available to help organizations with filing their return. Here are some good sources of information:

 

CCVO News

 

Please join us for an evening of wine, cheese and conversation...

In response to our members' suggestions for more networking opportunities, we are pleased to announce our 2nd Members' Networking Event. A location and date are to be announced soon so look for the invite in your inbox and get ready for some wine, cheese and some excellent conversations. This is a FREE event and is open only to CCVO members.

 

 

Reinventing our Relationship with Government and the Public: How Charities and Nonprofits are Taking Charge of their Agenda

October 10, 1 - 3:00 p.m.

We invite you to join CCVO and Dr. Michelle Gauthier, VP, Public Policy and Community Engagement at Imagine Canada, for a presentation and discussion about the changing landscape of nonprofits, how these issues are playing out at a federal level, and the challenges and opportunities that exist for organizations at the local and provincial level. More seats released due to overwhelming demand, register today!

 

SAIT Launches a Lean Management Certificate of Completion

CCVO partnered with MPI Associates and The Winslow Group for the Lean Cluster Project where 5 organizations participated in the 6 month program. The Winslow Group has been working on a Lean certificate program for SAIT over the past year and it is launching this month. The Lean certificate program is one of the most pragmatic, comprehensive and holistic Lean training courses available. Detailed information on course offerings, dates, cost and registration is available online. The first course is scheduled for October 12 & 13. 

 

 

Government and Policy News

 

Alberta Budget 2013 Consultation

The public consultation for Budget 2013, which identifies the province's spending priorities for the next fiscal year, got underway today. In keeping with recent trends, the public consultation contains a survey (closing on October 31) and provides multiple avenues for Albertans to provide feedback. In addition, it includes nine regional public open houses (note: the Calgary one is on October 4) and a smart phone app that will be released this week. CCVO encourages organizations and individuals to participate in the consultations through one of the channels available. We will also be creating a webpage with a link to budget submissions from nonprofits and charities, and request you to email your submission to policy@calgarycvo.org if you would like yours to be included.

 

The budget consultation will run concurrently with the financial fiscal framework consultation, which began last month and identifies boundaries for spending, saving and funding infrastructure. In future years, the fiscal framework will provide the parameters within which budgets will be created. Click here for the Alberta Government's "Dollars and Sense" portal that provides in-depth budget information. 

 

Social Policy Framework, Phase 2

Speak. Share. Thrive., the province's public consultation for its new Social Policy Framework, has entered its second phase. The key questions posed are, "What is the role of the non-profit and voluntary sector in achieving positive social outcomes?" and "How should we decide what strategies go into the framework?" As before, there are a number of ways for Albertans to get involved, including editing and commenting on a wiki, writing a blog, and filling out a survey that will remain open until November 9. A report summarizing the findings from Phase One of the consultations can be found here, and government's fall update can be accessed here.

 

#ABSPF

What are your thoughts on the findings from Phase One of the Social Policy Framework consultations? Were you heard? What do you like? What's missing? Share your thoughts on Twitter using hashtag #ABSPF.

 

Completion of Small and Rural Charities Initiative

The Small and Rural Charities Joint Action Plan, a follow-up to the 2008 Small and Rural Charities: Making a Difference for Canadians report, is complete. The joint action plan made 66 recommendations to improve conditions for small and rural charities. Major themes included reducing the compliance burden on small organizations, optimizing education and access to information, and coordinating across all levels of government to provide consistency of message. The recommendations, and what the Charities Directorate has done to implement them, may be found here.

 

A Conversation with the Charities Directorate Director General

CharityVillage has published an interview with Cathy Hawara, Director General of the Charities Directorate since 2009. Ms. Hawara outlines priorities and areas of focus for the charitable sector in Canada in the coming years, responds to public perception that recent Canada Revenue Agency (CRA) audits may be politically motivated, and comments on the Directorate's own perception of the Canadian charitable sector.

 

A Position on the Destination of Profits Test

An article by the B.C. Centre for Social Enterprise discusses the issues surrounding the CRA's position on nonprofit organizations that make a profit. Current CRA guidelines stipulate that a nonprofit "may be operated exclusively for social welfare, civic improvement, pleasure or recreation or for any other purpose except profit." The Centre for Social Enterprise advocates for the enactment of the "destination of profits" test, where profits that "are redirected toward the organization to support it or to unleash more impacts based on its core community purposes" would be exempt from taxation.

 

 

Professional Development

 

Funding Policies and the Nonprofit Sector

On October 15-16, Mount Royal University's Institute for Nonprofit Studies will host a funding policy forum. The purpose of this forum is to examine and profile the context and application of funding policies in each of the four western provinces, together with the opportunity for senior policy makers, academics, and senior nonprofit executives to discuss the implications of these initiatives. Registration is open until October 10.

 

Vital City: Report to Community

Join The Calgary Foundation for their annual Vital City: Report to Community on October 17. Guest speakers will include Mayor Naheed Nenshi, Rob Cardinal, University of Calgary research associate, Astrophysicist, and Founder of The First Light Initiative and Reid Henry, President & CEO of cSpace. Registration is limited, register by October 12 online or call 403-802-7719 for more information.

 

Group Works Facilitator Training

Group Works Facilitator Training provides hands-on experience in the strategies and skills of helping adults learn in small groups. Register now for the eight-week Level One Facilitation Course beginning October 13. Contact Jenna Truong at (403) 250-5034 for more information or to register.

 

Board Meeting Seminars

CanaGlobe Compliance Solutions (a consulting firm focused on all aspects of compliance) is offering a series of seminars and webinars in November. Topics include Minute Taking Standards & Related Issues, 101 Boardroom Problems and How to Solve Them and In-Camera Meeting Minutes. Registration is available online.

 

KPMG Nonprofit November Seminar

Registration is now open for the KPMG nonprofit seminar Are you ready for your audit? on November 20 at 8:00 a.m. For further information or to register, please visit the website. Questions? Send an email to Calgarynpo@kpmg.ca

 

 

Research and Resources

 

Why Hiring People Who Annoy You Helps You Innovate

An article written by Douglas Merrill for Fast Company talks about the three "distinct rules to follow when innovating" which include hire people who annoy you; don't copy, remake; and don't create, listen. These rules focus on how diversity, creativity and observing behaviours can be key to innovation for any type of organization.

 

Does your organization support your emerging leaders?

KnowledgeConnector has released a new online tool, the Emerging Leaders Organizational Assessment. The assessment tool helps to determine how ready your organization is to train and lead your emerging leaders and then directs you to resources to help fill any gaps and take your organization to the next level.

 

How Cloud Technology Can Benefit Your Nonprofit

The FirstGiving blog provides a summary on a study conducted by Techsoup Global of over 10,000 nonprofits from 88 different countries and how they use cloud technology. 

 

Sage Nonprofit Insights Survey Released

Sage North America has released their Sage Nonprofit Insights survey of US and Canadian nonprofits which focused on identifying top trends and practices in funding and grants management processes. 

 

 

Funding and Awards 

 

Community Spirit Program

The application process for the 2012-13 Community Spirit Program (CSP) donation grant is now open and the application deadline is December 31. Program information and application forms are available online.

 

Aviva Community Fund

Aviva is inviting Canadians to submit their ideas for positive change. The most popular ideas, as chosen by Canadians, will have a chance to share in the $1,000,000 Aviva Community Fund. In addition to contributing to positive change in the community, ideas should be action oriented, priced under $150,000, local (in Canada), and executed by December 2013. Ideas can be submitted online.

 

Community Service Learning Awards

The J.W. McConnell Family Foundation is now accepting submissions for the 2012 Community Service Learning (CSL) Awards competition. The awards recognize successful community initiatives supported by robust community service-learning programs. Community organizations and post-secondary institutions are invited to jointly submit an application by January 31.

October 3, 2012

 

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