This episode provides an essential overview of Canadian charity law, focusing on the critical importance of a charity's legal objects (or purposes) and the strict regulations surrounding the issuance of donation receipts.
It explains that a charity must legally operate within its defined objects, warning that acting ultra vires (beyond its powers) can lead to severe consequences, including the revocation of charitable status and personal liability for directors.
The discussion also details the process for properly drafting and amending charitable objects, emphasizing the need for specificity to satisfy the Canada Revenue Agency (CRA).
Finally, the episode outlines which common transactions do not qualify as gifts (such as donated services or pledges) and clarifies the split-receipting rules for fundraising events, which dictate when a donation receipt can be issued if the donor receives an advantage.
Support for Your Canadian Charity or Not-for-Profit
Running a successful charity requires passion for your mission and a rock-solid foundation. This episode is made possible by the professional teams who help organizations like yours thrive.
Legal Guidance for Canadian Charities: Navigating the legal landscape for charities and not-for-profits can be complex. Whether you're just starting or need to shore up your governance, you need a Charity Lawyer on your side.
B.I.G. Charity Law Group Professional Corporation A dedicated law firm exclusively serving charities and not-for-profits in Toronto, Ontario, and across Canada. Serving:
Bookkeeping & Tax Services for Ontario Charities: Keeping your charity's finances and tax filings in perfect order is essential for transparency and success. For specialized Charity financial management, we recommend:
A Special Mention: A huge thank you to our friends at OrgHub.ca, an innovative software platform that provides not-for-profits and charities across Canada with a streamlined, modern foundation for incorporation and corporate governance.