Charity Governance

Handling Conflicts of Interest on the Board of a Charity

Are you involved in decision-making or representing a non-profit organization? This could mean holding the position of executive director or being a member of the board, among others. If that's the case, it's crucial to manage conflicts of interest effectively and prioritize the use of the.....

...

Handling Difficult Directors in a Charity

The success of charity organizations is built upon their directors’ dedication and commitment. Although we aspire to an atmosphere of seamless harmony, conflicts can occasionally emerge, posing challenges when dealing with difficult directors. In this post, we will explore effective approaches to ..

...

Annual Checklist for Charity Board of Directors

As a member of a charity's board of directors, you have several important responsibilities to fulfill throughout the year. To ensure that you stay on top of your duties, here is a checklist outlining some of your key responsibilities:

...

Is a New Board of Directors Responsible for Missing Money?

In many communities, religious centers serve as hubs for community support and engagement. When a group of concerned local residents takes the initiative to revive a struggling community religious centre, it is a commendable endeavor. However, unforeseen financial issues can pose significant....

...

Understanding Membership Structures under Ontario’s ONCA

Learn about membership structures under the ONCA, including types, rights, and rules to help Ontario nonprofits stay compliant and manage members effectively.

...

Charitable Receipts: A Guide for Canadian Registered Charities

Issuing official donation receipts is a valuable privilege for registered Canadian charities. However, with this privilege comes a responsibility to ensure compliance with the Income Tax Act (Canada) and CRA's guidance. Addressing common misconceptions and adhering to receipting best practices is...

...

Six Fundraising Approaches New Charities Should Avoid

Discover the best approaches to fund a new charities organization, avoiding common pitfalls. Learn about grants, events, corporate donations, appeals to the wealthy, crowdfunding, and self-funding, and why diversifying your strategy is crucial for success.

...

What are the ways in which a charity can collaborate with an intermediary?

Working through intermediaries can be a strategic approach for charities to extend their impact. However, it requires careful consideration, including the selection of suitable partners, maintaining control over resources, and adhering to regulatory guidelines. By understanding the nuances of...

...

Optimizing Direct Mail Fundraising for Charities

In the realm of charity operations, marketing plays a pivotal role alongside fundraising and bookkeeping. While digital platforms often take center stage, the enduring efficacy of direct mail should not be underestimated. Direct mail fundraising offers a personal touch, fostering a sense of intimacy

...

Can a charity or not-for-profit organization change its fiscal period end?

Navigate the complexities of altering fiscal year-ends in registered charities. Learn about the approval process, filing during transition periods, and essential guidelines for ensuring compliance with regulatory standards.

...

What Is a Disbursement Quota and How Can Charities Navigate Reductions in Canada?

Explore the strategic process of disbursement quota reductions for charities facing financial challenges. Learn eligibility criteria, approval timelines, and submission methods to responsibly address spending shortfalls and continue community contributions.

...

Is Your Charity Board of Directors Related to Each Other? Unraveling Related Persons and Arm's Length Dealings

Explore the intricacies of related persons and their dealings at arm's length in this in-depth analysis of Income Tax Folio S1-F5-C1, Chapter 1. Delve into the criteria defining relationships and transactions for tax purposes, covering blood connections, marriages, common-law partnerships, and more.

...

What happens when a charity is associated with a non-qualified donee?

Explore the complexities charities face when affiliated with non-qualified donees, understanding the challenges in financial transactions, the need for direction and control, compliance requirements, and the importance of ensuring equivalence in resource exchange.

...

What is Anti-Avoidance Rules and Designated Gifts in Charitable Giving

Explore the intricacies of anti-avoidance rules and designated gifts in charitable giving. Learn how registered charities navigate these regulations for transparent and accountable fund utilization under Canada's Income Tax Act.

...

Can a charity give official donation receipts for service gifts?

Explore the rules and conditions surrounding registered charities issuing official donation receipts for gifts of services. Understand the concept of a gift and the unique considerations for service contributions.

...

How Can Registered Charities Safely Navigate Fundraising Activities? A Guide to Compliance and Best Practices.

Explore the vital balance between fundraising and charitable objectives for registered charities in Canada. Uncover key considerations, guidelines from the Canada Revenue Agency (CRA), and insights into engaging in lotteries, bingos, charity casinos, and more. Learn how to maintain compliance and be

...

How Do Charities Help Others with Grants?

Explore the symbiotic relationship between charities and external groups as we demystify the process of granting, highlighting the supportive, collaborative nature that enables charities to make a positive impact without assuming authority.

...

Church Finances Made Simple: Your Guide to Faithful Bookkeeping

Understand the importance of keeping good financial records, learn the advantages of being clear about where the money goes, and find out the best ways to make financial information work better for you.

...

How Can Canadian Charities Secure Their Future Through Leadership Development and Succession Planning?

To secure their future and ensure continued impact, charities must focus on leadership development and succession planning by nurturing internal talent, recruiting strategically, engaging the Board in leadership initiatives, and conducting annual leadership reviews.

...

How Do You Remove a Director from a Canadian Charity?

Removing a director from a Canadian charity requires following a structured legal process, including reviewing bylaws, obtaining board or member approval, filing required government forms, and ensuring compliance with federal or provincial regulations.

...

How Can Your Charity Create an Effective Conflict of Interest Policy?

A well-crafted conflict of interest policy ensures transparency, legal compliance, and ethical decision-making in your Canadian charity, protecting its integrity and public trust.

...

What Are the Ongoing Obligations of Running a Not-for-Profit Corporation and Their Approximate Cost?

Answer by Benjamin Miller, LL.B. From a legal perspective (i.e. keeping your nonprofit corporate status), the main obligations and expenses are as follows: Incorporation fee ~$155 provincially and ~$200 federally (in addition to any legal fees);Creating bylaws - if you decide to hire legal assistanc

...

What Is The Ideal Size for a Charity Membership?

Explore the significance of membership size in charity governance and the rights of members. Discover the benefits of implementing multi-tiered classes of membership for improved effectiveness in charity and not-for-profit organizations.

...

Charity Scandal: What To Do if Charity Assets Have Been Embezzled

A Charity embezzlement incident is emotionally devastating, erodes the public’s trust, jeopardizes grants and funding contracts, scares off new donors, can attract scrutiny from regulators, and in the worst cases, can bring down a Charity. Charity embezzlement can involve anyone: officers, directors

...

Understanding Liabilities for Charity Directors and Members

By Benjamin Miller, LL.B.‍ Generally speaking, members are not exposed to legal liability directly unless they take on direct involvement in the decision-making of the organization. Directors are liable for a number of things under corporate, tax, and employment statute, as well as having specific d

...

Registered National Arts Service Organizations (RNASO)

There are 29 Registered National Arts Service Organizations (RNASO) in Canada. Here is the current listing of Registered National Arts Service Organizations (RNASO). You can obtain an up-to-date list from the Canada Revenue Agency by selecting the search category "NASO".· ARTBRIDGES - REGISTERED 20

...

What Due Diligence Is Needed When Contemplating a Charity Merger?

A merger is when two or more non-profits or charities join together as one unified entity. Below is a 13-point due diligence checklist to keep handy when contemplating a merger with another charity. · Evaluate the different types of mergers: amalgamation, consolidation, transfer of assets etc · Conf

...

Charities Directorate Contact Information

You can directly contact the Charities Directorate Department of the Canada Revenue Agency ("CRA") for all things related to charities across Canada, including: general information about registered charities information on how to apply for registration online information on how your charity should p

...

What financial statements must a nonprofit corporation under ONCA present to members?

Details on the financial statements required to be presented to the members under ONCA can be found in section 4-5 of the General Regulations under ONCA. They must be prepared in accordance with the generally accepted accounting principles set out in the CPA Canada Handbook — Accounting or the CPA C

...

What Is ONCA and How Does It Affect Ontario Nonprofits and Charities?

What is ONCA? The ONCA (Ontario Not-for-Profit Corporations Act) is new legislation which governs all Not-for-Profits incorporated in Ontario. The ONCA came into effect October 19, 2021 and makes significant changes to the previous legislation which governed Ontario Not-for-Profits. 5 ways the ONCA

...

Future ONCA Changes to Consider in Drafting or Revising New Bylaws

What important ONCA changes will be required in the future?‍There are 3 important ONCA changes that are important and should be considered when drafting or revising Ontario NFP bylaws.1. Non-voting members will gain certain voting rights. Note however that this right will be delayed to at least 3 ye

...

Governance Considerations in Social Enterprises

Should we replace our board with business professionals to establish a social enterprise and generate funding for our Not-for-Profit programs running at a deficit?

...

Enhancing a Charity Executive Director Performance Review: Six Key Tips for Success

Let's face it: the annual performance review process is generally not favored by the majority of people, regardless of which side they are on. Managers often view it as a hassle, while employees tend to approach it with apprehension. When you factor in uncomfortable atmospheres and complex procedu..

...

Why Should Charities Assess Their Boards of Directors Regularly?

Charities should regularly assess their boards of directors to ensure they possess the essential qualities to guide the charity effectively and make a positive impact.

...

Must a Canadian Charity Provide Donation Receipts?

Learn whether Canadian charities must legally provide donation receipts, CRA rules for issuing valid receipts, and what donors need for tax credits.

...