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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.
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