The Canadian Charity Law Podcast

Recent changes to Ontario's Not-for-Profit Corporations Act (ONCA) have altered the rules for proxy voting in non-profit and charitable organizations located in Ontario. Previously , the right to use proxies was automatic for members, but now , it is only permitted if explicitly stated in an organization's articles or by-laws. This discussion outlines what a proxy is , the potential benefits and d...

This episode explains challenges to founder control in standard non-profit structures where all members typically have voting rights. It then presents two main solutions involving different membership classes to mitigate this challenge. The first solution proposes a structure where only board members are voting members, ensuring they control board appointments. The second involves multiple classes...

This episode explains how to start a non-profit society specifically in British Columbia , offering a step-by-step process for incorporation. It highlights key stages such as building a core team, choosing a name, defining the society's purpose, and crafting bylaws . The discussion also touches upon filing for incorporation, opening a bank account, and the separate process of obtaining charitable...

This episode outlines the necessary steps for establishing a not-for-profit corporation in Toronto . The process involves choosing a unique name , preparing Articles of Incorporation , appointing directors , defining bylaws , and submitting an incorporation application . The guide also mentions the optional step of obtaining charitable status through the Canada Revenue Agency for additional tax ad...

This episode explains the crucial early decision for nonprofits looking to incorporate in Ontario: whether to incorporate provincially (specifically in Ontario) or federally. Provincial incorporation in Ontario offers benefits such as easier access to funding, potential tax advantages, limited liability protection, an independent legal identity, and perpetual existence. Federal incorporation provi...

This episode addresses the crucial topic of executive compensation within Canadian charities (with some references to US charity law as well) , emphasizing the need for fair and reasonable pay to attract and retain competent leadership while adhering to legal and ethical standards.  Canadian regulations, particularly by the CRA, define compensation broadly and strictly prohibit undue private benef...

This episode, Essential Principles for Charity and Nonprofit Bookkeeping , outlines crucial guidelines for managing a Canadian organization's finances. It emphasizes meticulously documenting and summarizing all financial transactions using accrual and double-entry bookkeeping methods for accuracy and internal control. The discussion stresses the importance of a comprehensive chart of accounts and...

This episode offers practical advice for individuals considering founding a Canadian nonprofit organization. It emphasizes the importance of self-reflection regarding motivations and ensuring a genuine need exists for the proposed organization. The discussion highlights key considerations such as developing a sound business plan, exploring various organizational structures, and understanding the d...

This episode provides guidance to Canadian charities on preparing for and managing audits by the Canada Revenue Agency (CRA) . It highlights the potential consequences of audits, including revocation of charitable status and reputational damage. The discussion details the CRA audit process, common audit triggers, and possible outcomes, ranging from education letters to revocation. Furthermore, it...

This episode addresses the rewards and risks involved in hiring a celebrity for charity marketing. This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Cana...

This episode outlines the CRA's recommended due diligence approach for grant-making to non-qualified donees (i.e., non charities), emphasizing alignment with charitable purpose and risk assessment. The model stresses collaboration, accountability, and thorough documentation for responsible grant management.  Consistent application of these principles protects the charity and acknowledges necessary...

This episode provides a thorough outline of how Canadian charities can safeguard their assets against various legal and financial threats. The discussion emphasizes the importance of comprehensive asset management , including meticulous financial record-keeping and strategic insurance coverage. Protecting organizational identity through trademark registration and carefully managing facility usage...

This episode clarifies the Canada Revenue Agency's (CRA) criteria, which involves common law and the Income Tax Act. The CRA focuses on whether the organization's belief system qualifies as a religion and whether its purposes and activities advance that religion. Requirements include belief in a Supreme Being, worship, and a comprehensive system of faith. To "advance" religion means to promote bel...

This episode provides guidance on accurately filing a Canadian charity's T3010 tax return, emphasizing the importance of meeting deadlines, providing complete information, and correctly reporting activities. It highlights potential pitfalls such as inaccurate financial reporting and improper descriptions of charitable activities. This episode is jointly sponsored by B.I.G. Charity Law Group Profes...

This episode emphasizes the importance of a well-designed and legally compliant website for Canadian charities. The episode highlights crucial aspects like transparently conveying the charity's mission and activities, ensuring legal compliance in online fundraising, and avoiding conflicts of interest. It stresses the need for accurate financial reporting and discourages the promotion of unrelated...

This episode outlines the post-incorporation responsibilities for Canadian not-for-profit organizations. Key obligations include holding an initial directors' meeting, registering extra-provincially if federally incorporated, filing annual returns, updating registration upon changes in directors or address, maintaining accurate financial statements, and potentially registering with the CRA as a ch...

This episode discusses the advantages and disadvantages of incorporating a nonprofit organization (NPO) in Canada. Key benefits of incorporation include liability protection for members, continuity, a formal framework for dispute resolution, and the legal capacity to enter contracts and own property. Conversely, remaining unincorporated offers more flexibility , but leaves the nonprofit vulnerable...

The episode provides a guide for establishing a private foundation in Toronto. It outlines key considerations such as defining the foundation's mission and legal structure, selecting a jurisdiction, and securing funding. Further topics cover endowed funds, active versus passive funding models, and effective management strategies. This episode is jointly sponsored by B.I.G. Charity Law Group Profes...

This episode provides a guide to essential legal documents for churches in Ontario. It details the importance and preparation of Articles of Incorporation, bylaws, volunteer policies, and a statement of faith. Furthermore, it highlights the necessity of additional policies covering finances, discipline, and facility use, along with maintaining crucial records like meeting minutes and member databa...

This episode emphasizes the importance of year-end accounting for Canadian charities. ‍ Accurate accounting is legally required for filing the T3010 form with the CRA and issuing correct tax receipts. ‍ Financially sound practices build donor trust by demonstrating responsible use of funds. Analyzing financial records allows charities to learn from past performance and plan for future success. Mai...

The episode highlights how outsourcing your charity's bookkeeping saves time, reduces financial risks, ensures accurate tax filings, provides access to better software, and offers expert advice. This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with...

This episode offers an essential guide to selecting a charity lawyer, highlighting the importance of legal expertise for Canadian nonprofits and charities. It emphasizes finding a lawyer with experience in Canadian charity law, transparent and predictable fees, significant number of online 5 star reviews, and strong, timely communication. This episode is jointly sponsored by B.I.G. Charity Law Gro...

This episode is a step-by-step instructions for reinstating a revoked charity license in Canada. It highlights the importance of understanding the reasons for revocation, rectifying non-compliance issues, and engaging with the Canada Revenue Agency (CRA). The discussion emphasizes the need for a comprehensive reinstatement application and the benefits of seeking professional legal assistance from...

This episode outlines the key responsibilities for Canadian charity board directors.  ‍ These responsibilities include monitoring the executive director's performance, making organizational decisions, maintaining accurate records, filing returns with the Canada Revenue Agency, and approving financial statements.  ‍ The outline also covers budget development, ensuring sufficient and well-trained bo...

This episode explains how to register a temple, mosque, or church as a charity in Ontario and across Canada. It covers crucial steps like choosing a name and obtaining a NUANS report, establishing an address and board of directors, defining the organization's purpose and charitable activities, and understanding the incorporation timeframe and associated fees. The process of filing an initial notic...