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April 2020 Charity & NFP Law Update Ontario PGT Allows Access to Restricted Charitable Purpose Funds Many charities in Ontario are experiencing economic hardships as a result of the COVID-19 pandemic. In light of the difficulties faced by charities, the Office of the Public Guardian and Trustee for Ontario (“PGT”) released a temporary guidance, entitled Accessing Restricted Purpose Trust Funds Prior to Obtaining a Court Order During the COVID19 Pandemic (the “Temporary Guidance”), on March 30, 2020, to provide certain relief to charities in danger of closing. Under the Temporary Guidance, the PGT will permit such charities to access the income and capital of their restricted purpose trust funds and to PAGE 3 OF 20 April 2020 www.carters.ca www.charitylaw.ca use these funds where necessary to continue their day-to-day operations without the need to first obtain a court order. Subsequently, the PGT provided additional clarity to its Temporary Guidance by releasing a question and answer document entitled Q&A’s re: PGT Temporary Guidance on Accessing Restricted Purpose Funds (the “Q&As”) on April 20, 2020. This Bulletin provides a brief summary of the PGT’s Temporary Guidance and Q&As. These measures are only applicable to charities in Ontario. For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 470. Read the April 2020 Charity & NFP Law Update Direction and Control: Current Regime and Alternatives
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