A. INTRODUCTION

This Charity Law Bulletin (“Bulletin”) is an extract from a paper entitled “Recent Changes to the Income Tax Act and Policies Affecting Charities and Charitable Gifts” posted on www.charitylaw.ca. Given the virtual avalanche of materials that has been released by CCRA almost every few months over the last two years, it would be impossible within the confines of this Bulletin to discuss in any detail or even mention all of the additions and changes to the CCRA website which affect charities. Instead, this Bulletin is a synopsis, current to December 1, 2003, of all publications that have been published by CCRA with regards to charities in 2002 and 2003. This summary organizes the material from CCRA in a practical fashion for the practitioner. The reader is advised, though, that this compendium of documents is not an official CCRA publication, and as such the reader should refer to the actual documents on the CCRA website for official identification and texts of the materials. All documents referred to can be accessed from http://www.ccra-adrc.gc.ca/tax/charities/menu-e.html.

B. SUMMARY OF ADDITIONS AND CHANGES TO THE CCRA WEBSITE 2002 AND 2003

1. Legislative Amendments

Department of Finance Releases Legislative Proposals Relating to Income Tax Affecting Registered Charities – December 20, 2002, -updated December 24, 2002

Federal Government Releases Draft Technical Income Tax Amendments, updated December 20, 2002
Legislative Proposals and Explanatory Notes Relating to Income Tax – December 2002:1, updated December 20, 2002
Legislative Proposals and Explanatory Notes Relating to Income Tax – December 2002:2, updated December 20, 2002
Legislative Proposals and Explanatory Notes Relating to Income Tax – December 2002:3, updated December 20, 2002
Legislative Proposals and Explanatory Notes Relating to Income Tax – December 2002:4, updated December 20, 2002

2. Charities – Interpretation Bulletins

IT-288R2 – Subject: INCOME TAX ACT, Gifts by individuals of Capital Properties to a Charity and Others; Reference: Subsections 110.1(3) and 118.1(6) (also subsections 13(1), 20 (16). 110.1(1), 118.1(1), 118.1(4) and 118.1(7), paragraphs 69(1)(b) and 70(5)(a) of the Income Tax Act and sections 3501 and 3504 of the Income Tax Regulations), -dated January 16, 2003
IT-75R4 – Subject: INCOME TAX ACT, Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance, dated June 18, 2003

3. Information Circulars

IC 75-2R6 – Subject: Contributions to a Registered Political Party or to a Candidate at a Federal Election, -dated July 18, 2002

4. Brochures and Guides

CCRA – Tax Advantages of Donating to Charity, -printed January 21, 2002

5. Income Tax Technical News

Newsletter No. 26, - dated December 24, 2002

6. Policy Statements

a) Becoming a Registered Charity:

Applicants that are Established to Relieve Poverty by Providing Rental Housing for Low-Income Tenants, CPS-020, April 1, 2003
Group Insurance Rates for Registered Charities, CPC-022, March 5, 2002
Holding of Property for Charities, CPS-009, March 12, 1996 (Revised January 14, 2003)
What is a Related Business?, CPS-019, March 31, 2003
Registering Charities that Promote Racial Equality, CPS-021, September 2, 2003

b) Operating Day-to-Day:

Donations of Gift Certificates, CPS-018, October 9, 2002
Management of Investment Portfolio, CPC-023, August 1, 2002
Political Activities, CPS-022, September 2, 2003
Third Party Fundraisers, CPC-026, February 26, 2003

7. Summary Policies

1. Aboriginal, CSP-A01 October 25, 2002
2. Abortion, CSP-A11 June 9, 2003
3. Accountability, CSP-A02 October 25, 2002
4. Accumulation, CSP-A03 October 25, 2002
5. Administration, CSP-A16 September 3, 2003
6. Adoption, CSP-A17 September 3, 2003
7. Advocacy, CSP-A04 October 25, 2002
8. Aged (senior), CSP-A05 October 25, 2002
9. Agency, CSP-A12 June 9, 2003
10. Agriculture, CSP-A18 September 3, 2003
11. Alcohol, CSP-A19 September 3, 2003
12. Allowances,, CSP-A20 September 3, 2003
13. Amalgamation (consolidation, merger), CSP-A21 September 3, 2003
14. Ancillary Activities, CSP-A13 June 9, 2003
15. Animal, CSP-A22 September 3, 2003
16. Annuities, CSP-A06 October 25, 2002
17. Annulment, CSP-A23 September 3, 2003
18. Appeal, CSP-A14 June 9, 2003
19. Arm’s Length, CSP-A07 October 25, 2002
20. Artist, CSP-A24 September 3, 2003
21. Arts, CSP-A08 October 25, 2002
22. Asset, CSP-A26 September 3, 2003
23. Associated Charity, CSP-A09 October 25, 2002
24. Auction, CSP-A15 June 9, 2003
25. Audit, CSP-A10 October 25, 2002
26. Bequest, CSP-B04 September 3, 2003
27. Books and Records, CSP-B01 October 25, 2002
28. Broad and vague Objects, CSP-O02 June 9, 2003
29. Broadcasting, CSP-B05 September 3, 2003
30. Business, CSP-B02 October 25, 2002
31. Business Number, CSP-B03 June 9, 2003
32. Canada-U.S. Income Tax Convention (1980), CSP-C14 September 3, 2003
33. Capital Fund, CSP-C15 September 3, 2003
34. Caselaw, CSP-C08 June 9, 2003
35. Cemeteries, CSP-R17 September 3, 2003
36. Certification, CSP-C16 September 3, 2003
37. Charitable Activities, CSP-C09 June 9, 2003
38. Charitable Purposes, CSP-C01 October 25, 2002
39. Charitable Remainder Trust, CSP-C02 October 25, 2002
40. Club, CSP-C17 September 3, 2003
41. Community Economic Development, CSP-C03 October 25, 2002
42. Community Foundation, CSP-C04 October 25, 2002
43. Confidentiality, CSP-C12 June 9, 2003
44. Consideration, CSP-C13 June 9, 2003
45. Contribution, CSP-C05 October 25, 2002
46. Co-operative, CSP-C18 September 3, 2003
47. Corporation, CSP-C19 September 3, 2003
48. Crisis Centre, CSP-C20 September 3, 2003
49. Crown (agent, corporation), CSP-C21 September 3, 2003
50. Crown (federal, provincial), CSP-C22 September 3, 2003
51. Cultural Property, CSP-C06 October 25, 2002
52. Culture, CSP-C07 October 25, 2002
53. Cy-près (gift by will), CSP-C23 September 3, 2003
54. Daycare, CSP-D01 October 25, 2002
55. Debt, CSP-D06 September 3, 2003
56. Deemed Disposition, CSP-D07 September 3, 2003
57. Deemed Expenditure, CSP-D08 September 3, 2003
58. Designation, CSP-D02 October 25, 2002
59. Designation- Re-designation, CSP-D05 October 25, 2002
60. Direct Designation, CSP-D09 September 3, 2003
61. Director/Trustee, CSP-D10 September 3, 2003
62. Disabled, CSP-D11 September 3, 2003
63. Disarmament, CSP-D12 September 3, 2003
64. Disaster Fund, CSP-D13 September 3, 2003
65. Disbursement Quota, CSP-D14 September 3, 2003
66. Disbursement Quota Reduction, CSP-D03 October 25, 2002
67. Disbursements, CSP-D04 October 25, 2002
68. Disposition of Property, CSP-P19 September 3, 2003
69. Dissolution Clause, CSP-D15 September 3, 2003
70. Doctrine, CSP-D16 September 3, 2003
71. Donor, CSP-D17 September 3, 2003
72. Ecological, CSP-D17 September 3, 2003
73. Education, CSP-E01 October 25, 2002
74. Efficiency, CSP-E06 September 3, 2003
75. Employee Charity Trust, CSP-E07 September 3, 2003
76. Employment, CSP-E02 October 25, 2002
77. Environment, CSP-E08 September 3, 2003
78. Ethnic, CSP-E04 June 9, 2003
79. Expenses, CSP-E03 October 25, 2002
80. Facilitator, CSP-F01 October 25, 2002
81. Fair Market Value, CSP-F02 October 25, 2002
82. Fair Market Value (appraisal), CSP-F07 September 3, 2003
83. Family Values, CSP-F08 September 3, 2003
84. Festival, CSP-F03 October 25, 2002
85. Financial Statements, CSP-F09 September 3, 2003
86. Fiscal (period, year end), CSP-F04 October 25, 2002 87. Food Bank, CSP-F10 September 3, 2003
88. Foreign Activities, CSP-F05 October 25, 2002
89. Foreign Conduit, CSP-C11 June 9, 2003
90. Foreign Organization, CSP-F11 September 3, 2003
91. Fraud, CSP-F12 September 3, 2003
92. Fringe Religion, CSP-F13 September 3, 2003
93. Fundraiser, CSP-F14 September 3, 2003
94. Fundraising, CSP-F06 October 25, 2002
95. Gaming, CSP-G02 September 3, 2003
96. Gift (anonymous), CSP-G03 September 3, 2003
97. Gift (conditional), CSP-G04 September 3, 2003
98. Gift (designated, directed), CSP-G05 September 3, 2003
99. Gift (donation), CSP-G01 October 25, 2002
100. Governing Document, CSP-G06 September 3, 2003
101. Health Clinic, CSP-H03 June 9, 2003
102. Hedge Fund, CSP-H03 September 3, 2003
103. Heritage, CSP-H05 September 3, 2003
104. Her Majesty, CSP-H06 September 3, 2003
105. Historical, CSP-H07 September 3, 2003
106. Holistic Medicine, CSP-M04 September 3, 2003
107. Housing,CSP-H01 October 25, 2002
108. Human Rights, CSP-H08 September 3, 2003
109. Immigrants, CSP-I05 June 9, 2003
110. Improvement District, CSP-I07 September 3, 2003
111. Income Tax Act, CSP-I01 October 25, 2002
112. Incorporation, CSP-I08 September 3, 2003
113. Indian Band, CSP-I09 September 3, 2003
114. Industry, CSP-I10 September 3, 2003
115. Information (security), CSP-I11 September 3, 2003
116. Initiative (government, sector), CSP-I02 October 25, 2002
117. Insurance, CSP-I03 October 25, 2002
118. Interest, CSP-I12 September 3, 2003
119. Interest Free Loan, CSP-I13 September 3, 2003
120. Internal Division, CSP-I14 September 3, 2003
121. Inventory, CSP-I04 October 25, 2002
122. Investments, CSP-I15 September 3, 2003
123. Joint Venture (joint ministry), CSP-J01 September 3, 2003
124. Jurisdiction, CSP-J02 September 3, 2003
125. Lease, CSP-L05 September 3, 2003
126. Legal Aid, CSP-L03 June 9, 2003
127. Liability, CSP-L01 October 25, 2002
128. Life Insurance Policy, CSP-L02 October 25, 2002
129. Loan, CSP-L06 September 3, 2003
130. Loanback, CSP-L07 September 3, 2003
131. Lottery, CSP-L04 June 9, 2003
132. Mediation, CSP-M03 September 3, 2003
133. Membership Fees, CSP-M05 September 3, 2003
134. Mental and Moral Improvement, CSP-M06 September 3, 2003
135. Multiculturalism, CSP-M01 June 9, 2003
136. Municipality, CSP-M07 September 3, 2003
137. Mutual Understanding, CSP-M02 June 9, 2003
138. Non-Profit Housing, CSP-N02 September 3, 2003
139. Non-Profit Organization, CSP-N03 September 3, 2003
140. Non-Qualified Donee, CSP-N01 September 3, 2003
141. Non-Qualified Investment, CSP-N04 September 3, 2003
142. Non-Qualifying Security, CSP-N05 September 3, 2003
143. Objects (charitable), CSP-O01 October 25, 2002
144. Objects (standard), CSP-O03 September 3, 2003
145. Patriotism, CSP-P07 June 9, 2003
146. Planned Giving, CSP-P01 October 25, 2002
147. Pledges, CSP-P14 September 3, 2003
148. Political Activities, CSP-P02 October 25, 2002
149. Pornography, CSP-P08 June 9, 2003
150. Poverty, CSP-P03 October 25, 2002
151. Prescribed Donee, CSP-P15 September 3, 2003
152. Prescribed Stock Exchange, CSP-P17 September 3, 2003
153. Prescribed University, CSP-P16 September 3, 2003
154. Private Benevolence, CSP-P09 June 9, 2003
155. Private Foundation, CSP-P04 October 25, 2002
156. Procedural Fairness, CSP-P10 June 9, 2003
157. Profit Motive, CSP-P12 June 9, 2003
158. Pro-life/Pro-choice, CSP-P11 June 9, 2003
159. Promotion of Health, CSP-H02 June 9, 2003
160. Property, CSP-P05 October 25, 2002
161. Provision of Information, CSP-I06 June 9, 2003
162. Public Amenities, CSP-P20 September 3, 2003
163. Public Benefit, CSP-P06 October 25, 2002
164. Public Policy, CSP-P13 June 9, 2003
165. Purposes Beneficial to Community, CSP-C10 June 9, 2003
166. Qualified Donee, CSP-Q01 October 25, 2002
167. Racial Equality, CSP-R23 September 2, 2003
168. Registered Canadian Amateur Athletic Association, CSP-R01 October 25, 2002
169. Registered National Arts Service Organization, CSP-R14 September 3, 2003
170. Registered Pension Plan, CSP-R15 September 3, 2003
171. Receipt, CSP-R02 October 25, 2002
172. Registration – Registered Canadian Amateur Athletic Association, CSP-R04 October 25, 2002
173. Registration – Registered Charity, CSP-R03 October 25, 2002
174. Rehabilitation, CSP-R16 September 3, 2003
175. Related Business, CSP-R05 October 25, 2002
176. Religion, CSP-R06 October 25, 2002
177. Religious Charities, CSP-R07 October 25, 2002
178. Remission Order, CSP-O04 September 3, 2003
179. Repairs, CSP-R18 September 3, 2003
180. Re-registration, CSP-R19 September 3, 2003
181. Research, CSP-R20 September 3, 2003
182. Residency, CSP-R21 September 3, 2003
183. Resources, CSP-R13 June 9, 2003
184. Restricted Funds, CSP-R22 September 3, 2003
185. Return – Political, CSP-R08 October 25, 2002
186. Return – Registered Canadian Amateur Athletic Association, CSP-R09 October 25, 2002
187. Return – Registered Charity Information Return, CSP-R10 October 25, 2002
188. Return – Revocation, CSP-R11 October 25, 2002
189. Revocation, CSP-R12 October 25, 2002
190. Schemes, CSP-S07 September 3, 2003
191. Scholarship, CSP-S08 September 3, 2003
192. School Associations, CSP-S09 September 3, 2003
193. School Council, CSP-S01 October 25, 2002
194. Science, CSP-S10 September 3, 2003
195. Self-Help, CSP-S02 October 25, 2002
196. Services, CSP-S03 October 25, 2002
197. Share, CSP-S04 October 25, 2002
198. Social Activities, CSP-S05 June 9, 2003
199. Social Justice, CSP-S06 June 9, 2003
200. Social Organization, CSP-S11 September 3, 2003
201. Specified Gift, CSP-S12 September 3, 2003
202. Sponsorship, CSP-S13 September 3, 2003
203. Sport, CSP-S14 September 3, 2003
204. Stock Exchange, CSP-S15 September 3, 2003
205. Substantially All, CSP-S16 September 3, 2003
206. Tax, CSP-T01 October 25, 2002
207. Tax Shelter, CSP - T08 November 26, 2003
208. Tenants Associations, CSP-T04 June 9, 2003
209. Ten-Year Gift, CSP-T06 September 3, 2003
210. Titleholding, CSp-T07 September 3, 2003
211. Tourism, CSP-T02 October 25, 2002
212. Tuition Fees, CSP-T03 October 25, 2002
213. United Nations, CSP-U01 September 3, 2003
214. Voluntary Transfer, CSP-V01 October 25, 2002
215. Will, CSP-W02 September 3, 2003
216. Withholding Tax, CSP-T05 September 3, 2003
217. Women, CSP-W01 June 9, 2003
218. Youth, CSP-Y01 October 25, 2002

8. Information Letters

a) Becoming a Registered Charity

Advocacy, CIL-2002-04, February 26, 2002
Registration – Registered Charity, CIL-2002-005, March 12, 2002

b) Operating Day-to-Day:

Advocacy, CIL-2002-006, August 6, 2002
Crown (agent, corporation), CIL-2002-003, February 22, 2002
Disbursement Quota, CIL-2002-001, February 18, 2002
Disbursement Quota Reduction, CIL-2002-002, February 19, 2002
Political Activities, CIl-2003-001, February 18, 2003

9. Newsletters

Newsletter No. 12, - Spring 2002 · Newsletter No. 13, - Summer 2002
Newsletter No. 14, - Winter 2003 · Newsletter No. 15, -updated April 9, 2003
Newsletter No. 16, updated October 10, 2003

10. Guidelines

Fact Sheet – Art-donation schemes or “art-flipping”, dated November 2002
Fact Sheet – Tax Shelter Donation Arrangements, dated November 2003
Interim Memorandum D19-14-1 – Cross-Border Currency and Monetary Instruments Reporting, - dated January 22, 2003

11. Consultation Papers

Consultation on Proposed Policy – Registering Charities that Focus on Eliminating Racial Discrimination, updated January 23, 2003
2002 Concept Draft – Registered Charities – Political Activities, updated January 6, 2003
Consultation on Proposed Policy: Charities Providing Rental Housing for Low-Income Tenants, updated January 23, 2002
Consultation on Proposed Policy: Guidelines for Registered Charities on Related Business (Message from the Co-Chairs Regulatory Joint Table), -updated May 22, 2002

12. Improving the Regulatory Environment for the Charitable Sector

Voluntary Sector Initiative/Joint Regulatory Table, Improving the Regulatory Environment for the Charitable Sector – Interim Recommendations, dated August 2002
Voluntary Sector Initiative/Joint Regulatory Table, Strengthening Canada’s Charitable Sector – Regulatory Reform – Final Report, dated March 2003

13. Future Directions

Future Directions – What is Future Directions?, updated October 30, 2002
Charities – The Charities Directorate, -updated December 10, 2002
Consultations – Spring 2002, -updated September 20, 2002
Future Directions for the Canada Customs and Revenue Agency - Charities , November 15, 2002
Charities – RC4313, -updated December 12, 2002
Sussex Circle Inc., External Consultations on Charities Renewal, dated January 2002
Clinton Group Inc., Final Consultations and Validation of Charities Directorate Action, dated July 2002

14. Press Releases

Canada Customs and Revenue Agency launches new services for charities, dated December 3, 2002

15. Forms

T2050 E (01) – Application to Register a Charity under the Income Tax Act, updated March 13, 2002
T2140 (96) – Part V Tax Return – Tax on Non-Qualified Investments of a Registered Charity, January 22, 2002
T3010 - Registered Charity Information Return, February 19, 2002
T3010A E – Registered Charity Information Return, February 28, 2003
Form T3010A: Re-designed annual return for charities, updated November 28, 2002
T1240 E - Registered Charity Adjustment Request, October 21, 2002
T4033 – Completing the Registered Charity Information Return, February 19, 2002
T4033A – Completing the Registered Charity Information Return, February 28, 2003
T4603 – Registering a Charity for Income Tax Purposes, September 26, 2002

C. CONCLUSION

It is hoped that this summary will serve not only as a review of recent initiatives by CCRA and Finance affecting charities, but also as a reference tool for future study of the resource materials that CCRA has now made available on its website. Charities and charity law practitioners alike have for years asked CCRA for more accessible ways in which to determine CCRA’s position with regards to how registered charities are registered and how they are required to operate. CCRA has responded with a wealth of resource material that can now be accessed online anywhere and at any time. It is expected that increased transparency and accessibility on the part of CCRA will give existing and future charities a clearer understanding of what responsibilities and benefits will apply to them in obtaining and maintaining their status as registered charities in Canada. Lawyers who are involved in the area of charity law will want to ensure that they become familiar with the quantity and scope of changes in legislation and policy that now affect charities.