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§However, a
plaintiff may argue that the charity exercised too much day-to-day
control over the contractor's activities and therefore is vicariously
liable for the contractor's actions
–Financial Statements
§In a contract for
service, the assets that are transferred
to the third party organization in exchange
for services are no longer the assets of
the registered charity and therefore do not need to be reflected in its financial statements
–Segregation of Funds
§Unlike an agency
relationship, there is no need to segregate
funds
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