General
Fiduciary Duties and Income Tax Act Obligations
Fiduciary Duty
Income Tax Act
Duty to Carry Out the Charitable Purpose
Duty of Care
Duty of Loyalty
Duty to Act Gratuitously
Duty to Account
Delegation
s.149.1(1):
“disbursement quota”
s.149.1(1) and s.149.1(6): “operates exclusively for charitable purposes” and “all the resources of which are devoted to charitable activities carried on by the
organization itself.”
s.149.1(1): more than 50% of the directors, trustees etc. deal at arm’s length with each other; and, at least 50%
of the capital must be
contributed by those dealing with persons
or members at arm’s length
s.149.1(1): “no part of the income of which is payable to, or is otherwise available for personal benefit of members, directors, trustees etc.
s.230(2)(4) and Form T3010 Registered Charity Information Return: reporting and recording obligations
s.227.1(1) and s.242: Director liability is joint and several for non-compliance with the Act.
(applies to all obligations)
Duty to Invest
s. 149(1):
“enduring property” is to be expended…to acquire a tangible capital property of the charitable
organization to be used
directly in charitable activities or administration
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