by Dev User | Sep 30, 2020 | Uncategorized
September 2020 Charity & NFP Law Update
New Public Service Bodies Rebate information for Charities and Non-profits
The CRA has updated its Public Service Bodies Rebate info sheets, available online. The Public Service Bodies’ Rebate (“PSB rebate”) is a recovery of a portion of federal and provincial sales tax available to registered charities, qualifying non-profit organizations and selected public service bodies such as municipalities, universities, public colleges, school authorities, or hospital authorities, as prescribed under the federal Excise Tax Act and its regulations. The CRA publishes PSB rebate info sheets for charities and qualifying non-profit organizations residing in participating provinces (i.e. Ontario, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador), as well as non-participating provinces, pursuant to the Public Service Body Rebate (GST/HST) Regulations. Among the updated PSB rebate info sheets available are the following:
Read the September 2020 Charity & NFP Law Update
by Dev User | Sep 30, 2020 | Uncategorized
September 2020 Charity & NFP Law Update
ONCA Proclamation Deadline Extended to December 31, 2021
The Legislative Assembly of Ontario carried a vote in favour of Motion 89 on September 21, 2020, extending the final deadline for the Ontario Not-for-Profit Corporations Act, 2010 (“ONCA”) to be passed. Pursuant to the Legislation Act, 2006, legislation that remains unproclaimed for nine or more years prior to December 31 of the preceding calendar year is subject to repeal by December 31st of the 10th year. In relation to the ONCA, which was enacted in 2010, it means that the ONCA must be proclaimed by December 31, 2020, or it would be subject to repeal.
Motion 89 extends the proclamation period by one year, allowing the ONCA until December 31, 2021 to be proclaimed into force. However, the extension does not apply to provisions in the ONCA dealing with class voting and non-voting members’ rights.
Read the September 2020 Charity & NFP Law Update
by Dev User | Sep 30, 2020 | Expertise, Real Estate Law
September 2020 Charity & NFP Law Update
Ontario Stage 3 Regulations Require Compliance with COVID-19 Screening Recommendations
As of September 26, 2020, employers responsible for a workplace that is open for business are required to comply with COVID-19 screening practices as advised, recommended, or instructed by the Office of the Chief Medical Officer of Health. Ontario’s executive council filed Ontario Regulation 530/20 on Sept. 25, an amending regulation to O Reg 364/20, Rules for Areas in Stage 3, under the Reopening Ontario (A Flexible Response to COVID-19) Act, 2020 (“the Regulation”), which initially came into force on July 24. The government stated its aim “to tighten public health measures in response to the recent rise in cases of COVID-19.” The Regulation mandates “[t]he person responsible for a business or organization that is open shall operate the business or organization in compliance with the advice, recommendations and instructions issued by the Office of the Chief Medical Officer of Health on screening individuals.”
At the same time, the Ontario Ministry of Health published a “COVID-19 Screening Tool for Workplaces (Businesses and Organizations)” online on September 25, 2020, that includes a questionnaire (“the Screening Tool”). The Screening Tool contains the Ministry of Health’s recommendations and instructions for screening before entering the workplace. Three questions must be asked:
- “Do you have any of the following new or worsening symptoms or signs?” Eight lines describing possible symptoms of the COVID-19 illness are listed, each with a checkbox for “Yes” or “No.”
- “Have you travelled outside of Canada in the past 14 days?”
- “Have you had close contact with a confirmed or probable case of COVID-19?”
These questions are stated as a “minimum” compliance with the Screening Tool, and are to be asked of all workers when entering the workplace at the start of their shift, as well as all “essential visitors” when they arrive; however, the Screening Tool may be “adapted based on need and the specific setting.” The Screening Tool describes “workers” as all staff, including “students, contractors or volunteers that conduct business or related activities where applicable and appropriate.” Further, “essential visitors” are described as “individuals providing a service in the establishment who are not employees or patrons of the establishment (e.g., delivery, maintenance, contract workers).” If any worker or essential visitor answers “Yes” to any question, they should not enter the workplace, but “should go home to self-isolate immediately and contact their health care provider or Telehealth Ontario (1 866-797-0000) to find out if they need a COVID-19 test.” An exception is made for “essential workers who travel outside [of] Canada for work purposes” if they only answer “Yes” to the question for travelling outside Canada.
Ontario Government Extends IDEL Relief Until January 2, 2021
The provincial executive branch filed Ontario Regulation 492/20 on September 3, 2020, extending the “COVID-19 Period” for infectious disease emergency leave (“IDEL”) under the Employment Standards Act, 2000 (“ESA”) until January 2, 2021. The new regulation amends O Reg 228/20, Infectious Disease Emergency Leave, which declared the COVID-19 Period for the IDEL provision of the ESA under Section 50.1. IDEL provides unpaid, job-protected leave of absence for non-unionized employees temporarily laid off due to an infectious disease emergency, such as the current coronavirus pandemic, to be determined by regulation. This gives employers relief, at least for a few more months, from potentially expensive termination and severance payments, which could be triggered by the reduction in work hours as a constructive dismissal.
In Ontarian and Canadian law, a constructive dismissal occurs when the terms and conditions of employment are substantially altered, and is treated by the courts effectively as a legal repudiation of the employment contract without cause — allowing employees to claim wrongful dismissal. The COVID-19 Period initially was to last from March 1, 2020 until “six weeks after the day that the emergency declared by Order in Council 518/2020 (Ontario Regulation 50/20) on March 17, 2020 pursuant to section 7.0.1 of the Emergency Management and Civil Protection Act is terminated or disallowed.” That emergency declaration terminated on July 24, 2020, when the Re-opening Ontario (A Flexible Response to COVID-19) Act, 2020 came into force, leaving the IDEL clock running for at least six more weeks until September 4, 2020.
In its announcement of the extension of IDEL into early in the new year, the Ontario government stated its intention to “protect jobs and businesses by extending protection to prevent temporary layoffs from automatically becoming permanent job losses.” IDEL law was introduced by an amendment to the ESA — the Employment Standards Amendment Act (Infectious Disease Emergencies), 2020 — that came into force earlier this year on March 19. See our August 2020 Charity & NFP Law Update for more information on the potential impact of IDEL for employers in charities and not-for-profits.
Read the September 2020 Charity & NFP Law Update
by Dev User | Sep 30, 2020 | Expertise, Real Estate Law
September 2020 Charity & NFP Law Update
CRA Resumes Regular Activity Schedule after Temporary COVID-19 Reprieve
The Canada Revenue Agency (“CRA”) has resumed work on charitable status revocations, after a brief suspension of activity due to the COVID-19 pandemic. The CRA announced its resumption of investigating registered charities this month after the government temporarily suspended some programs as a relief measure, including collection and compliance actions. “As a result, you may receive a call or letter from us, with a specific call to action,” the CRA stated on its website.
According to the CRA, starting September 2020, the “Charities Directorate will begin processing revocations for failure to comply with the requirements of charity registration.” This could result in a loss of charitable status and the concomitant tax benefits under the Income Tax Act. “Your charity may receive a letter by registered mail explaining the reasons why we intend to revoke your charity’s registration,” the CRA stated. “The letter will also include your objection and appeal rights.” Appeals, audits, debt collections, compliance and outreach activities — including the Charities Education Program — will also recommence this month.
The CRA also sent a reminder that the filing deadline has been extended for the T3010 Registered Charity Information Return Form, to December 31, 2020
Read the September 2020 Charity & NFP Law Update
by Dev User | Sep 30, 2020 | Expertise, Real Estate Law
September 2020 Charity & NFP Law Update
According to a recent survey published by the Association of Fundraising Professionals (“AFP”), COVID-19 has resulted in layoffs or staff pay-cuts for nearly a third of reporting charities. The AFP’s Coronavirus Response Survey (“the Survey”) reports 70% of Canadian charities expect to raise less money in 2020 than they did in 2019 and over two-thirds believe the same will happen in 2021.
More than 160 fundraisers participated in the Survey, which was distributed to all AFP members in May 2020, with 45% reporting decreases in donations already in the first quarter of 2020 compared with 2019. Still, over a quarter (27%) reported an increase in giving.
“We expected to see a significant drop in giving because of COVID-19, and our data shows that it will be a difficult time for fundraising for 2020 and well into 2021,” stated the AFP’s President and CEO Mike Geiger. “However, it’s too early to say exactly what will happen by the end of the year, and charities are still adjusting. There is one general rule that is the most important for charities to follow during difficult and challenging times. Organizations cannot afford to stop fundraising, and those charities that continue to raise funds—and even increase their fundraising—will do the best. We have to raise funds with sensitivity, but we must continue to raise funds to support our critically needed missions.” Only 11% and 13% of charities intended to increase their fundraising efforts in 2020 and 2021, respectively.
In an effort to make up for some of the expected shortfall, the Survey reports 38% of charities intend to increase their fundraising activities. The most popular areas where charities are expanding their fundraising include the following:
- Donor retention and stewardship (connecting donors to the cause and inspiring them to get more involved), 88%;
- Social media, 83%;
- Virtual events, 81%;
- Online fundraising, 79%;
- Fundraising through e-mail, 71%.
Government grants have also been a key source of revenue for some charities.
The Survey also reported a significant impact on fundraising events, with 92% of respondents indicating they would reduce the number of in-person fundraising events during 2020. More than two in ten organizations (23%) have already postponed five or more special events, and 14% have canceled five or more events.
Read the September 2020 Charity & NFP Law Update
