by Dev User | Mar 31, 2016 | Charity & Not-for-Profit Law, Expertise
In St. George and St. Rueiss Coptic Orthodox Church v Municipal Property Assessment Corp., the Superior Court of Justice of Ontario found that property owned by a Coptic Orthodox Church (“Church”), and shared with a charitable religious school (“School”), was exempt from property tax under the Assessment Act (Ontario) (the “Act”). The Court noted that while both the Church and the School were separately incorporated charities (the Court stated that the Church had incorporated the School for insurance and liability reasons), the Church controlled and dominated the School and the operation of the School was an important part of the Church’s religious activities.
For the balance of the Bulletin, please see Charity & NFP Law Bulletin No. 382.
by admin | Mar 31, 2016 | Charity & Not-for-Profit Law, Counter Terrorism Law
On March 7, 2016, the Standing Senate Committee on National Security and Defence (the “Committee”) met to examine and report on Canadian national security, as well as to discuss defence policies and practices concerning security threats facing Canada. Of note to charities and not-for-profits is that Cathy Hawara, Director General of the Charities Directorate of Canada Revenue Agency (“CRA”), and Alastair Bland, Director of the Review and Analysis Division of the Charities Directorate (collectively, the “CRA Directors”) were present to give evidence before the Committee.
The CRA Directors provided an update to the Committee concerning the risk of terrorist abuse of charities. They explained that the Review and Analysis Division of the Charities Directorate, which currently consists of 40 staff, was established in 2003 to focus on protecting the integrity of the charity registration system from the threat of terrorism and takes a “risk-based approach” to the detection of terrorist financing activities within the charitable sector. This is an administrative role and “[w]hile it cannot confirm or validate that terrorism as a criminal activity or offence has occurred, it can take steps to disrupt activities where there is a risk of terrorist abuse.” They also explained CRA’s information sharing authority, which, although not without limit, was recently broadened by the Security of Canada Information Sharing Act to include 16 government institutions.
With regard to the information sharing process, Ms. Hawara explained that the Act imposes two thresholds for the sharing of information related to national security. Specifically, “[y]ou need to either demonstrate that the information would be relevant to an investigation of a threat to the security of Canada under the CSIS Act [sic] or a terrorism-related offence. If we are satisfied that the information would meet that threshold, then we ask ourselves whether it would be relevant […] to CSIS’s or the RCMP’s mandate. If those thresholds are met, we could share that national security information with CSIS or the RCMP.”
Ms. Hawara also reported that there is a “reserve power, a sort of last resort” available to CRA under the Charity Registration (Security Information) Act, which can be used when the information that CRA needs to rely upon is “intelligence or secret information”. The Act allows for proceedings using a certificate process that is expedited with restricted procedural fairness protections and limited opportunity for judicial oversight. This certificate process is what Ms. Hawara described as a power of “last resort”, as opposed to the more common process with established administrative fairness protections that are a part of the revocation of charitable status under the Income Tax Act. Ms. Hawara explained that this enhanced power has not yet been used and the general practice of CRA is to “operate under the Income Tax Act and fully explain to the charity the grounds for revocation and provide them an opportunity to respond.”
by admin | Mar 31, 2016 | Charity & Not-for-Profit Law
On February 25, 2016, the Ontario government released the 2016 Ontario Budget (the “Ontario Budget”), which contains several measures that will be of interest to charities and not-for-profits. In particular, the following:
- Promoting Social Enterprises. The Ontario Budget emphasizes the importance of the social enterprise sector in creating jobs, increasing entrepreneurship and addressing social and environmental issues. It states that Ontario is committed to developing a renewed “Social Enterprise Strategy” to promote sustainable and scalable social enterprises. Specifically, it mentions an initiative to create innovative social finance tools, including a pilot project concerning “Social Impact Bonds”.
- Ontario Lottery and Gaming Corporation Modernization. The Ontario Budget also includes a commitment to grow the lottery industry in a manner that is socially responsible. In particular, it acknowledges that technological advances will create changes in customer preferences and products offered which will affect future delivery of charitable bingo games. It also states that gaming proceeds will continue to support “the operation of hospitals, charitable and not-for-profit organizations, amateur sports, problem gambling prevention, treatment and research and horse racing.”
- Towards a Fair Society. Additionally, the Ontario Budget expresses a commitment to build upon Ontario’s foundation of public services to alleviate poverty. This chapter of the Budget proposes to do so in the following areas: long-term affordable housing, support for vulnerable populations, including the development of a special needs strategy, and supporting refugees as well as Indigenous Peoples.
by admin | Mar 31, 2016 | Charity & Not-for-Profit Law
On February 12, 2016, Prime Minister Justin Trudeau announced plans to double the number of summer jobs that are available through the Canada Summer Jobs (CSJ) Program for not-for-profit organizations, public-sector employers, and small businesses with fewer than 50 employees. Summer job creation with this program is expected to increase from 34,000 in 2015, to almost 70,000 in 2016, 2017, and 2018.
For not-for-profit organizations already on tight budgets, news that they may be eligible for up to 100 percent of the minimum wage and mandatory employment-related costs is a welcome announcement. Not-for-profit organizations planning to take advantage of the CSJ program for 2016 needed to have their applications submitted by March 11, 2016, in order to be eligible. For more information about the CSJ program, charities and not-for-profit organizations are encouraged to visit Service Canada’s website at http://www.servicecanada.gc.ca/eng/epb/yi/yep/programs/scpp.shtml
by Dev User | Mar 23, 2016 | Charity & Not-for-Profit Law, Expertise, Uncategorized
Charity & NFP Law Bulletin No. 381,
by admin | Feb 28, 2016 | Charity & Not-for-Profit Law
Corporations Canada posted a notice (Public disclosure of corporate information) on January 16, 2016, explaining that information about federal corporations is public information. This includes a corporation’s registered office address and the names and addresses of its directors. It explains that public disclosure applies even after a corporation has been dissolved. As a side comment, those directors who do not wish to have their residential addresses posted on Corporations Canada’s website may use another address (which is not a P.O. box) where legal documents must be accepted by the director or someone on the director’s behalf.
Corporations Canada posted a notice (Extending the time for calling an annual meeting of members) on January 15, 2016, explaining its policy on how corporations under the Canada Not-for-profit Corporations Act (CNCA) may apply to extend the time for calling an annual meeting of members. Under the CNCA, a corporation has to call an annual general meeting of the members (“AGM”) within 18 months of incorporation and, thereafter, an AGM must be called no later than 15 months after the previous AGM and no later than 6 months after the corporation’s preceding financial year-end. Corporations Canada recognizes that there may be circumstances where it would be detrimental to a corporation to call an AGM within the required time. These corporations may apply to Corporations Canada extending the time for calling the AGM, as long as members will not be prejudiced. However, Corporations Canada cannot exempt a corporation from calling an AGM altogether. Usually, an extension is granted for one year, but there may be situations where a multi-year exemption may be permitted. The policy explains when such an application may be made, what information is to be contained in the application and the factors considered by Corporations Canada in granting the extension.
On January 6, 2016, Corporations Canada posted a further notice announcing that minor format changes have been made for submitting English and French versions of proposed corporate name on a number of the CNCA forms (namely forms 4001. 4004, 4007, 4009, 4011, 4015, 4031 and 4032).
