by Dev User | Nov 24, 2016 | Charity & Not-for-Profit Law, Faith-Based Organizations
– Trinity Western University Wins in B.C.C.A.
– CRA News
– CRA Posts a New Informational Gifting and Receipting Video
– Split-receipting and Deemed Fair Market Value
– Update to the Guide for the T3010 Registered Charity Information Return
– Form T2081 will No Longer be Mailed to Affected Charities
– Reminder of the Political Activities Consultations – Extended Comment Period
Legislation Update
– Accessible Employment Standard Deadline Approaching in Ontario
– Bill C-22 to Establish the National Security and Intelligence Committee Passes Second Reading
– Ontario Bill 41 Would Allow LHINs to Intervene in the Governance of NFPs
– Corporate Update
– Charity Must Pay Damages for Breaching OHSA
– New French Signage Laws Come into Effect in Quebec
– Report on Impact Measurement for Social Enterprises in Ontario
– GST/HST and Camps for Individuals with Disabilities
– Court Orders Buyout Rather than Winding-Up of Not-for-Profit Corporation
– Anti-Terrorism and Counter-Money Laundering Update
– Canadian Government Consults on National Security Green Paper
– FATF Ratifies New Evaluation Methodology for State Regulation of Non-Profit Organisations
– Update on Charity Law
– Legal Risk Management Checklists for Ontario-based Charities and Not-for-Profits
– The 2016 Annual Church & Charity Law Seminar – November 10, 2016
November 2016 Charity & NFP Law Update
by Dev User | Nov 24, 2016 | Charity & Not-for-Profit Law, Expertise, Faith-Based Organizations
On November 1, 2016, a five member panel of the Court of Appeal of British Columbia (“B.C.”) (the “Court”) unanimously upheld the decision of the B.C. Supreme Court to quash the decision of the Law Society of B.C. (“LSBC”) not to accredit the proposed law school of Trinity Western University (“TWU”). The Court affirmed that the case raised “important issues about tolerance and respect for differences in a diverse and pluralistic society.” In balancing the rights to freedom of religion and equality under the Charter of Rights and Freedoms, the Court enunciated and applied clear principles for balancing these rights, reiterated that state neutrality accommodates diverse views and that TWU has the “right to act on its beliefs, absent evidence of actual harm.”
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 394.
by admin | Nov 24, 2016 | Charity & Not-for-Profit Law
CRA Posts a New Informational Gifting and Receipting Video
On October 26, 2016, Canada Revenue Agency (“CRA”) posted a new video series to assist registered charities and qualified donees make sense of donation receipts. The new video, “Gifting and Receipting 101,” explains what does and does not qualify as a gift, including both cash gifts and gifts in kind, as well as what conditions must be met in order for registered charities and qualified donees to issue donation receipts. These conditions include: 1) a transfer of property from a donor to a qualified donee; 2) the gift be made voluntarily; 3) the determination of the fair market value of the gift; and 4) that the benefit or advantage to the donor cannot be worth more than 80% of the value of the donation. This gifting and receipting video also explains how registered charities and qualified donees are to determine the amount to report on a donation receipt, and includes an explanation of the terms “fair market value”, “advantage” and the “de minimis rule”. Additionally, a reference tool, as well as a number of examples of gifting and receipting, are provided throughout the video for both illustrative purposes and to assist registered charities and qualified donees when issuing donation receipts.
Split-receipting and Deemed Fair Market Value
On November 8, 2016, CRA updated the Chapter History of S7-F1-C1, Split-receipting and Deemed Fair Market Value. In doing so, CRA indicated that Income Tax Folio S7-F1-C1, Split-receipting and Deemed Fair Market Value replaces and cancels Interpretation Bulletin IT-110R3, Gifts and Official Donation Receipts and Income Tax Technical News No. 26 (ITTN 26).
Aside from consolidating content and improving readability, the update also lists noteworthy substantive technical and interpretative changes to the Income Tax Act and Income Tax Act Regulations. CRA will be accepting comments on the Chapter until February 8, 2017.
Update to the Guide for the T3010 Registered Charity Information Return
On November 11, 2016, CRA updated the Guide for the T3010 Registered Charity Information Return to reflect the most recent amendments to the T3010 itself. Of note to registered charities that have invested in limited partnerships in accordance with recent amendments to the Income Tax Act, the Guide now reflects that a new reporting requirement related to such investments has been added to the T3010. Furthermore for these charities, specifically ones with fiscal periods ending on December 31, 2015, they will be required to answer a new question included on the insert 15-122: New reporting requirement concerning investments in limited partnerships.
Form T2081 will No Longer be Mailed to Affected Charities
The Form T2081 – Excess Corporate Holdings Worksheet for Private Foundations will no longer be mailed to affected charities. A saveable and printable version is available on the CRA website.
Reminder of the Political Activities Consultations – Extended Comment Period
As reported in the September and October 2016 Charity Law Updates, on September 27, 2016, CRA, together with the Minister of National Revenue, announced public consultations to “clarify the rules regarding the involvement of registered charities in political activities.”
In this regard, in relation to the development of new guidance or educational resources for charities on the rules governing political activities, CRA has extended the deadline to receive online comments until December 14, 2016. While the consultation is open to anyone to provide feedback, it provides an important opportunity for registered charities to be able to provide their comments on CRA’s existing policy guidance on political activities and address issues faced by registered charities in carrying out such activities. Also note that Ottawa has been added to the locations of in-person consultations as of
November 22, 2016.
by admin | Nov 24, 2016 | Charity & Not-for-Profit Law
BC Societies Act Coming into Force November 28, 2016
On May 14, 2015, the British Columbia Societies Act (Bill 24) (“Act”) received Royal Assent, and on November 28, 2016 the Act, together with the Societies Regulations (“Regulations”), will come into force. With its coming into force the new Act will replace the British Columbia Society Act, and the new Regulations will replace the Society Act Regulations, B.C. Reg. 4/78. Both will impact the law governing societies (not-for-profit corporations) in British Columbia.
The Act introduces a number of changes that will impact corporate and governance procedures for BC societies. The new Regulations address items such as a new model by-law for societies, the maximum fees that may be charged in various scenarios, and how reporting on remuneration of directors, employees and contractors in the financial statements are to be made, amongst other things. Societies established prior to November 28, 2016 will be given two years to transition from the Society Act to the new Societies Act, i.e., November 28, 2018, and in doing so will be required to file an application containing a constitution, by-laws, and statement of directors and registered office of the society.
For additional information see Charity& NFP Law Update for February 2016 as well as the Charity& NFP Law Update for July/August 2014. Full text of the Act and Regulations can be accessed here.
by admin | Nov 24, 2016 | Charity & Not-for-Profit Law
Accessible Employment Standard Deadline Approaching in Ontario
By January 1, 2017, businesses and not-for-profits (“NFP”) in Ontario with one to forty nine employees will be required to comply with four requirements of the Accessible Employment Standard under the Accessibility for Ontarians with Disabilities Act. These requirements include: hiring, workplace information, talent and performance management, and communication of accessibility policies. With respect to hiring, employers must notify the public and employees that they will accommodate the needs of people with disabilities in their hiring process. This information can be posted on the employer’s website or included in the job posting. Workplace information must be provided in a format that is accessible to employees if they ask the employer. If the employer has an existing talent and performance management process, the needs of employees with disabilities must be considered when holding formal or informal performance reviews, and when promoting or moving the employee to a new job. This includes: making documents accessible, providing feedback and coaching in an accessible manner, and providing accommodations necessary to successfully learn new skills and take on new responsibilities. Accessibility policies must be communicated to all new staff, and if changes are made to the accessibility policies all employees need to be informed. These requirements, as well as two additional requirements (accommodation plans and return to work process) were required of businesses and NFPs with fifty or more employees as of January 1, 2016.
Bill C-22 to Establish the National Security and Intelligence Committee Passes Second Reading
On October 4, 2016, Bill C-22, An Act to establish the National Security and Intelligence Committee of Parliamentarians and to make consequential amendments to certain Acts (“Bill C-22”) passed its Second Reading in Parliament and was referred to Committee. As previously reported in our June 2016 Charity & NFP Law Update’s Anti-Terrorism & Money Laundering Update, if passed, Bill C-22 would establish the National Security and Intelligence Committee of Parliamentarians (the “Committee”) and determine its composition and mandate. It would also establish the Committee’s Secretariat, which would assist the Committee in fulfilling its mandate and make consequential amendments to certain other acts. Charities and NFPs that have concerns about the far-reaching effects of Bill C-51 and the dearth of oversight for broad state investigative powers may wish to also follow the progress of Bill C-22.
Ontario Bill 41 Would Allow LHINs to Intervene in the Governance of NFPs
Bill 41, Patients First Act, 2016 (“Bill 41”) was referred to the Standing Committee on the Legislative Assembly following its second reading in Ontario’s legislative assembly on October 27, 2016. On October 6, 2016, the Ministry of Health and Long-Term Care issued a News Release explaining the purpose of Bill 41, which it states is to “increase access to care with better coordination and continuity, and bring a greater focus on culturally and linguistically appropriate services.” The effect of Bill 41 would be to integrate the Community Care Access Centres (“CCAC”) into the Local Health Integration Networks (“LHIN”). This would expand the LHINs’ roles in “improving and integrating planning and delivery of front-line health care services, directing more funding to patient care within the existing system.” The overall goal is to improve the patient experience when dealing with local health professionals. A matter of note for the NFP sector is that the definition of “health service provider” (“HSP”) would be expanded to include NFP’s operating in seven new categories of health services.
A concern that has arisen is the potential for increased for-profit delivery of community support services. A more serious concern is proposed ability of the LHINs through an amendment to the Local Health System Integration Act, 2006 to appoint a “supervisor” over an HSP if the LHIN provides funding to the HSP and it considers it to be in the public’s interest to do so. Unless the appointment provides otherwise, the supervisor would have “the exclusive right to exercise all of the powers of the governing body of the provider and its directors, officers, members or shareholders as the case may be.” Bill 41 also provides that “[i]f, under the order of the [LHIN], the governing body continues to have the right to act with regard to any matters, any such act of the body is valid only if approved in writing by the health service provider supervisor.” Bill 41, if enacted as it currently stands, would allow LHINs to take over governance related to an NFP and assign it to a supervisor of their choice. This is an extraordinary intrusion of the provincial government into the governance of NFPs and should be of serious concern to the NFP sector in Ontario. As such, NFPs operating in the healthcare sector in Ontario will need to pay close attention to Bill 41 as it makes its way through the Legislative Assembly and make their views heard in this regard. The Ontario Nonprofit Network is taking a leading role in mobilising the sector on this issue.
by admin | Nov 24, 2016 | Charity & Not-for-Profit Law, Expertise
On November 3, 2016, the Government of Quebec announced that the amendments to the regulations under the Charter of the French Language which seek to ensure the presence of the French language in a trademark will come into force on November 24, 2016.
As such, all new signage installed on or after this date must be in compliance with the new rules. Existing signage will need to be brought into compliance by November 24, 2019. As previously reported in the May 2016 Charity & NFP Law Update, these new rules will impact charities and not-for-profits in Quebec that display non-French trademarks. When a trademark is displayed “outside an immovable” in a language other than French, a “sufficient presence of French” must accompany the trademark. This requirement may be accomplished by including (1) a generic term or a description of the products or services concerned; (2) a slogan; (3) any other term or indication, favouring the display of information pertaining to the products or services to the benefit of consumers or persons frequenting the site. Further, with regard to the “sufficient presence of French” requirement, signs or posters must also give the French portion permanent visibility, similar to that of the non-French trademark displayed and ensure its legibility in the same visual field as that mainly covered by the trademark signs or posters. For example, if the non-French trademark is illuminated at night, the French addition must also be illuminated at the same time.
The Office québécois de la langue française has published a French illustrative guide to assist organizations understand the new rules. Charities and not-for-profits operating in Quebec should take notice of these new rules, as they impose new obligations on organizations that do not currently display French language signage.
