Charities that have affiliations or corporate ties to related organizations may be subject to legal claims made against these other organizations. These claims - at least with respect to nonprofit entities - have most prominently (and frequently) been dealt with by the courts in the context of sexual or physical abuse claims. The key question for charities is whether their resources must be made available to pay the claims arising out of the activity of the affiliated or related organization.

The latest issue of the Charity Law Bulletin provides an excellent overview of this subject as well as some helpful tips for charities on how to avoid or reduce their potential liability if they have links to other organizations. The Bulletin is published by Carter and Associates and available at: http://www.carters.ca/pub/bulletin/charity/2003/chylb19.htm.