The Role of Non-Share Capital Corporations in Providing Essential Public Services in Canada

Introduction Canadians rely on their government to provide a wide range of goods and services. Sometimes governments provide such services directly, and in other instances, governments use Crown corporations to act as their agents. Many Crown corporations have been mandated to achieve important public policy aims in a commercial setting. As a result, Crown corporations…

Accounting for Debt Financing and Going-Concern Issues

Introduction In the past, not-for-profit organizations have generally been able to manage their affairs in a way that avoided being heavily dependent on debt financing. Times have changed. Government funding has not been keeping pace with inflation. New programs are being developed to meet the needs of the community. Facilities are aging and need to…

Recent Tax Developments

1997 Federal Budget Changes The Federal Government has recently provided increased support to the charitable sector through the income tax system. In 1995, donations of ecologically sensitive land were exempted altogether from net-income limitations. The 1996 Federal Budget encouraged greater charitable giving by increasing the annual limit for donations from 20 per cent to 50…

Revenue Canada Offers Guidance to Charities

1. What is a realistic length of time that should be allowed to obtain the registration of a charity after the initial filing? The time required for registration varies with: a) completeness of application (i.e., governing documents, full details of activities, financial statement or budget, name, address and occupation of executive or directing officers, answers…