What’s The Law: Eliminating The Disbursement Quota: Gold Or Fool’s Gold?

Introduction The federal budget in March 20101 announced the elimination of a significant part of the disbursement quota for charitable organizations and changes to related provisions. The reform of the disbursement quota came after a substantial effort by associations representing charities, such as Imagine Canada and the Canadian Bar Association, to reform the disbursement quota. Charitable…

Updated CICA Guidelines: Comments on the Re-Exposure Draft

Introduction The Re-Exposure Draft issued by the CICA (Canadian Institute of Chartered Accountants) is a significant improvement over the previous exposure draft.1 The overall thrust has been changed so that there is no longer a single general approach being mandated for NPO (nonprofit organizations) reporting. The acceptance of a restricted fund accounting basis eliminates many…

Putting The Cart Before the Horse: Accounting Standards for NPOs Without a Conceptual Framework

Accounting policies for nonprofit organizations have come under considerable scrutiny in recent years. An influential segment of the accounting profession is pushing for accounting policies that are virtually identical to those used in business. Many individuals and organizations in the voluntary sector, however, are actively opposing the suggested changes.1 The proposed changes in accounting policies…

Solutions to the 20-Per-Cent Problem

All registered charities are required by the provisions of the Income Tax Act (the Act) to have exclusively charitable purposes. In order to ensure that most of a charity’s funds are used for such purposes, the Act requires compliance with annual minimum expenditure tests. To look at it another way, the expenditure tests are designed…

Some Evidence on the Distribution of Charitable Donations By Families in Canada

A. Introduction In 1982, it is estimated that families in Canada donated $1.65 billion in gifts and contributions to Canada’s charitable organizations.1 Most of these contributions were provided for the support of religious, cultural, scientific and educational activities. In 1986, it is expected that total charitable donations by families will amount to roughly $2.2 billion….

Viewpoint: The Debate on Universality: A Missed Opportunity

Viewpoint expresses the particular view of contributors and does not necessarily reflect the views of The Philanthropist. Readers are invited to respond to articles in this section. If appropriate their views will be published. This article was developed from a presentation made by Mr. Castonguay to La Chambre de Commerce et d’Industrie du Quebec Metropolitain…