Quick Referrence: What Charities Should Know About Proposed Amendments to the Income Tax Act—Gifts to Foreign Entities, Large Gifts and “Split Receipts”

In December 2002, the Department of Finance proposed changes to the Income Tax Act. Some of these proposed changes will affect registered charities, as is pointed out in the preceding article, “Comments on Certain Proposed Tax Rules Applicable to Charities: Gifts to Foreign Entities, Large Gifts and ‘Split Receipts’,” by John Loukidelis. The main changes…

Recent Tax Developments

Rumack v. M.N.R., 90 DTC 6271 FCTD Charities that have used “Cash for Life” lotteries as a method of fund raising will be pleased with the recent decision of the Federal Court in Rumack. In that case, Miriam Rumack won $1000 a month for life, guaranteed for 20 years, in a Cash for Life lottery…

Control of Official Receipts in a Multi-Branch Environment

Introduction Many registered charities carry on activities in a decentralized fashion. These include religious bodies with numerous churches or parishes and organizations with auxiliaries, local chapters and branches (collectively referred to as branches). In these decentralized organizations, the branches may operate with varying degrees of independence from the central body or council. In some situations…

Viewpoint: The Regulation of Charities – The Ideal

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 will not be about the regulation of charities in an ideal society. In a ideal society there would be…

Keeping a Charity Functioning: Some Accounting Guidance for Non- Profit Organizations

Introduction This article is based on a presentation to the Canadian Bar Association-Ontario Branch on September 27, 1983. It reviews briefly: • mandatory filing requirements • risks associated with charities • internal controls to minimize the risk of misused funds • budgeting and administrative procedures. Through this review some of the major factors that directors,…

Deferred Giving Through Life Insurance

During this past decade most philanthropic organizations have suffered a decline in real giving because of the insidious effects of inflation. The dollar value of annual receipts from current giving may be up but in many cases these donations produced fewer”goods and services” in 1983 than were produced by the donations received in 1973. Charitable…

The Tax Treatment of Charities

Introduction Significant changes have been made in the taxation of charities for 1977 and subsequent taxation years. Thes.e changes were designed to prevent the abuse by charities of their special status and many charities may find them restrictive. The penalty for failing to follow the new rules can be severe. Registration The new rules apply…