Federal Regulation of Charities

This article has been developed from the monograph “Federal Regulation of Charities: A Critical Assessment of Recent Proposals for Legislative and Regulatory Reform” (Toronto: York University, 2000). Introduction There are a number of significant concerns and difficulties with the existing regulatory framework governing charities at the federal level in Canada. There is a lack of…

Charitable Gaming: The Legal Context

Introduction Charitable gaming has become both a large service industry in Canada and an important source of revenue for charitable organizations. The legal authority for charitable gaming rests in paragraph 207(1)(b) of the Criminal Code of Canada.1 Based on that exemption, an industry employing thousands of people and providing billions of dollars in revenue has developed…

Consultation Paper on Total-Return Investing by Trustees

COMMITTEE ON THE MODERNIZATION OF THE TRUSTEE ACT, Law Institute, University of British Columbia, Vancouvera 1. Investment Strategy and the Distinction Between Capital and Income The purpose of all investment is to acquire gain. It is no different in the case of a trust. Trustees invest the trust property in order to bring about an increase…

From the Editor

In this issue, we offer two contributions to the continuing debate about the federal government’s role in the charity sector. In Part I of a thought-provoking article, Arthur Drache and Laird Hunter propose the implementation of a Canadian Charity Tribunal which would have authority over the registration of charitable entities. They suggest there is no…

New Investment Powers for Charities

Application of Trust Law to Charities Introduction Trust law dealing with investment powers and duties may be applicable to charities in any of three ways: ( 1) the charity may be organized as a charitable trust; (2) the charity, even though organized as a corporation, may hold some funds subject to a trust separate from…

Special Challenges for Organizations with Small Investment Portfolios: A Case Study

This article was adapted from a March 8, 1999 presentation to the Strategy Institute’s “Foundation, Endowment and Not-For-Profit Investment Summit”, held in Toronto. In managing their financial assets, smaller foundations and endowments are affected by practical issues that large organizations may not need to consider. The main challenge facing organizations with smaller portfolios is twofold: gaining…

Foreign Activities by Canadian Charities

1. Introduction Section 149.1(1)(b) of the Income Tax Act sets out the prerequisites for a charitable organization. Included in the section is the requirement that all the resources of the organization must be devoted to the charitable activities carried on by the organization itself.1 Case law and not the Income Tax Act has provided us…

From the Editor

Our first two contributions in this issue provide readers with analyses of the Broadbent Report (Building on Strength: Improving Governance and Accountability in Canada’s Voluntary Sector, Final Report of the Panel on Accountability and Governance in the Voluntary Sector, chaired by Edward Broadbent, February 1999). Gordon Floyd, Vice-President Public Affairs, Canadian Centre for Philanthropy, describes…

Viewpoint: A Response to the Panel on Accountability and Governance in the Voluntary Sector

“Viewpoint” and “Counterpoint” provide forums for informed debate of issues of wide interest in the philanthropic sector. The opinions expressed are those of the authors.  The Panel on Accountability and Governance in the Voluntary Sector (the Broadbent Panel) undertook a massive task. Charged with developing guidelines that could have an impact on some 178,0002 organizations…