Charity FAQs

May Our Charity Run a Raffle?

Explore the legal requirements and potential challenges of conducting a charity raffle across Canada and the USA, including the need for licenses in each province and state, online ticket sales, and compliance with mailing regulations. Learn about the three essential elements of a lottery or raffle,

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Is It Necessary for Charities & Not-for-Profits to Carry Insurance and Liability Coverage?

Insurance companies use the likelihood of a claim being filed on a policy to determine the premium amount for that policy. Even if your organization has never encountered a problem or filed a claim, the premiums you pay will be determined based on the statistical data for similar organizations......

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How Can Charities Effectively Manage Volunteers?

Charity organizations frequently rely on volunteers to perform essential roles, and while volunteers are not employees, these organizations still have certain responsibilities toward them. To avoid potential issues, it is recommended to implement the following best practices.

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Select Carefully: 6 Strategies for Finding Suitable Nonprofit Board Members

Have you ever heard the timeless phrase, "You are only as good as the company you keep?" Well, this saying certainly holds true for the board of directors of your charitable organization. If your board is active, diverse, and well-connected, your organization is likely to thrive. Conversely, if your

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How Do I Determine the Fair Market Value for an In-Kind Donation Charity Receipt?

In order to issue a tax receipt for a gift, it is necessary to first determine the fair market value of the gift as well as any benefits the donor received in exchange for making the gift. If the fair market value of the gift or benefit cannot be determined, a tax receipt cannot be issued.

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Is Outsourcing Bookkeeping for Your Charity the Right Choice?

Ensuring prompt and precise financial documentation stands as a crucial obligation for every charity organization. However, accomplishing this task accurately can be quite time-consuming, given the intricate nature of the regulations involved.

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Determining Fair Market Value for Non-Cash Gifts to Charities

Understanding Fair Market Value (FMV) is vital for charities and donors alike. Accurate valuation of non-cash gifts and transparent reporting of advantages ensures compliance with tax regulations and fosters trust between charities and their supporters. By following established guidelines and ....

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Should I Use a Celebrity to Promote my Charity?

Utilizing high-profile figures for charitable causes can be a double-edged sword. Numerous charitable organizations have successfully leveraged celebrity ambassadors for various purposes, such as fundraising and advocacy. These individuals can significantly elevate the visibility of a charity...

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Can Canadian Organizations Continue to Support Indian NGOs?

There have been numerous inquiries regarding the feasibility of Canadian charities and non-profits continuing their collaborations with non-governmental organizations (NGOs) in India, given the heightened enforcement of Indian laws governing foreign charitable contributions. This post aims to shed..

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What Do You Need to Know About the Annulment of Charitable Registration in Canada?

Explore the intricacies of charitable registration annulment in Canada—its purpose, the decision-making process by the CRA, and the significant consequences for organizations.

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What transactions usually don't qualify as gifts in a registered charity?

Explore the nuances of gift transactions in Canada as we delve into the criteria outlined by the Canada Revenue Agency (CRA).

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What is Split Receipting?

Explore the world of split receipting, a method utilized by charities to determine the eligible amount of a donation, factoring in benefits received by donors. Learn about the calculation process, transparency, and compliance advantages, and how educating donors on split receipting principles foster

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Can I Issue Tax Receipts for Auction Items?

Explore the critical aspects of issuing tax receipts for auction items in this insightful blog post. Learn the guidelines for receipting items donated and purchased at charity auctions, ensuring compliance with regulations and maintaining transparency.

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How do I identify the best marketing channels to promote my charity and fundraise?

To guide charity organizations in choosing the right marketing channels to connect with supporters.

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What is Capital Gains Reduction and How it Relates to Your Charity

Capital gains reduction simplifies charities' allocation of funds from asset sales, allowing them to continue their impactful work.

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What Are the Consequences of Non-Compliance for Registered Canadian Amateur Athletic Associations (RCAAA) under the Income Tax Act?

The Canada Revenue Agency (CRA) has introduced measures to ensure compliance, including an objection process for RCAAAs to appeal decisions. Compliance is crucial for RCAAAs to continue promoting amateur sports and physical activities across Canada.

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Can Our Charity Collaborate with a Business & Still Issue Tax Receipts?

Cause-related marketing involves partnerships between charities and for-profit partners to increase sales while mutually benefiting both parties. However, challenges arise, especially regarding the rules for issuing receipts, which necessitate precise calculations of the benefits received by donors.

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How to Report Suspected Non-Compliance by Registered Charities to the CRA in Canada

This article discusses the importance of citizens monitoring charities to ensure compliance with regulations, highlighting red flags and reporting procedures for suspected non-compliance.

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How Can a Registered Charity Correct Mistakes on Tax Receipts?

Explore how registered charities can correct mistakes on tax receipts, including crossing out errors, using stamps for corrections, and issuing replacement receipts for lost or incorrect ones. Learn how to maintain accurate records and transparency with donors.

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Can School Tuition Fees Paid to a Registered Charity Be Considered Charitable Donations?

Learn about the guidelines provided by the Income Tax Act and the Canada Revenue Agency (CRA) regarding charitable donations, gifts, and exceptions for religious education at parochial schools.

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What Information Are Available to the Public When a Charity Files Their T3010 Return?

Explore the information available to the public when a charity files its T3010 return, including program account details, financial information, and information about directors and trustees.

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Why Does the CRA Collect Directors' Personal Information for Charity Applications?

The article discusses why the government requires personal information from individuals involved in charities when applying for charity status, emphasizing privacy, transparency, and accountability.

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What is a Charitable Benefit, and Why Does It Matter When Applying to Become a Charity?

An organization's means of providing charitable benefits should align with its purpose, provide recognizable benefits, have a socially useful impact, and make a positive difference in the world.

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Can a University Outside Canada Become a Qualified Donee?

The Canada Revenue Agency (CRA) has specific criteria and processes that foreign educational institutions must follow to become qualified donees, allowing them to issue official donation receipts for gifts and make them eligible for tax credits on their Canadian income tax returns.

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Are Registered Charities Allowed to Improve Leased Property?

Registered charities are allowed to make improvements to the property they lease, but they need to follow certain rules to ensure fairness.

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Six Tips to Conducting a Charity Capital Campaign

Leading a charity capital campaign involves making time for fundraising, crafting a compelling case for support, speaking authentically from the heart, and embracing vulnerability.

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Why are Direction and Control Important When a Charity is Working With an Intermediary?

Direction and control are vital for charities working with intermediaries to ensure donations are used effectively and transparently, aligning with the charity's mission and maximizing impact in distant communities.

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Here Are Five Proven Tips on How You Can Keep Your Donors Engaged

Learn five practical strategies to maintain donor engagement and ensure continued support for your charitable cause.

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Can Canadian Charities Raise Funds Through a Third Party?

Explore how Canadian charities can raise funds through third-party fundraisers and the strict rules and guidelines they must follow, including maintaining control over funds, issuing accurate receipts, and establishing clear agreements to ensure transparency and integrity in fundraising efforts.

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Is Peer-to-Peer Fundraising the Key to Successful Charity Campaigns?

Peer-to-peer fundraising is a powerful strategy for charity campaigns, leveraging personal networks and community connections to amplify reach, build trust, and raise more funds, though it requires careful organization and support.

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CNCA vs. ONCA: What's the Difference and How Does It Affect Charities and Not-for-Profits?

Explore CNCA vs. ONCA: Key differences and impacts on Ontario charities and not-for-profits.

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5 Tips for Charity Cybersecurity

Protect your charity from cyber threats with these five essential cybersecurity practices, ensuring data safety and donor trust in today's digital world.

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How Much Surplus Can Canadian Charities Have?

Explore how Canadian charities manage surplus funds, considering CRA guidelines, donor views, and public trust.

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Do Canadian Charities Need Insurance?

Uncover why insurance is vital for Canadian charities, exploring policy types, dos and don'ts, ensuring asset protection and operational safety.

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How to Register a Charity to Relieve Poverty in Canada

Learn how to register a charity to relieve poverty in Canada by focusing on direct assistance to those currently in need, exploring effective charitable efforts, and understanding the legal distinctions between preventing and alleviating poverty.

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Is Every "Religion" Deemed Charitable Under Canadian Charity Law?

Under Canadian charity law, a belief system must have a theistic doctrine, a worship doctrine, and a comprehensive system of faith and worship to be recognized as a religion and qualify for charitable status.

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How to Register a Charity Focused on Religion?

To register a charity focused on religion in Canada, an organization must meet the Canada Revenue Agency's legal criteria by demonstrating belief in a Supreme Being, a worship doctrine, and a comprehensive system of faith and worship, ensuring the religion in line with common law and the Income Tax

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How to Register a Faith-Based Group or Religion as a Charity in Ontario?

Learn how to register a faith-based group or religion as a charity in Ontario. Discover the meaning of advancing religion in charity law and the activities that qualify, such as promoting spiritual teachings and missionary work.

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Can a Narrowly Focused Religious Organization Qualify for Charity Registration?

Discover how religious organizations can advance their faith through specialized activities, structured programs, and targeted pastoral care, meeting unique needs and promoting religious principles within communities.

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What are the Religious Activities and Purposes that Qualify for Charity Registration?

Religious organizations qualify for charity registration by establishing places of worship, providing religious education, supporting families, engaging in media outreach, and performing various charitable activities that advance their faith and serve their communities.

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Does Advocating for Humane Animal Treatment Qualify for Charitable Status?

Discover the criteria and processes animal welfare organizations must meet to qualify for charitable status. Explore how advocating for humane animal treatment advances public benefit and ethical standards, ensures legal compliance, and provides focused support for animals in need.

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Examples of Animal Welfare Organizations Approved by the CRA for Charity Registration

Discover how animal welfare charities, approved by the CRA, advance education, promote community moral development, and provide essential services to animals in need.

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How To Ensure Long-Term Sucess for Your Charity

Learn the top five reasons charities fail and how to ensure your charity thrives long-term.

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How Can Churches, Temples and Mosques Improve Volunteer Engagement?

Learn how to connect volunteers with your mission, provide comprehensive training, offer ongoing learning, encourage growth, and show appreciation to create a committed and impactful volunteer commun

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How Can Arts Organizations Qualify for Charitable Status in Canada?

Understand how arts organizations in Canada can qualify for charitable status by advancing education, promoting public appreciation, and enhancing the arts industry, while ensuring their activities provide a recognizable public benefit.

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Examples of Charitable Purposes & Activities Focused on Arts

Learn how Canadian charities enrich communities through the arts by meeting CRA requirements and supporting arts education, public appreciation, and industry promotion through activities like art schools, workshops, and public performances.

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Foundations 101: What to Know When You Register a Foundation in Canada

Looking to register a Canadian foundation? Learn the importance of private foundation rules, key regulations on structure, financial requirements, fundraising, debt, investments, and staying updated on legislative changes.

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What Are the Advantages of Setting Up a Private Foundation in Canada?

Discover the benefits of setting up a private foundation in Canada, from engaging family members in philanthropy to maintaining control over donated assets.

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What to Consider When Starting a Private Foundation in Canada

Starting a private foundation in Canada can have a lasting impact on your chosen causes. Explore key considerations, including mission definition, legal structure, funding sources, and more, to embark on this rewarding journey and build a legacy of giving.

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Is All "Education" Considered Charitable by the CRA?

Learn how intentional teaching and training are recognized by the CRA.

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Donation vs. Sponsorship: How Should Our Business Fund Our Charity Donations?

Learning the difference between donations and sponsorships is crucial for businesses and charities. Learn how each impacts control, tax benefits, and legal reporting to make informed decisions about funding charity contributions.

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What Activities Qualify as "Educational Charitable Purposes" in Canada?

Discover what activities qualify as "educational charitable purposes" in Canada. Learn the criteria for educational materials, conferences, vocational training, and more to ensure your activities meet charity law standards.

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What is the "Authorization Regime" for Geographic Areas Controlled by Terrorist Groups?

Learn about the "Authorization Regime" designed to manage the risks associated with operating in areas controlled by terrorist groups. This allows eligible organizations and individuals to continue humanitarian activities like healthcare, education, and human rights protection.

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How Can You Apply for Authorization in Areas Controlled by Terrorist Groups?

Learn how to navigate applying for authorization to conduct humanitarian activities in areas controlled by terrorist groups, including eligibility requirements, application steps, and compliance measures to ensure your efforts align with legal standards.

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Requirements for Reporting and Monitoring Compliance to Maintain Authorization in Terrorist-Controlled Areas

Learn about the essential requirements for reporting and monitoring compliance to maintain authorization for activities in terrorist-controlled areas, ensuring your humanitarian efforts remain lawful and effective without inadvertently supporting terrorism.

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Should You Background Check Volunteers for Your Charity?

Discover if background checks are necessary for your charity volunteers by evaluating factors like direct client interaction, frequency of participation, proximity to children, handling sensitive information, driving responsibilities, and specific event roles.

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What to Know if Your Canadian Charity Supports Vulnerable Population

Discover essential steps for Canadian charities to protect vulnerable populations through effective policies and key documents. Learn how to align staff, volunteers, and patrons in creating a supportive environment for young children, the elderly, refugees, and individuals with special needs.

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How Does the Income Tax Act Affect Indian Bands in Canada?

Explore how the Income Tax Act affects Indian Bands in Canada, highlighting recent clarifications from the Canada Revenue Agency (CRA) that confirm their status as tax-exempt entities performing governmental functions.

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What are Soliciting Corporations Under the Canada Not-for-Profit Corporations Act?

Learn about soliciting corporations under the Canada Not-for-Profit Corporations Act, including their definition, responsibilities, and key differences from non-soliciting corporations.

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What Requirements Must Soliciting Corporations Meet in Canada?

Discover the essential requirements for soliciting corporations in Canada, including board composition, financial oversight, and asset distribution upon liquidation, and how they differ from non-soliciting corporations.

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How Can Canadian Charities Ensure Their Cloud Storage is Compliant?

Discover essential steps to safeguard your organization’s records, including regular backups, physical copies, and adherence to CRA guidelines. Stay compliant and avoid potential issues while supporting your charity's mission.

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What Roles Do Members Play in Canadian Charities, and How Do They Engage with Directors?

Explore the vital roles members play in Canadian charities and how they engage with directors. Learn the legal definition of members, their voting rights, potential conflicts, and the importance of clear communication to ensure smooth operations and accountability within a charitable organization

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What Are the Key Stages in a Legal Conflict for Canadian Charities?

Discover the key stages of a legal conflict for Canadian charities, from pre-litigation and pleadings to discovery, settlement, and trial. This detailed guide helps you navigate each stage effectively, ensuring your charity is prepared to address legal challenges while focusing on its mission.

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Checklist of Annual Obligations under the Canada Not-for-Profit Corporations Act (NFP Act)

Ensure your not-for-profit organization stays compliant with the Canada Not-for-Profit Corporations Act. This comprehensive checklist outlines essential annual obligations, including filing your annual return, updating your registered office address, and submitting financial statements.

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How Can NPO Directors Avoid the Top 6 Tripwires to Charity Success?

Discover how nonprofit directors can sidestep the six hidden pitfalls jeopardizing charity success. This article provides actionable insights to help boards enhance governance, foster collaboration, and ensure program effectiveness, ultimately supporting their mission more effectively.

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What Are the Essential Steps for Merging or Amalgamating Two Charities in Canada?

Learn the essential steps for merging two charities in Canada, from drafting a Letter of Intent to filing the Articles of Merger, and discover practical advice on navigating the complex process effectively and ensuring a successful integration.

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What Legal Documents Does Your Church in Canada Need to Keep in Order?

Ensure your church in Canada operates smoothly by maintaining essential legal documents, including Articles of Incorporation, bylaws, volunteer agreements, and financial policies, with this comprehensive guide offering practical tips for keeping everything up to date and compliant with Canadian laws

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Are Canadian Nonprofits & Charities Allowed to Distribute Profits to Their Members?

Discover the legal framework governing charities, the rules for distributing capital gains, and the limitations on asset distribution. Understand the serious consequences of losing tax-exempt status and how the CRA views attempts to characterize distributions as gifts.

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How to Start a Private Foundation in Toronto, Ontario

With our comprehensive guide, learn how to start a private or public foundation in Canada. Understand the differences between foundation types, the setup process, and the benefits, including tax advantages and the potential for creating a lasting philanthropic legacy.

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How Do You Start a Not-for-Profit Corporation in Canada?

Starting a not-for-profit corporation in Canada involves choosing between federal or provincial incorporation, understanding your ongoing responsibilities, and determining if charitable status is right for your organization, all while focusing on community impact and compliance.

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How Can You Incorporate a Non-Profit Organization in British Columbia?

Learn how to incorporate a non-profit organization in British Columbia with our step-by-step guide. From choosing a unique name to filing your application and ensuring compliance with local regulations, this resource covers everything you need to establish and run your non-profit effectively.

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How Can Canadian Charities Manage Their CRA Business Account?

Canadian charities must effectively manage their CRA business account to stay compliant with regulations, handle important tasks like filing returns and updating information, and avoid penalties, with specific access and responsibilities for members, directors, officers, and volunteers.

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What is Form T1044, and Do Charities in Canada Need to File It?

Learn everything you need to know about Form T1044, the Non-Profit Organization Information Return required by the Canada Revenue Agency.

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What Are the Duties and Responsibilities of Charity Directors and Trustees in Canada?

Charity directors and trustees in Canada hold critical responsibilities, including legal obligations for governance, financial oversight, and risk management, ensuring compliance with laws and the effective operation of their organizations.

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How Can Your Charity Access CRA Services Through "Represent a Client" in Canada?

This article provides a step-by-step guide for Canadian charities on how to access CRA services through the "Represent a Client" platform, enabling efficient management of tax compliance and communications with the CRA.

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What is the Ontario Business Registry, and How Does It Affect Canadian Nonprofits and Businesses?

The Ontario Business Registry is an essential online platform that simplifies the registration, compliance, and management processes for businesses and charities in Ontario. This impacts organizations across Canada, especially those looking to operate in the province.

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What is Director and Officer Liability for Charities in Canada?

This article explores the responsibilities and potential personal liabilities of directors and officers in Canadian charities, emphasizing the importance of understanding legal obligations to mitigate risks and ensure compliance.

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How Can You Take Effective Meeting Minutes for Your Charity in Canada?

This article outlines the importance of taking effective meeting minutes for Canadian charities, providing essential tips for preparation, active listening, clear recording, and proper storage to ensure accountability, transparency, and informed decision-making.

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How to Record Board Meeting Minutes in Canada with a Sample Template

This article provides essential guidelines for recording board meeting minutes in Canadian charities and nonprofits, emphasizing the importance of accuracy for legal compliance and transparency while offering best practices and a customizable template to streamline the process.

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How To Register a Foundation in Ontario

This article outlines the essential steps for registering a foundation in Ontario, including defining its purpose, choosing a legal structure, and complying with CRA requirements to help you effectively support charitable causes in your community.

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What’s Better in Ontario: A Charity or a Not-for-profit?

This article explores the critical differences between charities and not-for-profits in Ontario, highlighting their purposes, regulations, tax treatments, and how to choose the best structure for your organization’s mission and funding needs.

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How Can You Protect Your CRA Accounts from Scams and Fraud?

This article outlines essential steps to secure your Canada Revenue Agency (CRA) accounts against scams and fraud, emphasizing the importance of regular monitoring, strong passwords, updated contact information, and setting up a Personal Identification Number (PIN).

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Understanding Revocation Tax and the T2046 Tax Return in Canadian Charities

The article explains the significance of understanding revocation tax and the T2046 tax return for Canadian charities, highlighting their implications for financial management, compliance with CRA regulations, and the potential consequences of losing registered status.

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Understanding the Charity Audit Process

The charity audit process in Canada, conducted by the CRA, ensures compliance through risk-based assessments, varying from educational letters for minor issues to potential revocation of charitable status for serious non-compliance, while providing avenues for charities to respond and appeal finding

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How Do You Register Your Federal Nonprofit or Charity as an Extra-Provincial Corporation in Ontario?

This article provides a comprehensive guide for federally incorporated nonprofits and charities on how to register as an extra-provincial corporation in Ontario, ensuring compliance with provincial laws and expanding their operational reach in the region.

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How To Register Your Federal Nonprofit Corporation Extra-Provincially in British Columbia

This article outlines the essential steps for federally incorporated nonprofits to register as extra-provincial entities in British Columbia, detailing the requirements and benefits of compliance for successful operations in the province.

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What Does Your Charity Website Tell the CRA, and Why Does It Matter?

Learn how your charity website impacts compliance with the Canada Revenue Agency (CRA) regulations, including the importance of transparency, alignment with your registered purpose, and financial disclosures to build donor trust and ensure regulatory adherence.

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Is the CRA Auditing Your Charity? Tips to Survive a CRA Charity Audit

This article provides essential insights for Canadian charities facing a CRA audit. It outlines the audit process, reasons for selection, and key strategies for effective preparation and compliance to ensure successful outcomes.

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How Can You Run a Successful Matching End-of-Year Fundraising Campaign?

To run a successful matching end-of-year fundraising campaign, set clear goals, secure a strong matching partner, craft a compelling message, and engage donors through multiple channels while emphasizing the urgency and impact of their doubled contributions.

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Does Your Candian Charity Own a Valuable Copyright?

Canadian charities can benefit from owning and managing copyrights by protecting their creative assets, generating revenue through licensing, and enhancing their brand integrity, but it's essential to understand ownership rights and establish clear policies.

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Can a Canadian Charity or Nonprofit Benefit from a Life Insurance Policy?

Life insurance policies can provide Canadian charities and nonprofits with long-term funding, tax benefits, and financial sustainability, but organizations must navigate legal considerations and work with experts to maximize these opportunities.

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Can Life Insurance Policies Be Used as Charitable Donations in Canada?

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What the Recent Election of President Donald Trump Means for Canadian Charities

The election of President Donald Trump in 2025 could indirectly impact Canadian charities through economic instability, increased demand for services, stricter immigration policies, and shifts in international aid challenging the sector to adapt and continue its vital work.

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Can a Canadian Charity Work with Third-Party Fundraisers?

Canadian charities can collaborate with third-party fundraisers to expand their reach and boost donations, but they must ensure compliance with CRA regulations, maintain transparency, and establish clear agreements to safeguard their mission and donor trust.

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Should Your Canadian Charity Accept a Board Member with a Conflict of Interest?

Canadian charities can accept board members with conflicts of interest if they implement transparent policies, ensure full disclosure, and take appropriate steps to manage and mitigate risks, safeguarding their integrity and mission.

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What Should a Board Member Leave Behind When Resigning from a Canadian Charity or Nonprofit?

Outgoing board members of Canadian charities or nonprofits should leave behind essential documents, digital access, and key insights to ensure a smooth transition, maintain legal compliance, and support the organization’s continued success.

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How Canadian Charities Can Effectively Protect Their Assets From Legal and Financial Risks

Canadian charities can safeguard their resources from legal and financial risks by implementing strategic asset management, comprehensive insurance coverage, brand protection, and ongoing governance to ensure long-term sustainability and community impact.

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Amalgamations, Mergers, & Consolidations Overview for Canadian Charities

Amalgamations, mergers, and consolidations offer Canadian charities opportunities to enhance efficiency, expand reach, and ensure sustainability by uniting resources and missions, but they require careful planning and compliance.

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Family Foundation Lawyer: A Guide To Registering a Private Foundation in Vancouver

This guide outlines the steps and considerations for establishing a family foundation in Vancouver, providing advice on legal structure, tax advantages, and the registration process, ensuring that your foundation aligns with Canadian laws and your family's philanthropic values.

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Top 8 Reasons Why You Should Set Up a Private Foundation in Mississauga

Setting up a private foundation in Mississauga allows you to create a lasting legacy, control your charitable giving, and make a meaningful impact on your community and beyond.

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