B.I.G Charity Law Group
100 King Street West M5X 1A9 Toronto, ON, Canada

As the old saying goes, You don’t know what you don’t know. These are very true words when it comes to Form T3010 - Charity Return preparation. Form T3010 is a complex tax return, requiring in-depth knowledge of charity tax law and compliance, plus accounting standards for charities. Very few charities have someone on the inside with the requisite experience necessary to prepare an accurate return. Still, we frequently see charities attempt it on their own, usually to save ...moneyor so they think. That rarely works out, as mistakes can result in all kinds of untoward consequences, and eventually require paying someone to amend the return and fix the mess. Chances are, you wouldn’t attempt to work on your modern, computer-controlled car if you’re not a certified mechanic. The same logic goes here. Trust a professional. #canadiancharityregistration #biglaw #notforprofitincorporation #CharityLaw #charityregistration See more

Fiduciary Duties of a Charity/Nonprofit Board Part I: Budgeting Boards of Directors should be the ones who set the organization’s budget each year. With larger Charities and Nonprofits it’s not uncommon to see a specific committee compile the annual budget, often with the participation of staff members who directly handle funds. Whether or not the budget is put together by others and presented to the board for approval, or the board members develop the budget directly themsel...ves, it should be the board that signs off on the annual expenditure picture for the upcoming year. Too many times, we see charities and not-for-profits with no written budget, and no oversight by the board. That amounts to a dereliction of duty, and does nothing to relieve the board members from financial responsibility. Ignorance is a choice, not an excuse. #canadiancharityregistration #biglaw #notforprofitincorporation #CharityLaw #charityregistration

Q&A with Charity Lawyer Dov Goldberg, J.D. Question: Our Charity's President (without the board's knowledge) solicited donations for scholarships at private schools in a fundraiser, writing that the donations would go into a restricted fund. Problem: our board did not know she was doing this, and as Treasurer I know we do not have a restricted fund set up for this program. Now that we've received donations to this non-existent program, what is the best way to deal with this?... A: Miscommunication among the board doesn't prevent the President's actions from creating a restricted funds situation. Just because you don't have a separate bank account, or even a line item on your books for this, the money raised is restricted as of right now. Donors gave under the pretext of their gifts being restricted... therefore, they are. The only real options are: 1) following through with the scholarships; 2) getting donor permission to redirect their donation; or 3) offer the donor a refund. Anything other than those three options would be considered out of bounds. #charitylaw #canadiancharityregistration #biglaw #notforprofitincorporation #charity See more

Q+A with Charity Lawyer Dov Goldberg, J.D. Q: Do you recommend setting term limits for board members? We are a small nonprofit-charity with a few board members who just got started this year. I am concerned about not being able to replace multiple directors at once. A: There is a lot of debate about term limits. Some think they're essential for good governance. One particular nonprofit and charity expert we like around here has a quote, "Term limits are for cowards!" His poin...t is that just when someone is becoming valuable to the organization, they term out of service. Term limits can be healthy, in that they force new energy and ideas into an organization. Sometimes, however, knowledgeable continuity makes the most sense. There isn't a one-size-fits-all here. Should you choose to impose term limits (and this should be stated in your bylaws), make sure your terms are long enough for someone to truly contribute their talent. One hybrid strategy is to allow for two consecutive terms of three years each (a total of six consecutive years). After sitting out one term, that person could be nominated and elected again. You have to find out what works best for your particular setup. #canadiancharityregistration #biglaw #notforprofitincorporation #CharityLaw #charityregistration See more

Q&A with Charity Lawyer Dov Goldberg, J.D. Question: I am on the board of a new charity that has applied for, but not yet received, approval of charitable tax-exempt status from the CRA. The Charity's mission is to preserve the historic buildings, grounds, archives and art collection of an historic social club that was founded in the 1800s. Can a board member of the club also be an officer and director of the Charity, or is that a conflict of interest? Answer: This is not an ...either/or question. A person with a conflict of interest may nevertheless serve on the board of an organization. The individual just has to manage the conflict. The key thing to remember is that while serving on the charity's board, the individual’s fiduciary duty is to the charity and not to the club. And while serving on the club board, the fiduciary duty is to the club and not the charity. It isn’t often in a situation like this that there is a serious direct and irreconcilable conflict, but it can happen. #canadiancharityregistration #biglaw #notforprofitincorporation #CharityLaw See more

cont... Part II - Volunteer Recruitment for a Charity: a. Figure out what you would do with them and write it down. Outline what needs to be done. Write up descriptions of what projects you need accomplished and what skills someone would need to have in order to finish the tasks involved. Although a job description doesn’t sound like a fun set of words, it is a fitting description of what you need to have in mind as you put the information into words. Timelines and how-to’s... make it easy to know what needs to happen and how it will happen. Make sure that it’s evident what purpose the volunteer’s time is going toward. Allow them to see how their work is making a difference with whatever your charity's cause is. b. Have materials about your organization that volunteers can read or view. If someone is willing to pitch in and help out a charity, they want to know more about who they are helping. The volunteer has already heard of the bigger name charities out there. If this charity is new and/or small, you’ll need to help them understand how participating with you will assist the community, too. Most charities start out as very small organizations. If you can get volunteers understanding what you’re all about, and why it is you do what you do, it could lead to growth for your charity and help for its purpose. #charitylaw #canadiancharityregistration #biglaw #notforprofitincorporation #canadiancharityregistration #biglaw #notforprofitincorporation See more