Mandatory Requirements for Receiving Charitable Donation Tax Credit
In the recent decision of Bope v. The Queen, the Tax Court of Canada confirmed the requirements for a charitable donation tax credit, stating that entitlement to the credit depends on the donor proving, on the balance of probabilities, that:...
What is Fair Market Value? Tax Court Considers Valuation of Donated Bottles of Rare Wine
Under the Income Tax Act, a taxpayer may claim a charitable donation tax credit for a gift made to a Canadian registered charity, if such gift is supported by an official donation receipt issued by the charity. According to Canada...
The Philanthropist – We Encourage You To Subscribe
The Philanthropist/Le Philanthrope is a free online journal published by Imagine Canada, that contains articles and other information useful to the nonprofit sector. The Philanthropist is co-edited by Susan Manwaring, Partner and Chair of the National Charities and Not-for-Profit Law...
UK Reviewing Fundraising Practices in Wake of Tragedy – What can we learn from this unfortunate situation?
Earlier this year, the fundraising community in the United Kingdom faced complaints after a British newspaper reported that Olive Cooke, a 92 year-old woman who volunteered to sell poppies in the weeks running up to Remembrance Day, had ended her...
Federal Government to Match Donations to Charities Responding to Syria Crisis
The Federal Government announced on September 12, 2015 that it will match donations by individual Canadians to registered Canadian charities that are responding to the conflict in Syria, up to a total of $100 million. In order for a donation...
Update on 2015 Federal Budget Measures
This year’s Federal Budget (the “Budget”) proposed new rules that would exempt from capital gains tax charitable gifts of cash proceeds from the disposition of private company shares and real estate, a measure that sector organizations had long encouraged the...
New CRA Advisory on Political Activities Focuses on Federal Election
On August 21, 2015, the Canada Revenue Agency (“CRA”) published an important notice reminding charities of the rules in the Income Tax Act that prohibit registered charities, and charities’ staff and volunteers in their capacity as representatives of charities, from...
Surplus Earned by Non-Profit Organizations on Lottery Sales Could Impact Tax-Exempt Status: CRA Technical Interpretation
In a technical interpretation published on November 18, 2014, the Canada Revenue Agency (“CRA”) commented on whether revenue earned by a non-profit organization (the “Association”) in respect of the sale of lottery tickets should be subject to tax in the...
Third Party Penalties in Income Tax Act Do Not Attract Charter Protection: Supreme Court of Canada Affirms Federal Court of Appeal Decision in Guindon v. Canada
On July 31, 2015, the Supreme Court of Canada released its decision in Guindon v. Canada. At issue was whether the third party penalties in section 163.2 of the Income Tax Act (the “Act”) amount to criminal sanctions to which...
A Review of Qualified Disability Trusts
Bill C-43, which received Royal Assent on December 16, 2014, introduces a new type of trust to benefit disabled individuals – the “qualified disability trust” (“QDT”). Accordingly, QDTs will apply to the 2016 and subsequent taxation years. The main benefit...
