RLB Blog

There may be times when it is best not to accept a donation. Pause here for all those who work in fundraising to catch their breath and get over the initial shock. It would be heartbreaking to turn down funds when that is what most charities and not-for-profits seek out, but when a donation comes with strings attached, it is crucial to consider the impact of those restrictions. The saying “don’t look a gift horse in the mouth” is the worst piece of advice for organizations who are offered a restricted donation. But do not lose hope. There are steps to take before having to resort to refusing a gift. So first, let us imagine the scenario. Someone comes to you with the offer of a gift of money, but they want to have a say in how it is used.

Many Not-For-Profit and Charitable organizations struggle with understanding the difference between the deferral and restricted fund methods of recognizing contributions. RLB’s Not-For-Profit team presented on this topic at their December 2020 Coffee Talk webinar presented by Colleen Gallagher and Michelle Steele.

Question: Our board would like to develop a donation receipting policy? Do you have any guidelines we should follow? The board will want to consider incorporating the following aspects when developing a donation receipting policy:

Charity vs Not-for-profit organization Often the term “registered charity” is used interchangeably with “not-for-profit organizations (NPOs)”. While both terms fall under the larger description of the voluntary, not-for-profit or community benefit sector. However, while both organizations operate on a not-for-profit basis, they are defined differently under the Income Tax Act (ITA). If an organization meets the definition of a “charity,” it cannot be considered a not-for-profit organization under the ITA.

Did you know there are over 86,000 registered charities in Canada? If you are not one of these registered charities, you may want to give it some consideration! Firstly, you need to ask what it means to become a registered charity. As stated by the Canada Revenue Agency (CRA), a registered charity must use its resources for charitable activities and have charitable purposes that fall in one or more of the following categories:

The 10 Things your Not-For-Profit Auditor wants you to know. Here are the 10 secrets our team has put together to help your Not-For-Profit.

In the shadow of the pandemic, a "buy local" campaign spread across the country. Social media featured pleads to avoid retail giants in place of supporting local mom and pop shops. It seems to have been a success as many small businesses are still afloat a year into COVID-19. While the push to support local businesses has been well received and reasonably successful, another sector could desperately use the same help. However, there has been very little light shed on their COVID-related strife. Charities and Not-for-Profit Organizations (NPO’s) have primarily faced similar struggles to most businesses in this current economic climate, without the benefit of a call to action for support.  

It is important to manage legal risk for NPOs. For these Not-for-Profit organizations (NPO), there are often many requirements and guidelines to follow. Especially regarding funding and leadership. To ensure compliance, your organization's board and senior management must conduct regular legal check-ups. This will ensure proper due diligence and prevent costly mistakes and avoid exposure to legal liability. According to Carters Professional Corporation, the following 10 tips identify key issues that charities and NPOs should address for effective legal risk management.      

On October 22nd, we held our 10th Annual Not-for-Profit Seminar. Since this was the first time we have held this event virtually we wanted to take this unique opportunity to share the incredible presentations from our experts with you. Please click on the links below to hear from our talented an knowledgeable presenters and learn more about Embracing the Changing Landscape. 

Question: Can we issue a donation receipt for services received? One of our members has repainted our classrooms and instead of payment has requested that we provide a donation receipt for the services.