RLB Blog

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. 

Are the terms “registered charity” and “not-for-profit organizations (NPOs)” interchangeable? How do they differ? First and foremost, we need to define each of these terms. While both a registered charity and an NPO fall under the larger description of the voluntary, not-for-profit or community benefit sector, and both operate on a not-for-profit basis, their definitions are different according to the Income Tax Act (ITA). If an organization meets the definition of a “charity” it cannot also be considered a not-for-profit organization under the ITA. This is true even if the organization is not registered or cannot be registered as a charity. It simply can not be considered a not-for-profit organization.  

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.

The CEBA was created to assist small businesses, not for profits and charities through the current economic environment and to help them rebuild sooner. The CEBA was created to help pay for non-deferrable expenditures and restricts spending to things like payroll, rent, utilities, insurance, property tax, or regular debt payments. It cannot be used for certain capital transactions or increasing remuneration – it is best to think of the CEBA as an emergency response tool.

Question: Why does our organization now have to start recording its capital assets?

The CRA may follow up on claims you have remitted, at its discretion. This is nothing to worry about; like with any government program, monitoring is always present. If your claims were made in good faith and you keep adequate books and records, you will be able to answer any inquiry they may have.

Question: Our organization had to cancel our AGM due to the Coronavirus pandemic, how long do we have to reschedule?

The holidays can be such a wonderful and magical time of the year and it’s a great way to show our love and appreciation for our community. Each year, the team at RLB makes a donation to an organization within the four communities of which we work in. In the past, we have supported toy drives, food banks, and food hampers. This year we are supporting ...