RLB Blog

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.

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.      

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?