ACCORDING
TO THE RULES
Meal
Allowance
U.S.
Municipalities Removing Property Tax Exemption For
Charities
Moving
Funds From An Association's Foundation
Federal
Approval of Bylaw Amendments
Meal
Allowances
Fixed allowances paid to staff and
directors for travel-related expenses (e.g. meals) that
need not be supported by receipts are considered by
Canada Customs and Revenue Agency (CCRA) to be taxable
income.
If the amounts for a particular
individual exceed $500 for the year, then the
organization must provide a T4 Supplemental.
Whether or not they receive a T4 Supplemental, all
recipients of such amounts are required to include the
payments in their taxable income.
Consult your accountant for further
advice.
U.S.
Municipalities Removing Property Tax Exemption For
Charities
Since a
Connecticut Supreme
Court ruling allowed a municipality to tax a homeless
shelter, other communities in that state have already
begun rejecting the property tax-exempt status of
halfway houses, shelters, rehab centres, housing for the
elderly, and similar charitable organizations.
Other organizations, such as YMCAs, community centres,
and hospitals are being asked to justify their exempt
status.
The court
ruling focused on the tax exemption definition that
required an organization to be "exclusively
charitable" to be tax exempt
Moving
Funds From An Association's Foundation
A
non-profit association's Charitable Foundation cannot
simply move or transfer funds back to the
Association. If the Foundation is essentially
giving or granting funds back to the organization for
some purpose, then those funds are taxable.
However,
the Association can charge the Foundation a fee for
administration. The Association can also undertake
fee-for-service work, under contract, for the
Foundation, such as research, etc.
This
is general information for educational purposes, and is
not legal advice. It is believed to be accurate, however
you should consult your legal or tax advisor before
proceeding with any action or decision.
Federal
Approval of Bylaw Amendments
While
many federally-incorporated associations (under the Canada
Corporations Act Part II) believe that all bylaw
amendments must be approved by the Industry Minister
prior to being enforced or acted upon, that is an
incorrect assumption. Only changes to bylaws required by
the Act (subsection 155(2)) need to be approved.
An
example is an organization that includes a reference to
a particular program in its bylaws. Changes to
that portion of the bylaws would not require Ministerial
approval. See
I.2
According to the Rules highlights
legislative, regulatory and similar issues that affect
the operation or governance of associations and other
not-for-profit organizations.
|
