Canadian Charities Operating Abroad

97 Pages·2007·0.52 MB·English

CCaannaaddiiaann CChhaarriittiieess OOppeerraattiinngg
Outside of Canada
A presentation to the
Jewish Foundation of Greater Toronto
December 11, 2007
MMaarrkk BBlluummbbeerrgg
www.blumbergs.ca
Overview
(cid:137) Theme – There are rules for Canadian charities
operating abroad, they are not too onerous,
tthheeyy ffooccuuss oonn ccoonnttrrooll, mmoonniittoorriinngg aanndd rreeccoorrddss.
(cid:137) 82,000 Charities –every charity is different
– oobbjjeeccttss, aarreeaass ooff cchhaarriittaabbllee wwoorrkk,
philosophy, risk tolerance, public profile,
donors and level of government support,
iinddependdentt versus iintternattiionall affffiilliiattiions.
(cid:137) CRA as “silent” partner,
protecting taxpayers.
www.blumbergs.ca
Introduction and Overview
(cid:137) Importance
(cid:137) Good works outside Charitable realm
(cid:137) Framework for Charities operating Abroad –
Corporate, CRA views and documents, Ways
to Carry on Own Activities, Cases
(cid:137) Concerns and Traps
Disclaimer - ppresentation is
information, not legal advice
www.blumbergs.ca
Impportance of Global Philanthroppyy for
Canadian charities
(cid:137) fulfill objects of charity
(cid:137) win//win ((CC andd fforeign chharity))
(cid:137)(cid:137) ssttaaffff mmoorraallee aanndd rreetteennttiioonn
(cid:137) donor and stakeholder interest
(cid:137) excellence
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Impportance –for Jewish orgganizations
(cid:137) Tikkun Olam “repairing the world” and
Tzedakah (‘charity’)
(cid:137) Israell - centrallity to Juddaism andd Jews
(cid:137) Galut (“diaspora”)
(cid:137)(cid:137) ccoonnsseeqquueenncceess ooff nnoott ffoolllloowwiinngg rruulleess -
deregistration, intermediate sanctions,
embarrassment, friction with others in
Canada, loss of donor support, suspicion
(cid:137) one set of rules apply to charities, whether
Jewish, Christian, Islamic etc.
www.blumbergs.ca
Impportance –for Jewish orgganizations
(cid:137) 3 of 4 recent court cases dealing with
Canadian charities operating abroad deal
wwiitthh JJeewwiisshh//IIssrraaeellii cchhaarriittiieess.
(cid:137) is CRA anti-semitic? No.
(cid:137) are Jewish charities more non-compliant? No.
(cid:137) are some pprofessional advisors usingg
charities to further their own financial,
personal, ideological and other agendas?
www.blumbergs.ca
CRA Charities Partnershipp and
Outreach Program Funding Priorities
(cid:137) 1. Conducting foreign activities in compliance with a
charity's obligations under the Income Tax Act:
Increasingly, registered charities are conducting some of their
charitable activities internationally. As charitable activities are
conducted beyond Canadian borders, a number of control or
compliance issues may arise that could result in a charity being
non-compliant with respect to its obligations under the Income
Tax Act.
(cid:137) 2. Fundraising, receipting, and maintaining books and
records in compliance with a charity's obligations under the
IInnccoommee TTaaxx AAcctt::
See CRA website.
www.blumbergs.ca
Integgrityy
Of the ten types of charities in Canada according
to a recent survey Canadians are most likely to
ttrruusstt hhoossppiittaallss aa lloott oorr ssoommee ((8899%%)), ttrruusstt cchhaarriittiieess
that focus on children/children’s activities (85%),
trust health prevention/health research (84%),
trust charities that focus on education (77%),
churches (67%) and least likely to trust
international developpment charities ((57%)).
Talking About Charities 2006: Tracking Canadian's
Opinions About Charities and The Issues Affecting Them
bbyy IIppssooss RReeiidd ffoorr TThhee MMuuttttaarrtt FFoouunnddaattiioonn, SSeepptteemmbbeerr
2006
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Statistics - Impportance of Global
Philanthropy
(cid:137) 1.4 B (2002 ), 1.8B (2004), 2.1B (2005)
(Canadian charities foreign expenditures)
(cid:137) $126M spent by Canadian Jewish or Israeli
charities outside of Canada (ie Israel, US,
and elsewhere)(2005 T3010 numbers)
www.blumbergs.ca
Reggistered Canadian charities carryyingg
on activities in Israel (2004)
(cid:137) 150 listed Israel, 171 listed ME (probably 24
of which operate in Israel)
(cid:137) See Schedule A
(cid:137)(cid:137) MMaannyy CCaannaaddiiaann JJeewwiisshh cchhaarriittaabbllee
organizations carrying on foreign activities
in US and other places around the world,
nnoott nneecceessssaarriillyy iinn IIssrraaeell.
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