This episode outlines the necessary steps for establishing a not-for-profit corporation in Toronto.

The process involves choosing a unique name, preparing Articles of Incorporation, appointing directors, defining bylaws, and submitting an incorporation application.

The guide also mentions the optional step of obtaining charitable status through the Canada Revenue Agency for additional tax advantages.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs. Hat tip to our friends at OrgHub.ca, a new, innovative software platform that provides not-for-profits and charities across Canada with a solid foundation for incorporation and streamlined corporate governance.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

This episode explains the crucial early decision for nonprofits looking to incorporate in Ontario: whether to incorporate provincially (specifically in Ontario) or federally.

Provincial incorporation in Ontario offers benefits such as easier access to funding, potential tax advantages, limited liability protection, an independent legal identity, and perpetual existence.

Federal incorporation provides nationwide name protection, enhanced prestige, greater flexibility for national operations, and potentially advantageous governance structures.

Ultimately, the choice depends on a nonprofit's geographic scope, administrative capacity, future plans, and budget, though both options offer core benefits like limited liability and legal standing.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs. Hat tip to our friends at OrgHub.ca, a new, innovative software platform that provides not-for-profits and charities across Canada with a solid foundation for incorporation and streamlined corporate governance.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

This episode addresses the crucial topic of executive compensation within Canadian charities (with some references to US charity law as well), emphasizing the need for fair and reasonable pay to attract and retain competent leadership while adhering to legal and ethical standards.

Canadian regulations, particularly by the CRA, define compensation broadly and strictly prohibit undue private benefit, requiring transparency through the T3010 form.

In the US, the IRS and organizations like Charity Navigator also stress reasonable compensation, suggesting reliance on comparability data and independent review processes, while acknowledging the complexities and competitive pressures of executive roles in often large, mission-driven organizations.

Ultimately, both jurisdictions underscore the importance of board oversight and accountability in ensuring responsible stewardship of charitable resources regarding executive pay.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

This episode, Essential Principles for Charity and Nonprofit Bookkeeping, outlines crucial guidelines for managing a Canadian organization's finances.

It emphasizes meticulously documenting and summarizing all financial transactions using accrual and double-entry bookkeeping methods for accuracy and internal control.

The discussion stresses the importance of a comprehensive chart of accounts and the regular production of key financial statements like the statement of activities and the statement of position.

Furthermore, it covers aspects such as consistent system procedures, proper recognition of revenue and expenses, management of assets, adherence to regulations, and the implementation of internal controls to ensure sound financial management and accountability.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

This episode offers practical advice for individuals considering founding a Canadian nonprofit organization.

It emphasizes the importance of self-reflection regarding motivations and ensuring a genuine need exists for the proposed organization.

The discussion highlights key considerations such as developing a sound business plan, exploring various organizational structures, and understanding the differences between nonprofits and charities.

It also addresses the realities of the commitment involved, including administrative burdens and the need for self-care.

Furthermore, the episode outlines the incorporation process, essential documents, post-incorporation requirements like bylaws and board development, and ongoing legal and financial obligations.

Finally, it touches upon the challenges of "Founder's Syndrome" and provides a self-assessment checklist to help potential founders determine their readiness.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

This episode provides guidance to Canadian charities on preparing for and managing audits by the Canada Revenue Agency (CRA).

It highlights the potential consequences of audits, including revocation of charitable status and reputational damage.

The discussion details the CRA audit process, common audit triggers, and possible outcomes, ranging from education letters to revocation.

Furthermore, it outlines steps charities can take to prepare for an audit, such as maintaining proper documentation and seeking professional support.

Finally, the episode identifies common audit issues like inadequate record-keeping and impermissible political activities, emphasizing proactive compliance and professional advice to mitigate risks.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

This episode addresses the rewards and risks involved in hiring a celebrity for charity marketing.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

This episode outlines the CRA's recommended due diligence approach for grant-making to non-qualified donees (i.e., non charities), emphasizing alignment with charitable purpose and risk assessment.

The model stresses collaboration, accountability, and thorough documentation for responsible grant management.

Consistent application of these principles protects the charity and acknowledges necessary administrative expenses.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883