Author: Press Secretary

Creating bylaws for your charity is one of the most important steps in establishing a legally compliant organization in Canada. Your bylaws serve as the foundation for how your charity operates, makes decisions, and governs itself.

Whether you’re starting a new charity or updating existing bylaws, this guide will walk you through everything you need to know. You’ll learn what bylaws are, what must be included, and how to write them correctly for Canada Revenue Agency (CRA) compliance.

Let’s get started with building strong governance documents for your charitable organization.

What Are Charity Bylaws in Canada?

Charity bylaws are the internal rules that govern how your organization operates day-to-day. Think of them as your charity’s operating manual that outlines everything from board structure to voting procedures.

Legal Definition and Purpose

Bylaws are legally binding rules that your charity must follow once they’re adopted. They work alongside your articles of incorporation to define your charity’s structure and operations.

Your bylaws tell everyone—from board members to donors to the CRA—how decisions get made in your organization. They establish clear procedures for governance, financial management, and organizational changes.

The CRA reviews your bylaws during the registration process to ensure your charity has proper governance structures in place. Without compliant bylaws, your application for charitable status may be delayed or denied.

When Are Bylaws Required?

You need bylaws if you’re incorporating your charity federally or provincially in Canada. Federal charities incorporated under the Canada Not-for-Profit Corporations Act (CNCA) must have bylaws.

Provincial requirements vary depending on where you incorporate. Ontario, British Columbia, and Alberta all have specific bylaw requirements for incorporated nonprofits and charities.

The CRA expects to see comprehensive bylaws when you apply for charitable registration. Even if your province doesn’t strictly require them, you’ll need them for CRA approval.

Essential Elements Every Charity Bylaw Must Include

Your bylaws need specific sections to meet legal and CRA requirements. Missing any of these elements could cause compliance issues down the road.

Organizational Structure

Your bylaws must clearly define your board of directors’ composition and responsibilities. Specify the minimum and maximum number of directors your charity will have.

Charitable organizations typically require at least three directors who aren’t related to each other. Private foundations may have related directors. You should outline the qualifications directors must meet and their terms of office.

Define officer positions, including President, Vice-President, Treasurer, and Secretary. Describe each officer’s duties and how they’re elected or appointed.

Key elements to include:

• Minimum/maximum board size (typically 3-15 directors)
• Director qualifications and eligibility
• Length of terms (commonly 1-3 years)
• Election or appointment procedures
• Removal and resignation processes
• Officer roles and responsibilities

Membership Provisions (If Applicable)

If your charity has members, your bylaws must outline the membership structure. Define different membership categories if you have them.

Specify who’s eligible to become a member and how someone joins. Include membership fees, if any, and when they’re due.

Detail voting rights for each membership class. Some charities have voting members and non-voting members.

You don’t need members to operate a charity in Canada. Many charities operate with just a board of directors and no formal membership structure.

Meeting Requirements

Your bylaws must establish clear rules for meetings. Start with annual general meetings (AGMs) and how often you’ll hold them.

Specify how many board meetings you’ll have each year. Most charities hold board meetings quarterly at minimum.

Define what constitutes quorum—the minimum number of people needed for a valid meeting. Common quorum requirements are 50% of board members or a specific number like “at least 3 directors.”

Include notice requirements for meetings. You need to specify how far in advance you’ll notify people and what methods you’ll use (email, mail, phone).

Meeting essentials:

• AGM frequency (usually annual)
• Board meeting schedule
• Special meeting procedures
• Quorum requirements
• Notice periods (typically 10-30 days)
• Voting procedures and thresholds
• Minutes and record-keeping

Financial Management and Accountability

Your bylaws should define your fiscal year. Most charities use January 1 to December 31, but you can choose any 12-month period.

Establish signing authority for financial transactions. Specify who can sign cheques and approve expenses.

Require annual financial statements and audits if applicable. Charities with revenue over $250,000 typically need audited statements.

Include provisions for banking, investments, and borrowing powers. The CRA wants to see that you have proper financial controls.

Amendment Procedures

Your bylaws must explain how to amend them. Include the voting threshold required—typically two-thirds or 75% of board members.

Specify whether members (if you have them) must also approve amendments. Some changes may require both board and member approval.

Note that certain amendments must be reported to the CRA. Changes affecting your charitable purposes or dissolution clause need CRA notification.

Dissolution Clause

Every charity bylaw must include a dissolution clause. This explains what happens to your assets if your charity winds up operations.

The CRA requires that remaining assets go to qualified donees only. You can’t distribute assets to members, directors, or private individuals.

Your dissolution clause should list the types of qualified donees that could receive assets. These include other registered charities, municipalities, and certain government bodies.

This is a non-negotiable requirement for charitable registration in Canada.

Step-by-Step Guide to Writing Charity Bylaws

Writing bylaws doesn’t have to be overwhelming. Follow these steps to create compliant, effective bylaws for your charity.

Step 1: Research Your Jurisdiction’s Requirements

Start by determining which laws apply to your charity. Federal charities follow the Canada Not-for-Profit Corporations Act (CNCA).

If you’re incorporating provincially, check your province’s nonprofit legislation. Ontario uses the Ontario Not-for-Profit Corporations Act, while BC uses the BC Societies Act.

Review CRA guidance documents on charitable registration. The CRA website has resources explaining what they expect to see in bylaws.

Bylaw Requirements Comparison Chart

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Don’t skip this research step. Requirements vary significantly between federal and provincial incorporation.

Step 2: Define Your Governance Structure

Decide how many board members you’ll have. Consider your charity’s size and the expertise you need.

Determine whether you’ll have members or operate as a board-only charity. Each model has advantages depending on your organization’s needs.

Plan your officer structure. At minimum, you’ll need a President/Chair and a Treasurer.

Think about term limits for directors. Staggered terms help ensure board continuity while allowing for fresh perspectives.

Step 3: Draft Core Bylaw Sections

Begin writing your bylaws section by section. Start with definitions to clarify key terms you’ll use throughout.

Draft your governance sections next—board composition, meetings, and decision-making procedures. Be specific about quorum, voting thresholds, and notice requirements.

Write your financial management provisions. Include fiscal year, signing authority, and financial reporting requirements.

Add your membership provisions if applicable. Keep language clear and avoid overly complex membership structures.

Standard bylaw article structure:

1. Definitions and Interpretation
2. Membership (if applicable)
3. Board of Directors
4. Officers
5. Meetings
6. Financial Management
7. Committees
8. Amendments
9. Dissolution

Step 4: Ensure CRA Compliance

Review your bylaws against CRA requirements. Your charitable purposes must align with the four recognized charitable categories in Canada.

Include restrictions on political activities. Charities can engage in limited political activities (10% of resources) but this must be clearly stated.

Add provisions prohibiting private benefit. No one can personally profit from your charity’s activities or assets.

Ensure your dissolution clause meets CRA standards. Assets must go to qualified donees only—no exceptions.

Step 5: Review and Legal Compliance Check

Have your founding board review the draft bylaws. Make sure everyone understands and agrees with the governance structure.

Consider hiring a charity lawyer for review. Legal expertise can catch issues that might cause CRA registration problems.

Check for conflicts between your bylaws and articles of incorporation. These documents must align completely.

Common mistakes lawyers catch:

• Conflicting quorum requirements
• Missing CRA-required clauses
• Vague amendment procedures
• Inadequate financial controls
• Improper dissolution language

Step 6: Approve and Adopt Your Bylaws

Hold a board meeting to formally adopt your bylaws. Pass a board resolution approving them.

Have all directors sign the bylaws or the resolution adopting them. This creates a clear record of approval.

File your bylaws with the appropriate government office. Federal charities file with Corporations Canada; provincial charities file with their provincial registry.

Keep the original signed bylaws in your minute book. You’ll need to provide them to the CRA during registration.

Common Mistakes to Avoid When Writing Charity Bylaws

Many charities make preventable errors when drafting bylaws. Learning from these mistakes can save you time and headaches.

Copying templates without customization is the most common error. Generic templates often don’t fit your charity’s specific needs or meet your jurisdiction’s requirements.

Conflicting with articles of incorporation creates legal problems. Your bylaws can’t contradict what’s in your articles.

Insufficient quorum requirements can paralyze decision-making. Setting quorum too high means you might struggle to hold valid meetings.

Unclear amendment procedures make it difficult to update bylaws when needed. Be specific about voting thresholds and approval processes.

Missing CRA-required provisions will delay your charitable registration. The dissolution clause is the most commonly forgotten requirement.

Overly restrictive language can box you in unnecessarily. Leave room for operational flexibility where appropriate.

Vague provisions create confusion about procedures. Be specific about timelines, voting thresholds, and responsibilities.

CRA-Specific Requirements for Charity Bylaws

The CRA has non-negotiable requirements for charity bylaws. Meeting these requirements is essential for registration approval.

Charitable Purposes Statement

Your bylaws must include or reference your charitable purposes. These purposes must fit within one of Canada’s four recognized charitable categories: relief of poverty, advancement of education, advancement of religion, or other purposes beneficial to the community.

The CRA scrutinizes purpose statements carefully. Vague language like “helping people” isn’t sufficient.

Be specific about who you serve and how. For example: “To relieve poverty by providing emergency food assistance to low-income families in Toronto.”

Your purposes in your bylaws must match your articles of incorporation exactly. Any discrepancy will cause registration delays.

Restrictions on Activities

Your bylaws must include specific restrictions that charities must follow. State clearly that your charity operates exclusively for charitable purposes.

Include language prohibiting private benefit to members, directors, or others. No one can personally profit from your charity’s work.

Add restrictions on political activities. Charities can devote up to 10% of resources to non-partisan political activities, but this must be clearly limited.

Specify that your charity won’t operate a business unrelated to your charitable purposes. Related businesses are allowed, but must be clearly connected to your mission.

Wind-Up Provisions

Your dissolution clause must meet CRA standards exactly. Upon wind-up, remaining assets must go to qualified donees only.

Specify that no assets will be distributed to members, directors, or private individuals. This must be explicitly stated.

You can name specific charities to receive assets, or use general language about qualified donees. Many charities list “other registered charities with similar purposes” as beneficiaries.

The CRA will reject your application if this clause is missing or improperly worded. Don’t take shortcuts here.

Bylaws Templates vs. Custom Bylaws: Which Is Right for Your Charity?

Deciding between template bylaws and custom-drafted bylaws depends on your charity’s complexity and needs.

When Templates Work

Templates can work well for simple charities with straightforward structures. If you’re forming a small community charity with a basic board structure, templates provide a good starting point.

Standard charitable purposes like running a food bank or community centre fit well with template language. You’re not breaking new ground with your mission.

Templates save money on legal fees for charities with tight budgets. Many government websites and nonprofit organizations offer free bylaw templates.

Looking for template guidance? Check out our sample charity bylaws to see examples that meet CRA and legal requirements. These samples help you understand proper bylaw structure before you start drafting.

Good candidates for templates:

• Small local charities
• Standard charitable purposes
• Simple board-only governance
• Limited programs or services
• Straightforward funding sources

When Custom Bylaws Are Necessary

Complex organizations need custom bylaws. If you have multiple service areas, chapters, or affiliate organizations, templates won’t cover your needs.

Unique charitable purposes require careful legal drafting. Innovative programs or new approaches to charitable work need precisely worded purposes.

Large charities or those expecting significant growth should invest in custom bylaws. Good governance documents scale with your organization.

If you have members, complicated voting structures, or multiple stakeholder groups, templates will be insufficient. Custom drafting ensures all relationships are properly defined.

Situations requiring custom bylaws:

• Multi-chapter or affiliate structures
• Complex membership models
• Unique or innovative programs
• Significant property or investments
• Multiple funding sources with restrictions
• Plans for rapid growth or expansion

Maintaining and Updating Your Charity Bylaws

Your bylaws aren’t a “set it and forget it” document. Regular review and updates keep your charity compliant and effective.

Regular Review Schedule

Review your bylaws annually as part of good governance practice. Check that they still reflect how your charity actually operates.

Legislative changes may require bylaw updates. The CNCA, for example, has been updated several times since 2011.

Review bylaws whenever you make significant organizational changes. Adding new programs, expanding service areas, or changing your board structure may require amendments.

Create a governance committee responsible for bylaw review. This ensures someone is actively monitoring compliance.

Amendment Process

Follow your bylaws’ own amendment procedures exactly. If your bylaws require a two-thirds vote, you need that exact threshold.

Document all amendments properly with board resolutions. Keep copies in your minute book.

File amendments with the appropriate government office. Federal charities file with Corporations Canada within required timelines.

Notify the CRA of certain amendments. Changes to your purposes, activities, or dissolution clause must be reported.

Amendment best practices:

• Review full bylaws before making changes
• Ensure consistency throughout document
• Update table of contents and section numbers
• Keep version history
• Distribute updated bylaws to all directors
• Update any online copies

Conclusion

Writing bylaws for your charity organization in Canada requires careful attention to legal requirements and CRA standards. Your bylaws form the foundation of good governance and help ensure long-term compliance.

Start by researching your jurisdiction’s requirements and understanding CRA expectations. Include all essential elements like governance structure, meeting procedures, financial management, and a proper dissolution clause.

Whether you use a template or draft custom bylaws, make sure they fit your charity’s specific needs and operations. Don’t copy generic bylaws without careful review and customization.

Review and update your bylaws regularly to keep pace with legislative changes and organizational growth. Good bylaws evolve with your charity.

Need help drafting or reviewing your charity’s bylaws? 

Northfield & Associates specializes in helping Canadian charities establish compliant governance documents. Our team provides expert guidance on creating bylaws that meet CRA requirements and support your charitable mission.

Contact us today to discuss your charity’s specific needs:

📞 Phone: 416-317-6806

📧 Email: info@northfield.biz

🌐 Website: www.northfield.biz

Ready to get started? Schedule a FREE consultation and let’s ensure your charity has the strong governance foundation it needs to succeed.

Frequently Asked Questions

How long should charity bylaws be?

Most charity bylaws are 10-25 pages long. The length depends on your organizational complexity and governance structure.

Simple charities might have bylaws of 10-12 pages. More complex organizations with members, multiple chapters, or sophisticated governance can have bylaws of 30+ pages.

Focus on being thorough rather than brief. Missing important provisions causes more problems than slightly longer bylaws.

Do bylaws need to be filed with the CRA?

Yes, you must submit your bylaws when applying for charitable registration. The CRA reviews them as part of the application process.

You don’t file amendments with the CRA unless they affect your purposes, activities, or dissolution clause. Other amendments are filed with your incorporating jurisdiction but not necessarily with CRA.

Keep your bylaws current and available for CRA review during audits or compliance checks.

Can we amend our bylaws after incorporation?

Absolutely. In fact, you should expect to amend bylaws over time as your charity grows and evolves.

Follow the amendment procedures in your current bylaws. This usually requires a board resolution passed by the specified majority.

File amendments with your incorporating body within their required timelines. Federal charities have specific deadlines for filing changes.

What’s the difference between bylaws and policies?

Bylaws are your charity’s governing rules that require formal adoption and filing with the government. They’re harder to change and legally binding.

Policies are operational guidelines your board adopts for day-to-day management. They’re easier to update and don’t require government filing.

Think of bylaws as constitutional law and policies as operational procedures. Both are important but serve different purposes.

Do all board members need to approve bylaws?

Not necessarily all, but most. Check your current bylaws or articles for the required voting threshold.

Common requirements are majority approval (50% + 1) or special majority (two-thirds or 75%). Initial bylaw adoption might require unanimous approval.

If you’re adopting first-time bylaws, all founding directors typically must approve them. This creates a strong foundation for governance.

Legal Sources & References

• Source: CRA: Ineligible individuals and Arm’s Length requirements

FOR IMMEDIATE RELEASE

Many couples seek advice on whether marriage or remaining in a common-law relationship is the right step for their future. When making this decision, there are numerous factors to consider, and it is important to understand the similarities and differences between these relationship statuses.

The benefits of saying, “I do” to a marriage are similar to those of common-law relationships including making health care decisions, welfare benefits, disability benefits, income taxes and custody related issues.

Other main similarities between the two-relationship statuses are how child support and spousal support is awarded should the relationship break down. In both instances, the amount of support is similar. The main difference being between a marriage and common-law relationship is which Act will guide the amount of support to be awarded: the Divorce Act and Federal Child Support guidelines or the Family Law Act and the Ontario Child Support guidelines.

The primary difference between marriage and common law relationships is how property and estates are handled.

Married couples are guided under the Divorce Act and the Family Law Act which outlines the division of property and assets between the couple from the date of marriage to the date of separation. The calculation of the division of assets ensures each party will have equal benefit from the marriage. Married couples also have equal right to possession of assets in the matrimonial home unless a marriage contract stipulates differently.

However, for common-law relationships, all division of property is governed by ownership rights only. Should a common-law relationship break down, the party must make a trust argument to the court to make a claim for property. Unfortunately, these instances can be very lengthy and expensive for the parties involved.

In terms of estates, married spouses have a right to the estate of their spouse should they pass away without a will. This is not the case for common-law partners. The rights of a common-law partner must be outlined within a valid Last Will and Testament as they will not be entitled to the estate without one.

Determining whether you should get married or remain in a common-law relationship requires much consideration. If you are in a relationship and require legal advice regarding a common-law relationship or marriage, contact Northfield & Associates to book a consultation.

Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.

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• We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.

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About Northfield

Northfield & Associates International Corporation is a global strategic advisory and consulting firm partnering with private equity, sovereign, and institutional investors to deploy capital, manage regulatory, supporting senior leadership, boards, and capital providers across Cambodia, Canada, and international markets operating in complex regulatory, economic, and geopolitical environments, and drive enterprise value creation across complex global markets.

We advise boards, executives, entrepreneurs, and public-sector decision-makers on business strategy, institutional transformation, and high-stakes market challenges requiring disciplined judgment, capital efficiency, and execution certainty. Our work is concentrated across priority global sectors, including agribusiness, aviation and automotive, energy and natural resources, financial services, healthcare, infrastructure, real estate, immigration, education, and information technology.

Our platform integrates sector-specific intelligence with multidisciplinary advisory capabilities. Clients benefit from coordinated access to consulting, legal and regulatory counsel, financial management, risk assessment, real estate advisory, immigration, education, and technology expertise. This integrated model supports informed capital allocation, regulatory-compliant investment structuring, and execution-ready strategies designed to optimise returns, preserve downside protection, and enhance risk-adjusted performance.

Northfield combines consulting rigor with legal and regulatory judgment to support capital markets-aligned decision-making in complex, regulated, and rapidly evolving environments. We partner with private enterprises, institutional investors, family offices, and public-sector entities to structure, deploy, and manage capital effectively; strengthen governance; mitigate regulatory and geopolitical risk; and drive sustainable enterprise value creation.

Our engagements span strategy formulation, operational optimisation, organisational design, and change execution. We deliver measurable outcomes that improve financial performance, support disciplined growth, enhance valuation, and generate durable returns on investment for investors, shareholders, and institutional stakeholders. We operate with independence, precision, and accountability, aligned with long-term value creation and fiduciary standards.

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.

Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

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NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Canada Announces Support for Iranian Temporary Residents

Several facilitative measures have been announced by Immigration, Refugees and Citizenship Canada (IRCC) in support of Iranian temporary residents, permanent residents, and citizens. Through this proposed public policy, Canada is confirming its commitment to protect Iranians, and vowing to keep families together during this time of uncertainty. As it is understood that Iranians may not feel safe to return home at this time, the government has supplied several tools to aid in providing a safe environment by extending their time in Canada as temporary residents.

Iranian temporary residents in Canada are able to extend their stay in Canada effective March 1st, 2023, for free by applying to:

• Extend their current temporary resident status
• Change their temporary resident status (for example, from a visitor to a worker)

The Honourable Sean Fraser, Minister of Immigration, Refugees and Citizenship stated that,

“Canada will not stand idly by in the face of these aggressions as the Iranian regime continues its ongoing human rights violations. Our government is continuing to stand up for the people of Iran by making it easier for Iranians who wish to extend their stay here in Canada to be with their families and allowing them to continue to work and study in safety.
We will continue to work closely with the Iranian Canadian community who is resolved to shed light on the repressive actions of the Iranian regime.”

Under the proposed public policy, candidates can apply to extend their temporary resident status in Canada, extend their open work permit, as well as apply to study in Canada. Applicants will need to submit their applications to confirm eligibility requirements prior to February 28, 2024, and all applications will be processed in priority sequence.

In addition, Canadian citizens and permanent residents living in Iran are now able to apply for the following documents at no cost to them:

• Canadian citizenship certificate
• Permanent resident travel document
• Limited validity Canadian passport

To support Iranians looking to travel from Iran to Canada, in search of refuge, the Canadian government has also waived the application fee for Certificates of Canadian citizenship and travel documents for permanent residents including Canadian passports with a limited validity.

Individuals interested in these special measures can apply as of March 1, 2023, and until February 28, 2024. Our legal immigration consultants at Northfield & Associates can help you take advantage of these special measures. Northfield & Associates can work with you to ensure you are eligible for the program and that your application is complete.

Working with Our Firm

In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.

By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.

At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.

Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.

Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.

Take the First Step Today

If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.

We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.

• If you or anybody that you know, think that you meet the requirements and wish to receive further information.
• We can help you start the application process and confirm eligibility requirements to participate.
• We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.

About Northfield

Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.

Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Questions?

info@northfied.biz

Within Corporate Newsroom  

Media Contact:

media@northfied.biz

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press@northfied.biz

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Donor Advised Funds are a popular way for Canadians to manage charitable giving. However, they create unique bookkeeping challenges for both donors and charities.

These funds require careful tracking of donations and proper classification of revenue. Charities must also comply with Canada Revenue Agency requirements that differ from standard donation management.

Proper bookkeeping for donor advised fund grants ensures accurate tax reporting for donors. It also helps charities maintain CRA compliance and creates transparent financial records that build trust with stakeholders.

The complexity comes from managing the three-way relationship between donors, DAF sponsors, and recipient charities. Each party has distinct record-keeping responsibilities.

We’ll walk you through the essential systems needed to handle DAF grants effectively. This includes setting up proper fund accounting structures, managing donor relationships, and meeting regulatory standards.

Understanding Donor Advised Funds and Grant Bookkeeping

Donor advised funds need specific bookkeeping approaches that differ from traditional donations. Canadian charities must track both restricted and unrestricted grants and maintain proper documentation for CRA compliance.

Definition and Structure of Donor Advised Funds

For Donors:

• Tracking Donations: Donors must keep accurate records of their contributions to DAFs. This includes the date of the donation, the amount, and the type of asset donated (cash, stocks, etc.). This documentation is essential for claiming the charitable tax credit on their income tax return. Proper bookkeeping ensures these records are readily available.
• Valuation of Non-Cash Donations: If a donor contributes assets other than cash (e.g., stocks and real estate), they must determine the asset’s fair market value at the time of the donation. This valuation is crucial for calculating the tax deduction. Accurate bookkeeping is essential for maintaining records of these valuations.
• Tracking Grant Recommendations: While the DAF sponsor handles the actual distribution of funds, donors should keep records of the grants they recommend. This helps them track their charitable giving and can be useful for future philanthropic planning.

Donor advised funds are charitable giving vehicles run by public charities, community foundations, or financial institutions. Donors contribute assets to these funds and keep advisory privileges over how the money is distributed to qualified charities.

The structure involves three key parties. The donor makes the initial contribution and receives an immediate tax receipt.

The DAF sponsor manages the funds and handles all legal requirements. The receiving charity gets the grant and must follow specific bookkeeping procedures.

Key Components:

• Initial donor contribution (cash, stocks, or other assets)
• DAF sponsor oversight and management
• Grant recommendations from donors
• Final distribution to qualified charities

The legal donor is actually the DAF sponsor, not the original contributor. This affects how we record and acknowledge these grants in our accounting systems.

Key Differences Between Restricted and Unrestricted Funds

Restricted funds come with specific conditions about how we must use the money. Unrestricted funds allow us to spend the grant as we see fit within our mission.

Restricted Fund Requirements:

• Use fund accounting principles
• Track spending separately from general funds
• Report on specific use of funds
• Maintain detailed records for compliance

Unrestricted grants go into our general operating funds. We must still track the source and acknowledge the grant properly.

The classification affects our financial reporting. We must show restricted funds separately on our financial statements.

This helps donors and regulators understand how we manage different types of funding.

Importance of Accurate Grant Tracking in Canada

The Canada Revenue Agency requires detailed records of all donations, including DAF grants. We must report this information on our T3010 annual return.

Poor tracking can lead to compliance issues.

Essential Tracking Elements:

• Grant date and amount
• DAF sponsor name
• Any restrictions or conditions
• Proper revenue classification

Accurate tracking helps us build stronger relationships with donors. Even though the grant comes from the DAF sponsor, we often acknowledge the recommending donor.

This requires linking grants to specific individuals in our database. We must implement strong internal controls over DAF grants.

These controls prevent errors and fraud and ensure we use restricted funds according to donor wishes. Regular reconciliations between bank statements and accounting records maintain accuracy.

In practice, here’s what that means for day-to-day bookkeeping:

For Charities Receiving Grants:

• Recording Grant Revenue: Charities must properly record grants received from DAFs as revenue in their accounting records. This includes the date of the grant, the amount, and the name of the DAF sponsor. This revenue needs to be properly classified (restricted or unrestricted) depending on any conditions attached to the grant.
• Acknowledging DAF Grants: While the grant may technically come from the DAF sponsor, charities often acknowledge the donor’s recommendation. This requires maintaining records that link the grant to the recommending donor (unless the donation is anonymous). This is important for donor relations.
• Compliance with CRA Requirements: The CRA requires charities to maintain accurate records of all donations received, including grants from DAFs. This information is reported on the charity’s T3010 annual information return. Proper bookkeeping is essential for ensuring compliance with these reporting requirements.
• Fund Accounting for Restricted Grants: If a DAF grant is restricted to a specific purpose, the charity must use fund accounting principles to track the grant funds separately from other funds. This ensures that the grant is used for its intended purpose and that proper reporting is maintained.

Compliance Requirements and Canadian Regulatory Standards

Charities receiving donor-advised fund grants must follow strict CRA guidelines for record-keeping and filing. These requirements include annual T3010 submissions and keeping detailed financial records for seven years.

Canada Revenue Agency Guidelines for Charities

The CRA requires registered charities to maintain accurate records of all grants received from donor-advised funds. We must classify these grants as either restricted or unrestricted revenue in our accounting systems.

Key CRA requirements include:

• Recording the exact date and amount of each DAF grant
• Identifying the DAF sponsor organization
• Documenting any restrictions or conditions attached to grants
• Maintaining donor acknowledgment records

It ties the idea that CRA compliance affects not just donors and DAFs, but also staff working from home.

When we receive DAF grants, we treat them as charitable donations under the Income Tax Act. The CRA expects us to follow Canadian accounting standards for not-for-profit organizations when recording these transactions.

We need to implement proper internal controls over DAF grant processing. This includes separating duties between staff who receive grants and those who record them in our books.

T3010 Filing and Charitable Status Maintenance

Our annual T3010 information return must include all DAF grants received during the fiscal year. We report these grants in the appropriate revenue categories based on their restrictions and purposes.

T3010 reporting requirements:

• Total DAF grant amounts in Section C (Revenue)
• Program-specific grants under designated activities
• Investment income from DAF-funded programs
• Administrative costs related to grant management

If we fail to report DAF grants properly, we risk our charitable status. The CRA reviews T3010 filings to ensure we meet the disbursement quota and operate for charitable purposes.

We must file our T3010 within six months of our fiscal year-end. Late or incomplete filings can result in penalties or suspension of our charitable registration.

Record Retention and Accessibility Rules

The CRA requires us to keep all DAF grant records for seven years from the end of the tax year they relate to. These records must be readily accessible for CRA audits or reviews.

Essential records to maintain:

• Original grant agreements and correspondence
• Bank deposit records and receipts
• Internal approval documentation
• Expenditure tracking for restricted grants
• Donor acknowledgment letters

We must store records in Canada unless we receive written CRA permission otherwise. Electronic records are acceptable if we can produce them in readable format during audits.

Our record-keeping system should allow quick retrieval of DAF grant information. We need to cross-reference grants with specific programs or activities they funded to show proper fund usage.

Setting Up Effective Fund Accounting Systems

Effective fund accounting systems need a structured chart of accounts, clear approval processes, and reliable software. These components work together to track Donor Advised Fund grants accurately while meeting Canadian compliance requirements.

Creating a Nonprofit Chart of Accounts

A proper chart of accounts forms the foundation of effective fund accounting for DAF grants. We need to create separate account codes for each fund type and revenue source.

Revenue accounts should distinguish between DAF grants and other donations. Create codes like “4100 – DAF Grant Revenue” and “4200 – Direct Donations.”

This separation helps us track funding sources clearly. Expense accounts must align with fund restrictions.

Set up project-specific codes such as “6100 – Program A Expenses” or “6200 – Research Project Costs.” This structure ensures we spend restricted funds correctly.

Fund designations require careful planning. We should establish codes for unrestricted general funds, temporarily restricted funds, and permanently restricted endowments.

Each DAF grant needs its own tracking code within these categories.

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Asset accounts should track any investments or special purpose funds separately. This helps us maintain proper stewardship of donor-advised contributions.

Segregation of Duties and Approval Workflow

Internal controls protect our organisation from errors and fraud when handling DAF grants. We must separate key financial duties among different staff members.

Payment approval requires multiple people in the process. One person should prepare invoices, another should approve payments, and a third should process the actual payment.

This three-way split reduces risk. Grant acceptance needs formal documentation.

We should require written approval from our executive director or board before accepting any DAF grant with restrictions. This prevents unauthorized commitments.

Bank reconciliation must happen monthly by someone who doesn’t handle cash receipts. This person should compare bank statements to our accounting records and investigate any differences immediately.

Spending authority levels help control expenses:

• Staff: Up to $500
• Department heads: Up to $2,000
• Executive director: Up to $10,000
• Board approval: Over $10,000

Documentation requirements should mandate receipts, invoices, and approval forms for all transactions. We need clear paper trails for every DAF grant dollar spent.

Charities can strengthen their systems by adopting the following key bookkeeping practices:

Key Bookkeeping Practices Related to DAFs:

• Clear Chart of Accounts: The charity’s chart of accounts should include specific accounts for tracking DAF grants, distinguishing them from other types of donations.
• Detailed Transaction Records: Maintain detailed records of all transactions related to DAF grants, including the date, amount, and any restrictions.
• Regular Reconciliations: Regularly compare bank statements with internal accounting records to maintain accuracy and catch errors.
• Internal Controls: Implement strong internal controls over handling DAF grants to prevent fraud and errors.
• Professional Advice: Consult with a qualified accountant or bookkeeper experienced in non-profit accounting to ensure compliance with CRA regulations and best practices.
  
  In summary, proper bookkeeping is essential for DAF donors and the charities that benefit from them. Accurate record-keeping ensures compliance with tax laws, facilitates responsible financial management, and supports effective philanthropic planning.

Fund Accounting Software for Grant Management

Modern accounting software streamlines DAF grant tracking and reporting. We have several options that handle fund accounting effectively.

QuickBooks Premier Nonprofit offers basic fund tracking through classes and locations. We can assign each DAF grant to a specific class, making it easy to run fund-specific reports.

The software costs around $500 annually per user. Sage Intacct provides advanced fund accounting features.

We can set up unlimited dimensions to track grants by funder, project, and restriction type. The multi-entity capabilities help larger organisations manage multiple programs.

Blackbaud Financial Edge NXT specializes in nonprofit accounting. It handles complex fund restrictions automatically and generates CRA-compliant reports.

The system integrates well with donor management tools. Key features we should look for include:

• Multi-dimensional reporting
• Automated fund balance calculations
• Grant-specific financial statements
• CRA T3010 report generation
• Bank reconciliation tools

Implementation tips help ensure success. We should import our chart of accounts carefully, train all users properly, and set up automated backup systems.

Regular software updates keep our systems secure and compliant.

Best Bookkeeping Practices for Donor Advised Fund Grants

Proper grant revenue recognition ensures compliance with accounting standards. Detailed expense tracking provides the transparency donors expect.

Strong audit trails protect charities and donors by creating clear records of all financial transactions.

Grant Revenue Recognition and Deferred Revenue

We must record DAF grants as revenue only when we meet the recognition criteria. This means confirming that the grant is unconditional and we have received written confirmation from the DAF sponsor.

Conditional vs. Unconditional Grants:

• Conditional grants require specific performance before recognition
• Unconditional grants can be recognised immediately upon receipt

When grants have restrictions or conditions, we record them as deferred revenue until we fulfill the requirements. This creates a liability on our balance sheet that converts to revenue once conditions are met.

We should establish clear procedures for reviewing grant agreements. Each agreement must be examined for donor restrictions, performance requirements, and reporting obligations.

Monthly reconciliations help ensure our revenue recognition aligns with actual grant receipts. This practice prevents errors and maintains accurate financial statements.

Detailed Expense Tracking and Supporting Documentation

Every expense related to DAF grants requires proper supporting documentation. We must maintain receipts, invoices, and approval forms for all transactions.

Our chart of accounts should include specific codes for DAF-funded activities. This separation allows us to track how grant funds are used and provides clear reporting to donors.

Essential Documentation Includes:

• Original receipts and invoices
• Purchase approvals and authorisations
• Vendor contracts and agreements
• Staff time sheets for salary allocations

We must implement expense approval processes with multiple levels of review. This ensures all spending aligns with grant purposes and organisational policies.

Digital filing systems help organise and preserve supporting documents. Backup copies protect against loss and make information easily accessible during audits.

Maintaining an Effective Audit Trail

Strong audit trails connect every financial transaction to its source documentation. We maintain chronological records that show the complete transaction history.

Each entry in our accounting system references supporting documents. This includes invoice numbers, approval signatures, and bank deposit records.

Key Audit Trail Components:

• Transaction dates and amounts
• Account codes and descriptions
• Supporting document references
• Approval signatures and initials

We implement financial controls that require dual approval for significant transactions. These controls prevent unauthorised spending and create checkpoints in our processes.

Regular internal reviews help us identify gaps in our audit trails. Monthly reconciliations and quarterly account reviews keep our records complete and accurate.

Donor Management and Receipting

Managing donor relationships for DAF grants requires careful tracking of donor information and proper receipting. Clear communication strategies help us maintain strong relationships and comply with Canadian Revenue Agency requirements.

Maintaining Comprehensive Donor Records

We track detailed information about DAF donors and their grant recommendations. This includes the donor’s contact information, giving history, and specific preferences for their charitable contributions.

Our donor records include the recommending donor’s name, address, and phone number. We also record the DAF sponsor organization that sends the grant funds.

Key information to track:

• Date of each DAF grant received
• Grant amount and any restrictions
• Donor’s preferred communication methods
• Previous grant history from the same donor
• Special acknowledgment requests

We maintain separate records linking DAF grants to the recommending donors. This practice helps us build relationships even though the legal donor is the DAF sponsor.

Our donor management systems handle the unique structure of DAF giving. Standard donation tracking may not capture the relationship between the DAF sponsor and the recommending donor.

Proper Donor Receipting and Acknowledgment

DAF grants create unique receipting challenges because the legal donor differs from the person making recommendations. We do not issue tax receipts to the recommending donor since they already received their tax benefit when contributing to the DAF.

The DAF sponsor is the legal donor and receives any official tax receipts. We can still acknowledge the recommending donor’s role in directing the grant to our organization.

Receipting requirements:

• Issue official receipts only to the DAF sponsor
• Include the DAF sponsor’s name and registration number
• Record the grant date and amount accurately
• Note any donor restrictions on fund use

We send thank-you letters to recommending donors without calling them tax receipts. These acknowledgments help us maintain donor relationships and comply with CRA rules.

Our receipting process clearly distinguishes between official tax receipts and donor acknowledgments. This approach prevents confusion and ensures proper tax compliance.

Effective Donor Communication Strategies

We use different communication approaches for DAF sponsors and recommending donors. Our messages respect the legal structure while building meaningful relationships with both parties.

For recommending donors, we focus on impact stories and program updates. These communications show how their grant recommendations create positive change in our community.

Communication best practices:

• Send impact reports showing grant results
• Invite recommending donors to events and programs
• Provide regular updates on organizational activities
• Respect donor privacy preferences and restrictions

We ask recommending donors about their communication preferences during initial contact. Some prefer regular updates, while others want minimal communication.

Our donor communication never promises tax benefits to recommending donors. We emphasize the impact of their recommendations without creating tax receipt confusion.

Regular communication encourages future grant recommendations from the same donors. Building these relationships supports long-term fundraising success through DAF channels.

Reporting, Reconciliation, and Financial Oversight

Strong financial oversight ensures we properly track and report DAF grants to meet CRA requirements. Regular reconciliation and comprehensive reporting build donor trust and regulatory compliance.

Bank Reconciliation and Regular Financial Reviews

We perform monthly bank reconciliations to match all DAF grant deposits with our internal records. This process catches errors early and ensures accurate financial tracking.

Bank statements show clear identification of DAF grants. We compare these deposits against our grant notification letters from DAF sponsors.

Key reconciliation steps include:

• Matching grant amounts to bank deposits
• Verifying deposit dates against grant notifications
• Identifying any timing differences or fees
• Recording adjustments for bank charges or interest

We conduct quarterly financial reviews beyond basic reconciliations. These reviews examine grant spending patterns and restricted fund compliance.

Monthly variance reports help us spot unusual activity. We compare actual DAF grant revenue against budgeted amounts to track performance.

Preparing Financial Statements and Reports

Our annual financial statements clearly show DAF grants as revenue. We separate restricted grants from unrestricted funding in our reporting.

The Statement of Financial Position displays restricted fund balances separately. This transparency helps board members and donors understand fund usage.

Required financial reports include:

• Statement of Operations showing grant revenue
• Statement of Changes in Net Assets
• Notes explaining restricted fund purposes
• Cash flow statements tracking grant timing

We prepare quarterly board reports summarizing DAF grant activity. These reports show grants received, funds spent, and remaining balances for restricted purposes.

Monthly donor reports strengthen relationships. We show how their recommended grants support our mission and create impact.

External Audit and Board Oversight

External audits provide independent verification of our DAF grant handling. Auditors examine our revenue recognition policies and restricted fund management.

We keep detailed documentation for auditor review. This includes grant agreements, restriction letters, and spending authorizations.

Board oversight ensures proper DAF grant governance. Audit committee members understand restricted fund obligations and compliance requirements.

Board responsibilities include:

• Reviewing quarterly grant reports
• Approving restricted fund spending
• Monitoring compliance with donor restrictions
• Ensuring proper financial controls

We schedule annual board training on restricted fund management. This training helps directors fulfill their oversight duties effectively.

Independent audit firms experienced with charitable organizations provide the best oversight. They understand CRA requirements and nonprofit accounting standards.

Additional Considerations for Canadian Nonprofits

Canadian nonprofits managing donor-advised funds face unique challenges with asset valuation, investment tracking, and operational costs. These areas require specialized bookkeeping approaches.

Managing In-Kind Donations and Fair Market Value

In-kind donations from DAFs require careful tracking and valuation. We record these donations at their fair market value on the date received.

Common in-kind assets include stocks, real estate, and artwork. Each asset type needs different valuation methods.

Securities use the closing price on the donation date. Real estate requires professional appraisals for amounts over $1,000.

We keep copies of all appraisal documents for CRA compliance. We create separate accounts in our chart of accounts for different asset types.

This approach helps track the fair market value versus actual proceeds if assets are sold. The matching principle requires us to record both the donation revenue and any related expenses in the same period.

We track administrative costs for processing complex assets separately. This helps us manage expenses properly.

Handling Investment Income and Endowment Funds

Investment income from DAF grants affects our net assets and needs specific accounting treatment. We distinguish between restricted and unrestricted investment earnings.

Endowment funds from DAFs have special rules. The principal usually stays intact while investment income funds operations.

We track these using fund accounting principles. Cash flow management becomes critical when investment values fluctuate.

We maintain detailed records of:

• Original grant amounts
• Investment gains and losses
• Distribution timing
• Spending policy compliance

Foundation grants that include investment components need separate tracking. This ensures we meet donor restrictions and CRA reporting requirements.

Administrative Costs and Staff Training

We track administrative costs for managing DAF grants carefully. We allocate these expenses properly between fundraising and program activities.

Staff training on DAF procedures is essential. Our bookkeeping team needs to understand donor restrictions, asset valuation, and reporting requirements.

Key training areas include:

• Fair market value calculations
• Fund accounting principles
• CRA compliance requirements
• Investment tracking procedures

We budget for ongoing professional development. Complex DAF transactions often require specialized knowledge that regular nonprofit bookkeeping does not cover.

We track fundraising expenses related to DAF solicitation separately. This helps us calculate accurate cost ratios for our financial health assessments.

Conclusion

Managing donor-advised fund grants requires careful attention to detail for both donors and charities. Proper record-keeping ensures we comply with CRA requirements and build trust with supporters.

We know that DAF bookkeeping can be complex for Canadian charities. Investing in proper systems and procedures improves efficiency and reduces compliance issues.

At Charity Accounting Firm, we help Canadian non-profits manage their financial records effectively. Our team understands the unique requirements of donor-advised funds and can help your organisation maintain accurate books while staying compliant with all regulations.

Frequently Asked Questions

Many bookkeepers face common challenges when handling DAF grants in their accounting systems. These questions cover recording procedures, regulatory requirements, and practical management concerns in Canadian charitable organizations.

How to record donor-advised funds?

We record DAF grants as revenue when the charity receives the funds. The entry includes the date, amount, and the name of the DAF sponsor organization.

We classify the grant as either restricted or unrestricted revenue. This depends on any conditions the donor placed on how we can use the funds.

We create separate accounts in our chart of accounts for DAF grants. This helps us distinguish them from other types of donations for reporting purposes.

We maintain records that link the grant to the recommending donor unless they requested anonymity. This information helps with donor relations and future fundraising efforts.

What is the 5% rule for DAF?

The 5% rule does not apply to donor-advised funds in Canada. This rule exists in the United States but is not part of Canadian regulations.

Canadian DAFs operate under different rules set by the Canada Revenue Agency. There are no mandatory annual distribution requirements for DAFs in Canada.

Donors can recommend grants from their DAF at any time. They are not required to distribute a minimum percentage each year like some other charitable vehicles.

Do donor-advised funds exist in Canada?

Yes, donor-advised funds operate in Canada through registered charities. These are restricted accounts held within a charity in the donor’s name or family name.

Canadian DAFs must operate through qualified donees recognized by the Canada Revenue Agency. The sponsoring organization must be a registered charity or public foundation.

Donors receive immediate tax receipts when they contribute to a DAF. They can then recommend grants to other qualified donees over time.

Who can manage a donor-advised fund?

The sponsoring charity legally controls and manages the DAF. They handle the accounting, legal requirements, investment decisions, and grant distributions.

Donors can recommend which charities should receive grants from their fund. However, the sponsoring organization makes the final decision on all distributions.

Some DAF sponsors offer professional management services. These include investment advice, philanthropic consulting, and administrative support.

How to manage donor funds?

We use fund accounting principles to track restricted DAF grants separately from other funds. This helps us use the money for its intended purpose.

We implement strong internal controls over DAF grant handling. We require approval processes and documentation for each transaction.

We perform regular reconciliations to ensure accuracy. We keep detailed records for all DAF-related activities, including dates, amounts, and restrictions.

We record any communication with donors or sponsors. We compare our bank statements with internal accounting records to catch errors and maintain accurate financial reporting.

What are the disadvantages of DAFs?

Donors lose legal control over their assets once they transfer them to a DAF. The sponsoring charity decides on all grant distributions.

Administrative fees reduce the amount available for grants. These fees differ between DAF sponsors and can affect long-term giving.

DAF grants may create extra bookkeeping work for receiving charities. We need separate tracking systems and compliance procedures for these funds.

Some critics say that DAFs let donors get immediate tax benefits without making timely charitable distributions. This can delay benefits to charitable causes.

Ensuring compliance with regulatory requirements is a critical aspect for charitable organizations in Ontario, Canada. Unfortunately, there are instances where a charity’s license may be revoked due to various reasons. This comprehensive guide aims to provide step-by-step assistance for organizations seeking to reinstate their revoked charity license in Ontario.

Understanding Charity License Revocation:

Charitable organizations in Ontario are bound by specific regulations established by the Canada Revenue Agency (CRA). Non-compliance with these regulations can lead to the revocation of a charity’s license. Common reasons for revocation include failure to meet reporting obligations, misuse of funds, or deviations from charitable purposes.

Key Steps for Reinstatement:

Reinstating a revoked charity license is a meticulous process that requires careful attention to detail. The following steps provide a roadmap for organizations navigating this challenging journey:

1. Identify Reasons for Revocation:

• Conduct an internal review to understand the reasons behind the license revocation.
• Pinpoint areas of non-compliance or issues that led to the revocation.
  

2. Address Non-Compliance Issues:‍

• Take proactive steps to rectify non-compliance issues identified during the internal review.
• Update financial records, submit outstanding reports, and enhance governance and accountability measures.
  

3. Engage with the CRA:‍

• Establish communication with the Charities Directorate of the CRA.
• Express your organization’s intent to reinstate the charity license and seek guidance on specific requirements.
  

4. Prepare and Submit Reinstatement Application:‍

• Collaborate with legal experts, such as BIG Charity Law Group PC.
• Prepare a comprehensive reinstatement application, including details about your organization, steps taken to address issues, and plans for future compliance.
• Submit all necessary supporting documentation with accuracy and completeness.
  

5. Demonstrate Compliance and Good Standing:‍

• Anticipate a thorough review of your organization’s activities, financial records, and governance practices by the CRA.
• Demonstrate your commitment to compliance, transparency, and adherence to charitable purposes.
• Provide any additional information or documentation requested by the CRA to support your reinstatement application.

Seeking Professional Legal Guidance:

Reinstating a revoked charity license requires specialized expertise in charity law and CRA requirements. Organizations can benefit from seeking legal guidance from professionals.

At Northfield & Associates, our expert guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.

Get professional support today by email at info@northfield.biz, by phone at (416) 317-6806, or visit us or Schedule your free consultation to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.

Reinstating a revoked charity license in Ontario demands careful navigation through the intricacies of charity law. This guide, coupled with the expertise of legal professionals, aims to empower organizations to successfully reinstate their charity licenses, allowing them to continue their vital work in the community.

What We Do!

We’re often asked by prospective clients what our Bookkeeping Service covers?  People want to know what specific tasks we do, and what their responsibility is.  This brief explainer page will answer that question.  This is by no means an exhaustive list, but covers the most frequently asked questions.

Getting Started

• Review your existing books for needed corrections or back-work
• Chart of accounts setup or amendment
• Assistance with setting up bank feeds
• Limited assistance* with setting up payroll (QBO or Gusto only)
• Your books brought current and reconciled if needed

Ongoing Monthly Bookkeeping

• After-the-fact transaction recording
• Post to general ledger
• Post to other ledgers (as needed)
• Bank account reconciliation
• Monthly financial statements
• Other bookkeeping services, as required
• Best-practice bookkeeping advice and counsel

Year End

• Assistance with 1099-NEC preparation*
• Assistance with 1099-MISC preparation*
• Year-end financial statements and period-end closing

What We Don’t Do

Pay bills

We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).

Payroll tax responsibility

Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state.  Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.

*Payroll deductions and benefits

We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data.  We do not assist in state registrations, benefits, or advise on deductions.  Those service areas are provided directly by either QBO or Gusto.

Preparation of W2s

Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.

Sales tax reporting

For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.

Donation recording

We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.

Administrative tasks

We cannot provide administrative services unrelated to our bookkeeping function.

Attend board meetings

Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.

Contact us today to schedule your consultation.

Working with Our Firm

In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.

By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.

At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.

Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.

Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.

Take the First Step Today

If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.

Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.

We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.

• If you or anybody that you know, think that you meet the requirements and wish to receive further information.
• We can help you start the application process and confirm eligibility requirements to participate.
• We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.

About Northfield

Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.

Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

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NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.