In the realm of charitable organizations, meticulous record-keeping is not just good practice; it’s a legal obligation. Understanding the nuances of how long records must be retained, the format in which they can be stored, and the consequences of improper maintenance is crucial for any responsible charity. In this blog post, we delve into the intricacies of charity record keeping, providing insights and guidelines to help your organization stay compliant.
How Long Must Records Be Retained?
Official Donation Receipts: Must be kept for a minimum of two years from the end of the calendar year in which the donations were made.
10-Year Gifts: Should be retained throughout the charity’s registration period and for at least two years following the revocation of registration.
Minutes of Meetings: Directors/Trustees/Executives: For as long as the charity is registered and a minimum of two years post-revocation.
Members: Must be kept for as long as the charity is registered and for a minimum of two years post-revocation.
Governing Documents and Bylaws: Must be held for as long as the charity is registered and for two years after the date of revocation.
General Ledgers and Financial Statements:
General ledgers: Six years from the end of the last tax year.
Financial statements and source documents: Six years from the end of the last tax year or two years post-revocation.
Electronic Record Keeping:
Yes, electronic records are permissible, but they must adhere to the same rules and retention periods.
Electronic records must be kept in a format accessible and usable by auditors on CRA equipment.
Proper imaging practices for scanned documents in electronic format are acceptable.
Responsibilities for Proper Maintenance:
The charity is responsible for all record-keeping requirements even when outsourcing to third parties.
Keep all books and records in one accessible area for ease of reference during audits or board transitions.
Maintain backup copies of records in a separate location, preferably off-site.
Be prepared to make records available to CRA officials for inspection, audit, or examination.
Consequences of Improper Record Keeping:
Failure to meet record-keeping obligations can result in serious consequences, including the suspension of tax receipting privileges or loss of registered status.
In conclusion, a robust record-keeping system is not just a regulatory obligation; it’s a fundamental aspect of running a responsible and transparent charitable organization. By adhering to these guidelines, your charity can ensure compliance, maintain accountability, and build trust with stakeholders. For additional information, refer to IC05-1R1, Electronic Record Keeping. Stay organized, stay compliant, and continue making a positive impact on the world.
Ready for better nonprofit reporting?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Your Trusted Partner in International Bilateral Relations
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.
Northfield & Associates
Advancing Global Partnerships, Together.
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.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
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
Press contact
PR consultants 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.
Youth organizations often provide various activities for young people, but are all these activities charitable? Some activities may directly contribute to education and personal development, while others might simply offer recreational enjoyment. Let’s explore the differences between educational, recreational, and sports activities for youth to understand their purposes better.
Providing job-seeking and interview skills training.
Conducting career-specific or job-related training.
Facilitating on-the-job training or co-op placements.
Additional Considerations: Activities fostering emotional and moral maturity, teamwork, cooperation, good citizenship, and leadership skills are also deemed educational, provided they incorporate structured teaching or learning components.
Social and Recreational Activities:
Definition: Social or recreational activities serve a charitable purpose only when they directly contribute to the well-being or development of young people.
Examples:
Supervised youth dances, movie nights, concerts, and sporting events.
Structured outings to museums, theaters, or zoos.
Guided visits to historical sites with educational components.
Supervised opportunities for learning appropriate social interaction skills.
Critical Factors: The degree of supervision, interaction, and the extent to which the activities align with the charitable purposes of the organization are crucial in determining their benefit.
Sports Activities:
Purpose: While promoting sports alone isn’t recognized as charitable, certain sports activities can benefit youth by fostering self-esteem, preventing addiction, or aiding in addiction recovery.
Criteria for Charitable Sports Activities:
Must be part of a structured program addressing identified youth issues.
It should demonstrate a causal connection between the activity and the charitable benefit.
The selection process should ensure at-risk youth benefit, although participation isn’t limited to them.
Drop-in Centers:
Purpose: Drop-in centers serve various charitable purposes, addressing issues such as violent behavior, drug addiction, or providing a safe space for latch-key children.
Key Elements:
The structured activities should target specific youth issues.
It should have adult supervision to ensure safety and facilitate conflict resolution.
Potential partnerships with social services, schools, and law enforcement agencies.
The question of whether youth activities are charitable depends on their intent, structure, and the extent to which they address identified youth issues. Understanding the distinction between educational, social, recreational, and sports activities helps in evaluating their charitable nature and ensuring that they contribute meaningfully to the well-being and development of young people.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Your Trusted Partner in International Bilateral Relations
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.
Northfield & Associates
Advancing Global Partnerships, Together.
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.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
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
Press contact
PR consultants 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.
Starting a foundation in Canada is a clear way to support causes that matter to us. It involves creating a registered charity that can raise funds and make grants or carry out its own charitable work.
The essential steps include incorporating a legal entity, applying for charitable registration with the Canada Revenue Agency (CRA), and setting up proper governance and funding.
Foundations come in two main types: private foundations, usually funded by an individual or family, and public foundations, which rely on donations from the public. Each has different rules about funding sources, governance, and operations, but both offer tax benefits and the ability to issue official donation receipts.
We will guide you through the process, including legal requirements, costs, and timelines. Understanding these details helps us make informed choices and set up a foundation that fits our goals.
Understanding Foundations in Canada
Do you want to start a foundation in Canada? If yes, you have come to the right place! This guide will provide you with the necessary steps to establish a foundation in Canada.
What are Foundations in Canada?
Foundations in Canada are set up either as trusts or corporations with the main goal of donating funds to qualified donees or conducting their own charitable activities.
How are Private Foundations Different from Charities?
Charities receive donations from various sources and actively engage in charitable work, whereas private foundations are typically funded by a single individual or family and may not directly carry out charitable activities (though they would be allowed to carry out charitable activities if provided for in their mandate).
Foundations in Canada play a key role in the charitable sector. They provide funding, support various causes, and follow specific legal and financial rules.
It’s important to understand the types of foundations, how they operate, and what role charities play in this landscape.
Types of Foundations
In Canada, foundations are registered charities that fall into two main categories: private foundations and public foundations. Both can be set up as trusts or corporations, but their funding sources and operations differ.
Private foundations are usually funded by a single donor, family, or corporation. They focus on making grants to other qualified organizations or sometimes run their own charitable activities.
Private foundations face stricter rules, such as annual spending requirements and limits on business activities.
Public foundations raise funds from the public, including individuals, organizations, and corporations. They often support multiple charities by granting a large portion of their income.
Public foundations generally have more donors and operate with greater public accountability.
Public vs. Private Foundations
The main difference between public and private foundations lies in their funding and governance.
Aspect
Private Foundation
Public Foundation
Funding Source
Mainly one individual/family/corp.
Funded by multiple public donors
Control
More controlled by founders
Governed by a board with many unrelated members
Spending Requirements
Must spend 3.5% of assets annually
Same 3.5% spending rule but usually more flexible
Activities
Often focused, fewer programs
Broader range of charitable activities
Tax Regulations
Stricter limits on business and political activities
More operational freedom
Private foundations offer more control to founders but require sufficient initial funding. Public foundations depend on broad community support and follow different governance rules to maintain charitable status.
Role of Charities in the Sector
Charities in Canada include foundations and other groups that perform charitable work. Foundations mainly provide funding to these charities or run their own programs to serve public causes.
Registered charities deliver services, fund research, and support communities. Foundations help channel funds effectively and must register with the Canada Revenue Agency (CRA), which oversees compliance and grants charitable status.
Charitable registration allows foundations to issue donation receipts and receive tax benefits. This encourages philanthropy and makes it easier for individuals and corporations to support causes through foundations.
Steps to Start a Foundation in Canada
1. Seek Professional Guidance: It’s recommended to consult with a charity lawyer or someone with a comprehensive understanding of Canadian charity laws and regulations regarding foundations before beginning the setup process. This will help ensure that you comply with all legal requirements and regulations and avoid any potential legal issues in the future.
2. Understand Legal Obligations: All foundations in Canada must register with the CRA Charities Directorate as charities, which entails specific advantages and responsibilities. Failure to register as a charity subjects the foundation to income tax obligations and restricts its ability to issue tax receipts to donors.
3. Establish the Foundation: Establish the foundation as a legal entity, either as a nonprofit corporation or trust, in accordance with provincial, territorial, or federal legislation.
4. Apply for Charitable Registration: Apply for charitable registration through the Canada Revenue Agency (CRA). The application process involves providing comprehensive documentation and outlining the intended activities of the foundation. The CRA determines the charity’s designation, whether it’s a charitable organization, public foundation, or private foundation, based on factors such as funding sources and operational goals.
Key Legal and Regulatory Requirements
Starting a foundation in Canada means following clear rules set by the government. We need to create solid governing documents, define charitable purposes, and work closely with the Canada Revenue Agency (CRA) to meet all legal standards.
Legal Structure and Governing Documents
Foundations must choose the right legal structure. Most are incorporated as either a charitable organization, public foundation, or private foundation.
Incorporation provides limited liability and formal recognition under Canadian law.
We draft key governing documents, including the letters patent or articles of incorporation. These documents explain the foundation’s mission, rules for operation, and power limits.
They must include legal objects that describe the foundation’s charitable purposes in clear terms.
Our governing documents set out the board’s powers and responsibilities. They ensure compliance with CRA rules and relevant provincial laws.
Independent legal advice helps avoid costly mistakes and ensures all regulatory requirements are met.
Charitable Purposes and Eligibility Criteria
To qualify as a registered charity, a foundation’s purposes must fall within categories approved by the CRA. These include relief of poverty, advancement of education, advancement of religion, and other community benefits.
We need to state our charitable purposes precisely because they define what activities we can legally carry out. The CRA reviews this carefully during registration.
The foundation must operate exclusively for charitable purposes and benefit the public. Foundations that serve private interests or individuals generally won’t qualify.
Meeting these criteria is essential to obtain and maintain charitable registration. This gives tax advantages and allows official fundraising.
Working with the Charities Directorate
The Charities Directorate of the CRA oversees all registered charities, including foundations. We submit a detailed application, providing governing documents, descriptions of activities, and financial plans.
After registration, we file annual returns and financial statements with the Directorate. These reports show compliance with Canadian charity law.
Failure to follow their rules can result in penalties, loss of registration, or other sanctions. The Directorate also provides guidance and tools to help us meet reporting and operational standards.
Staying in regular contact with the Charities Directorate benefits our foundation’s transparency and long-term stability. It helps us maintain public trust and comply with Canada’s charitable regulations.
Understanding Registered Charity Designations
Registered charities in Canada are categorized into three designations:
Charitable Organization:
– Established as a corporation, trust, or under a constitution. – Primarily conducts its own charitable activities and receives funding from various donors. – More than 50% of its directors, trustees, or officials maintain arm’s-length relationships.
Public Foundation:
– Established as a corporation or trust. – Allocates more than 50% of its annual income to other qualified donees, typically other registered charities, while also engaging in charitable activities. – Maintains arm’s-length relationships among the majority of its directors, trustees, or officials.
Private Foundation:
– Established as a corporation or trust. – Conducts its charitable activities or funds other qualified donees, often other registered charities. – Less than 50% of its directors, trustees, or officials have arm’s-length relationships, or a significant portion of its funding comes from a controlling individual or group.
Financial Considerations for Establishing a Foundation
Setting up a foundation in Canada often requires the expertise of financial or legal professionals. Costs may vary, with legal fees ranging from $5000 to $15,000 for comprehensive assistance. We recommend obtaining 3-5 quotes from charity law firms to find the best fit for your legal needs. Additionally, incorporating a Canadian nonprofit without charity status typically incurs legal fees of $2,000 to $3,000.
Tax Implications for Nonprofits in Canada
Nonprofit organizations and registered charities, including foundations, in Canada are generally exempt from paying income tax under Section 149 of the Income Tax Act.
Application and Registration Procedures
Starting a foundation in Canada involves precise steps to become a legal and tax-recognized entity. We need to handle registration with the Canada Revenue Agency (CRA), secure charitable status, and set up a dedicated foundation account to manage finances transparently.
Registering with the CRA
Our first step is to register the foundation with the Canada Revenue Agency (CRA). We submit Form T1789, the Application to Register a Charity Under the Income Tax Act.
The form asks for detailed information about our organization’s structure, including governance and decision-making processes.
We must prepare and include key documents such as the foundation’s governing documents, a description of activities, and financial plans. The CRA uses this information to confirm that our foundation meets the legal requirements.
Completing the application carefully is essential because any missing or incorrect information may delay the process. The CRA reviews applications thoroughly, and it can take several months before we receive approval.
Obtaining Charitable Status
Obtaining charitable status allows us to issue official donation receipts and receive tax benefits. Our application must show that the foundation’s activities serve charitable purposes recognized by Canadian law, such as education, relief of poverty, or advancement of religion.
Once registered, the foundation must meet CRA compliance rules, including filing annual information returns and ensuring funds are used for the stated charitable purposes.
Charitable status also means public accountability. We must keep detailed records, submit reports on activities, and be transparent about our governance and finances.
Foundation Account Set-Up
After registration, we set up a separate bank account dedicated to the foundation. This “foundation account” keeps all donations and expenditures separate from personal or business finances.
Using this account helps us maintain clear financial records for CRA reporting and audit purposes. Many financial institutions offer accounts for non-profits, which can include features like no monthly fees or cheque-writing privileges.
We should also put internal controls in place, like authorizations for expenditures and regular reconciliations. These steps build trust with donors and the CRA, ensuring funds are managed and accounted for properly.
Benefits of Establishing a Foundation
Starting a foundation in Canada offers numerous advantages, such as:
a. Promoting Positive Change: Foundations enable individuals or families to contribute to charitable causes and create a lasting impact. b. Family Involvement: Private foundations often involve multiple family members, promoting a sense of unity and philanthropic values across generations. c. Tax Benefits: Foundations enjoy tax advantages, including donation receipts, charitable tax credits, and exemption from income tax. d. Control and Decision-Making: Foundation founders retain control over ownership and decision-making processes, ensuring alignment with their philanthropic vision.
Fundraising, Management, and Ongoing Compliance
When running a foundation in Canada, we must carefully manage fundraising, investments, and legal requirements. Staying organized helps secure funding, meet government rules, and maintain public trust.
Tax Receipts and Reporting
We can issue official tax receipts to donors once our foundation is registered with the Canada Revenue Agency (CRA) as a charity. These receipts allow donors to claim charitable tax credits on their income taxes.
The CRA requires us to keep accurate records of all donations and issue receipts promptly. We must ensure our receipts meet CRA standards, including the donor’s name, amount donated, and the foundation’s registration number.
Failing to comply with CRA rules on tax receipts can lead to penalties or loss of charitable status. We also report annually to the CRA’s Charities Directorate, showing how donations were used and confirming our ongoing charitable activities.
Investment and Grantmaking Practices
Our foundation must follow strict rules about investing and distributing funds. The CRA requires foundations to spend at least 3.5% of their assets each year on charitable activities or grants to qualified donees.
We should set clear investment policies to balance growth and risk. Investments must align with the foundation’s charitable purposes and not jeopardize its tax-exempt status.
Grantmaking decisions should be transparent and based on objective criteria. We need to document how grants support our charitable goals and ensure recipients are eligible under CRA guidelines.
Proper management prevents conflicts of interest and maintains donor confidence.
Annual Reporting and Transparency
Each year, we file a T3010 Registered Charity Information Return with the CRA. This report provides financial statements, descriptions of our programs, and governance information.
Transparency is critical. Our annual reports must show how funds were raised and spent.
We must disclose executive salaries, conflicts of interest, and fundraising costs.
The CRA monitors these reports to ensure compliance. Incomplete or late submissions risk investigations, penalties, or revocation of charitable status.
Communicating openly with donors and the public strengthens our foundation’s reputation.
Special Considerations in the Canadian Context
When starting a foundation in Canada, there are important cultural and legal factors to keep in mind. Indigenous rights, treaty obligations, and relationships with existing foundations shape how we design and operate our organization.
These factors guide how we support communities and respect nation-to-nation agreements.
Supporting Indigenous Peoples and Treaty Considerations
In Canada, Indigenous peoples have unique legal rights protected by treaties and the Constitution. Our foundation must recognize these rights when engaging in projects that affect Indigenous communities.
This means respecting treaty agreements and ensuring we consult relevant Indigenous groups before starting any work on their lands or involving their people.
Supporting Indigenous peoples can include funding programs for education, health, or cultural preservation that align with their priorities. We should also consider co-developing initiatives with Indigenous partners to reflect their knowledge and perspectives.
This approach honours Indigenous sovereignty and strengthens trust between our foundation and the communities we serve.
Nation-to-Nation Relationships
Canada’s government recognises Indigenous peoples as distinct nations with their own governance systems. Our foundation can benefit by acknowledging these nation-to-nation relationships.
We should work collaboratively with Indigenous governments. This means treating Indigenous leaders as equals in decision-making.
We must design our foundation’s governance and funding policies to reflect this respect. Engaging in early dialogue with Indigenous nations helps us align projects with their goals and values.
Recognizing nation-to-nation relationships reduces misunderstandings and legal issues. This approach ensures our foundation operates fairly and responsibly.
Collaborating with Established Foundations
Partnering with foundations that focus on Indigenous or treaty-related causes is a practical step. Established foundations have expertise, networks, and trust with communities and governments.
We can collaborate through joint funding, shared governance, or by supporting ongoing programs. Working together helps us avoid duplicating efforts and maximise our impact.
We also learn from their experience with legal requirements and cultural sensitivities. This collaboration creates stronger, more sustainable projects for the communities we aim to support.
Conclusion
Establishing a foundation in Canada requires careful consideration, planning, and adherence to legal regulations. Seeking professional guidance, understanding legal obligations, and applying for charitable registration are crucial steps in the process. While there are financial and administrative considerations involved in setting up a foundation, the benefits of creating a lasting impact, promoting philanthropic values, and enjoying tax advantages make it a worthwhile endeavor.
Looking to start a foundation in Canada? The experienced charity lawyers at Northfield & Associates have set up numerous foundations across Canada, for philanthropists in Toronto, Vancouver, Montreal, Ottawa, Calgary, Winnipeg, Mississauga and more. Our team has incorporated and filed Foundation registration applications in as little as 3 days. Our process is streamlined and fast, and we can register your foundation typically in 3-4 months (unless there is a CRA backlog, which happens from time to time) from the time we are engaged.
Schedule your FREE consultation
Frequently Asked Questions
Starting a foundation in Canada involves legal steps, funding requirements, and registration with the Canada Revenue Agency (CRA). You must decide the type of foundation and understand the costs and operations involved.
How do you start a foundation in Canada?
We begin by choosing the foundation type: private or public. Next, we incorporate the foundation as a trust or corporation under federal or provincial law.
Then, we apply for charitable registration with the CRA and set up governance structures. Adequate funding to meet legal requirements is essential.
What is a foundation in Canada?
A foundation is a registered charity created to support charitable causes. It can be public, receiving donations from the public, or private, mainly funded by one individual, family, or corporation.
Foundations make grants or run their own programs to fulfill their mission.
How to set up a charitable foundation in Canada
We must establish a legal entity and draft governing documents. Then, we apply for charitable status with the CRA.
This process includes proving the foundation’s purpose is charitable and meets CRA guidelines. Proper governance and funding plans are critical for approval.
How to register a foundation in Canada
Registration requires submitting an application to the CRA with detailed documentation. We provide information about the foundation’s structure, activities, funding sources, and governance.
The CRA reviews the application to confirm it meets legal and charitable standards.
How much does it cost to start a foundation?
Legal and registration fees typically range from $5,000 to $15,000. This includes incorporation costs, legal advice, and CRA application fees.
Ongoing costs like accounting and administration should also be considered before starting.
How do charitable foundations work?
Foundations collect funds and use those to support charitable activities or grant other registered charities. Private foundations mainly fund others or operate their own programs under strict rules.
Public foundations raise money from many donors and support multiple causes.
What does a foundation do?
A foundation supports charitable causes by making grants, running programs, or both. It helps individuals, families, or communities create lasting social impact.
Foundations may also engage family members or donors in philanthropy and manage donated assets responsibly.
How to create a foundation in Canada?
Start by planning the charitable purpose of your foundation. Next, incorporate the organization.
Apply for registration with the CRA. Make sure you follow federal or provincial laws.
Prepare to meet operational and fundraising requirements. Seek professional advice to help with the process.
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.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. 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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
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.
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 free 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.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
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.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
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.
Must a Canadian Charity Provide Donation Receipts?
Donors expect tax receipts for their charitable contributions, but many wonder whether Canadian charities must provide them by law.
Canadian charities are not legally required to issue donation receipts. However, registered charities that choose to issue receipts must follow strict Canada Revenue Agency rules about format, timing, and eligible donations. Only registered charities can issue official donation receipts that donors can use for tax deductions.
This article explores when charities must issue receipts, what rules they must follow, and how these requirements affect both donors and charitable organizations across Canada.
Are Canadian Charities Obligated to Provide Donation Receipts?
Canadian law does not require charities to issue donation receipts. Understanding the voluntary nature of receipting helps organizations develop appropriate policies.
Legal Requirements for Issuing Receipts
Canadian law does not force charities to issue donation receipts. The Canada Revenue Agency allows registered charities to choose whether they provide receipts to donors. This means charities can accept donations without giving any receipt at all.
However, once a charity decides to issue receipts, it must follow specific CRA guidelines. These rules cover receipt format, required information, and timing of issuance. Charities that issue receipts incorrectly risk losing their registered status.
Only registered charities can issue official donation receipts that qualify for tax deductions. Non-registered organizations, even if they do charitable work, cannot provide tax-deductible receipts to their supporters.
Charity Discretion and Internal Policies
Most charities develop internal policies about when and how they issue receipts. These policies often depend on donation size, donor relationship, and administrative capacity. Small charities might only issue receipts for donations over a certain amount to manage costs.
Charities can set minimum thresholds for receipt issuance. For example, an organization might only provide receipts for donations of $20 or more. This practice helps reduce administrative burden while still serving donors who need tax documentation.
Some charities issue receipts automatically for all donations, while others require donors to specifically request them. Both approaches are legally acceptable as long as the charity communicates its policy clearly to donors.
Transparency with Donors
Clear communication about receipt policies protects both charities and donors. Charities should inform potential donors about their receipt practices before accepting donations. This prevents misunderstandings and ensures donors can make informed giving decisions.
Donors who need tax receipts should ask about a charity’s receipt policy before making their contribution. This is especially important for year-end giving when donors need receipts by December 31st for that tax year.
Charities benefit from having written receipt policies that staff can reference consistently. These policies should address donation minimums, processing timelines, and replacement procedures for lost receipts.
Who Can Issue Official Donation Receipts in Canada?
Only qualified donees recognized by the CRA can issue tax-deductible donation receipts. This status determines which organizations can provide valid receipts to donors.
Registered Charities versus Qualified Donees
Only qualified donees can issue official donation receipts that allow tax deductions in Canada. The Canada Revenue Agency maintains a strict list of organizations that qualify for this status. Most qualified donees are registered charities, but the category includes other specific organization types.
Registered charities form the largest group of qualified donees. These organizations must apply for registration with the CRA and meet ongoing compliance requirements. They receive a unique registration number that must appear on all official receipts.
Other qualified donees include registered Canadian amateur athletic associations, housing corporations, municipalities, universities, and certain government bodies. Each type has specific eligibility criteria and operates under different regulatory frameworks.
Non-profit organizations that are not registered as charities cannot issue tax-deductible receipts. Even if these groups do excellent charitable work, their donors cannot claim tax deductions for contributions without proper qualified donee status.
Registration Number Requirements
Every official donation receipt must display the organization’s CRA registration number. This number proves the organization’s qualified donee status and allows the CRA to verify receipt authenticity during tax filing.
The registration number follows a specific format: a nine-digit number followed by two letters (RR for registered charity). For example, a typical number looks like 123456789RR0001. This number must appear clearly on every receipt.
Donors should always verify registration numbers before claiming tax deductions. The CRA provides an online search tool where anyone can confirm an organization’s registered status and view its registration details.
Organizations that use incorrect or outdated registration numbers on receipts create problems for donors and face potential penalties. Charities must update their receipt templates immediately after any registration changes.
Consequences of Non-Compliance
Charities that issue improper receipts face serious penalties from the CRA. These consequences can include monetary penalties, suspension of receipting privileges, or complete revocation of charitable status.
The CRA conducts regular audits of charitable organizations and their receipting practices. Auditors examine receipt formats, donation records, and compliance with timing requirements. Organizations with poor receipting practices often trigger more frequent audits.
Donors who claim deductions using invalid receipts may face tax reassessments and penalties. The CRA can disallow claimed donations and charge interest on additional taxes owed. This creates problems for donors who trusted the organization’s receipt validity.
Loss of charitable status represents the most severe consequence for non-compliant organizations. Once revoked, organizations cannot issue receipts, may owe taxes on accumulated assets, and face significant barriers to re-registration.
What Constitutes an Official Donation Receipt?
Official receipts must meet specific CRA requirements to be valid for tax purposes. Missing elements can invalidate receipts and prevent donors from claiming tax credits.
Mandatory Information on Receipts
The CRA requires specific information on every official donation receipt. Missing any required element makes the receipt invalid for tax purposes. Charities must include:
Organization’s complete legal name and address
Registration number (format: 123456789RR0001)
Receipt serial number for tracking
Date of donation and receipt issue date
Donor’s complete name and address
Donation amount in Canadian dollars
Description of donated items (for gifts-in-kind)
Statement that the receipt is for income tax purposes
Authorized signature from organization representative
Receipts must clearly state the donation amount. For cash donations, charities list the exact dollar figure. For gifts-in-kind, they must include fair market value determined by qualified appraisal.
The receipt must specify whether the donor received any advantage in return. If the donor got goods or services worth more than minimal value, the receipt must show the eligible donation amount after deducting the advantage value.
Every receipt needs a unique serial number that the charity can track. This number helps the CRA verify receipt authenticity and prevents duplicate claims. Charities design their own numbering systems but must ensure each receipt has a distinct identifier.
Most organizations use sequential numbering systems like 2024-001, 2024-002, etc. Others combine letters and numbers or include location codes. The system doesn’t matter as long as each receipt gets a unique number.
Charities must maintain detailed records linking each serial number to:
Donor information
Donation details
Issue date
Supporting documentation
These records help charities respond to CRA inquiries and replace lost receipts. The CRA requires organizations to keep these records for at least two years after the last tax return filing deadline.
Authorized Signatures and Validity
Official receipts require signatures from authorized organization representatives. The CRA doesn’t specify who can sign, but charities typically authorize board members, senior staff, or designated volunteers.
Organizations should maintain a list of authorized signers and update it regularly. Staff changes, board turnover, and policy updates can affect who has signing authority. Current signers need access to signature specimens for consistency.
Digital signatures are acceptable if they meet security requirements. Electronic receipt systems must prevent unauthorized access and maintain audit trails. Many charities use password-protected systems with user authentication.
Receipts become valid when the charity issues them, not when donors receive them. However, donors need receipts by December 31st to claim deductions for that tax year. This timing requirement affects year-end donation processing and mailing schedules.
Types of Gifts and Issuing Appropriate Receipts
Different donation types require specific receipting approaches. Cash gifts are straightforward, while non-cash donations need valuation. Split receipting applies when donors receive benefits.
Cash Donations and Receipts
Charities issue receipts for exact amounts received through cash, cheque, credit card, or electronic transfer. Processing fees don’t reduce the receipt amount.
Monthly donations can use individual receipts or annual summaries. Failed payments require record adjustments to match actual funds received.
Non-Cash Gifts and Fair Market Value
Non-cash gifts require fair market value determination. The CRA requires professional appraisals for gifts over $1,000.
Valuation rules:
Securities: Closing price on donation date
Real estate: Professional appraisal required
Artwork: Qualified art appraiser assessment
Vehicles: Recognized valuation guides
Receipts must describe gifts specifically, not with generic terms like “household goods.”
Split Receipting and Advantages
Split receipting applies when donors receive benefits. Receipts show eligible donation amounts after deducting advantage values.
Common examples:
Charity auction purchases
Fundraising dinner tickets
Golf tournament fees
Premium gifts
If advantage value exceeds 80% of payment, no receipt can be issued. For payments under $75, advantages under $75 don’t affect receipt amounts.
Charities should communicate advantage calculations before events to prevent donor disappointment.
Eligible and Ineligible Donations for Receipting
Not all payments qualify for donation receipts. Understanding eligibility rules helps charities issue proper receipts and avoid CRA penalties.
Gifts that Qualify for Receipts
True gifts made voluntarily without expectation of benefit qualify for receipts. Donors must transfer property ownership to the charity with no strings attached.
The CRA sets no minimum amount for donation receipts. Charities can choose their own thresholds based on administrative costs.
Common minimum amounts:
$10 for online donations
$20 for mail-in gifts
$25 for event donations
Charities must apply minimums consistently and communicate policies clearly to donors.
Business and Sponsorship Contributions
Business payments often mix charitable donations with sponsorship benefits. Only the charitable portion qualifies for receipts.
Corporate sponsorships typically include:
Logo placement and recognition
Promotional opportunities
Networking access
Marketing materials
Charities must calculate fair market value of benefits provided. The receipt shows payment minus benefit value. Pure donations from businesses without benefits qualify for full receipts.
Implications for Donors and Charities
Donation receipts create obligations and opportunities for both parties. Understanding tax implications and record-keeping requirements ensures compliance.
Tax Credits and Deductibility
Donors receive non-refundable tax credits, not deductions, for charitable donations. Credits reduce taxes owed dollar-for-dollar up to specified limits.
Federal tax credit rates:
15% on first $200 donated annually
29% on amounts over $200
Additional 4% for high-income earners
Provincial credits vary by jurisdiction. Combined federal-provincial credits can exceed 40% in some provinces.
Donors can carry forward unused credits for up to five years if annual limits prevent full use.
Income Tax Purposes and Reporting
Donors claim charitable donations on their tax returns using official receipts. The CRA matches receipt information with charity records during processing.
Annual donation limits:
75% of net income for most donations
100% of net income for certain gifts
No limit for donations to Crown, provinces, or municipalities
Married couples can combine donations on one return to maximize higher credit rates on amounts over $200.
Record Keeping and CRA Audits
Donors must keep original receipts for six years after filing their tax return. Digital copies are acceptable if they meet CRA standards.
The CRA audits both donors and charities. Auditors verify:
Receipt authenticity and format
Donation amounts and dates
Charity registration status
Proper advantage calculations
Charities must maintain donor records for a minimum of two years. Best practice involves keeping records longer to support donor relationships and audit requests.
Poor record keeping can result in denied tax credits for donors and penalties for charities. Electronic systems help maintain organized, accessible records.
Canadian charities are not legally required to issue donation receipts, but those who choose to must follow strict CRA guidelines. Only registered charities can issue official receipts that qualify for tax credits.
Understanding receipt requirements protects both charities and donors from costly mistakes. Proper compliance prevents penalties and maintains charitable status while building stronger donor relationships.
For expert guidance on charitable compliance and donation receipt requirements, connect with experienced charity law professionals.
Common questions about Canadian charity receipts and their requirements. These answers provide quick guidance for donors and charitable organizations.
What is required on a charity receipt in Canada?
Canadian charity receipts must include the organization’s legal name and address, CRA registration number, unique serial number, donation date, donor’s name and address, donation amount, and an authorized signature.
What legally needs to be on a receipt in Canada?
The CRA requires receipts to show the charity’s registration number, serial number, donation amount, donor information, and a statement that the receipt is for income tax purposes. Missing any element makes the receipt invalid.
How to generate a donation receipt?
Create receipts using the charity’s official template with all required information. Assign unique serial numbers, obtain authorized signatures, and maintain detailed records linking each receipt to donor and donation details.
How to acknowledge receipt of donation?
Send thank-you letters separate from official tax receipts. Acknowledgements can be informal but should confirm the donation amount and express gratitude. Tax receipts serve the legal purpose of enabling tax credits.
What should be included in a valid donation receipt for tax purposes?
Valid receipts include charity name, address, registration number, receipt serial number, donation date, donor details, amount, description of gift (if non-cash), advantage calculation (if applicable), and authorized signature.
By what deadline must Canadian charities issue tax receipts for donations?
The CRA requires no specific deadline for issuing receipts. However, donors need receipts by December 31st to claim tax credits for that year. Most charities issue receipts immediately or within 30 days of receiving donations.
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.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. 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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
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.
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 free 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.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
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.
NORTHFIELD & ASSOCIATES in Canada
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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
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Media Contact:
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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.
When charities receive donations with specific instructions from donors, they must handle these restricted funds differently from regular donations.
Restricted funds require separate tracking, careful documentation, and precise reporting to ensure every dollar goes exactly where the donor intended. Mismanaging these funds can lead to serious problems, including fines, lawsuits, or loss of charitable status.
This guide walks through the essential steps for handling restricted fund accounting properly. We’ll cover the core principles you need to know, different types of restrictions you might encounter, and practical systems for tracking and reporting on these funds. You’ll also learn about internal controls that protect your organization and ensure compliance with accounting standards.
Core Principles of Restricted Fund Accounting
Restricted fund accounting operates on three key foundations.
First, we must clearly separate funds with and without donor limitations.
Second, we need systematic tracking methods that honor donor wishes.
Third, we must strictly follow how donors intend their gifts to be used.
Definition of Restricted and Unrestricted Funds
Restricted funds are donations that donors have designated for specific purposes.
We cannot use these funds for any other activities without the donor’s permission.
These funds come with clear instructions.
A donor might give money for building repairs, youth programs, or medical equipment.
Unrestricted funds have no donor-imposed limitations.
We can use these donations for any legitimate organizational purpose.
Unrestricted funds help cover general expenses like staff salaries, utilities, rent, office supplies, and emergency needs.
The key difference lies in flexibility.
Restricted funds must follow donor rules exactly, while unrestricted funds let us address our most pressing needs.
Both types are important.
Restricted funds often support specific programs, and unrestricted funds keep our operations running smoothly.
Purpose and Significance of Fund Accounting
Fund accounting helps us track different types of donations separately.
This system ensures we use each gift according to donor wishes.
We must report restricted and unrestricted funds in different categories.
This separation shows donors and regulators how we manage their contributions.
Financial statements require three main sections:
Without donor restrictions (unrestricted funds)
With donor restrictions (temporarily restricted)
With donor restrictions (permanently restricted)
This accounting method builds trust with donors.
They can see exactly how we used their specific gifts.
Fund accounting also protects our organization legally.
Mixing restricted funds with general funds can lead to fines, lawsuits, or loss of charitable status.
The system helps us plan better budgets.
We know which funds are available for general use and which have specific purposes.
Donor Intent and Donor Restrictions
Donor intent represents the specific purpose a donor had in mind when making their gift.
We must understand and document these intentions clearly.
Common types of donor restrictions include:
Time restrictions (use funds within certain dates)
Purpose restrictions (specific programs or projects)
We cannot change donor restrictions without written permission.
If a project costs less than expected, we cannot automatically use leftover funds elsewhere.
Documentation is crucial.
We must keep records of all donor communications and agreements, including emails, letters, and grant agreements.
When restrictions become impossible to follow, we must contact the donor.
Sometimes circumstances change and original plans no longer work.
Clear communication prevents problems.
We should discuss any concerns about restrictions before accepting large gifts.
Types of Restricted Funds in Charities
Charities receive donations with different types of restrictions that affect how and when funds can be used.
These restrictions fall into three main categories based on time limits, permanence, and specific purposes outlined by donors.
Temporarily Restricted Funds
Temporarily restricted funds have donor-imposed limitations that expire over time or when certain conditions are met.
These restrictions typically involve time restrictions or specific project completion requirements.
Common examples include donations for annual programs or multi-year initiatives.
A donor might give $25,000 for youth programs to be spent over three years.
Once we use the funds according to the donor’s wishes, the restrictions are released.
Time restrictions are the most frequent type of temporary restriction.
Donors specify when funds must be used, such as “for the 2026 summer camp program” or “to be spent within five years of receipt.”
We must track these funds carefully in our financial records.
When restrictions are satisfied, we transfer the funds from temporarily restricted to unrestricted net assets on our statement of activities.
Temporary restrictions will eventually be lifted.
This gives us more flexibility in long-term planning once conditions are met.
Permanently Restricted Funds
Permanently restricted funds maintain donor restrictions that never expire.
The principal amount must remain intact forever, though we can often use investment earnings according to donor specifications.
Endowments are the most common type of permanently restricted funds.
Donors create endowments to provide ongoing income for specific purposes while preserving the original gift amount.
For example, a $100,000 endowment for scholarships means we keep the $100,000 invested permanently.
We can use the annual investment earnings to fund scholarships, but the original amount stays untouched.
These funds require special investment management and accounting treatment.
We must maintain detailed records showing the original gift amount and any accumulated earnings or losses.
Legacy gifts often come with permanent restrictions.
Donors want their contributions to support our mission indefinitely, creating lasting impact beyond their lifetime.
Purpose-Restricted Funds
Purpose-restricted funds must be used for specific programs, activities, or expenses as designated by the donor.
These restrictions focus on how funds are spent rather than when they’re spent.
Purpose restrictions can be narrow or broad.
A donor might restrict funds for “veterinary supplies” (narrow) or “animal care programs” (broad).
We must honor the exact wording of the restriction.
Common categories include:
Program-specific donations for particular services
Capital campaigns for buildings or equipment
Operating expenses like rent or utilities
Staff salaries for specific positions
We need separate tracking systems for each purpose-restricted fund.
Our accounting records must clearly show which expenses are charged against which restricted funds.
Some donors combine purpose and time restrictions.
A gift might be restricted for “education programs in 2025 only,” creating both purpose and temporary restrictions we must manage at the same time.
Establishing and Tracking Restricted Income
Proper income identification and tracking systems ensure compliance with donor restrictions while maintaining accurate financial records.
Clear documentation and systematic tracking prevent misuse of restricted funds and support transparent reporting.
Identifying Restricted vs. Unrestricted Donations
We must clearly distinguish between restricted and unrestricted donations at the point of receipt.
Restricted income comes with specific donor-imposed limitations on how we can use the funds.
Unrestricted funds have no donor restrictions.
We can use these donations for any legitimate organizational purpose, including general operating expenses, administrative costs, or program activities.
Common types of restricted donations include:
Program-specific gifts for particular projects
Capital campaign contributions for buildings or equipment
Endowment funds with spending restrictions
Operating expense donations for specific costs like utilities
Time restrictions also matter.
Some donations must be used within specific timeframes, while others may be restricted until certain conditions are met.
We should document the restriction type immediately when receiving each donation.
This prevents confusion later and ensures proper accounting treatment.
Gift Instruments and Documentation
Every restricted donation requires proper documentation to capture donor intent accurately.
Gift instruments serve as legal proof of the donor’s wishes and restriction terms.
Key documentation includes:
Written donor correspondence stating restrictions
Grant agreements outlining fund usage requirements
Pledge cards with specific designation fields
Donation receipts noting any restrictions
We must review all gift documentation carefully before accepting restricted funds.
If restrictions conflict with our mission or capacity, we should discuss modifications with the donor or decline the gift.
Store original documentation in secure files linked to our accounting system.
Digital copies provide backup access while keeping organized records for audits.
Essential information to capture:
Exact restriction language from the donor
Start and end dates for time-restricted funds
Spending requirements or limitations
Reporting obligations to the donor
Clear documentation protects our organization and honors the donor’s wishes.
Implementing a Tracking Process
Our accounting system must separate restricted and unrestricted funds from the moment we receive them.
This requires specific procedures and internal controls.
Set up separate fund codes or accounts for each type of restriction.
Use distinct numbering systems that clearly identify the fund purpose and restriction type.
Tracking requirements include:
Fund Type
Account Setup
Reporting Needs
Unrestricted
General operating accounts
Statement of activities
Temporarily restricted
Separate fund codes
Restriction tracking reports
Permanently restricted
Endowment accounts
Investment performance reports
Record all restricted income in the appropriate fund account immediately upon receipt.
Never deposit restricted funds into general unrestricted accounts, even temporarily.
Monthly reconciliation ensures restricted fund balances match donor restrictions.
Compare actual spending against allowable uses for each restricted fund.
We should generate regular reports showing restricted fund activity.
These reports help management monitor compliance and provide transparency to donors about how we use their gifts.
Train all staff who handle donations on proper restriction identification and recording procedures.
Consistent processes prevent errors that could lead to compliance issues.
Proper accounting for restricted funds requires careful tracking and allocation methods that maintain donor restrictions and ensure accurate financial reporting.
We must record these funds separately from unrestricted donations and allocate expenses according to specific guidelines.
Recording Restricted Funds
We need to set up our accounting system to track restricted funds separately from unrestricted donations.
This starts with creating distinct accounting codes or fund accounts for each type of restriction.
Our chart of accounts should include separate categories for temporarily restricted and permanently restricted net assets.
We record restricted donations in these specific accounts when we receive them.
The balance sheet must show restricted funds as separate line items.
We cannot mix restricted and unrestricted net assets together on our financial statements.
We should establish separate bank accounts for major restricted funds when possible.
This makes tracking easier and reduces the risk of accidentally spending restricted money on the wrong purpose.
Our accounting system needs to track each restriction’s purpose, timeline, and remaining balance.
We must document exactly what each donor specified when they made their gift.
When we spend restricted funds, we move the money from restricted net assets to unrestricted net assets.
This shows that we have met the donor’s requirements.
Expense Allocation and Indirect Costs
We can only charge expenses to restricted funds if they directly relate to the restricted purpose.
Direct costs like program supplies or staff salaries for specific projects are usually acceptable.
Indirect costs require more careful handling.
We can allocate administrative expenses like rent or utilities to restricted funds only if our organization has an approved indirect cost rate.
Many donors limit how much we can spend on overhead costs.
We need to check each restriction to see what percentage can go toward administrative expenses versus program costs.
We should create allocation formulas based on reasonable methods like staff time, square footage, or program budgets.
These formulas must be consistent and well-documented.
Our financial statements must show how we allocated expenses between restricted and unrestricted activities.
This transparency helps donors see how we used their gifts.
Financial Reporting and Compliance
Charities must follow specific reporting standards when handling restricted funds. This helps maintain donor trust and meet legal requirements.
Proper financial statements separate restricted and unrestricted net assets. Regulatory bodies require detailed documentation of how we use these funds.
Reporting in Financial Statements
We must clearly separate restricted and unrestricted funds in our financial statements. The statement of financial position shows net assets with donor restrictions and net assets without donor restrictions as distinct categories.
Our balance sheet displays restricted funds as separate line items. This separation helps readers understand which assets we can use freely and which have limitations.
The statement of activities breaks down revenue and expenses by restriction type. We list temporarily restricted funds that will become available when conditions are met.
Permanently restricted funds appear separately since these restrictions never expire.
Key Financial Statement Elements:
Statement of financial position with separated net assets
Statement of activities showing restricted revenue
Cash flow statements track restricted fund movements
Notes explaining restriction details and purposes
We must document all restriction details in the notes to the financial statements. These notes explain the nature of restrictions and when temporarily restricted funds might become available.
Regulatory Requirements for Charities
Charities face strict rules about restricted fund management from multiple regulatory bodies. We must maintain accurate records that prove we’re using restricted funds according to donor wishes.
Revenue agencies require us to file annual returns that detail our restricted fund activities. These filings must show how we’ve used restricted donations and whether we’ve met all donor conditions.
Provincial charity regulators often have additional reporting requirements. We may need to submit detailed financial reports that break down restricted fund usage by program or purpose.
Annual information returns with restricted fund details
Quarterly reports for large restricted donations
Special reporting for government grants
Documentation of donor communications and agreements
Failure to meet these requirements can result in penalties, loss of charitable status, or legal action. We must keep detailed records of all restricted fund transactions and decisions.
Producing Donor Reports
Donor reports build trust by showing exactly how we’ve used restricted funds. We should create clear, specific reports that demonstrate the impact of restricted donations.
Our donor reports include financial summaries showing how much we’ve spent and what remains. We provide program updates that connect spending to actual outcomes and beneficiaries.
Effective Donor Report Elements:
Financial breakdown of fund usage
Program outcomes and beneficiary stories
Photos or evidence of funded activities
Timeline of fund expenditure and remaining balance
We send reports at agreed intervals, typically quarterly or annually. Some donors require approval before we spend restricted funds, so we include spending plans in our reports.
Large restricted donations often need special reporting arrangements. We work with major donors to create custom reports that meet their specific information needs while protecting beneficiary privacy.
Effective Management and Internal Controls
Strong internal controls and proper management systems help charities track restricted funds accurately. The right technology and clear procedures make compliance easier while reducing the risk of fund misuse.
Best Practices for Managing Restricted Funds
We need to separate restricted funds from unrestricted money right from the start. This means creating different accounts or fund codes in our accounting system for each type of restriction.
Documentation is critical. We should record every detail about donor restrictions when we receive the gift.
This includes the specific purpose, any time limits, and what happens if we can’t use all the money.
Our team needs clear roles for who can approve spending from restricted funds. We recommend having at least two people review each expense before we pay it.
Regular monitoring keeps us on track. We should check our restricted fund balances monthly to make sure we’re not overspending.
This also helps us spot problems early.
We need to train our staff on the rules for restricted funds. Everyone who handles money should understand why we can’t move funds between different restrictions.
Implementing Internal Controls
Strong internal controls start with separating duties. We should have different people who receive donations, record them, and approve spending from restricted accounts.
Our approval process needs multiple levels. Small expenses might need one signature, but larger amounts should require two or more approvals from senior staff or board members.
We need regular reconciliation of our accounts. Someone who doesn’t handle the daily bookkeeping should review our restricted fund records each month.
Written policies protect our organisation. We should document exactly how we handle restricted funds, who can make decisions, and what steps we follow for different situations.
Our board should review restricted fund reports at each meeting. This oversight helps catch mistakes and shows donors we take their restrictions seriously.
Technology Solutions for Charities
Nonprofit accounting software makes managing restricted funds much easier than basic bookkeeping programs. These systems let us tag each donation with its specific restrictions automatically.
Fund accounting features are essential. We need software that can track multiple funds separately while still giving us organisation-wide financial reports.
Cloud-based systems help our team access restricted fund information from anywhere. This is especially helpful when multiple staff members need to check fund balances before making spending decisions.
Integration saves time and reduces errors. Our donation platform should connect directly to our accounting system so restricted gifts get coded properly from the start.
We should look for software that generates compliance reports automatically. This makes it easier to show donors and auditors how we’ve used their restricted gifts properly.
Conclusion
Managing restricted funds requires careful attention to detail and strong systems. When we track these donations properly, we build trust with donors and stay compliant with regulations.
The key steps are simple but important: understand donor rules, track funds separately, and budget carefully. Transparency helps us show donors how their money makes a difference.
Good restricted fund management protects our charity’s reputation and mission. It also helps us use every dollar the way donors intended. Ready to improve your charity’s fund accounting?
Navigating director compensation rules can be complex.
Contact Northfield & Associates for expert guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
Managing restricted funds raises many practical questions about proper accounting methods and compliance requirements. These common concerns focus on recording procedures, classification differences, and financial statement presentation.
What is a restricted account in accounting?
A restricted account holds donations that must be used for specific purposes set by the donor. We cannot use these funds for general operating expenses or other activities.
How do I record restricted funds?
Record restricted funds separately from unrestricted donations in your accounting system. Each restricted gift gets its own tracking code or fund designation, and your income statement must show restricted and unrestricted revenue in different categories.
What is the difference between restricted and unrestricted accounting?
Unrestricted funds have no donor limitations on how you use them. Restricted funds come with specific donor instructions that you must follow exactly. Your financial statements must separate these two types clearly.
Is restricted cash a liability or asset?
Restricted cash is an asset on your balance sheet. You own the money, but must use it according to donor instructions. Show restricted cash separately from unrestricted cash on your financial statements.
How do you show restricted funds on a balance sheet?
List restricted cash as a separate line item under assets. Your net assets section shows funds with donor restrictions separately from unrestricted net assets, as required by accounting standards.
What is an example of a restricted account?
A building fund where donors give money specifically for facility improvements. An endowment fund where you keep the original donation intact and only spend investment earnings. Program-specific donations like “for animal care only” must be tracked separately.
Ready for better nonprofit reporting?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Your Trusted Partner in International Bilateral Relations
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.
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Advancing Global Partnerships, Together.
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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.
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If you or anybody that you know, think that you meet the requirements and wish to receive further information.
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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
Press contact
PR consultants 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.
Are you involved in decision-making or representing a non-profit organization? This could mean holding the position of executive director or being a member of the board, among others. If that’s the case, it’s crucial to manage conflicts of interest effectively and prioritize the use of the non-profit’s resources towards achieving its mission. Upholding the organization’s best interests should always be your primary responsibility when carrying out tasks on behalf of the non-profit.
Effectively manage conflicts of interest
Identifying conflicts of interest can be a nuanced process, and avoidance may not always be possible. Here are the signs to look for and the actions to take if you come across one.
How to recognize conflicts of interest
A conflict of interest arises when an external observer could question whether your decisions on behalf of the non-profit were influenced by interests other than those of the organization. This encompasses situations where your personal interests or those of individuals you have a connection with, such as a spouse, employer, company you own shares in, or another organization you are involved with, could potentially sway your actions.
For instance, let’s consider a scenario where a non-profit’s board needs to purchase insurance for the organization. One of the directors on the board serves as an insurance advisor. If the non-profit chooses to buy insurance through this director, the director will receive a commission, thereby creating a conflict of interest.
While it’s advisable to avoid conflicts of interest, it may not always be feasible. In such cases, you must take the required actions to address the conflict of interest.
Steps directors must take when faced with a conflict of interest
Directors of Canadian non-profit organizations are required to promptly inform their fellow directors about any potential conflicts of interest they may have.
During the first board meeting, directors must disclose any interests they hold in another business or organization that could potentially conflict with the non-profit’s interests. If a new conflict of interest arises subsequently, it must be disclosed at the next board meeting.
If a director intends to enter into an agreement with the non-profit, specific rules must be followed. For instance, if a director wishes to purchase a property that the non-profit is selling, a conflict of interest arises. In such cases, the other directors must evaluate the offer’s alignment with the organization’s interests, and the conflicted director cannot take part in the discussion or vote on the matter.
In exceptional circumstances, conflicted directors may decide their own remuneration, but the amount must be reasonable. The meeting minutes must include information on any conflicts of interest and details of who participated in the decision-making or voting process.
Steps for executive directors to take when confronted with a conflict of interest
Executive directors of Canadian non-profit organizations must adhere to specific regulations when entering into an agreement with their organization. For instance, if an executive director wishes to sell something that the non-profit requires for its operations.
Despite usually being responsible for authorizing such agreements, an executive director with a conflict of interest cannot do so in such a scenario. The board must evaluate whether the offer aligns with the non-profit’s interests and authorize the executive director to enter into an agreement with the organization.
Utilize the resources of the non-profit organization to accomplish its mission
Non-profit organizations possess resources such as funding, property, or information, all of which are owned by the organization. It is necessary to utilize these resources towards fulfilling the non-profit’s mission.
Before utilizing these resources for a different purpose, it is essential to obtain consent from the individual or group to whom you are accountable. In the case of an executive director of a Canadian non-profit organization, the board’s approval is necessary, whereas board members must seek permission from the non-profit’s members.
Authorization is required to undertake activities such as:
Withdrawing funds from the non-profit’s bank accounts or utilizing its credit cards to pay for personal expenses, even if it is temporary.
Utilizing the assets of the non-profit for personal purposes.
Loaning the non-profit’s assets or money to someone or another organization with whom you have a relationship.
Utilizing confidential information about the non-profit or its operations to benefit yourself or any other person or organization.
If the person or people you ask for permission determine that your request is in the non-profit’s best interest, they can approve it. For instance, the non-profit could gain from leasing some of its vacant space to you for a fair rent.
Not following these regulations may lead to possible repercussions
If you fail to adhere to these rules, you could face severe consequences. If you act on behalf of the non-profit in a situation where you have a conflict of interest or misuse its resources without permission, the non-profit may take legal action against you. In such cases, the non-profit may ask the court to nullify your actions and require you to pay for any harm or profit incurred without permission.
In certain circumstances, other individuals may also take legal action against you. If you mishandle a conflict of interest and cause harm to someone, you could be held personally accountable for the damages.
Additionally, misusing a non-profit’s resources may constitute a crime, such as fraud, if you take money from the organization without authorization.
Lastly, the non-profit may remove you from your position as a director or executive director. If you have been found guilty of defrauding an organization or repeatedly violating non-profit laws, a court may even prohibit you from serving on any non-profit board for up to five years.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Your Trusted Partner in International Bilateral Relations
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.
Northfield & Associates
Advancing Global Partnerships, Together.
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.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
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
Press contact
PR consultants 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.
What is a Charitable Benefit, and Why Does It Matter When Applying to Become a Charity?
Are you thinking about registering your organization as a charity in Canada? Understanding charitable benefits is essential for CRA approval.
Many nonprofit leaders assume good intentions are enough. The Canada Revenue Agency requires proof that your work creates a real, measurable public benefit.
This guide explains what charitable benefits are, why they matter, and how to demonstrate them in your charity application.
Understanding Charitable Benefits in Canadian Charity Law
What is a Charitable Benefit?
A charitable benefit is the actual positive outcome your organization produces through its activities. It’s different from your charitable purpose, which is what you aim to achieve.
Think of it this way: your purpose is your goal, and your benefit is the result. For example, if your purpose is “advancing education,” your benefit might be “students gaining literacy skills.”
The CRA evaluates whether your activities will actually produce these benefits. They want to see concrete outcomes, not just hopeful plans.
Why Charitable Benefit Matters for Your Charity Application
The CRA rejects many charity applications because organizations can’t clearly explain their benefits. Vague descriptions like “helping people” or “making a difference” aren’t enough.
Your application must show how your work creates measurable, positive change. This requirement protects the public by ensuring charities deliver real value.
Once registered, you’ll need to report on these benefits annually. The CRA can revoke charitable status if your activities don’t align with your stated benefits.
The Three Essential Requirements for a Valid Charitable Benefit
1. Recognizable and Tangible Benefits
Your charitable benefit must be something people can see, measure, or objectively verify. Abstract or spiritual benefits alone won’t satisfy CRA requirements.
Consider a charity that provides meals to homeless individuals. The tangible benefit is clear: people receive food and nutrition.
An educational program shows tangible benefits through improved test scores or acquired skills. A health clinic demonstrates benefit through medical services delivered and patients treated.
What the CRA considers insufficient:
Vague claims about “raising awareness”
Benefits that can’t be measured or observed
Outcomes that are purely subjective
You need to describe specific, observable results. Show the CRA exactly what changes because of your work.
2. Socially Useful Benefits
Your benefit must serve the public good, not just private interests. The CRA calls this “public benefit.”
A charity that provides scholarships to low-income students creates a public benefit. Society gains educated citizens who can contribute to their communities.
Private benefit happens when activities primarily help the organization’s founders, their families, or a closed group. This disqualifies your organization from charitable status.
Common public benefit examples:
Community health programs that serve anyone in need
Environmental conservation that improves shared spaces
Arts programs that enrich cultural life for all
Food banks that help anyone facing hunger
The key question is: Does your work make society better? If yes, you’re likely creating public benefit.
3. Benefits Related to Your Organization’s Charitable Purpose
Everything you do must connect directly to your stated charitable purpose. Random good deeds don’t count.
If your purpose is animal welfare, running a pet adoption program relates directly. Hosting unrelated fundraising events might support your work, but they’re not the charitable benefit itself.
The CRA wants to see logical connections. Your activities should be necessary and reasonable ways to achieve your purpose.
This shows a clear, direct connection between purpose, activity, and benefit.
How to Demonstrate Charitable Benefits in Your CRA Application
Describing Your Means of Providing Charitable Benefits
The “means” are your specific programs and activities. You need to explain exactly how you’ll operate.
Don’t just say “we’ll help sick people.” Say “we’ll operate a free medical clinic providing primary care services to uninsured patients.”
Be specific about:
What services or programs will you offer
Who will benefit from them
How you’ll deliver these services
Where and when activities will occur
The more concrete your description, the easier it is for CRA to approve your application.
Documenting Tangible Outcomes
New organizations should provide realistic projections. Established groups should include actual data from past activities.
Useful metrics include:
Number of people served
Hours of service provided
Items distributed (meals, books, supplies)
Skills taught or qualifications earned
Environmental improvements measured
You don’t need complex research studies. Simple, honest tracking of your work is sufficient.
Create systems to measure your impact from day one. This helps with your annual charity returns later.
Proving Social Value and Public Benefit
Identify who benefits from your work. Be specific about your target population.
Show that your beneficiary group is large enough to constitute “the public.” One family doesn’t count, but “low-income families in Toronto” do.
Demonstrate community need through:
Statistics about the problem you’re addressing
Letters of support from community partners
Research showing demand for your services
Gaps in existing services that you’ll fill
The CRA needs to understand why your work matters to society.
Common Charitable Benefit Examples Across Different Categories
Relief of Poverty
Poverty relief charities address immediate needs like food, shelter, and clothing. They also provide pathways out of poverty.
Tangible benefits include:
Meals provided to hungry individuals
Emergency shelter beds occupied
Rent assistance preventing homelessness
Job training leading to employment
These outcomes are easy to measure and clearly serve the public.
Advancement of Education
Educational charities help people gain knowledge and skills. The benefit must go beyond entertainment or casual interest.
Examples of educational benefits:
Students achieving literacy
Graduates earning recognized credentials
Learners acquiring job-ready skills
Research advancing human knowledge
Libraries, schools, tutoring programs, and scholarship funds all fit this category.
Advancement of Religion
Religious charities serve spiritual needs while also providing community value. Public benefit is key here.
Acceptable benefits include:
Religious services open to the public
Spiritual counselling available to community members
Religious education programs
Community gathering spaces
Your religious activities must benefit society broadly, not just your congregation.
Other Purposes Beneficial to the Community
This fourth category covers everything else that helps society. It includes environmental, cultural, and community development work.
Examples across this category:
Environmental groups restoring natural habitats
Arts organizations making culture accessible
Animal welfare groups operating shelters
Community centres providing public programs
These benefits must be substantial and clearly serve the public interest.
What Doesn’t Qualify as a Charitable Benefit
Private Benefit vs. Public Benefit
If your organization primarily benefits founders, board members, or their families, it’s not charitable. Some private benefit is acceptable as a side effect, but it can’t be your main purpose.
A scholarship fund that only helps the founder’s grandchildren isn’t charitable. One that helps any qualifying student in a community is.
Political Purposes and Advocacy Limitations
Charities can do some advocacy, but it must support their charitable purpose. You can’t exist primarily to promote political views.
Acceptable: An environmental charity advocating for pollution regulations. Not acceptable: A charity existing mainly to support a political party.
Your benefits must come from actual programs, not political activity.
Activities That Don’t Produce Measurable Social Value
Vague activities without clear outcomes won’t qualify. “Promoting awareness” alone isn’t a charitable benefit.
The CRA wants to see concrete change. What happens because your charity exists? Who is better off?
Benefits That Are Too Indirect or Speculative
Your benefits must be direct results of your activities. Future possibilities don’t count.
Claiming your work “might eventually lead to positive change” isn’t sufficient. Show what actually happens when you operate your programs.
Charitable Benefit vs. Charitable Purpose: Understanding the Difference
Your charitable purpose is your goal. Your charitable benefit is what you actually achieve.
Purpose: What you’re trying to accomplish
Benefit: The positive outcome that results
Think of a charity focused on youth development. The purpose might be “advancing education and building life skills among at-risk youth.”
The benefits would be:
Youth completing high school
Participants gaining employment skills
Young people avoiding criminal activity
Students earning post-secondary credentials
Both elements must appear clearly in your application. They should align perfectly with each other.
How CRA Evaluates Charitable Benefits During the Registration Process
The CRA reviews every application carefully. Officers look for clear, specific descriptions of benefits.
Common questions they ask:
Who exactly will benefit from your work?
How will you measure success?
Why is this work needed in your community?
How do your activities produce these benefits?
Red flags that trigger scrutiny:
Vague or overly broad benefit descriptions
Benefits that seem to favour private individuals
Activities unrelated to stated purposes
Unrealistic projections without supporting plans
The review process typically takes several months. Clear benefit descriptions help speed approval.
Tips for Strengthening the Charitable Benefit Section of Your Application
Be specific and concrete. Replace “help people” with “provide 500 hot meals monthly to homeless individuals in Vancouver.”
Use measurable language. Include numbers, timeframes, and observable outcomes whenever possible.
Provide realistic examples. Describe typical scenarios showing how your programs work.
Address tracking methods. Explain how you’ll measure and report on benefits.
Connect activities to purpose. Draw clear lines between what you’ll do and why it achieves your charitable goals.
Think like a CRA reviewer reading hundreds of applications. Make your case obvious and compelling.
Maintaining Charitable Benefits After Registration
Registration is just the beginning. You must continue delivering the benefits you promised.
Ongoing Reporting Requirements
Every registered charity files an annual T3010 return. This form asks detailed questions about your activities and their results.
You’ll report:
Programs operated during the year
Number of people served
Resources spent on charitable activities
How your work advanced your charitable purposes
Keep good records throughout the year. Don’t try to reconstruct everything at filing time.
What Happens If Your Activities Change
Charities can evolve, but major changes require CRA approval. If you want to add new programs or shift focus, consult charity law experts first.
Operating outside your registered purposes risks your charitable status. The CRA can impose penalties or revoke registration.
Ensuring Continued Alignment
Review your activities annually. Ask whether everything you do produces charitable benefits related to your purposes.
Cut programs that don’t serve your mission. Focus resources on activities that deliver measurable public benefit.
This discipline keeps you compliant and effective.
Need Help with Your Charity Application?
Understanding charitable benefits is complex. Many organizations struggle to articulate their benefits in a way that satisfies the CRA.
B.I.G. Charity Law Group specializes in Canadian charity registration and compliance. We help nonprofits clearly define their charitable benefits and prepare successful applications.
Our team understands exactly what the CRA looks for. We’ll ensure your application demonstrates tangible, socially useful benefits directly related to your charitable purpose.
Ready to start your charity application?
Navigating director compensation rules can be complex.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates expert help with your charity registration. We’ll guide you through every step of the registration process.
Frequently Asked Questions
When you apply to become a registered charity in Canada, the Canada Revenue Agency reviews whether your organization provides a public charitable benefit. Understanding what qualifies as a charitable benefit can help you submit a stronger application and improve your chances of approval. These FAQs cover key questions about demonstrating public benefit in the registration process.
What is meant by a “charitable benefit” in the context of applying to become a registered charity?
A charitable benefit is a tangible, measurable, and socially useful impact that is directly related to the organization’s charitable purpose. It must be recognizable and have a demonstrable positive effect on society.
Why is proving a charitable benefit important for an organization seeking charitable status?
Showing a charitable benefit is essential because it demonstrates that the organization’s activities have a real, positive impact on the public or community, which is a legal requirement for being recognized as a charity.
What kinds of benefits are considered socially useful in the charity application process?
Benefits that improve health, education, environmental conservation, community welfare, or other public goods are considered socially useful as they benefit a sufficient section of the public or society as a whole.
How should an organization express its charitable purpose to align with charitable benefit requirements?
An organization’s activities and purpose should clearly relate to providing tangible benefits and be aligned so that the benefits are a necessary and reasonably direct result of its charitable activities.
Can a charitable benefit include some incidental personal benefit?
Yes, incidental personal benefits can be permissible as long as they are necessary by-products of carrying out the charitable purpose and do not outweigh the overall public benefit.
Can a charity or not-for-profit organization change its fiscal period end?
To effect a modification to its fiscal year-end, a registered charity is obligated to seek formal approval from the Charities Directorate. This procedural step is imperative, as alterations to the fiscal period have significant implications for the charity’s filing obligations and regulatory compliance.
Navigating the Transition Period
Upon the charitable entity obtaining the necessary consent to alter its fiscal year-end, it embarks on a transition period that does not span the conventional 12 months. Consequently, the organization is required to submit a distinct information return that covers the specific months constituting this transitional phase. For illustrative purposes, consider a scenario where the initial fiscal year concluded on December 31, and the approval is granted to shift it to March 31. In this instance, the charity must diligently prepare and file a comprehensive return for the original fiscal year, encompassing the timeframe from January 1 to December 31. Simultaneously, a separate and complete return is mandated for the transition period spanning from January 1 to March 31.
Guidelines for Fiscal Year Duration
It is worth noting that, as a general rule, the fiscal year of a registered charity should not extend beyond the conventional 12-month cycle. This adherence to a standard timeframe ensures consistency in financial reporting and aids regulatory bodies in monitoring and assessing the organization’s fiscal health.
Prerequisites for Return Processing
It is crucial for the charity to recognize that the submission and subsequent processing of a return for the transition period, or for the newly adjusted fiscal year, hinge on the expeditious approval of the fiscal year-end modification. Hence, the charity is strongly advised to initiate the request for modification as soon as the decision to effect the change is made.
Governing Document Adjustments
In certain scenarios, the charity may find it necessary to amend its governing document to align with the altered fiscal year-end. For example, if the organization’s bylaws explicitly state a fiscal year-end of December 31, and the decision is made to shift it to March 31, an amendment to the governing document becomes imperative. Although the Charities Directorate acknowledges and processes such changes, the charity is also required to provide a certified copy of the amended document for official records.
For comprehensive details and guidance on making amendments to governing documents, charities are encouraged to refer to the dedicated section on changing bylaws for a seamless transition. This thorough approach ensures that not only the fiscal period is in compliance with regulatory standards, but the governing documents also accurately reflect the charity’s operational framework.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Your Trusted Partner in International Bilateral Relations
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.
Northfield & Associates
Advancing Global Partnerships, Together.
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.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
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
Press contact
PR consultants 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.
You’ve poured your heart into building a nonprofit that makes a real difference in your community. Your programs are running smoothly, your board is engaged, and you’re making the impact you dreamed of. Then one day, someone gets injured at your event, or a disgruntled former employee files a lawsuit against your directors, or a cyber attack compromises your donor database.
Suddenly, all the good work you’ve done is overshadowed by legal bills that could bankrupt your organization. Your dedicated volunteers who serve on your board are personally worried about their financial exposure. The very thing you built to help others is now at risk of destroying the financial security of everyone involved.
This is why nonprofit liability insurance isn’t just a nice-to-have expense – it’s essential protection that every Canadian charity and nonprofit needs. But here’s what many organization leaders don’t realize: not all insurance is created equal, and generic business insurance often doesn’t adequately protect nonprofits from their unique risks.
The good news is that proper insurance protection doesn’t have to break your budget. When you understand what coverage you actually need and how to shop for it effectively, you can get comprehensive protection that lets you focus on your mission instead of worrying about potential lawsuits.
Types of Liability Insurance Nonprofits Need
Canadian nonprofits face unique risks that require specialized insurance coverage. Understanding the different types of protection available helps you build a comprehensive insurance program that actually protects your organization.
The Reality of Nonprofit Risk Exposure
Many nonprofit leaders underestimate their organization’s liability exposure because they focus on doing good work. But even the most well-intentioned organizations face risks:
Accidents during events, programs, or activities
Employment-related lawsuits from staff or volunteers
Board decisions that result in financial losses
Data breaches exposing donor or client information
Professional mistakes that harm the people you serve
Core Insurance Categories for Nonprofits
Most Canadian nonprofits need some combination of these insurance types:
General liability insurance for basic accident and injury protection
Directors and officers (D&O) insurance for board and leadership protection
Professional liability insurance for service-related mistakes and omissions
Cyber liability insurance for data breaches and technology risks
Property insurance if you own equipment, buildings, or other assets
Risk Assessment for Your Organization
Before shopping for insurance, assess your specific risk factors:
What activities do you conduct and where?
How many people do your programs serve?
Do you have employees or rely entirely on volunteers?
What kind of personal information do you collect and store?
Do you provide professional services or advice?
Industry-Specific Considerations
Different types of nonprofits face different risks:
Social services organizations need professional liability coverage
Sports and recreation nonprofits require enhanced general liability
Arts organizations may need coverage for valuable equipment or venues
Advocacy groups might face higher risks of lawsuits related to their positions
Directors and Officers (D&O) Insurance for Charities
D&O insurance protects your board members and senior staff from personal financial exposure when they’re sued for their organizational decisions and actions.
Why D&O Insurance Matters for Nonprofits
Board members of Canadian nonprofits can be personally liable for:
Wrongful termination claims by employees
Discrimination or harassment allegations
Financial mismanagement or fiduciary duty breaches
Regulatory violations or compliance failures
Employment standards violations
Without D&O insurance, board members must defend these claims with their own money and assets.
What D&O Insurance Covers
Typical D&O coverage includes:
Legal defense costs for covered claims
Settlement payments and judgments
Regulatory investigation costs
Employment practices liability
Crime coverage for employee dishonesty
Coverage Limits and Considerations
D&O insurance typically offers coverage limits from $1 million to $10 million:
Small nonprofits: $1-2 million often sufficient
Medium nonprofits: $2-5 million provides better protection
Large nonprofits: $5-10 million for organizations with significant assets or high-risk activities
Board Recruitment Benefits
D&O insurance makes it easier to recruit qualified board members:
Reduces personal financial risk for volunteers
Demonstrates organizational sophistication and planning
Provides peace of mind that encourages engagement
Shows respect for volunteers’ time and expertise
Common D&O Exclusions
Standard D&O policies typically exclude:
Intentional criminal acts
Personal profit or advantage
Bodily injury and property damage (covered by general liability)
Regulatory fines and penalties (sometimes available as add-on coverage)
General Liability Insurance for Nonprofit Activities
General liability insurance provides basic protection against accidents, injuries, and property damage claims arising from your nonprofit’s activities.
Essential Protection for All Nonprofits
Every Canadian nonprofit needs general liability insurance because:
Accidents can happen during any activity or event
Visitors to your premises could be injured
Your activities might accidentally damage someone else’s property
Volunteers or participants might cause injuries to others
What General Liability Covers
Standard coverage includes:
Bodily injury to third parties
Property damage caused by your operations
Personal and advertising injury claims
Medical payments for minor injuries
Legal defense costs for covered claims
Activity-Based Coverage Considerations
Different nonprofit activities require different coverage approaches:
Event-based organizations: Need coverage for various venues and activities Facility-based organizations: Require premises liability protection Community outreach programs: Need coverage for off-site activities Sports and recreation: Require enhanced coverage for injury risks
Coverage Limits and Deductibles
Typical general liability coverage limits:
Minimum recommended: $2 million per occurrence, $4 million aggregate
Better protection: $5 million per occurrence, $10 million aggregate
High-risk activities: Consider $10 million or higher limits
Additional Protections Available
Enhanced general liability coverage can include:
Participant accident insurance for program participants
Abuse and molestation coverage for organizations serving vulnerable populations
Volunteer accident insurance for unpaid helpers
Special event coverage for one-time activities
Professional Liability for Service-Providing Charities
Organizations that provide professional services, advice, or specialized programs need professional liability insurance to protect against claims of errors, omissions, or inadequate service.
Who Needs Professional Liability Coverage
Consider professional liability insurance if your nonprofit:
Provides counseling, therapy, or mental health services
Offers educational or training programs
Gives financial, legal, or business advice
Provides healthcare or social services
Conducts research or evaluation services
What Professional Liability Covers
Professional liability insurance typically covers:
Claims of inadequate or harmful services
Failure to deliver promised outcomes
Mistakes in professional advice or guidance
Breach of professional duties or standards
Legal defense costs for covered claims
Coverage Considerations for Different Services
Counseling and therapy services: Need coverage for treatment-related claims Educational programs: Require protection against inadequate instruction claims Consulting services: Need errors and omissions coverage Healthcare services: May require medical malpractice coverage
Professional Standards and Training
Insurance providers often require:
Proper training and certification for service providers
Written policies and procedures for service delivery
Regular supervision and quality assurance
Incident reporting and documentation systems
Claims-Made vs Occurrence Coverage
Professional liability insurance typically operates on a claims-made basis:
Coverage applies when claims are made, not when incidents occur
Requires continuous coverage to maintain protection
May need extended reporting period coverage when changing insurers
More complex than occurrence-based general liability coverage
Cyber Liability Insurance for Canadian Nonprofits
As nonprofits increasingly rely on technology and store sensitive information digitally, cyber liability insurance has become essential protection against data breaches and cyber attacks.
Growing Cyber Risks for Nonprofits
Canadian nonprofits face significant cyber risks because they:
Collect and store donor payment information
Maintain databases of client personal information
Often have limited IT security resources
May be targeted by criminals who see them as easy targets
Face regulatory requirements for data protection
What Cyber Liability Insurance Covers
Comprehensive cyber coverage typically includes:
Data breach response costs and notification expenses
Credit monitoring services for affected individuals
Legal defense costs for privacy-related lawsuits
Regulatory investigation and penalty costs
Business interruption losses from cyber incidents
Cyber extortion and ransomware response
First-Party vs Third-Party Coverage
First-party coverage protects your organization’s direct costs:
Data recovery and system restoration
Business interruption and lost income
Crisis management and public relations
Regulatory response and investigation costs
Third-party coverage protects against claims from others:
Privacy liability for compromised personal information
Network security liability for system intrusions
Intellectual property claims related to cyber incidents
Risk Assessment and Prevention
Insurance providers increasingly require:
Regular software updates and security patches
Employee training on cyber security
Multi-factor authentication for sensitive systems
Regular data backups and recovery testing
Written information security policies
Understanding cyber risks becomes especially important when considering the documentation requirements for CRA audits and T3010 filings, as data breaches could compromise sensitive organizational information.
How to Choose the Right Insurance Provider
Selecting the right insurance provider can make the difference between adequate protection and coverage gaps that leave your nonprofit vulnerable.
Specialized Nonprofit Insurance Providers
Look for insurers who specialize in nonprofit coverage:
Understand unique nonprofit risks and needs
Offer policies designed specifically for charitable organizations
Provide competitive pricing for nonprofit coverage
Have experience handling nonprofit claims
Evaluating Insurance Companies
Research potential providers thoroughly:
Financial stability: Check A.M. Best ratings and financial strength
Claims handling: Research reputation for fair and prompt claim settlement
Customer service: Evaluate responsiveness and expertise
Coverage options: Ensure they offer all protection types you need
Working with Insurance Brokers
Insurance brokers can provide valuable assistance:
Access to multiple insurance companies and products
Expertise in nonprofit insurance needs and markets
Assistance with claims and coverage issues
Ongoing relationship for coverage reviews and updates
Questions to Ask Potential Providers
Key questions for insurance shopping:
What specific experience do you have with nonprofits our size and type?
What coverage options and limits are available?
How do you handle claims and what’s the typical process?
What risk management resources do you provide?
Can you provide references from similar nonprofit clients?
Getting Multiple Quotes
Compare quotes from at least three providers:
Ensure coverage comparisons are apples-to-apples
Look beyond price to coverage quality and service
Consider the total relationship, not just initial cost
Ask about multi-year agreements and rate guarantees
Cost Factors for Nonprofit Insurance in Canada
Understanding what drives insurance costs helps you budget effectively and find ways to manage expenses while maintaining adequate protection.
Factors That Affect Nonprofit Insurance Costs
Organization size and budget: Larger nonprofits generally pay more but often get better rates per dollar of coverage
Types of activities: Higher-risk activities like sports, childcare, or outdoor programs cost more to insure
Claims history: Organizations with previous claims face higher premiums
Coverage limits: Higher limits cost more but provide better protection
Geographic location: Urban areas may have higher liability costs
Risk management practices: Good safety programs and policies can reduce costs
Typical Cost Ranges for Canadian Nonprofits
Small nonprofits (budget under $100,000):
General liability: $300-800 annually
D&O insurance: $500-1,500 annually
Professional liability: $500-2,000 annually (if needed)
Cyber liability: $300-1,000 annually
Medium nonprofits (budget $100,000-$1 million):
General liability: $800-2,500 annually
D&O insurance: $1,500-5,000 annually
Professional liability: $1,000-5,000 annually (if needed)
Cyber liability: $1,000-3,000 annually
Large nonprofits (budget over $1 million):
General liability: $2,500-10,000+ annually
D&O insurance: $5,000-20,000+ annually
Professional liability: $3,000-15,000+ annually (if needed)
Cyber liability: $2,000-10,000+ annually
Ways to Reduce Insurance Costs
Risk management programs: Safety training and policies can reduce premiums
Package policies: Combining multiple coverages often reduces total cost
Group programs: Some nonprofit associations offer group insurance programs
Claims-free discounts: Maintaining good claims history earns premium reductions
Multi-year agreements: Longer terms may provide rate stability and discounts
Insurance Requirements for Charity Registration
While insurance isn’t legally required for charity registration in Canada, it’s often a practical necessity for operations and may be required by other parties.
CRA Requirements
The Canada Revenue Agency doesn’t require insurance for charity registration, but proper insurance supports compliance in several ways:
Demonstrates proper risk management and governance
Protects assets that must be used for charitable purposes
Helps ensure organizational continuity for ongoing operations
Shows board members are acting prudently in their fiduciary duties
Practical Requirements for Operations
Even without legal mandates, insurance is often required by:
Venue rental agreements: Most facilities require general liability coverage
Grant funders: Many foundations and government funders require insurance
Partnership agreements: Other organizations may require proof of coverage
Special event permits: Municipal permits often require insurance certificates
Board Fiduciary Duties
Board members have legal obligations to protect organizational assets:
Duty of care requires reasonable risk management
Duty of loyalty includes protecting the organization’s interests
Fiduciary responsibility includes ensuring organizational continuity
Personal liability for negligent risk management decisions
Insurance as Risk Management Tool
Proper insurance supports good governance by:
Protecting organizational assets from catastrophic losses
Enabling programs to continue despite unforeseen incidents
Providing peace of mind for board members and staff
Demonstrating organizational sophistication to stakeholders
When budgeting for insurance costs, consider them alongside other essential expenses like charity registration costs and ongoing compliance requirements. Insurance is an investment in your organization’s long-term sustainability and ability to serve your community.
Proper insurance protection also becomes crucial during challenging times like CRA audits, when having comprehensive coverage demonstrates good governance and responsible management.
Understanding the different types of coverage, their costs, and how to evaluate providers helps you make informed decisions that protect your nonprofit while managing costs effectively. The key is finding the right balance of coverage that provides adequate protection without straining your budget.
Northfield & Associates helps nonprofits understand their insurance needs as part of comprehensive legal and compliance guidance. Proper insurance protection works hand-in-hand with good legal practices to create a strong foundation for charitable operations.
Ready to protect your nonprofit with appropriate insurance coverage? Work with experienced professionals who understand how insurance fits into your overall risk management and legal compliance strategy for long-term organizational success.
Navigating director compensation rules can be complex.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Your Trusted Partner in International Bilateral Relations
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.
Northfield & Associates
Advancing Global Partnerships, Together.
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.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
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
Press contact
PR consultants 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.
Fundraising is an essential aspect of sustaining the charitable endeavors of registered charities. However, the Canada Revenue Agency (CRA) emphasizes the importance of conducting fundraising activities in a reasonable manner to ensure that the primary focus remains on charitable purposes. In this blog post, we will explore the key considerations and guidelines provided by the CRA regarding fundraising activities and delve into the specifics of engaging in lotteries, bingos, charity casinos, and similar initiatives.
Fundraising and Charitable Activities While fundraising is a necessary component of a charity’s financial strategy, the CRA is clear that it should not become the primary emphasis of the charity. The essence of a registered charity lies in its commitment to exclusively charitable purposes. If fundraising activities take precedence over these purposes or a substantial portion of revenue is directed towards them, the charity risks jeopardizing its registered status.
The CRA’s Expectations The CRA acknowledges that charities may incur costs in their fundraising efforts, but these expenses must be reasonable. Excessive spending on fundraising could lead to a failure to meet the disbursement quota, the mandatory spending requirement for registered charities. Therefore, it is crucial for charities to strike a balance, ensuring that fundraising activities complement their charitable objectives rather than overshadowing them.
Guidance for Fundraising Activities For comprehensive information on fundraising activities, registered charities are encouraged to refer to Guidance CG-013, Fundraising by registered charities. This resource provides valuable insights into best practices, ensuring that charities are well-informed and equipped to navigate the complexities of fundraising within the confines of their registered status.
Lotteries, Bingos, Charity Casinos, and More In addition to traditional fundraising methods, charities may opt to raise funds through lotteries, bingos, charity casinos, and similar activities. However, there are additional considerations to bear in mind. Charities must reach out to relevant provincial, territorial, and municipal government departments before engaging in these initiatives to obtain any necessary permissions, permits, or licenses.
Striking a Balance While these alternative fundraising methods can be lucrative, charities must strike a balance between generating funds and adhering to regulatory requirements. Seeking proper authorization ensures that charities operate within the legal framework, mitigating risks to their registered status.
Fundraising is a vital lifeline for registered charities, but it comes with responsibilities. Striving for a harmonious balance between fundraising activities and charitable purposes is key to maintaining a charity’s registered status. By following the guidelines provided by the CRA and seeking the necessary permissions for specific fundraising methods, charities can navigate the complex landscape of fundraising successfully, ensuring the sustainability of their noble causes.
Navigating director compensation rules can be complex.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
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.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
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.
Your Trusted Partner in International Bilateral Relations
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.
Northfield & Associates
Advancing Global Partnerships, Together.
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.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
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
Press contact
PR consultants 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.
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