Category: Northfield News

Nobody starts a charity expecting to shut it down. You begin with hope, passion, and a vision for making the world better. But sometimes circumstances change in ways you never anticipated. Your founding board members move away, funding disappears, your target population’s needs evolve, or external factors make your mission impossible to pursue.

The thought of dissolving your charity feels like admitting failure, but sometimes it’s the most responsible decision you can make. Maybe your organization has achieved its original goals and is no longer needed. Perhaps you’re considering merging with another charity that can better serve your beneficiaries. Or maybe ongoing operational challenges have made it impossible to fulfill your charitable purposes effectively.

Here’s what many charity leaders don’t realize: dissolving a charity improperly can create serious legal problems for directors, compromise the charitable assets you’re trying to protect, and potentially violate your obligations to donors, beneficiaries, and the public. But when done correctly, dissolution can be a responsible way to ensure charitable assets continue serving charitable purposes and that all legal obligations are properly fulfilled.

The process of charity dissolution in Canada involves multiple legal requirements, regulatory obligations, and stakeholder considerations that must be carefully managed. Understanding these requirements helps ensure the dissolution process protects everyone involved while honoring the charitable intent behind your organization’s work.

When Charities Should Consider Dissolution

The decision to dissolve a charity is never easy, but certain circumstances make dissolution the most responsible choice for directors and stakeholders.

Mission Achievement or Obsolescence

Sometimes dissolution reflects success rather than failure:

• Original mission accomplished: The charitable need your organization was created to address has been resolved or is being adequately served by others
• Changed circumstances: Social, technological, or policy changes have made your approach obsolete or unnecessary
• Better alternatives available: Other organizations are now better positioned to achieve your charitable goals
• Planned sunset: Some charities are intentionally created with limited lifespans or specific end goals

Operational Sustainability Issues

When operational challenges make effective charitable work impossible:

• Insufficient funding: Unable to raise adequate funds to carry out charitable activities effectively
• Leadership vacuum: Cannot recruit or retain qualified board members or senior staff
• Regulatory compliance problems: Ongoing difficulty maintaining compliance with charity law requirements
• Insurance and liability concerns: Unable to obtain or afford necessary insurance coverage for operations

Governance and Management Breakdown

When organizational dysfunction prevents effective operations:

• Board conflicts: Irreconcilable differences between board members that prevent effective governance
• Mission drift: Organization has strayed from charitable purposes and cannot realign operations
• Financial mismanagement: Serious financial problems that cannot be resolved through normal governance processes
• Legal or reputational issues: Problems that compromise the organization’s ability to serve its charitable purposes

Strategic Restructuring Opportunities

Sometimes dissolution is part of strategic organizational planning:

• Merger opportunities: Dissolving to merge with another organization that can better serve your beneficiaries
• Consolidation initiatives: Multiple related organizations deciding to combine resources and efforts
• Successor organization creation: Dissolving to create a new organization with updated structure or purposes
• Asset transfer strategies: Moving charitable assets to organizations better positioned to use them effectively

External Pressure and Requirements

Circumstances beyond organizational control may necessitate dissolution:

• Regulatory action: CRA revocation or other regulatory sanctions that make continued operation impossible
• Legal liability: Lawsuits or liability issues that threaten organizational viability
• Insurance loss: Inability to obtain necessary insurance coverage for continued operations
• Facility or resource loss: Loss of essential facilities, licenses, or resources needed for charitable activities

Early Warning Signs

Organizations should consider dissolution planning when facing:

• Consistently declining revenues or increasing deficits over multiple years
• Difficulty recruiting qualified board members or volunteers
• Reduced community support or engagement with charitable activities
• Ongoing struggles to meet basic compliance and operational requirements
• Loss of key partnerships or funding relationships essential to mission achievement

Legal Requirements for Charity Dissolution

Charity dissolution in Canada involves complex legal requirements that vary depending on how your organization is structured and where it operates.

Corporate Law Dissolution Requirements

Federal corporations under the Canada Not-for-profit Corporations Act must:

• Obtain board resolution authorizing dissolution
• Provide proper notice to members (if applicable)
• Obtain member approval by special resolution (if required)
• File articles of dissolution with Corporations Canada
• Satisfy all corporate debts and liabilities
• Distribute remaining assets in accordance with articles and bylaws

Provincial corporation requirements vary by jurisdiction:

• Ontario (ONCA): Similar process to federal requirements with provincial-specific procedures
• British Columbia: Dissolution under BC Societies Act with specific notice and approval requirements
• Alberta: Societies Act dissolution procedures and asset distribution rules
• Other provinces: Each has specific dissolution procedures and requirements

Timing and Notice Requirements

Board resolution: Must be passed by directors authorizing dissolution and specifying terms

Member notice: If organization has members, must provide advance notice of dissolution proposal

Member approval: Special resolution by members may be required depending on corporate structure

Public notice: Some jurisdictions require public notice of intended dissolution

Creditor notification: Must notify known creditors and provide opportunity for claims

CRA notification: Must inform CRA of intended dissolution and obtain clearance

Asset Distribution Planning

Identification of assets: Complete inventory of all organizational assets including:

• Cash and investments
• Real estate and equipment
• Intellectual property and intangible assets
• Restricted funds and endowments

Liability assessment: Identification and resolution of all organizational debts and liabilities:

• Outstanding bills and contractual obligations
• Employment obligations and severance costs
• Lease termination costs and facility obligations
• Potential or contingent liabilities

Asset distribution plan: Development of plan for distributing remaining assets in compliance with:

• Corporate articles and bylaws requirements
• Donor restrictions and fund limitations
• Charity law asset distribution rules
• Tax considerations for asset transfers

Documentation Requirements

Board minutes: Detailed minutes documenting dissolution decision and rationale

Member resolutions: If applicable, formal member approval of dissolution

Asset inventory: Complete documentation of all organizational assets and their disposition

Creditor settlements: Documentation of all debt payments and liability resolutions

Distribution records: Detailed records of how assets were distributed and to whom

Regulatory filings: All required government filings and clearances

Understanding these legal requirements becomes especially important when working with experienced charity lawyers who can ensure proper compliance throughout the dissolution process.

Asset Distribution Rules for Dissolved Charities

The distribution of charitable assets upon dissolution is strictly regulated to ensure resources continue serving charitable purposes.

Fundamental Asset Distribution Principles

Charitable purpose preservation: All assets held for charitable purposes must be transferred to other qualified donees that will use them for similar charitable purposes

No private benefit: Assets cannot be distributed to directors, members, or other private parties

Donor intent respect: Assets subject to donor restrictions must be transferred to organizations that will honor those restrictions

Public benefit maintenance: Asset distribution must continue serving the public benefit that justified the organization’s charitable status

Qualified Donee Requirements

Assets can only be distributed to organizations that qualify as donees under the Income Tax Act:

• Registered charities in Canada
• Qualified donees including certain government bodies and approved foreign charities
• Similar organizations with compatible charitable purposes and proper legal status

Asset distribution to non-qualified organizations violates charity law and can result in penalties, tax liability, and potential director liability.

Restricted Fund Considerations

Donor-restricted assets: Must be transferred to organizations that can and will honor the original restrictions

Endowment funds: Principal amounts may need special handling to preserve donor intent about permanent restriction

Project-specific funds: Must go to organizations capable of completing the intended charitable projects

Geographic restrictions: Assets restricted to specific geographic areas must go to organizations serving those areas

Asset Valuation and Transfer Procedures

Fair market value assessment: Assets must be valued appropriately for tax and legal purposes

Professional appraisals: May be required for significant real estate, equipment, or other valuable assets

Transfer documentation: Proper legal documentation of asset transfers to receiving organizations

Tax considerations: Understanding tax implications for both dissolving and receiving organizations

Due Diligence for Receiving Organizations

Qualified donee verification: Ensuring receiving organizations are properly registered and in good standing

Capacity assessment: Confirming receiving organizations can effectively use transferred assets

Mission alignment: Ensuring receiving organizations have compatible charitable purposes

Financial stability: Assessing whether receiving organizations are financially stable enough to properly steward transferred assets

Special Asset Categories

Real estate transfers: May require special procedures, valuations, and legal documentation

Investment portfolios: May need professional management during transfer process

Intellectual property: Copyrights, trademarks, and other intellectual assets require special transfer procedures

Program assets: Equipment, materials, and resources used in charitable programs

Restricted funds with impossible purposes: May require court application or CRA approval for cy-près distribution to similar charitable purposes

CRA Notification and Final Returns

The Canada Revenue Agency has specific requirements for charity dissolution that must be carefully followed to maintain compliance and avoid penalties.

Advance Notification Requirements

Dissolution intent notification: Must notify CRA in advance of intended dissolution

Asset distribution plan: Provide detailed plan for asset distribution showing compliance with charity law

Timeline communication: Inform CRA of expected dissolution timeline and key milestones

Ongoing activity reporting: Continue reporting charitable activities until actual dissolution

Final T3010 Return Requirements

Final return designation: Final T3010 must be clearly marked as final return for dissolved organization

Complete activity reporting: Must report all activities and transactions up to dissolution date

Asset distribution reporting: Detailed reporting of how all assets were distributed

Final financial statements: Complete financial statements showing organization’s final financial position

Compliance confirmation: Demonstration that all charity law requirements were met throughout dissolution process

Books and Records Transfer

Record preservation: Must ensure proper preservation of organizational books and records

Transfer to receiving organization: May transfer records to organization receiving majority of assets

Independent storage: May need to arrange independent storage if no single successor organization

Access requirements: Must ensure CRA can access records for required retention period

Privacy and confidentiality: Must protect confidential donor and beneficiary information during transfer

Outstanding Compliance Issues

Penalty resolution: Must resolve any outstanding penalties or compliance issues before dissolution

Audit completion: If under CRA audit, must complete audit process before final dissolution

Compliance agreements: Must fulfill any outstanding compliance agreement obligations

Filing corrections: Must correct any errors in previous filings before dissolution

Final CRA Clearance

Clearance certificate: Obtain formal clearance from CRA confirming all obligations have been met

Tax account closure: Formally close organizational tax accounts with CRA

Charitable registration termination: Official termination of charitable registration number

Final confirmation: Written confirmation from CRA that dissolution process is complete

Working with qualified charity board members throughout the dissolution process helps ensure proper oversight and compliance with all regulatory requirements.

Corporate Dissolution vs Charity Revocation

Understanding the difference between voluntary dissolution and involuntary revocation helps charities choose the appropriate process and avoid unnecessary complications.

Voluntary Dissolution Process

Initiated by organization: Board and members (if applicable) decide to dissolve voluntarily

Controlled timeline: Organization controls timing and process within legal requirements

Asset distribution planning: Organization can plan asset distribution to maximize charitable benefit

Reputation protection: Voluntary dissolution typically causes less reputational damage than revocation

Clean closure: Proper voluntary dissolution provides clean legal closure with all obligations fulfilled

Involuntary Revocation by CRA

CRA-initiated process: CRA determines organization should lose charitable status

Common revocation grounds:

• Failure to file required returns
• Operating outside charitable purposes
• Providing undue private benefit
• Serious compliance violations
• Inadequate books and records

Limited control: Organization has limited ability to control process once revocation proceedings begin

Potential penalties: May involve financial penalties and tax consequences

Reputational damage: Revocation typically causes significant reputational harm

Strategic Considerations

Timing advantages of voluntary dissolution:

• Better control over asset distribution
• More time for proper creditor notification and debt resolution
• Opportunity to communicate dissolution rationale to stakeholders
• Ability to complete outstanding charitable projects

Avoiding revocation through voluntary dissolution:

• When compliance problems are serious but not yet subject to revocation
• When organizational capacity is insufficient for continued operations
• When mission achievement or obsolescence makes continued operation unnecessary

Appeal and Objection Rights

Revocation appeals: Organizations facing revocation can appeal CRA decisions

Objection process: Formal objection procedures for challenging CRA decisions

Court applications: In some cases, court applications may be appropriate

Settlement negotiations: Possibility of negotiating voluntary dissolution in lieu of revocation

Legal and Financial Consequences

Tax implications: Different tax consequences for voluntary dissolution vs revocation

Director liability: Potential personal liability differences between voluntary and involuntary processes

Asset distribution: More favorable asset distribution options with voluntary dissolution

Future activities: Impact on directors’ ability to be involved with other charities

Member and Board Approval Process

Proper approval processes ensure dissolution decisions are legally valid and reflect appropriate organizational governance.

Board Resolution Requirements

Initial authorization: Board resolution authorizing dissolution planning and preparation

Detailed dissolution plan: Board approval of specific dissolution plan including asset distribution

Final dissolution authorization: Formal board resolution authorizing actual dissolution filing

Documentation requirements: Proper board minutes documenting discussions, deliberations, and decisions

Voting thresholds: Understanding required voting thresholds for dissolution decisions

Member Involvement and Approval

Member notification: Proper advance notice to all members about proposed dissolution

Information provision: Providing members with sufficient information for informed decision-making

Meeting procedures: Proper procedures for member meetings to consider dissolution

Voting requirements: Understanding special resolution requirements for dissolution approval

Minority protection: Ensuring minority member rights are protected during dissolution process

Stakeholder Communication

Donor notification: Informing major donors about dissolution plans and asset distribution

Beneficiary communication: Ensuring beneficiaries understand how their interests will be protected

Community engagement: Appropriate communication with community stakeholders

Partner organizations: Notification of partner organizations that may be affected

Staff and volunteers: Proper communication with staff and volunteers about timeline and implications

Due Process Considerations

Reasonable deliberation: Allowing adequate time for consideration and discussion

Alternative exploration: Demonstrating consideration of alternatives to dissolution

Professional advice: Obtaining appropriate professional guidance for decision-making

Conflict management: Addressing any conflicts of interest in dissolution decisions

Documentation: Maintaining proper records of decision-making process and rationale

Legal Protection for Decision-Makers

Business judgment protection: Ensuring decisions are made with proper care and diligence

Professional guidance: Working with qualified legal counsel throughout the process

Insurance considerations: Ensuring director and officer insurance covers dissolution activities

Liability minimization: Following proper procedures to minimize potential personal liability

Creditor and Stakeholder Obligations

Charity dissolution requires careful attention to the rights and interests of various stakeholders who may be affected by the closure.

Creditor Identification and Notification

Complete creditor inventory: Identifying all organizational debts and obligations including:

• Trade creditors and suppliers
• Employment obligations and benefits
• Lease and contract obligations
• Loan and financing arrangements
• Professional service providers
• Government obligations (taxes, remittances, etc.)

Formal notice procedures: Providing proper legal notice to all known creditors

Claims process: Establishing process for creditors to submit claims against organization

Dispute resolution: Procedures for addressing disputed claims or obligations

Payment priorities: Understanding legal priorities for debt payment from available assets

Employee and Volunteer Obligations

Employment termination: Proper notice and severance for employees

Benefits continuation: Ensuring proper handling of employee benefits and pensions

Volunteer recognition: Appropriate acknowledgment of volunteer contributions

Reference letters: Providing employment references and documentation for staff

Professional development: Assisting staff with transition to new employment where possible

Contract and Partnership Obligations

Contract review: Evaluating all organizational contracts for termination provisions

Partnership agreements: Proper termination of partnerships and collaborative arrangements

Service agreements: Ensuring continuity of essential services for beneficiaries during transition

Vendor relationships: Professional handling of supplier and vendor relationships

Facility and equipment: Proper termination of leases and equipment arrangements

Beneficiary and Community Obligations

Service continuity: Ensuring continuation of essential services during dissolution process

Transition planning: Helping beneficiaries transition to other service providers

Information transfer: Properly transferring beneficiary information to successor organizations (with appropriate consents)

Community impact: Considering broader community impact of service discontinuation

Legacy preservation: Ensuring organizational history and achievements are appropriately documented and preserved

Donor and Funding Source Obligations

Donor communication: Informing donors about dissolution and asset distribution plans

Restricted fund compliance: Ensuring donor restrictions are honored in asset distribution

Grant obligations: Fulfilling outstanding grant reporting and compliance requirements

Recognition continuity: Ensuring donor recognition commitments are transferred to successor organizations where appropriate

Professional Assistance for Charity Dissolution

Charity dissolution involves complex legal, regulatory, and practical considerations that typically require professional guidance to navigate successfully.

Legal Counsel Requirements

Specialized charity law expertise: Dissolution involves charity law, corporate law, employment law, and other specialized areas

Regulatory compliance guidance: Ensuring compliance with CRA requirements and other regulatory obligations

Asset distribution planning: Professional guidance for legally compliant asset distribution

Documentation preparation: Proper preparation of legal documents and regulatory filings

Liability protection: Ensuring directors and officers are protected from personal liability

Accounting and Financial Services

Asset valuation: Professional valuation of organizational assets for distribution purposes

Financial statement preparation: Final financial statements and regulatory reporting

Tax compliance: Ensuring compliance with all tax obligations during dissolution

Audit completion: Completing any outstanding audit or review requirements

Record preservation: Proper preservation and transfer of financial records

Specialized Professional Services

Real estate professionals: For organizations with significant real estate holdings

Investment advisors: For organizations with complex investment portfolios

Insurance brokers: For managing insurance coverage during dissolution process

Human resources consultants: For organizations with significant employee obligations

Communications professionals: For managing public communications about dissolution

Cost-Benefit Analysis of Professional Help

Risk mitigation: Professional guidance reduces risk of costly mistakes and compliance violations

Efficiency gains: Professional experience typically results in faster, more efficient dissolution process

Liability protection: Proper professional guidance provides better protection for directors and officers

Relationship preservation: Professional handling typically results in better stakeholder relationships during transition

Peace of mind: Professional guidance provides confidence that all obligations are properly fulfilled

Choosing Professional Advisors

Charity law specialization: Ensuring legal counsel has specific charity law expertise and experience

Track record: Working with professionals who have successfully handled charity dissolutions

Comprehensive service: Choosing advisors who can coordinate all aspects of dissolution process

Cost transparency: Understanding fee structures and total costs for dissolution services

Client references: Obtaining references from other organizations that have used dissolution services

The decision to dissolve a charity is never easy, but when it’s the right decision, proper legal and professional guidance ensures the process protects everyone involved while honoring the charitable intent behind the organization’s work. Whether dealing with operational challenges, strategic restructuring, or changed circumstances, professional assistance helps ensure dissolution is handled responsibly and legally.

Understanding the dissolution process also helps charity leaders make informed decisions about whether dissolution is appropriate or whether alternative solutions might better serve the organization and its stakeholders.

Northfield & Associates provides comprehensive legal guidance for charity dissolution, helping organizations navigate the complex requirements while protecting the interests of directors, stakeholders, and beneficiaries. Professional guidance ensures the dissolution process is handled with the care and attention that charitable assets and stakeholder interests deserve.

Ready to explore your options and understand the dissolution process?

Work with experienced professionals who understand both the legal requirements and the sensitivity required for these difficult organizational decisions.

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.

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

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.

GET IN TOUCH

What We Do!

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

Getting Started

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

Ongoing Monthly Bookkeeping

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

Year End

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

What We Don’t Do

Pay bills

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

Payroll tax responsibility

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

*Payroll deductions and benefits

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

Preparation of W2s

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

Sales tax reporting

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

Donation recording

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

Administrative tasks

We cannot provide administrative services unrelated to our bookkeeping function.

Attend board meetings

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

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!

Book a Call

Contact us today to schedule your consultation.

Working with Our Firm

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

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

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.

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.

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About Northfield

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

Forward-Looking Information

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

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

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

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

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

Beyond showing what motions have passed, what else should the board of a charity be coginizant about to record during the general meeting?

Documented discussions:

Aside for motions, they need to show that the directors exercised genuine oversight in the decision to pass a motion. So, for example, let’s say the minutes include the passage of the budget. That is a major decision that will typically see major discussion, sometimes line by line. If there is no finance committee from which there might be minutes describing in greater detail the line by line discussion, then it is important that the board minutes capture this discussion. In particular, any lines you might reasonably expect the CRA to take issue with, i.e. compensation, the payment of family members, etc., needs to face additional scrutiny.

Reasons supported by research:

Related to the budget as well, the Board needs to know that it is getting fair market value for what it is spending. This might mean getting quotes or doing some other research. The point is that the board’s reasons for believing it is getting fair market value should be clear.

Reference to supporting documents:

Where there are details that support the discussion contained in documents that were circulated to the Board, then they should be explicitly referenced in the minutes. For example, contracts, prices, budgets, etc. The version of the document being referenced should be clear (e.g. dated or version). For example, it’s not enough just to say that you will continue to use a certain intermediary since the previous minutes did not document any input the Board had into the content of those agreements. The specific documents should be referenced, and some discussion explaining what I discussed above The more details, the better.

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.

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

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.

GET IN TOUCH

What We Do!

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

Getting Started

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

Ongoing Monthly Bookkeeping

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

Year End

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

What We Don’t Do

Pay bills

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

Payroll tax responsibility

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

*Payroll deductions and benefits

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

Preparation of W2s

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

Sales tax reporting

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

Donation recording

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

Administrative tasks

We cannot provide administrative services unrelated to our bookkeeping function.

Attend board meetings

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

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!

Book a Call

Contact us today to schedule your consultation.

Working with Our Firm

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

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

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.

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.

Book a call with a Consultation

Join the community of Northfield & Associates

Connect with peers and community ambassadors to hear real experiences, tips, and advice about studying abroad.

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About Northfield

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

Forward-Looking Information

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

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

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

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

Questions?

info@northfied.biz

Within Corporate Newsroom  

Media Contact:

media@northfied.biz

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.

Board meeting minutes serve as a crucial record of an organization’s governance practices, documenting who attended, what was discussed, and what decisions were made. They not only provide a reference for future discussions but also serve as a tangible record of the board secretary’s work.

While access to board minutes should be restricted due to confidentiality concerns, boards should still consider their presentation and content as a means of providing transparency to staff, association members, volunteers, and even the public. Therefore, it’s essential to carefully consider the content and format of the minutes, as well as the meetings themselves.

To capture the essential discussions in a useful way, board meeting minutes should be limited to four pages, even for meetings lasting up to two hours. Here are some guidelines to follow:

1. Annually, the board should review the format and level of detail included in its minutes. It’s important to highlight decisions made, actions agreed upon, and the associated responsibilities. When dealing with unfamiliar items, the chair or secretary should consult the board and determine how best to report them in the minutes. This dialogue should occur on multiple occasions to ensure the minutes accurately capture important information.
2. Maintaining consistency in the format of the minutes from meeting to meeting is crucial. To facilitate this, the secretary should create a template for the minutes with board approval, if one does not already exist. Having a template in place will make the secretary’s job easier and ensure that the minutes are consistent and easy to read.
3. The first page of the minutes should include the meeting date, time, location, and attendee names, including those who sent their regrets. It should also identify any guests and reports distributed during the meeting for context.
4. The minutes should align with the order of the meeting agenda and document the corresponding discussion and deliberation. This approach ensures that the minutes are organized logically, making them easier to comprehend.
5. The minutes should emphasize policy decisions and any action items to be taken in the future to ensure they are adequately documented. It’s important to identify who is responsible for implementing these decisions, whether it be the CEO, board, or committees, and to establish a completion date. The format used to document these items is flexible and can vary based on the preferences of the board, but the key is to clearly communicate the decision and action items to stakeholders.
6. The minutes should encapsulate enough of the meeting’s discussions to provide a general sense of what was said, including the questions asked and the pros and cons considered. They should also reflect the overall tone and sentiment of the meeting, serving as a valuable record of the board’s decision-making process.
7. Avoiding potential conflicts or misunderstandings, it is advisable to refrain from attributing specific comments to individual board members in the minutes. Instead, the minutes should focus on key discussion points and highlight the person responsible by name.
8. To maintain neutrality, it is best to avoid noting who voted for or against a decision in the minutes unless a director requests it. The minutes should only indicate whether a motion was passed or defeated, and if it was passed unanimously.
9. It may be necessary to record the names of the mover and seconder for important decision items that require formal motions, such as approving an annual budget or signing a contract for a new program. The board should develop a list of key decision types that require more formal and detailed recording in the minutes to ensure proper documentation.
10. When significant decisions are made, it is important for the minutes to clearly state the decision. Whether it’s granting approval for a policy (“the policy below has been approved…”) or consenting to an action (“the Board has agreed to the action below: “)
11. Proposals (motions) that are defeated may not necessarily be required to be logged in the minutes. Nevertheless, Directors may choose to indicate in the minutes that a contentious issue was deliberated and ultimately rejected.
12. Confidential information, particularly personnel records or client services, should not be included in the minutes. If the board receives confidential documents or reports, they can be referred to without repeating the information or attaching the reports. Personnel issues should only be mentioned in the minutes if they pertain to the CEO. In such cases, the minutes can provide a brief summary of the outcomes of the CEO’s evaluation or mention the percentage increase in salary. The minutes can also report on the approval of a salary scale or percentage wage increase without identifying specific employees.
13. If a board holds an in-camera session to discuss confidential matters, the minutes should report the nature and outcomes of the session on a need-to-know basis.

The way in which minutes are recorded and made accessible to others outside of the board raises questions about governance openness and transparency. Boards should avoid taking a minimalist approach to minutes or relying heavily on in-camera sessions to address this issue. It is important for boards to discuss and come to an agreement on their transparency aspirations and to periodically review their transparency practices.

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.

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

What are Typical Penalties & Consequences for Charity Non-Compliance?

Canada Revenue Agency enforces charity compliance through a range of penalties. These include monetary fines, suspension of charitable status, and complete revocation of registration. Financial penalties can reach thousands of dollars. Loss of charitable status means donors lose tax benefits and your organization loses credibility. The most serious consequence is permanent revocation, which shuts down your charity completely.

We’ll explore each penalty type and show you how to avoid them. This guide helps you protect your charity and maintain compliance with Canadian regulations.

Penalties and Consequences for Non-Compliance

The responsibility of ensuring compliance with the Income Tax Act for registered charities falls under the purview of the Canada Revenue Agency (CRA). CRA may employ various measures to foster and uphold compliance with the Act, or to penalize registered charities that fail to comply.

Typical non-compliance issues

While the CRA prefers to educate charities and collaborate with them to attain compliance when a charity shows a willingness to comply, it will resort to more severe measures if a charity intentionally violates the law or disregards an existing compliance agreement. Here are some typical issues that charities encounter:

Failure to file the T3010 annual return

• Charities must file their T3010 annual return within six months following the conclusion of their fiscal year. If the charity fails to file within this time frame, the CRA may revoke its registration. Typically, CRA grants charities an opportunity to file late. However, if the charity fails to file even after receiving a reminder notice, its registration is likely to be revoked.
• The CRA can impose a late-filing penalty of $500 at any time after the six-month filing period. Nonetheless, at present, CRA refrains from applying this penalty if the charity submits its T3010 return before its registration is revoked.
• If the CRA fails to receive the T3010 return within seven months of the charity’s fiscal year-end, the charity will receive a Notice of Intention to Revoke its Registration (Form T2051A).
• If the CRA has still not received the T3010 return by the tenth month following the charity’s year-end, it will initiate the legal procedure of revoking the charity’s registration.
• It is crucial to keep in mind that there is no assurance of re-registration, and the organization cannot function as a registered charity until its re-registration has been authorized.

Inaccurate details on tax receipts

• Tax receipts may contain errors such as leaving out the CRA’s website address or mistakenly stating the charity’s name or address, resulting in incomplete or inaccurate information. When this occurs, CRA usually issues an education letter to assist the charity in preventing these errors in the future.
• In addition, CRA has the authority to impose a penalty of 5% (for initial offenses) or 10% (for recurring issues) of the eligible amount on tax receipts that are incomplete or incorrect.

Misleading information on tax receipts

• When a tax receipt includes misleading information, such as an inaccurate donation date or amount, CRA considers it a significant issue. In such situations, CRA typically does not offer a compliance agreement but instead imposes penalties.
• CRA considers false information on a tax receipt a severe issue, such as an erroneous donation amount or date. Compliance agreements are usually not used in these cases, and penalties are enforced instead. In case of false information on a receipt, a penalty of 125% of the eligible amount mentioned on the receipt will be enforced. If the total amount of these penalties is greater than $25,000, the charity’s ability to issue tax receipts will be suspended for one year.
• If the violation involves a tax shelter scheme or external parties (beyond the charity’s officers and directors), stricter penalties, such as revocation, may be imposed by CRA.

Insufficient books and records

• The issues related to books and records can vary in their severity, ranging from minor, unintentional problems like disorganized records or occasional errors, to more critical concerns such as the intentional fabrication or destruction of records to hide other issues, or denying access to records during an audit.

To ensure that a charity rectifies its practices in the future, the CRA typically employs a compliance agreement for minor, unintentional issues.

For more severe cases, the CRA may enforce a one-year suspension of the tax receipting privileges for the charity and even initiate permanent revocation of its charitable status.

The consequences and disciplinary actions for failing to comply

In the event that a charity does not adhere to the Act willingly, or its non-compliance is significant, the CRA has the option to implement one of the measures below:

• Compliance agreements entail a signed agreement between the charity and the CRA, outlining the issues observed by the CRA, the actions that the charity will undertake to address these issues, the timeframe allotted for the resolution, and the possible repercussions if the charity fails to implement the agreed-upon steps.
• Sanctions may comprise monetary fines or a provisional revocation of the charity’s authorization to distribute official donation receipts.
• The CRA has the authority to withdraw the benefits associated with a registered charity status, which encompasses the capability to distribute official donation receipts, through revocation of its registration.
• The CRA can instruct a revoked charity to remit all its net assets to the CRA as a revocation tax, if it fails to transfer them to an “eligible donee” within a specified timeframe.

The CRA has the discretion to select any of these measures based on the specific circumstances. If the CRA deems the non-compliance issue to be “serious,” it may directly proceed with sanctions or revocation.

In the event that the CRA suggests imposing a financial penalty, suspension, or revocation of your charity’s status, and you have contradictory evidence, you have the option to file an objection and, if required, an appeal.

Conclusion

Charity non-compliance penalties in Canada are serious and can destroy your organization. From hefty fines to complete revocation, the consequences threaten your mission and donor trust. Understanding these penalties helps you protect your charity’s future.

Prevention is always better than dealing with penalties after they happen. Regular compliance reviews and proper record-keeping reduce your risk significantly. Working with charity law experts ensures you stay on the right side of regulations.

At Northfield & Associates, we help Canadian charities navigate complex compliance requirements and avoid costly penalties. Our experienced team provides practical guidance to keep your organization compliant and focused on its mission. Book a FREE CALL with us to learn how we can protect your charity from non-compliance consequences.

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.

Get professional support today  to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.

Schedule a FREE consultation

Frequently Asked Questions

Here are the most common questions charities ask about compliance penalties and filing requirements in Canada.

What are the possible penalties for non-compliance?

‍Canada Revenue Agency can impose monetary penalties, suspend your charitable status, or revoke your registration completely. Penalties range from late filing fees to permanent loss of charitable status depending on the violation severity.

What is the penalty for late filing T3010?

‍CRA charges $500 for filing your T3010 return late. This penalty applies regardless of how late you file, whether it’s one day or several months overdue.

What is the maximum late filing penalty?

‍The maximum penalty for late filing is $500 per return. However, continued non-compliance can lead to suspension or revocation of charitable status, which carries much more serious consequences than monetary penalties.

What is a T3010 registered charity information?

‍The T3010 is an annual information return that all registered charities must file with CRA. It reports your charity’s activities, finances, and compliance with charitable purposes. This form maintains your registered status and public transparency.

What is an unregistered charity?

‍An unregistered charity operates for charitable purposes but lacks official registration with CRA. These organizations cannot issue tax receipts to donors and don’t receive tax-exempt status that registered charities enjoy.

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.

Get professional support today

Email info@northfield.biz

Phone (416) 317-6806

Visit us https://www.northfield.biz/

 Appointment Schedule your free consultation 

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.

GET IN TOUCH

What We Do!

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!

Book a Call

Contact us today to schedule your free consultation.

Working with Our Firm

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

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

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.

Contact us today to schedule your free consultation.

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 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.

BOOK A CALL WITH A CONSULTATION

JOIN THE COMMUNITY OF NORTHFIELD & ASSOCIATES

Connect with peers and community ambassadors to hear real experiences, tips, and advice about studying abroad.

EXPLORE NORTHFIELD & ASSOCIATES COMMUNITY

CANADA IMMIGRATION CONSULTANTS

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.

HOW CAN WE HELP?

FREE IMMIGRATION ASSESSMENT

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!

FREE ASSESSMENT FORM

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Unlocking the Potential of Those Who Advance the World

Learn more about our core areas of expertise

About Northfield

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

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.

Learn More

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 101: Key Insights for Canadian Charities

Fundraising is not just a task but a lifeline for Canadian charities, keeping them afloat and enabling them to carry out their noble missions.

According to the Canada Revenue Agency (CRA), fundraising encompasses any activity that solicits donations, whether in cash or in-kind.

This broad definition includes everything from direct appeals for cash to selling goods and services.  However, not every revenue-generating activity falls under this umbrella.

What Is Fundraising?

At its core, fundraising means raising money to support a charitable cause or mission. It could involve asking individuals, businesses, or governments to donate, or organizing events or campaigns to generate funds.

In simple terms, what is the meaning of raise funds? It means collecting money to support a goal in this case, helping a cause that matters.

Fundraising can include:

• Writing donation appeals
• Hosting events like walk-a-thons or silent auctions
• Applying for grants
• Selling merchandise
• Running digital campaigns

What Qualifies as Fundraising?

At its core, fundraising involves asking individuals or organizations for financial support. The CRA’s definition casts a wide net, covering various direct and indirect activities.

For instance, a direct fundraising effort might involve volunteers going door-to-door in a neighbourhood and asking residents for donations.

Conversely, an indirect activity could include the research and planning that precedes such a campaign, like analyzing neighbourhood demographics to target the most promising areas.

Even though planning doesn’t directly generate funds, it’s a crucial part of the fundraising process, highlighting the interconnected nature of fundraising activities.

Each step, from planning to execution, plays a vital role in the fundraising campaign’s success, underscoring the charity’s unity and collaboration.

The CRA’s Position on Fundraising

One of the challenges of fundraising for charities is the lack of clear guidelines in the Income Tax Act about what activities are allowed.

While the Act doesn’t list specific fundraising activities, it does impose restrictions on how charities can utilize their resources. Charities must adhere to these regulations when conducting fundraising efforts.

The CRA’s guidance clarifies compliance, emphasizing that all fundraising activities must align with the requirements outlined in the Income Tax Act. This ensures that charities maintain accountability and transparency in their fundraising practices.

Key Messages from the CRA Guidance

The CRA guidance on fundraising highlights several important points for charities:

1. Compliance with the Income Tax Act: Charities must ensure that their use of resources in fundraising activities adheres to the regulations outlined in the Act.
2. Identifying Unacceptable Fundraising Practices: Section F of the guidance details ways charities can inadvertently violate the Income Tax Act through fundraising efforts. Section G outlines indicators of unacceptable practices.
3. Reporting Requirements: Appendix B provides guidance on reporting fundraising costs on Form T3010, the Registered Charity Information Return. Accurate reporting is essential for maintaining transparency and compliance.
4. Best Practices: Appendix C suggests best practices for charities to minimize the risk of engaging in unacceptable fundraising activities. While these practices are recommendations rather than strict requirements, they can significantly enhance a charity’s fundraising strategy.

What Is the Main Purpose of Fundraising?

The main purpose of fundraising is to help your charity continue doing its work. Most charities rely on fundraising to pay for services, staff, programs, supplies, and outreach. Without fundraising, many charities would not survive.

But it’s not just about money; fundraising also spreads awareness, builds a community of supporters, and gets people involved.

What Is a Fundraising Campaign?

A fundraising campaign is a focused effort to raise money for a specific goal over a certain period of time. Think of it like a mission with a clear target.

For example:

• A campaign to raise $50,000 for new school computers
• A holiday food drive to collect donations before December 31
• A month-long challenge where supporters donate for every kilometre walked

Good campaigns include a clear message, a plan to reach donors, and updates along the way.

Tips for a Strong Campaign:

• Set a clear goal
• Share a compelling story
• Use social media, email, and community events
• Thank donors publicly and privately

What Is Peer-to-Peer Fundraising?

Peer-to-peer fundraising (sometimes called P2P) is when your supporters raise money for your cause by asking their friends, family, or coworkers to donate.

Example: A student runs a 5K and asks people to sponsor them by donating to your charity. That student becomes a mini-ambassador for your cause.

So, what is peer to peer fundraising? It’s when your community helps you fundraise by reaching out to their networks. It’s powerful because it spreads your message further and builds trust people are more likely to give when someone they know asks.

What Is a Case for Support in Fundraising?

Your case for support is one of the most important tools in fundraising. It’s the main message you use to show potential donors:

• What your organization does
• Why it matters
• What impact will a donation make
• Why you need funds now

A strong case for support makes people want to give. It should be emotional, clear, and honest.

What is a case for support in fundraising? It’s the “why” behind your ask. It gives donors the information and inspiration they need to take action.

What Is Stewardship in Fundraising?

Stewardship is how you take care of your donors after they give. It includes:

• Saying thank you promptly
• Sending updates on how their gift is being used
• Inviting them to events or volunteer opportunities
• Making them feel part of the mission

What is stewardship in fundraising? It’s the ongoing relationship with donors, showing them their gifts matter. Good stewardship builds loyalty and increases the chances that they will give again.

What Is the CRA Definition of Fundraising?

The Canada Revenue Agency (CRA) has strict rules for registered charities when it comes to fundraising. According to the CRA:

“Fundraising is any activity that includes a solicitation of present or future donations of cash or non-cash gifts, or the sale of goods or services to raise funds.”

This includes:

• Asking for donations by phone, mail, or online
• Holding events like galas, raffles, or auctions
• Selling items (t-shirts, cookies, etc.) to raise money

The CRA wants to make sure your fundraising:

• Is legal and truthful
• Uses donations in a way that supports your mission
• Doesn’t spend too much on expenses

For example, if you spend $90 to raise $100, the CRA may question whether your fundraising is too costly.

You can read the full CRA guidelines here.

What Makes Fundraising in Canada Unique?

Fundraising in Canada comes with responsibilities. Unlike some other countries, registered charities in Canada must follow CRA rules closely. Some unique points include:

• Tax receipting: Only registered charities can issue official donation receipts for tax purposes.
• Transparency: CRA may review your fundraising spending, especially if your costs are high.
• Public trust: Canadians expect honesty and accountability. Being open about how donations are used builds long-term trust.

Best Practices for Successful Fundraising

1. Start with a plan: Don’t wing it. Set goals, budgets, and timelines.
2. Know your audience: Speak directly to the people most likely to care.
3. Tell a good story: Use emotion and real examples to connect.
4. Make it easy to give: Offer online donation options and clear instructions.
5. Track everything: Use spreadsheets or software to stay organized.
6. Say thank you: This is a must. Every donor should feel appreciated.
7. Follow up: Share results and updates so people know their gift made a difference.

Summary

Fundraising is vital for Canadian charities, helping them secure the support they need to operate and achieve their goals. The Canada Revenue Agency defines fundraising broadly, covering everything from asking for donations directly to planning related activities. It emphasizes the importance of following regulations for transparency and accountability.

With a strong case for support, good stewardship, creative campaigns like peer-to-peer fundraising, and full knowledge of CRA’s definition of fundraising, your organization can raise the funds you need to grow your impact across Canada.

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.

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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

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

What We Don’t Do

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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.

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We cannot provide administrative services unrelated to our bookkeeping function.

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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.

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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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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.

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How to Draft Purposes for Charitable Registration in Canada

Are you passionate about making a difference in your community? Have you considered starting a charitable organization to address an issue close to your heart? Whether you’re thinking about applying for charitable registration or already have a registered charity but want to amend your purposes, it’s crucial to understand the current regulatory landscape and requirements.

With the CRA facing unprecedented backlogs and processing delays, getting your charitable purposes right the first time has never been more critical. Let’s explore the intricacies of drafting purposes for charitable registration in Canada.

Current CRA Processing Challenges and Why Precision Matters

The Canada Revenue Agency currently faces a massive backlog of requests for changes in charitable purposes by registered charities. Processing times for purpose amendments have increased dramatically from 2 months to 10 months for operating charities. This surge is largely due to new provincial legislation like Ontario’s Not-for-Profit Corporations Act (ONCA), which has prompted thousands of organizations to update their governing documents.

Approximately 20,000 of Ontario’s 60,000 non-profits are registered charities, many with outdated purposes that are either too narrow for their current needs or don’t meet today’s CRA standards. Importantly, there is no grandfathering of purposes – even if your purposes were approved by the CRA decades ago, they must still meet current legal requirements.

Understanding Charitable Purposes and Activities

Before diving into drafting requirements, it’s essential to understand the distinction:

Purposes (also called “objects”) are the goals your organization aims to achieve, as outlined in your governing document such as letters patent, articles of incorporation, or constitution.

Activities are the specific actions your organization takes to achieve these goals.

The CRA uses a “two-part test” to assess charitable registration, evaluating both your stated purposes and the activities you conduct to further those purposes.

General Requirements for Charitable Registration

To qualify as a charity under the Canadian Income Tax Act, your organization’s purposes must meet specific criteria:

1. Exclusively Charitable

Your purposes should fall into one of four categories: relieving poverty, advancing education, advancing religion, or other purposes beneficial to the community. Additionally, they must provide a charitable benefit to the public or a sufficient section of the public.

2. Defined Scope of Activities

Your organization’s resources must be dedicated solely to activities that further its charitable purposes. Subject to limited exceptions, all resources must be devoted to these activities.

Key Elements of Charitable Purposes: The Three-Element Framework

According to CRA Guidance CG-019, each charitable purpose should identify three essential elements, either expressly or through context:

1. Charitable Purpose Category

Clearly identify the category your purpose falls into, such as relieving poverty or advancing education.

Example: “To relieve poverty by providing food and shelter to homeless individuals in our community.”

For fourth category purposes, you must specify the particular charitable benefit:

• “To promote health…”
• “To protect the environment…”
• “To advance the arts…”

2. Means of Providing Charitable Benefit

Describe how your organization will achieve its purpose, outlining specific activities that directly contribute to the charitable benefit.

Example: “By operating a food bank and transitional housing program to address immediate needs and empower individuals to break the cycle of homelessness.”

This element defines the scope of activities your charity can legally conduct and ensures the provision of a recognizable, measurable charitable benefit that is socially useful and has demonstrable public impact.

3. Eligible Beneficiary Group

Define the group of individuals who will benefit from your organization’s activities, ensuring that the benefit reaches the public or a significant section of the public.

Example: “Our services are available to all members of the community experiencing poverty, regardless of age, gender, or background.”

Different charitable purposes have different requirements for what constitutes “the public.” Some purposes require restrictions (poverty relief must target those experiencing poverty), while others should be available to the public as a whole (general hospitals).

Specific Requirements for Each Category

Relief of Poverty

Focus on aiding individuals experiencing poverty. This includes not only the destitute but anyone lacking basic necessities or simple amenities available to the general public.

Enhanced Examples:

• “To relieve poverty by providing financial assistance and job training programs to low-income families in [specific location]”
• “To relieve poverty by operating a micro-lending program for entrepreneurs starting small businesses who lack access to traditional banking”
• “To relieve poverty by providing tuition subsidies directly to educational institutions for students demonstrating financial need”

Advancement of Education

Emphasize educational initiatives and programs that provide knowledge, develop abilities, or improve useful branches of human knowledge through research.

Enhanced Examples:

• “To advance education by operating a public school providing specialized programs for students with learning disabilities”
• “To advance education by conducting research into sustainable agriculture practices and making results publicly available”
• “To advance education by offering scholarships and tutoring services to support students from underprivileged backgrounds in pursuing higher education”

Advancement of Religion

Specify the religious community or group your organization serves, focusing on manifesting, promoting, or sustaining belief in the religion’s key attributes: faith in a higher power, worship, and comprehensive doctrinal system.

Enhanced Examples:

• “To advance the [specific faith] religion by establishing and maintaining a house of worship with services conducted according to traditional doctrines”
• “To advance religion by providing religious education programs for children and adults of the [specific faith] community”

Other Charitable Purposes (Fourth Category)

Clearly define the specific benefit your organization provides to the community, such as promoting health or protecting the environment.

Enhanced Examples:

• “To promote health by operating a public clinic providing preventive healthcare services to underserved populations”
• “To protect the environment by preserving wildlife habitats and conducting conservation education programs”
• “To advance the arts by providing free, high-quality musical performances and music education to the general public”

Avoiding Broad or Vague Purposes

Ensure clarity and precision in your purposes to avoid potential registration issues. The CRA has provided clear examples of problematic versus acceptable purpose statements:

Broad/Vague Purposes (Unacceptable):

• “Relieving poverty through charitable means”
• “Providing scholarships”
• “Building strong communities through social enterprise“
• “Empowering youth to achieve their maximum potential”

Specific and Clear Purposes (Acceptable):

• “Relieving poverty by operating a food bank for people experiencing financial hardship”
• “Advancing education by providing scholarships based on academic achievement to university students”
• “Improving socio-economic conditions in [specific location] by operating social businesses for people with disabilities”
• “Addressing youth unemployment by providing employment-related skills programs, conferences, and workshops to unemployed youth aged 16-24”

Specific Guidance:

• Broad Purposes: Aim to be specific rather than overly broad, clearly outlining the activities and beneficiaries. Instead of “Supporting community development,” specify activities such as “Building playgrounds and recreational facilities for children in underserved neighbourhoods.”
• Vague Language: Use concrete terms to describe your organization’s goals, avoiding ambiguity. Instead of “Improving quality of life,” specify actions such as “Providing access to healthcare services for marginalized populations.”

What to Do If Your Registered Charity Plans to Change Its Purposes or Carry On New Activities

Given the current processing delays, careful planning is essential:

1. Assessment and Planning

Review whether your current purposes accurately reflect your organization’s activities. Many charities discover their purposes are either too narrow for their work or too broad to meet current standards.

2. Pre-Review Option

Before amending your governing documents, you can submit proposed purposes and detailed activity statements to the CRA’s Charities Directorate Client Service Section for preliminary review.

3. Comprehensive Documentation

The CRA requires both charitable purposes and detailed activity statements. These must clearly demonstrate how your proposed activities will directly further your stated charitable purposes.

4. Timeline Considerations

With processing times now extending to 10 months, plan your amendments well in advance of any operational changes or new program launches.

5. Activities That Further Unstated Purposes

Sometimes organizations conduct activities that further charitable purposes not stated in their governing documents. For example:

• A charity stating “relieving poverty by operating a hospital” that actually provides healthcare to the general public may be furthering an unstated purpose of “promoting health”
• An educational charity that also produces cultural performances may be furthering an unstated purpose of “advancing the arts”

If this applies to your organization, you may need to amend your governing documents to include additional charitable purposes.

Power Clauses vs. Charitable Purposes

Don’t confuse power clauses with charitable purposes. Power clauses specify your organization’s authority to conduct certain operational activities (buying property, employing staff, making investments) but don’t define your charitable mission. The CRA generally doesn’t scrutinize power clauses unless they allow for non-charitable purposes.

Provincial and Federal Requirements

Remember that provincial or territorial charitable registration requirements may differ from federal Income Tax Act requirements. The fact that a provincial government accepts certain purposes doesn’t guarantee CRA approval for federal charitable registration.

Conclusion

Drafting corporate purposes for charity registration in Canada requires precision, legal knowledge, and strategic thinking. With current CRA processing delays extending up to 10 months, organizations cannot afford to submit poorly crafted purposes that may result in rejections or lengthy revision cycles.

The three-element framework charitable category, means of benefit, and eligible beneficiaries provides a roadmap for creating compliant purposes, but navigating the nuances of charitable law can be complex. From avoiding broad language to ensuring your activities align with stated purposes, each detail matters for successful registration and ongoing compliance.

At Northfield & Associates, we specialize in helping organizations draft effective charitable purposes that meet CRA requirements and support your mission. 

Book my free consultation to learn how our expertise in Canadian charity law can guide your organization through the registration process and ensure your charitable purposes position you for long-term success in serving your community.

Frequently Asked Questions

What are charitable purposes in Canada? 

Charitable purposes are the specific goals your organization aims to achieve, which must fall into one of four categories: relief of poverty, advancement of education, advancement of religion, or other purposes beneficial to the community in a way the law regards as charitable.

What are the three types of charities in Canada? 

Canada has three types of registered charities: charitable organizations (operate their own programs), public foundations (raise funds from the public and give grants), and private foundations (typically funded by one source and distribute grants).

How to establish a charitable foundation in Canada? 

To establish a charitable foundation, you must incorporate or create a trust, draft charitable purposes that meet CRA requirements, apply for charitable registration with the CRA, and meet ongoing compliance obligations including annual filings and disbursement quotas.

What are the requirements for charitable status in Canada? 

Your organization must have exclusively charitable purposes, provide public benefit, be non-profit, have proper governance structure, meet disbursement quota requirements, maintain adequate books and records, and file annual returns with the CRA.

What is the purpose of your charity? 

A charity’s purpose defines what it aims to achieve and must be clearly stated in governing documents. It should identify the charitable category, means of providing benefit, and eligible beneficiaries while being specific enough to define the scope of permitted activities.

What are the four types of charity? 

The four categories of charitable purposes in Canada are: relief of poverty (helping those lacking basic necessities), advancement of education (providing knowledge or training), advancement of religion (promoting religious belief and practice), and other purposes beneficial to the community (such as promoting health or protecting the environment).

Related Articles:

• What is the Cost to Register a Charity in Canada?
• How Do You Apply for Charitable Status in Canada?
• Charity Registration Timeline: What to Expect at Each Stage

Checklist of Annual Obligations under the Canada Not-for-Profit Corporations Act (NFP Act)

Q. Thank you for your assistance with incorporating our Not-for-Profit. I still can’t believe you registered our NPO in just 5 hours! My question is, where do we go from here? Do you have some type of checklist for our yearly duties that we need to do to keep our non-profit in compliance with the law?

A. As a federally incorporated not-for-profit organization in Canada, you are required to fulfill several annual obligations to comply with the Canada Not-for-Profit Corporations Act (NFP Act). These include:

1. File an Annual Return
   • When: Within 60 days after your corporation’s anniversary date (the date it was incorporated).
   • How: Submit your return online through the Online Filing Centre.
2. File Tax Return
   • When: No later than six months after the end of your fiscal period. For example, if you fiscal year ends December 31, the deadline is June 30 the following year.
   • How: File the return as required by the Canada Revenue Agency. If your nonprofit is not registered as a charity, then you file a T2. If the nonprofit is registered as a charity or qualified donee, then you would file a Form T3010.
3. Update Registered Office Address
   • When: As soon as the address changes.
   • How: Report the change online through the Online Filing Centre.
4. Report Changes in Directors
   • When: Within 15 days of a new director being appointed, a director resigning, or a director’s address changing.
   • How: File the changes online through the Online Filing Centre.
5. Submit Financial Statements and Accountant’s Report (For Soliciting Corporations Only)
   • When: At least 21 days before your annual members’ meeting.
   • How: File the documents online through the Online Filing Centre.
6. Update Your Articles
   • When: As soon as any major changes (like your corporation’s name or number of directors) are approved by members.
   • How: Submit the amendments online through the Online Filing Centre.
7. Send Copies of By-laws
   • When: Within 12 months of members confirming any new by-laws or changes.
   • How: File them online through the Online Filing Centre.

Failure to meet these obligations could result in the dissolution of the corporation, leading to significant legal consequences, particularly for registered charities under the Income Tax Act.

Conclusion‍

If you require expedited Nonprofit or Charity registration, the experienced lawyers at Northfield & Associates can assist.

Schedule a FREE phone call with our team and get started with your charity registration.

Join our thousands of clients in Ontario, including from Toronto, Markham, Mississauga, Ottawa, Hamilton and Barrie, as well clients from across all provinces and territories in Canada, who we’ve successfully helped register their nonprofit and/or charity quickly, affordably, and easily.

Frequently Asked Questions

Not-for-profit corporations in Canada have several specific reporting and filing duties each year.

These include submitting annual returns, updating records, holding meetings, and managing financial reports in line with federal rules.

What are the requirements for annual shareholder meetings in Canada?

Not-for-profit organizations must hold annual members’ meetings to review financial statements and approve important decisions.

Members must receive adequate notice before the meeting, and the agenda should include the financial report and any voting on major changes.

What are the requirements for soliciting corporations under the Canada Not-for-Profit Corporation Act?

Soliciting corporations must submit financial statements and an accountant’s report at least 21 days before their annual members’ meeting.

These documents must be filed online with Corporations Canada to show transparency when raising funds from the public.

What are the audit requirements for nonprofits in Canada?

Not all nonprofits are required to have a full audit.

Larger organizations or those that solicit funds may need their financial statements reviewed or audited by an independent accountant. The requirement depends on the corporation’s size and activities.

What are the requirements for audit in Canada?

Audits must be performed by qualified professionals and comply with generally accepted auditing standards.

The audit verifies the accuracy of financial statements and helps ensure the nonprofit’s financial information is reliable and transparent for members and regulatory bodies.

What consequences does a not-for-profit face for non-compliance with annual obligations?

Failure to file annual returns, tax returns, or update required information can lead to serious penalties. These penalties may include the dissolution of the corporation.

Dissolution stops the organization from operating legally. It may also cause loss of assets or revocation of charitable status if applicable.