Project Goals To inform voluntary groups about the current law governing charities To build consensus on the need for change: What a new law might look like. To have a clear and consistent interpretation of the law How The Current Law Affects Groups Groups can’t get the money they need. Registered status is either a le­ gal requirement or a stamp of cred­ ibility for most funders. Groups waste countless resources on fruitless attempts to get registered or defending their registration. Many just give up. New groups can’t get “in”. In the past it was easier to get registered. So new groups can't compete on a level play ing field with established groups who do the same things. Groups are frightened to speak out for fear of putting their status at risk. The Stories... ... a YWCA in rural Ontario is refused chari table status until they remove referenceto the rights of women from their application. ....the tax number of a women’s employ­ ment centre is yanked when they not neglect to file a report - although their activity hadn't changed and losing the number put their United Way funding at risk ... the activities of a refugee settlement group are deemed charitable but their objectives contain “the possibility" of poli tical purpose — so they're refuser charit able status and therefore access to most private and foundation funds Brenda Doner Co-ordinator Charities and Advocacy Project C/o Canadian Centre for Philanthropy 700-425 University Avenue Toronto, ON M5G 1T6 Tel: 416-597-2293 ext 263 Fax: 416-597-2294 Email: brendad@impacs.org ... a social service group refused status because they serve only "a specific part of the community"- refugees and imm agr nts fronts Produced with the generous assistance of the Maytree Foundation. a national association serving immi grants informed thaI their objects "reflect purposes which are not charitable at law www.impacs.org . a national coalition of ethnocultural groups refused status because multi * c ulturalism has not been judged either cheritable or non-charitable by the courts THE LAW on CHARITIES and ADVOCACY CHARITIES and ADVOCACY Project The Charities and Advocacy Project . few environmental groups that advo cate policy change have managed to get registered in the past five years I M P A C S I M P A C S The Institute for Media, Poliey and Civil society The Institute for Media, Policy and Civil Society Why It Matters The law in this field is found in three places: the common law (past court decisions); the federal Income Tax Act; and the adminis­ trative policies of the Canada Customs and Revenue Agency ("CCRA" - formerly Rev­ enue Canada). • • The Common Law: The leading case in charity law is a 1891 decision of the British House of Lords which established that the purposes of a charity must fall within one or more of the follow­ ing categories, which trace their roots back at least 400 years this year, to the Statute of Uses, 1601, from Elizabethan England. relief of poverty; The law in this field is unclear, out of date, poorly reasoned, and poorly stated. As a result its application and enforcement by the CCRA are inconsist­ ent and arbitrary. The uncertainty and additional adminis­ trative burden for charities wastes re­ sources. The Income Tax Act does not define "ancillary and incidental," nor does it state how much of such activity can be performed. advancement of religion; or Administrative Policies of the CCRA: other purposes beneficial to the community. The CCRA administers Canada's system of char­ ily law. This includes applying the imprecise and inadequate common law and Income Tax Act Io existing charities and organizations seeking charitable status. CCRA staff determine whether charitable status will be granted or rejected, whether audits will be conducted and whether charitable status will be revoked. While not truly "the law," CCRA enforces a "10% rule" - that is, charities can apply no more than about 10% of their resources to political activity. The Income Tax Act: The Income Tax Act adds very little substance or clarity to the old and inadequate common law in this field. Section 149.1(6.2) provides that charities may devote part of their resource to political activities that are "ancillary anc incidental" to their charitable activities; but • • If our voices are silenced by "advo­ cacy chill" - who will speak for our clients and members? Get Involved use your newsletter, website, listserve to spread the word, discuss the issues It promotes a band-aid approach to social ills, not long-term solutions distribute this brochure Even if you're OK now, your group could be affected next participate in the fall dialogue event in your region may not participate in partisan political activity. advancement of education; The common law also provides that charitie cannot have political purposes or engage in partisan political activity. Unfortunately, the cases do not provide clear guidance as to the types of activities charities may engage in to advance or support their charitable pur poses. This is where the confusion surround ing advocacy begins. • I or more details, ask for "The Law of Advocacy lor Charitable Organizations: The Case for Change" by Richard Bridge, LL.B, or get it from the web-site www.impacs.org. IMPACS - a nonprofit communications and policy development organization that works across Canada and internationally Canadian Centre for Philanthropy - a national service organization dedicated to the interests of the nonprofit sector The project is independent from but work­ ing hand in hand with the Working Group on Advocacy of the Voluntary Sector Initiative, (http://www.vsi-isbc.ca/eng/ working_groups/advocacy/index.cfm) 1 What’s Coming | Fall Dialogues Sep. 28- Oct. 4 for eastern Canada Oct. 12-19 for western Canada dates in the North tbc Consensus Report December, 2001 Lobby for Change January 2002 onwards What’s Done Legal Research Paper (see www.impacs.org) Options for Change Paper What You Can Do o visit our website: www.impacs.org Info on CCRA regulations and guidelines is available at http://www.ccra-adrc.gc.ca/tax/ charities/. o join the forum (listserve) IMPACS -CANADA by visiting www.charitychannel.com ° join the mailing list