…empty board seats…job postings for honest managers in 2012?
Safeguarding Charitable Assets through Good Governance
Federal Budget 2011 proposes measures to restrict who can direct, control or manage a charity or amateur athletic association. The budget proposes to establish eligibility requirements for key positions in Canadian Registered Charities and Registered Canadian Amateur Athletic Associations.
If the individual 1. has been found guilty of a relevant criminal offence, and hasn’t received pardon, within the last five years, or has been found guilty of a relevant offence within the past five years
2. was a director, trustee or official, or controlled or managed during a period when the charity was engaged in conduct that constituted a breach of registration requirements for which registration was revoked in the past five years
3. has been a promoter of a tax shelter involved in a gift that was revoked within the last five years for participation in a tax shelter
What’s an example of a relevant criminal offence? Financial dishonesty, tax evasion, theft, fraud, or if the criminal offence is relevant to the operation, if repeated, could inflict harm on the organization or its beneficiaries.
What’s an example of a relevant offence? Financial dishonesty including fundraising, consumer protection, securities legislation, or any actions, that if repeated, could inflict harm on the organization or its beneficiaries.
What’s an example of a serious breach of registration requirements? Improper receipting arrangements, abusive tax shelters, undue private benefits to directors
What power does CRA have to remove someone? If it explains its concerns to the organization, and the organization doesn’t respond appropriately, or fails to address CRA’s concerns, sanctions may be applied, up to and including revoking charitable status.
When will this come into force? The later of January 1, 2012 or legislation receiving Royal Assent!
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