The Ontario Superior Court of Justice recently heard its first case on donor advised funds in The Joseph Lebovic Charitable Foundation v. Jewish Foundation of Greater Toronto. (PDF) This is the first time a court in Canada has discussed donor advised funds at length, and it sheds light on the court’s treatment of this increasingly popular philanthropic vehicle.
The COVID-19 crisis is affecting charities in numerous ways. In this short note, we will discuss cancelling events and refunding money or attempting to turn that into a potential charitable donation. We have received a number of inquiries from clients about how to do this and here are some tentative thoughts.
While donors to fraudulent donation schemes may not be morally innocent, their culpability does not reach the level of the promoters of these schemes. It is refreshing to see the CRA prosecuting those responsible, rather than merely reassessing and penalizing taxpayers.