Serving as a director of a charity or NPO can be an enriching and exhilarating experience. Many Canadians contribute to the betterment of their community by the hours volunteered when serving on a board of directors. However, there are some things to watch out for before joining a charity's board of directors.
Those running a charity could be forgiven for thinking that there are no provincial rules which apply specifically to charities. In fact, this is not the case and we have written several times about such laws as the fundraising rules in Alberta or the registration of a charity in Quebec. However, there are other rules which may affect charities and which may have particular relevance when crossing borders. One such set of rules is contained within the Trustee Acts of various provinces. Generally speaking, the Trustee Acts will apply when a charity holds funds regardless of whether it is incorporated.
Established in 1995, First Reference Inc. (known as La Référence in Quebec) provides Canadian organizations of any size with practical and authoritative resources to help ensure compliance.