The Ontario Ministry of Finance is proposing a new regulation under the Employer Health Tax Act, to include special Employer Health Tax rules for registered charities. The new regulation could be effective as early as January 1, 2017.
Whether it is assisting Syrian refugees to settle in Canada or helping those fleeing from floods and fires, the goodwill of the people and charities in Canada always make headlines. In times of disaster, it seems many charities want to raise money and get on the bandwagon to help those in need. Although this may be a laudable goal for charities that want to show their benevolence, sometimes it could simply get them into trouble.
As an Executive Director, there are many different areas that need your attention on a daily basis: strategic direction, fundraising, stakeholder engagement, employee and volunteer management, media relations and grant applications, just to name a few.
With all of these factors to manage, keeping up with changes in legal compliance and CRA requirements may not be perceived as a top priority. However, failing to pay attention to compliance can leave your organization vulnerable to the risk of financial penalties and have a negative impact on your reputation.
I want to highlight a couple of recent issues you may want to consider.