May 3rd, 2022
Apr 23rd, 2015
By Daniel Frajman
On the fifth anniversary of Federal Budget 2010, it is useful to recall the “percentages” that attracted so much attention either in that budget, or shortly before:
Notwithstanding the repeal of the 80% disbursement quota, it is worth recalling that in the immediate aftermath of the 2010 Budget, the CRA did state that charities may not use their funds however they want. In this regard, the CRA wrote the following on its website:
“Registered charities have always had to devote their resources to charitable programs to maintain their charitable registration, and this is still the case. The disbursement quota requirement is just one part of the rule.”
More details on this can be found in my article titled Foundations and Disbursement Quota Reform, which originally appeared in the August 10, 2010 edition of The Canadian Taxpayer (published by Carswell).
Daniel Frajman, TEP, a shareholder of Spiegel Sohmer, a Montreal law firm, negotiates and drafts contracts for business and real estate sales and purchase transactions, leases, debt and equity financings, shareholders’ agreements, trusts, wills, and for non-taxable non-profit and charitable businesses.