by Ian Werker Barrister & Solicitor 393 University Avenue, Suite 2000, Toronto, Ontario, M5G 1E6 e-mail: ian(at)werkerlaw.com Phone: (416) 593-7552 Fax: (416) 593-0668 January 29, 1996 Introduction Corporate directors are obliged to act in the best interests of the corporation. It is also generally accepted that directors should consider their corporation’s responsibility to others, including […]
Every organization incorporated without share capital under the Ontario Corporations Act and the Canada Corporations Act must have an audit. There is no statutory exemption from audit for not-for-profit organizations incorporated under the acts. Also, many organizations must have an audit as a condition for receiving funding from government and private sources.
You may find this article written in 1998 useful for background purposes. For more detail on Revenue Canada’s current position on political activities refer to the Revenue Canada policy paper at http://www.cra-arc.gc.ca/tx/chrts/plcy/cps/cps-022-eng.html or contact the Charities Division of Revenue Canada Taxation at: Revenue Canada Taxation, Charities Division, Ottawa, Ontario, K1A OL8; 1-800-267-2384.
Most not-for-profit organizations work toward accumulating a sufficient financial cushion to provide some security against unexpected financial difficulties. There is a strong and sometimes warranted perception among members of the charitable community that even a modest surplus can have negative implications for raising funds.
We are often asked by Boards of community-based childcare centres whether or not they should try to obtain registered charitable status. This article points out some of the benefits and costs of having registered charitable status. As Revenue Canada is currently reviewing the whole field of not-for-profit and registered charity reporting the following benefits and […]
Risk management is a hot topic in the commercial sector, especially in light of the recent losses of some multi-national corporations. Some significant lessons can be learned from these incidents and can be applied towards improving risk management in not-for-profit organizations. This article defines risk as it relates to the not-for-profit community and discusses how […]
Clear financial reporting to the Board of Directors is essential for good financial management in any organization. Budgets and accurate day-to-day financial records are of limited use if the information they contain is not communicated clearly to the Board and those people responsible for managing the organization.
Most of the incorporated not-for-profit organizations in Ontario are governed by either the Ontario Corporations Act or the Canada Corporations Act. Both pieces of governing legislation require that all organizations have an annual audit. Under these pieces of legislation there are no exemptions from audit.
This article is the first in a series describing how your Board of Directors can use internal controls to improve the financial efficiency of your childcare centre. Over the next few months we will be looking at a variety of ways to make the most of your financial resources.
*Written in 2000 Overview of the Changes and Some Practical Considerations for directors of charities  By: Brian Iler and Ted Hyland, Lawyers Iler, Campbell, Klippenstein On July 1, 1999, the Ontario Government substantially revised the powers and duties of some individuals and organizations holding and investing money, or other assets, for others, or for […]
Centres almost never get into financial difficulty overnight. Financial difficulty generally builds over many months. If financial difficulties come as a surprise then there has probably been a lack of attention to finances on the part of the Board of Directors and staff. Following are a few early warning signs that, in our experience, generally […]
What does the future hold in store? 1. Do you prepare an annual budget? 2. Is it prepared before the year starts? 3. Is it approved by the board? 4. Is it updated periodically? 5. Do you have a monthly cash flow forecast? 6. Is it used by the board in settling fee/expense policy? 7. […]
Monitoring your organization’s systems for budgeting, record keeping, financial reporting and safeguarding assets is generally more than a volunteer Treasurer or full-time Executive Director can do or should do by him or herself. Setting up a Finance Committee of the Board of Directors is a team approach that can make it easier to manage your […]
JANUARY Assemble payroll information for T4/T4-A preparation FEBRUARY Final date for T4/T4A submission is month end Review monthly cash flow assumptions and adjust monthly cash flow forecast if necessary (*)
Recently, there has been a lot of material published on running efficient and effective boards in the not-for-profit environment. We have a few suggestions geared specifically to childcare centres: Focus on the primary objective of your organization Providing quality childcare at an affordable price is the primary objective of most licensed childcare centres.