Even the best relationships can benefit from a period of self-reflection, a little tune-up from time to time when things are still working, just maybe not as smoothly as they could.
The CBA’s Charities and Not-for-Profit Law Section has identified this as a good time to check in with the Canada Revenue Agency’s Charities Directorate about the facets of their relationship that could use a little corrective maintenance.
Yvonne Chenier, Q.C., Chair of the Charities Law Section, wrote to Cathy Hawara, Director General of the Charities Directorate, to discuss some of the difficulties CBA members have experienced, and to offer the CBA’s help to resolve the issues.
The most frequently cited problems seem to be in the areas of time and clarity of process:
- Time is of the essence: Charities law practitioners frequently send letters informing the Directorate of legal amendments that will be made to incorporating documents, and state that the changes won’t be made until the Directorate gives the go-ahead. “Our experience is that these cases can take longer than an initial charitable registration,” the letter says. In one case, a religious organization’s desire to add a new purpose to its established missionary program has already taken more than two years and “no resolution appears to be in sight.”
- Time and clarity are of the essence: Sometimes applications can move from officer to supervisor, leaving no clear trail for the lawyer who submitted the application to follow, to know who’s handling the matter, “and sometimes months pass without apparent progress on the file.”
- Did we mention clarity? An up-to-date telephone and email directory with the names and titles of staff would make everyone’s job easier.
- It would be nice if the CRA would say how it wants things done: “For charities that amalgamate or change their corporate form … the procedure at the Directorate is again unclear, and there are often delays of many months. … Given stringent requirements for a proper name and charitable number on tax receipts, this can cause serious problems.”
- And, well, clarity, please: The current form of the administrative fairness letters sent in response to an incomplete or problematic application to register “can be difficult to comprehend, even for experienced practitioners. … We suggest being as concise as possible.”
- Finally, sometimes a cigar is (clearly) just a smoke: Many administrative fairness letters seem to “automatically” conclude with: “In light of the above, it is unlikely that the applicant can become a registered charity.” Since the “above” often refers to minor problems that require simple fixes, “In our view this statement is unhelpful and unnecessary, and often causes great concern for clients.”
Chenier concludes the letter by saying the Section welcomes the opportunity to work with the Directorate, to learn more about its processes and procedures so that practitioners can be better placed to serve their clients.
“We suggest that transparent, simple and well-understood processes for charities that want to comply with the law should be the desired goal.”