Last updated: December 2011
More information on how this works for individual taxation and payroll administration. Check for possible cost savings opportunities too.
The federal government periodically announces a call for proposals that may be of interest to ministries considering accessibility projects. Full details are available at Human Resources and Skills Development Canada. Small projects that create or enhance accessibility for people with disabilities may receive up to $50,000 from the federal government. At least 25 percent of the total project costs must come from other, non-federal government sources.
Since the window for applying is often quite short, we recommend you put yourself on the notification list as offered on the government webpage.
The 2011 federal budget affirmed changes for the charitable sector proposed in 2010. These include elimination of the disbursement quota and the new T3010-1 form.
One new wrinkle is that the CRA will require increased due diligence by charity boards in selecting senior staff, board members, and trustees to ensure “ineligible individuals” are screened out—basically, people with a record of financial dishonesty. Background checks are NOT required per se, but a more thorough screening process is required. One option may be to have board members sign a declaration of eligibility.
Increasingly, we are scheduling live webinars on request. Recorded webinars can be viewed any time. However, we will continue to offer national webinars for topics of seasonal interest.
To participate in the webinars, please visit the Momentum website.
To watch previously recorded webinars, visit our Congregational Finance video album on Vimeo.
The CRA now requires that eligible individuals file a T1213 Request to Reduce Tax Deductions at Source in order to receive clergy residence deduction ("CRD") tax relief per pay. This is not mandatory. If this form is not filed (and approved), taxes will be withheld at source without taking the CRD into consideration and the tax relief occurs later, at tax filing time. See this link for tips on form completion and improving your chances of approval.
Sometimes our internal language confuses things. Here is an attempt to match United Church language with what the CRA expects and requires. We are updating our payroll forms to make this easier.
A revised Registered Charity Information Return has been developed in response to changes announced in the federal budget of March 4, 2010. This new form T3010-1 will be used by charities with fiscal periods ending on or after December 1, 2010, and was mailed to charities early in 2011.
I am hearing from across the country that CRA auditors are getting more concerned with cash payments being given to individuals even for modest sums. Technically a charity shouldn't give money to a non-charity (without demonstrating direction and control of what happens to the money). Modest payments from benevolent funds have not been an issue until now. It is always a good idea to purchase vouchers, or pay actual bills, when administering a benevolent fund.
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