CRA amends the T1213 from time to time, and employees must be sure to review it carefully each time they make this type of submission to CRA.

Below is a quick review of what the T1213 and some recent changes charities and their employees need to be aware of.

What Does the T1213 Form Cover?

The T1213 form allows employees to request that CRA consider allowing for reduced taxes at source for tax deductions and credits that may apply to charity employees, such as:

• Clergy residence deductions
• Medical expenses
• Childcare expenses
• RRSP contributions
• Foreign tax credits

Submitting a T1213 is a voluntary choice, not a mandatory submission. Employees do so to access tax relief and higher net pay each pay period that they may otherwise have had to await a refund for after filing their tax return the following year.

The T1213 process doesn’t reduce the total tax owed but could help manage personal cash flow, giving employees access to more of their after-tax earnings now.

It’s also important to note that the CRA does not “rubber stamp” T1213 submissions. Though getting the CRA’s Letter of Authority to reduce tax at source is the goal, if the CRA does not issue it, it could represent a pre-determination by the CRA that the employee is not entitled to the deduction or credit. This, in turn, may mean the employee cannot claim the deduction or credit when filing their tax return for that year.

Accordingly, employees seeking a tax reduction at source should consult with their financial professionals. For further information, members can read our article in the CCCC Knowledge Base, “Getting Taxes Reduced At Source.”

Key Changes to the 2024 T1213 Form

As recent as 2023, Part 3 of the T1213 form had three key lines at the bottom that required attention regardless of which deductions an individual sought to reduce:

• Line 12: Total amount of deductions
• Line 13: Total amount of income not under tax deductions at source
• Line 14: Net amount of the two above, which was the requested amount for the tax waiver

This structure required employees to calculate the net result of their deductions and other income to determine the specific amount they were requesting to CRA be waived from tax withholding. For many long-time users of the form, this process was routine, but it did require precision in calculations.

The 2024 version of the T1213 form has introduced a subtle but important change:

Part 3 now ends at Line 12 and uses the 2023 definition of Line 13—“total amount of income not under tax deductions at source.” In other words, employees filling out the 2024 form no longer need to calculate the net result of deductions and income not under deductions, and the CRA has removed the need for claimants to enter a final waiver amount.

Why These Changes Matter for Charities

This change is worth noting for charities and their employees, particularly those who have been filing T1213 forms for many years. The new layout simplifies the process by removing the final calculation, reducing potential errors. However, those previously used to completing Line 14 may still try to calculate and enter a net amount here by habit, leading to potential errors.

This change also means that charity payroll departments must be aware of the updated process. While the CRA still has the responsibility for calculating withholdings, employees need clear guidance on completing the form correctly. Failure to do so could result in delayed processing or even rejected applications, which may affect an employee’s ability to benefit from reduced tax withholdings throughout the year.

What Charities Can Do

• Communicate the change: Charities should ensure that their employees, especially clergy and those handling payroll, are aware of the updated T1213 form and its simplified structure.
• Offer guidance: Encourage employees to review the form carefully before submission and remind them that the CRA will handle any calculations of the waiver amounts. They no longer need to enter a final figure themselves.
• Update internal processes: Payroll departments should be prepared to handle new instructions from the CRA and adjust withholdings based on the CRA’s updated guidance after an employee’s form is processed.

Final Thoughts

The T1213 form is an optional tool for charity employees to manage their tax withholdings each pay period, but it does increase their interactions with the CRA. The recent 2024 T1213 changes offer a simpler approach. However, it’s helpful for charities to communicate these changes to employees who file T1213 forms with the CRA to prevent unnecessary errors or delays in processing.

The post What Charities Need to Know About the Canada Revenue Agency (CRA) Form T1213 appeared first on CCCC Blogs.

Earlier this year, the Canada Revenue Agency (CRA) invited the public to apply for the open positions. New applicants and 2021 applicants were considered, along with applications from existing ACCS members. Three new members were appointed, along with reappointments and a transitional co-chair arrangement set up. CCCC congratulates the successful applicants!

ACCS Members

The new members are:

• Althea Arsenault – Manager Resource Development, Economic and Social Inclusion Corporation, Government of New Brunswick
• Elisabeth Baugh – former CEO, Ovarian Cancer Canada
• Minnie Karanja – Director of Government Relations and Public Policy, Network for the Advancement of Black Communities

One reappointed member is:

• Kevin McCort – President & CEO, Vancouver Foundation (second term)

And the arrangement for chair positions is as follows:

• Sheherazade Hirji, former Resident Representative, Aga Khan Development Network, Afghanistan – Co-Chair for a two-year term
• Bruce MacDonald, President & CEO, Imagine Canada – Transitional Co-Chair for a one-year term
• Hilary Pearson, former President, Philanthropic Foundations Canada – Past Co-Chair for a one-year term

You can read more about each new member in the Sector members section of the ACCS page. The incoming members begin their term on November 1, 2022.

Maybe you’re wondering ‘”what is the ACCS?”

The ACCS is…

“a consultative forum for the Government of Canada to engage in meaningful dialogue with the charitable sector, to advance emerging issues relating to charities, and to ensure the regulatory environment supports the important work that charities do.”

“What we do” Advisory Committee on the Charitable Sector

It has three areas of focus:

1. Evolving the institutional framework
2. Ensuring financial sustainability
3. Establishing modern governance

It has five working groups:

1. Regulatory Framework – this group looks broadly at the regulatory and administrative policy environment of charities
2. Vulnerable Populations – this group looks at the challenges particular to charities serving vulnerable populations
3. Indigenous Peoples – this group looks at the relationship and interactions between Indigenous Peoples and organizations and the regulatory framework for charities
4. Purposes and Activities – this group looks at how charities function under the Income Tax Act, how they work with non-qualified donees, and revenue-earning activities
5. Charitable Sector Data – this group looks at enhancing and organizing data, identifying gaps in data, and understanding data infrastructure needs

As the ACCS gets up and running again, we’ll be sure to update you when new reports are released. In the meantime, you can get up to speed on the three reports it released in 2021. You can either read the full reports (January 2021, April 2021, July 2021), or you can check out our summary of the key issues and recommendations from Reports #1 and #2 and Report #3 in our Knowledge Base.

Did you know?

CCCC was invited to be a member of CRA’s Technical Issues Working Group for the 2022-23 term. This Working Group “provides a forum to discuss trends and technical issues in the charitable sector, to explore workable solutions, and expand the directorate’s understanding of this sector.”

The post New ACCS Members Announced appeared first on CCCC Blogs.

Updates: Deadline Extended, Email Applications

Deadline

The original deadline was June 3, 2022 but that has been extended to June 17, 2022.

Email Applications

The original application had to be mailed or faxed. The application options have been updated, and applicants can email their completed forms to charcommg@cra-arc.gc.ca with the subject line “Attention: ACCS membership application.”

You can still send your application by mail or fax.

Complete information is available on CRA’s webpage Apply to become a member of the Advisory Committee on the Charitable Sector.

Application Form Details

The application is available here. It’s a pretty straightforward application. It asks for:

• Your resume (required)
• Your contact information (required) and self-identification (voluntary)
• Nature of your charity/non-profit affiliation (e.g. northern organizations, researcher, legal expert, rural organizations, etc.)
• Your experience:
• What makes you a good candidate and identify issues you’d be interested in exploring if you’re selected; and
• What experience you have in consultative forums (government committees, strategic planning in organizational networks, planning community initiatives, etc.)

If You Applied in 2021

If you applied in 2021 it’s great news for you! You don’t have to apply again unless there are material changes to be made or you need to change your contact information. 2021 submissions are still valid and will be considered.

Background on the ACCS

The ACCS is a consultative forum for dialogue between the government and charitable sector. Together, they identify emerging issues, examine the regulatory environment, participate in working groups, consult with other stakeholders. The ACCS provides advice and recommendations to the Minister of National Revenue and the Commissioner of the CRA.

To learn more about the ACCS, you can review its Terms of Reference. To get a sense of the type of work that has been done, you can check out the ACCS’ first, second and third reports, and you can read CCCC’s highlights of Reports #1 and #2 here, and of Report #3 here.

We Want to Support You!

As we mentioned in our first post about the applications, please let us know if you’ve applied – we would love to support you through prayer during the application process!

The post Deadline Extended – Apply to Join the Advisory Committee on the Charitable Sector in 2022! appeared first on CCCC Blogs.

The 2022 call for applications to join the Advisory Committee on the Charitable Sector (ACCS) is open.

Maybe in 2021 you didn’t get an opportunity to apply or you wanted more time to think about it. Now’s your chance!

As with the last round of applications, we know that you – our members – have valuable experience that can help shape the future for the charitable sector in a positive way. We know you’re experienced, passionate and understand what works and what doesn’t. And we know that many of you have a unique and valuable perspective because of who you serve, where you serve and how you serve.

The CRA encourages applications from a broad cross-section of experts, practitioners and leaders from the not-for-profit and private sectors along with representation from diverse and various groups. This is a key time to be involved! There are lots of calls for change within the sector and this is a chance for faith-based charities to speak into that change.

Really Important Information

Six volunteer sector members will be selected for a two year term. Applications are due by June 3, 2022.

There are TWO things you must do by the deadline.

1. MAIL or FAX your completed application form (see below)
2. EMAIL the Charities Directorate (CHARCOMMG@cra-arc.gc.ca) with the subject line “ACCS membership applications” so they can confirm receipt of your application

Application Form Details

The application is available here. It’s a pretty straightforward application. It asks for:

• Your resume (required)
• Your contact information (required) and self-identification (voluntary)
• Nature of your charity/non-profit affiliation (e.g. northern organizations, researcher, legal expert, rural organizations, etc.)
• Your experience:
  • What makes you a good candidate and identify issues you’d be interested in exploring if you’re selected; and
  • What experience you have in consultative forums (government committees, strategic planning in organizational networks, planning community initiatives, etc.)

If You Applied in 2021

If you applied in 2021 it’s great news for you! You don’t have to apply again unless there are material changes to be made or you need to change your contact information. 2021 submissions are still valid and will be considered.

Background on the ACCS

The ACCS is a consultative forum for dialogue between the government and charitable sector. Together, they identify emerging issues, examine the regulatory environment, participate in working groups, consult with other stakeholders. The ACCS provides advice and recommendations to the Minister of National Revenue and the Commissioner of the CRA.

To learn more about the ACCS, you can review its Terms of Reference. To get a sense of the type of work that has been done, check out the ACCS’ first, second and third reports, and you can read CCCC’s highlights of Reports #1 and #2 here, and of Report #3 here.

We Want to Support You!

Let us know if you’ve applied – we would love to support you through prayer during the application process!

The post Apply to Join the Advisory Committee on the Charitable Sector in 2022! appeared first on CCCC Blogs.

The Ontario government is looking for feedback on whether existing sources of capital financing (direct investment, commercial loans, government loans) are sufficient. They’re also looking for opportunities to better support not-for-profits that need to access this financing.

There are two specific areas of feedback along with seven questions.

The two areas of feedback are:

• Challenges and barriers not-for-profit housing providers face in accessing capital
• Ideas, solutions, and proposals on ways government could help address those challenges: loan guarantees? Focused investments? Improved government coordination?

The seven questions are:

1. Could easier or less costly access to lending increase the supply of not-for-profit housing?
2. What are the key barriers and gaps that prevent not-for-profit housing providers in accessing the capital financing needed to build and repair more housing (for example, through commercial and government loans or through capital financing and funding provided by federal and provincial programs)?
3. Do the issues around access to financing differ for not-for-profit development of affordable rental housing compared to home ownership or other types of development? Are they different for private sources of financing (e.g., commercial lending) compared to government sources?
4. What role could government play in addressing those barriers? Is there an opportunity for various levels of government to work together to address barriers?
5. How could the government prioritize its financial assistance to not-for-profit housing providers?
6. For not-for-profit developers: does your not-for-profit organization have long-term financing need for capital expenditure? If yes, then:
   • Does your organization have surplus cash flows to service loan repayment?
   • Does your organization have a third-party entity, such as a municipal government, that can provide a financial guarantee?
7. Do you have other suggestions for ways to improve non-profits housing providers’ ability to build and repair more housing?

When & How to Submit Your Comments

Comments are due by April 29, 2022. You can submit them by email (upload a PDF, Word doc or enter text) or send them by snail mail to:

Ministry of Municipal Affairs and Housing

Housing Programs Branch

777 Bay Street, 14^th Floor

Toronto, ON M7A 2J3

The post Ontario Wants Feedback from Not-for-Profit Housing Providers on Financing appeared first on CCCC Blogs.

The new members are:

• Christian Bolduc – President & CEO, BNP Performance, LL.B, ASC, C.Dir., CFRE
• Owen Charters – President & CEO, BGC Canada (formerly Boys & Girls Clubs)
• Dr. Anver Emon – Canada Research Chair in Islamic Law and History, and Director of the Institute of Islamic Studies, University of Toronto
• Sheherazade Hirji – Former Resident Representative, Aga Khan Development Network, Afghanistan
• Jean-Marc Mangin – President & CEO, Philanthropic Foundations Canada
• Sarah Midanik – President & CEO, The Gord Downie & Chanie Wenjack Fund (DWF)
• Martha Rans – Founder & Legal Director, Pacific Legal Education and Outreach Society (PLEOS)
• Tanya Rumble – Director of Development, Ryerson University
• Bob Wyatt – Executive Director, Muttart Foundation

You can read more about each new member in the Sector members section of the ACCS page. The incoming members begin their term on May 1, 2022.

What is the ACCS?

Maybe you’re wondering ‘”what is the ACCS?” It is

a consultative forum for the Government of Canada to engage in meaningful dialogue with the charitable sector, to advance emerging issues relating to charities, and to ensure the regulatory environment supports the important work that charities do.

What we do, Advisory Committee on the Charitable Sector

The ACCS has three areas of focus:

1. Evolving the institutional framework
2. Ensuring financial sustainability
3. Establishing modern governance

And it has set up five working groups:

1. Regulatory Framework – this group looks broadly at the regulatory and administrative policy environment of charities
2. Vulnerable Populations – this group looks at the challenges particular to charities serving vulnerable populations
3. Indigenous Peoples – this group looks at the relationship and interactions between Indigenous Peoples and organizations and the regulatory framework for charities
4. Purposes and Activities – this group looks at how charities function under the Income Tax Act, how they work with non-qualified donees, and revenue-earning activities
5. Charitable Sector Data – this group looks at enhancing and organizing data, identifying gaps in data, and understanding data infrastructure needs

As the ACCS gets up and running again, we’ll be sure to update you when new reports are released. In the meantime, you can get up to speed on the three reports it released in 2021. You can either read the full reports (January 2021, April 2021, July 2021), or you can check out our summary of the key issues and recommendations from Reports #1 and #2 and Report #3 in our Knowledge Base.

Did you know?

CCCC was invited to be a member of CRA’s Technical Issues Working Group for the 2022-23 term. This Working Group “provides a forum to discuss trends and technical issues in the charitable sector, to explore workable solutions, and expand the directorate’s understanding of this sector.” This is one of the ways we engage in sector representation.

For regular updates and articles on the latest issues involving charity law and policy, and law, religion and society, be sure to sign up for Noteworthy!

The post New ACCS Members Announced appeared first on CCCC Blogs.

On December 16, 2021 the Prime Minister issued mandate letters to all cabinet ministers. These are intended to set out the objectives for each minister. Two letters are concerning because they instruct Ministers to introduce or support the introduction of:

“… amendments to the Income Tax Act to make anti-abortion organizations that provide dishonest counselling to pregnant women about their rights and options ineligible for charitable status…”

You can find the directives in these letters:

• Mandate Letter to Deputy Prime Minister and Minister of Finance

• Mandate Letter to Minister for Women and Gender Equality and Youth

On November 24, 2021, CCCC wrote to the federal government about similar statements that had been made prior to the Parliamentary Session. The government had pledged to remove charitable status for “anti-abortion organizations (for example, Crisis Pregnancy Centres) that provide dishonest counselling to women about their rights and about the options available to them at all stages of pregnancy.”

With the mandate letters, CCCC continues to express deep concern over the proposed amendments. No charity should be de-registered solely on the basis of a pro-life belief or conscience. At risk of stating the obvious, this belief is quite legal to hold. To de-register a charity on the basis of such beliefs therefore raises immediate and significant Charter and procedural fairness concerns. Likewise, no type of charity should have its work mischaracterized, or be labelled with an undefined allegation of dishonesty.

But as a Christian organization, we also do not stand for dishonest conduct. Thankfully, existing parts of the Income Tax Act already address concerns about dishonesty in the charitable sector.

As we explained in our November 29 blog post, CCCC Asks for Clarity on Charitable Status, our letter asked the government for clarity about its intention and addressed any future process.  We will continue to ask questions, seek clarity, and work to preserve charitable status, and have written a follow up letter to the Ministers to this end.

If you have questions or concerns, you’re always welcome to reach out to us, or you could write to your own MP. Our friends at the Evangelical Fellowship of Canada have a sample letter, and members can read our November 24 letter in the Knowledge Base if you want to see how we’ve expressed our concern. Our most recent letter will be posted in the Knowledge Base soon!

The post Mandate Letters and Charitable Status appeared first on CCCC Blogs.

CCCC expresses deep concern over the statement. No charity should be de-registered solely on the basis of a pro-life belief or conscience. At risk of stating the obvious, this belief is quite legal to hold. To de-register a charity on the basis of such beliefs therefore raises immediate and significant Charter and procedural fairness concerns. Likewise, no type of charity should have its work mischaracterized, or be labelled with an undefined allegation of dishonesty.

But as a Christian organization, we also do not stand for dishonest conduct. Thankfully, existing parts of the Income Tax Act already address concerns about dishonesty in the charitable sector.

In a good faith effort to have meaningful discussions about the issue, we extended an invitation for the government to clarify its intention, and to address any future process.

Members can read the letter in our Knowledge Base, where we’ve also posted an explanation of the reasoning for our approach.

The post CCCC Asks for Clarity on Charitable Status appeared first on CCCC Blogs.

Why A Matching Fund?

For our Federal 2021 Pre-Budget submission, CCCC endorsed the Canada Cares proposal for a 1:1 federal donation matching fund. In addition to Canada Cares and the charities that have joined its campaign as coalition members, other organizations like Imagine Canada have also recommended a matching fund, among other things, in their pre-budget submissions.

Why a matching program? There are a lot of benefits to distributing federal relief funds for charities this way.

It promotes charitable giving

Matching funds spur greater giving by private donors. Studies show matched money increases revenue per solicitation by 19 percent, and that there are long-term positive impacts. Donors are likely to continue giving even when the matching funds program ends.

It is highly efficient

Administrative systems to process matching funds already exist within the federal bureaucracy and can be expanded rather than building from scratch. There is also less administrative burden on charities than there would be for other options such as grant application-based models.

It only requires existing fundraising capabilities

Many charities do not have the experience, capacity or skill for grant writing. Instead, they have great expertise in fundraising from individual donors. Matching capitalizes on this existing strength of charities. This is particularly important given that small and medium-sized charities and those in rural areas have been hardest hit.

It maintains a level of responsibility and risk for charities

By matching donations, it ensures charities will exert their best efforts to stay viable. It also encourages charities to examine their ways of operating, find creative ways to reduce costs and remain sustainable in light of changing donor behaviour.

How Does It Work?

Canada Cares sets out five key components of a federal 1:1 matching fund:

1. The federal government contributes one dollar for each dollar given by donors, and for which charities can show receipts
2. Contributions are capped based on a charity’s revenue in the previous year to ensure equitable distribution
3. Charities submit receipts on a timeframe set by the government (monthly, quarterly, semi-annually)
4. Contributions are time-limited and can be based either on a fiscal year, or an alternative time period linked to crisis spending, as set by the government
5. The government may also consider a 0.5:1 grant for organizations that are able to grow revenue over past years.

Add Your Voice!

We know that charitable giving has significant positive psychological and practical effects on individuals and communities. As we have seen, charities are uniquely positioned to respond to a wide swath of urgent needs – physical, material, emotional and spiritual. But a healthy charitable sector is important to more than meeting needs that governments simply can’t address. A healthy charitable sector is key to recovering the health of our nation. This is an opportunity to use matching funds to invest in the long-term health of charities and to be a key component that encourages solidarity and unity in crisis.

Even though the 2021 Pre-Budget Consultations are closed, the Department of Finance invites Canadians to share their ideas and comments at any time.

And for more information about Canada Cares, and how you can support the matching fund proposal, check out the campaign site.

No date has been set for when the budget will be tabled (the last budget presented to Parliament was March 19, 2019). Once it is released, we’ll be sure to update you as to any charity-related initiatives!

In the meantime, members can join us in The Green where we can chat about the matching fund, and you can tell us what else you might like to see as part of the 2021 federal budget.

The post CCCC Supports Matching Fund in Federal 2021 Pre-Budget Consultations appeared first on CCCC Blogs.

Private schools are now eligible to qualify for the Canada Emergency Wage Subsidy (CEWS)!

On May 15, 2020 the Department of Finance announced a number of regulatory changes to the program, including allowing non-public education and training institutions to qualify. Both for-profit and not-for-profit institutions are considered eligible entities and it includes private colleges, private schools, and specialized schools such as arts schools, language schools, driving schools, flight schools and culinary schools.

The change is retroactive to the first qualifying period which started March 15, 2020.

Up until the announcement, private schools were included in the definition of a “public institution” by virtue of being a school. The CEWS FAQ #3 Which employers are eligible for the wage subsidy? lists eligible employers, including a registered charity, and a person that is exempt from tax under Part I of the Income Tax Act. A “person” here includes a corporation (see s 248(1) of the ITA). Under FAQ 3-7, it further clarifies that “a person or partnership that operates a private school or private college … is an eligible employer.” Private schools include both for-profit and not-for-profit institutions, as noted above.

Other groups now included as eligible entities are:

• Registered journalism organizations that are tax-exempt under s 149(1)(h) of the Income Tax Act
• Registered Canadian Amateur Athletic Associations at the provincial, regional and local level (not national)
• Indigenous government-owned corporations that carry on a business and are tax-exempt
• Partnerships with one or more non-eligible members, so long as non-eligible member do not hold a majority of the interest in the partnership.

Church and charity leaders are invited to share how they are responding to the COVID-19 pandemic within their organization in our online community forum The Green: COVID-19 Response Room. 

Posted May 19, 2020 @ 12:30pm (EST); updated May 26

The post COVID-19: Private Schools Now Eligible for CEWS appeared first on CCCC Blogs.