[Finance] Charitable Status

[Bill Newman]

The prospect of Charitable Status for Bike Winnipeg has come up several 
times in the past but it is not obvious where we should go with it.
     Some of the considerations have to do with CRA regulations, which 
are voluminous.  These will affect several details of our financial 
procedures.
     Perhaps more important is to clarify the purpose and character of 
Bike Winnipeg as a whole.  How is it that we want to make money and what 
do we want to spend it on.   This is something for the Exec committee or 
the board as a whole.
     The following topics should included in our assessment of this 
opportunity.  Zennon has already been looking into the CRA and financial 
implications.

*What are the real benefits?*

  * real dollar value of increased donations - probably based on an
    assumed percentage increase
  * Availability of additional funding grants - what actual dollar
    amounts are available and what are our chances of securing this funding.

*What are the direct costs?*

  * Certified auditor report expense
  * Accounting system changes; clarify expense categories and percentages.
  * Additional bookkeeping effort to improve audit trail.
  * Additional time reporting requirements for projects we undertake.

*Impact on organization purposes and objectives*

  * Political - how much do we want to lobby governments?
  * Educational - courses for profit or break even or subsidized? -
    pamphlets and guides as expenses?
  * Social benefit (Outreach) -  sponsor public events of general
    interest at our expense?
  * Profit from the sale of merchandise or entertainment events?
  * The whole status of Bike Valet, it's business model, and our
    relation to it.

*Qualifying for charitable status*
     CRA has a lot to say on their website.  They outline many benefits, 
responsibilities, and restrictions.  Zennon has studied this in detail.
     (Just one example of a *dis*-*qualifier* would be if we seek to: 
"retain, oppose, or change the law, policy, or decision of any level of 
government in Canada or a foreign country.")

At the moment plans are for Zennon to discuss his findings at the next 
Executive Committee meeting on May 24.  This will help us develop a feel 
for how charitable status might be a fit for Bike Winnipeg.

     --Bill

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