[Finance] Charitable Status

[Laura Donatelli]

Thanks for this helpful outline/review, Bill.
Laura

Date: Mon, 18 May 2015 05:18:06 -0500
From: bill.newman at plumdee.ca
To: finance at lists.bikewinnipeg.ca; executive at lists.bikewinnipeg.ca
Subject: [Finance] Charitable Status


  
    
  
  
    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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