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Thread: 5d. Treasurer's Report

  1. #11
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    Default Charitable Status

    Quote Originally Posted by Paul Leblanc View Post
    Vlad is correct. The loss of the CFC's chartitable tax status has taken away a major incentive to donate to the Foundation, however, I should add that very little money ever did come in as donations. The vast majority of revenue always has been from Life Memberships.
    Charitable status no doubt encourages donators as they get some benefit from income tax relief and not only the satisfaction of donating to a cause they believe in. In this age of baby-boomers where some of our older players are "well-off", it seems to me that estate planning may include donations, especially those which permit tax deductions. In my view, the chess foundation should be registered as a registered charitable foundation. I'm in the process of drafting something for Nova Scotia. The essence of it is that any monies placed in the foundation is to remain within the foundation with only income being available for distribution (less expenses). This means that any and all donations remain "in the pot" to generate income for future generations. Expenses are paid from the income generated and only the remainder is available for distribution. Perhaps the CFC isn't getting much in terms of donations but it seems to me that if we provide tax relief "and" market the foundation properly, the foundation may be able to generate future donations.
    Last edited by Lloyd Lombard; 10-23-2014 at 10:05 PM.

  2. #12
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    It is highly doubtful that the CFC in its present form could become a charitable organization again. If we wanted to remain a charitable organization we probably should have fought to remain so when the CRA revoked our charitable status. My guess is that the people in charge did a calculation of the cost of fighting, compared it to the probable stream of donations and decided to cut a deal with the CRA.

    I suspect that we might be able to spin off youth chess as a separate charitable organization though the expense might be considerable and the loss of donations is only in the hundreds of dollars per year range so there is some question of whether the expense and additional requirements would be cost effective.

  3. #13
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    Quote Originally Posted by Vladimir Drkulec View Post
    It is highly doubtful that the CFC in its present form could become a charitable organization again. If we wanted to remain a charitable organization we probably should have fought to remain so when the CRA revoked our charitable status. My guess is that the people in charge did a calculation of the cost of fighting, compared it to the probable stream of donations and decided to cut a deal with the CRA.

    I suspect that we might be able to spin off youth chess as a separate charitable organization though the expense might be considerable and the loss of donations is only in the hundreds of dollars per year range so there is some question of whether the expense and additional requirements would be cost effective.
    I think we've already established that the CFC's best chance to issue tax receipts again is to become a registered sports association.

    From the information we received at the time our Charitable status was revoked, we would have to meet the requirements of an educational foundation (probably only for youth), and there were several activities that we currently perform that precluded that.

  4. #14
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    Quote Originally Posted by Fred McKim View Post
    I think we've already established that the CFC's best chance to issue tax receipts again is to become a registered sports association.
    Thank you, Fred!

    Could you please clarify:
    What should be done to make it happen?
    Do you have any plan - what and when should we do?
    Thanks,
    Michael Barron

  5. #15
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    Quote Originally Posted by Michael Barron View Post
    Thank you, Fred!

    Could you please clarify:
    What should be done to make it happen?
    Do you have any plan - what and when should we do?
    I think some others have established that it is a matter of filling out paperwork ... however I haven't seen the forms and there may some things we have to do to get our house in order first. The new constitution was the first one.

  6. #16
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    Quote Originally Posted by Fred McKim View Post
    I think some others have established that it is a matter of filling out paperwork ... however I haven't seen the forms and there may some things we have to do to get our house in order first. The new constitution was the first one.
    Thank you, Fred, for clarification!

    Now, after we got a certificate of continuation, we can fill out necessary paperwork to become a registered sports association, right?
    Who is doing that?
    Could we help in any way?
    Thanks,
    Michael Barron

  7. #17
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    This sounds like the type of thing we need a committee with two or three people to investigate and proceed. Our biggest question might be what measures do we need to take to establish that we qualify as a recognized sport in Canada.

    I'm not sure if there is anybody who has done any work in this ....

  8. #18
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    Quote Originally Posted by Fred McKim View Post
    This sounds like the type of thing we need a committee with two or three people to investigate and proceed. Our biggest question might be what measures do we need to take to establish that we qualify as a recognized sport in Canada.

    I'm not sure if there is anybody who has done any work in this ....
    It's a 16 page form (where some of the material sought isn't applicable to every application). Paul should be a member of the committee (if this is pursued) because the application requires financial information. I refer you to the Income Tax Guide T4063 - Registering a Charity for Income Tax Purposes. There's also a 9 page form plus a couple of worksheets to file annually.
    Last edited by Lloyd Lombard; 10-25-2014 at 08:24 PM.

  9. #19
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    Quote Originally Posted by Fred McKim View Post
    This sounds like the type of thing we need a committee with two or three people to investigate and proceed...
    Fred, would you like to chair such committee?
    Thanks,
    Michael Barron

  10. #20
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    Quote Originally Posted by Michael Barron View Post
    Fred, would you like to chair such committee?
    Michael. I will bring this up with the rest of the Executive after the meeting and we can provide an update via this board.

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