Michael Dickhout wrote:
Hey Ray,
Won't any non-profit incorporated before the new act be grandfathered?
No. There will be a three-year transition period during which an existing corporation must apply for continuance under the new act. This will involve changing its incorporation documents to conform with the new rules. If it does not do this it may be dissolved.
The link is the same for non-profits at this time.
I believe the only hang up is, as you pointed out, to get the objects right so they do not delay any application for charity status.
Yes, while some of the other points still require decisions they do not involve technical drafting problems.
And I can see the appeal of the museum direction . . .
I'm not too sure how we would qualify as a museum, and legally novel arguments will usually be a hard sell. What I like about the Vancouver Free-Net situation is that they are an internet based organization which took its case to court ... and won. That makes for a very strong precedent. Their application was based on "other charitable purposes", not education.
/The advancement of education/
The courts recognize a purpose or activity as advancing education in the charitable sense if it involves formal training of the mind or formal instruction, or if it prepares a person for a career, or if it improves a useful branch of human knowledge. Only providing information is not accepted by the courts as educational; training or instruction also have to be offered. The advancement of education includes:
* establishing and operating schools, colleges, universities, and other similar institutions; * establishing academic chairs and lectureships; * providing scholarships, bursaries, and prizes for scholastic achievement; * undertaking research in a recognized field of knowledge (The research must be carried out for educational purposes and the results must be made available to the public.); * advancing science and scientific institutions, including maintaining learned societies (Professional associations or other societies that primarily provide benefits to members are not considered charitable.); and * providing and maintaining museums and public art galleries.(http://www.corporationcentre.ca/docen/home/faq.asp?id=incnp#q10)
How about under research?
There is the research and advancement of the wiki concept, but also in individual projects. What School Partners would like to promote is a wiki mainly directed at schools that would allow students (and the public) to write their own comprehensive encyclopedia of all things Canadian, including family and ethnic histories.
Traditionally the law has had a bricks-and-mortar view of education, and underlaying that is the attitude that the primary purpose of education is for better jobs in the future. We want purposes that will succeed as easily as possible without a legal fight. All new ideas carry a strong element of risk.
Ray, is there any indication the requirements for charity status may also change?
No. Canada does *not* have a statutory definition of "charitable purposes". The concept derives from the UK Statute of Elizabeth passed in 1601, as modernized by Commissioners v. Pemsel in 1891, when Canadian cases were still being decided by the House of Lords. Britain passed a Charities Act in 2006, but this has no effect on Canada. Thus Canadian law is based wholly on 400 years of precedent.
I am aware of no movement to change the situation in Canadian law, or any studies to bring the law up to date. I certainly don't expect anything to be accomplished under the lack of leadership shown by the current government.
Ray
2010/1/24 Ray Saintonge
Amgine wrote: >>> Given that, use the boilerplate as modified by WMF legal counsel (who, >>> btw, are quite willing to offer legal guidance or referral.) >>> >> The important feature is that the by-laws conform with Canadian law. >> The boilerplate is based on US law. >> >> Ray >> > You're quibbling to no purpose, which I suppose is why this is yet not > completed. > > http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs01366.html <- the > boilerplate to which I was referring. > > Amgine > The linked page is inapplicable. It only relates to incorporations under the Canada Business Corporations Act, /i.e./ Corporations for profit. Not-for-profit corporations are still governed by the Canada Corporations Act which will cease to apply when the new Canada Not-for-profit Corporations Act is proclaimed into law. That is expected at some time during this year.-- Michael Dickhout