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