[Foundation-l] bylaws (second call)

Ray Saintonge saintonge at telus.net
Fri Aug 18 06:34:06 UTC 2006

Jeffrey V. Merkey wrote:

>Ray Saintonge wrote:
>>The one characteristic that is unique to a charitable foundation is that 
>>it distributes funds to others, and does not primarily perform the 
>>charitable works itself.  In Canada charitable designation is a federal 
>>matter, and is in addition to whatever is done to constitute the 
>>organization.  It may be based on formal incorporation, an irrevocable 
>>trust or an unincorporated organization.  
>Churches are non-profits in the US as well and can use the funds for 
>internal expenses. In fact, most religious organizations don't 
>distribute monies at all
>and they are all consumed in-house in programs supporting their 
>organizations . They have whatever rules they wish for members and they
>are not regulated. Our Corporation Sole by laws are a single page and 
>simply state the corporation has the rights to acquire assets and real 
>and receive funds and dispose of them how it wishes. It varies state by 
>state, but Utah is pretty open on how non-profits can operate. There just
>cannot be and co-mingling of personal funds with non-profit monies.
To avoid a misunderstanding there is a distinction made in Canadian law 
between charitable foundation and charitable organization.  What you 
describe is more characteristic of a charitable organization.


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