Required: What issues do you see with their current plans and what changes do you recommend with regards to: 1. Their application for charitable status with CRA with regards to their stated purpose. (Hint: Consider & discuss the three elements that must be present for CRA to see the organization as "charitable".,l [6 marks] 2. Their planned Board composition . (Hint: Consider both {IRA and CNPCA rules with respect to how the organization would be "classified" and what it would be allowed to do.jI [3 marks] 3. Their requirement to meet the Disbursement quota. a. Calculate the disbursement quota for Year 1 and Year 2. (For purposes of the calculations, do not account for the contingent donation of $30,000 from their friend.) [4 marks] b- Given your calculations, discuss their planned operations in Year 3 and whether it's likely the disbursement quota would be met for that year. [4 marks] c. Are there consequences for not meeting the disbursement quota? If so, what are they? What changes would you recommend the charity make to ensure a negative outcome is avoided? [4 marks] 4. Their ability to issue donation receipts for: a. Gifts of cash. [2 marks] b. Gifts of service (such as website development & managing social media accounts). [4 marks] c. Gifts of property {such as the laptops to be donated to deserving university students) [4 marks] d. Directed donations l[such as the money to be invested and given to a particular beneficiary at a later time). [4 marks] 5. Their ability to participate in their chosen political party and lobby the government for changes. (Hint: Would it be acceptable to participate personally? What if they want to get the charity involved in political issues ?J [4 marks] 6. Their ability to meet legislated nancial reporting obligations. (Hint: Consider who the "users" of the nancial statements would be, the type of financial information to be provided, and the level of assurance required - oudit/reviewf compilation . J ['5 marks]