What issues do you see with their current plans and what changes do you recommend with...

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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".) [6 marks] 2. Their planned Board composition. (Hint: Consider both CRA and CNPCA rules with respect to how the organization would be "classified" and what it would be allowed to do.) [8 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: Gifts of cash. [2 marks] Gifts of service (such as website development & managing social media accounts). [4 marks] a. b. C. Gifts of property (such as the laptops to be donated to deserving university students) [4 marks] d. Directed donations (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?) [4 marks] 6. Their ability to meet legislated financial reporting obligations. (Hint: Consider who the "users" of the financial statements would be, the type of financial information to be provided, and the level of assurance required - audit/review/compilation.) [6 marks] 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".) [6 marks] 2. Their planned Board composition. (Hint: Consider both CRA and CNPCA rules with respect to how the organization would be "classified" and what it would be allowed to do.) [8 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: Gifts of cash. [2 marks] Gifts of service (such as website development & managing social media accounts). [4 marks] a. b. C. Gifts of property (such as the laptops to be donated to deserving university students) [4 marks] d. Directed donations (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?) [4 marks] 6. Their ability to meet legislated financial reporting obligations. (Hint: Consider who the "users" of the financial statements would be, the type of financial information to be provided, and the level of assurance required - audit/review/compilation.) [6 marks]

Answer rating: 100% (QA)

1 Their Application for Charitable Status with CRA with regards to their Stated Purpose As a prerequisite to their application for charitable status with the Canada Revenue Agency CRA the organization ... View the full answer