T HE M UTTART F OUNDATION - Consultation on Administration and Management Expenses
8 August 2023
In relation to fees and expenses, the provisions provide that: The trustee of a public ancillary fund may apply income or capital of the fund: (a) to pay or reimburse the trustee for reasonable expenses incurred on behalf of the fund; and (b) to pay fair and reasonable remuneration for the trustee’s services in administering the fund. [...] © 2023 The Muttart Foundation 9 Consultation on Administration and Management April 2023 Expenses Guiding Principles/Questions • Is this an expense of the charity or an expense of the program? • Is this a direct cost or an indirect cost? • Is this a “pre-execution” cost (A&M) or an execution cost of the charitable program? • Is this an expense related to the existence of the charity? Or to its cha. [...] Bob then reiterated his thanks to all the participants and specifically thanked the participants from the CRA and from Finance, the international guests, the facilitators and the technicians. [...] MNR) • “an activity, taken in the abstract, can rarely be deemed charitable or non-charitable” • “the degree of connection between the activity and the charitable purpose which it furthers must be the primary consideration in the determination as to whether an activity is charitable.” • “the key consideration is the nexus between the activity in question and the charitable purpose to be served.” 2. [...] 27 UNCLASSIFIED Disbursement quota (DQ) Definition The DQ formula is defined under subsection 149.1(1) of the Income Tax Act: A ÷ 365 × B where A is the number of days in the taxation year, and B is (a)3.5% of the prescribed amount for the year, in respect of all or a portion of a property owned by the charity at any time in the 24 months immediately preceding the taxation year that was not used d.