Pandemic Relief Programs: What Non-Profit's & Charities Need to Know

Who this resource is for: Non-profit and Charities staff needing to navigate pandemic relief programs.

Who made it: Written by Anders Ourom with input from Martha Rans. It is intended for educational use only and available to anyone on that basis. © Pacific Legal Education and Outreach Society (PLEO), April 2020. Mr. Ourom is a lawyer in Vancouver. Since 1995, his practice has focused on legal and governance advice to societies and charities.

The Covid-19 pandemic has had substantial impacts on Canada’s society and economy, and will continue to do so for some time. It has also placed major stresses on Canadian registered charities (“Charities”), many of which already provide essential public services. There’s increased demand for those services, many challenges in safely delivering them, and financial and other stresses. Many of us wonder how we can most effectively help, as Charities, individuals, and non-profit societies. The following provides information on options, particularly from a legal perspective.

HOW CAN AN EXISTING REGISTERED CHARITY HELP victims of a disaster or emergency?

Every Charity can help simply by continuing its regular programs, providing important services and employment to Canadians, and so supporting our society and economy. Many might also hope to add programs that are directly related to the pandemic. The Charities Directorate is clear in terms of what they can and cannot do:

If you are a registered charity and want to help victims of a disaster or emergency:

  • You can carry out your own activities within the scope of your charitable purposes, or

  • You can raise funds and transfer them to a “qualified donee”. The Covid-19 pandemic has been declared an emergency, while for practical purposes, “qualified donee” means “Charity”. A Charity can give money directly to another Charity, unless already permitted to do so may not be able to give money directly to individuals. (Disaster or emergency relief)

HOW DO WE FIND OUT WHETHER OUR Non-profit’s CONSTITUTIONAL PURPOSES ARE WITHIN THE SCOPE OF EMERGENCY RELIEF?

Most Charities that are based or operate in B.C. are incorporated under the Societies Act.). The only way to confirm what the purpose statements actually are is to check what is on file with Societies Online (the Registrar). Such documents need to have the Registrar’s stamp, as internal consolidations of constitutions and bylaws are often inaccurate. You can obtain your society’s constitution and so purposes by going to its dashboard with Societies Online – all you need is a Basic BC Electronic ID, and the registry key.

Some ‘standard’ purposes related to poverty and disaster relief and the promotion of health:

  • To relieve poverty by providing low income individuals with food, shelter and the basic necessities of life.

  • To relieve poverty by providing necessities of life, including food, clean water, medical supplies, clothing, and/or shelter to victims of disasters.

  • To promote health by operating a primary care clinic and access to medicine and related care to the Island community.

If the constitution includes such a provision then the charity is able to create a relief fund for the benefit of individuals in need during the emergency (COVID). Adding such a purpose to a Charity’s constitution may be an option, but the Charities Directorate generally requires that such changes be pre-approved. As the Charities Directorate has suspended all operations, it’s not possible to seek pre-approval, or create a new charity that is solely pandemic-related. Legal advice is recommended if the charity decides to add a purpose to its constitution.

WHAT ARE THE OPTIONS for a non-profit to create a relief fund?

If pandemic-related programs reasonably fit within its purposes, a Charity may create a relief fund (that is, if it has or can acquire the resources and capacity to realistically do so). The Charity can do this directly or through an agent, as long as it retains control and direction. For example, a Charity could raise money and contract with a non-profit to provide services. (Toronto Arts Foundation has partnered with Toronto Arts Council to create a relief fund for individual artists who need help to buy food and make the rent.)

If the Charity’s purposes don’t include pandemic relief, it can raise money and transfer it to another Charity (Canadian, that is) that has purposes that are related to pandemic relief, and emergencies generally, with or without conditions; for example, by donating to MSF Canada (Medecins san Frontieres Canada). With very few exceptions, a Charity can’t give money to a non-Canadian charity.

If the Charity’s purposes don’t include pandemic-related services, it can’t carry on such activities. But it can continue with its regular programs, and can add programs that fit within the purposes that may indirectly support pandemic relief – everything helps. A society promoting health could purchase medical supplies to alleviate the needs in their communities.

HOW DO WE KNOW WHICH CHARITY(S) TO SUPPORT with our relief funds?

There are numerous Charities that have purposes that authorize them to work directly in emergency relief, and which have the needed capacity. The question is, which one(s) to support? Operating locally, regionally, nationally, or internationally? Is it a Charity with the experience, resources, and reputation to effectively help? You also need to consider what resources you can provide, and how you want them to be used.

All Charities are listed on the Charities Directorate’s website (Note that sometimes the operating name isn’t quite the same as the legal name). This provides a way to check on whether something is in fact a Charity, and if so, to learn something about its purposes, its finances, what it does, and where. There are many whose purposes and so activities include disaster relief, health care, and relief of poverty (food, clothing, shelter).

If a Charity is on the Charities Directorate’s website, you have reasonable assurance of its legitimacy. You can also, of course, research on the internet, including both a charity’s website, and what people say about it, for good or ill. This may be informative, but is not conclusive. Be cautious about any that make exaggerated or unsupported claims.

Whether your Charity can reach an agreement with another Charity that is engaged in pandemic relief, in terms of funding, use of funding, reporting, etc, is a matter of negotiation. Those Charities that are engaged in pandemic relief may be busy enough already.

ENCOURAGE MEMBERS, DIRECTORS AND OTHERS TO SUPPORT OTHER CHARITIES

A Charity that is not engaged (directly or indirectly) in pandemic relief can always encourage its members to support such a Charity, through donations of time and money. This will often be the simplest approach. Identify suitable Charities, tell your members about them, and suggest they provide support. Volunteer time, or donate.

SUPPORT FROM INDIVIDUALS

It is no secret that charity begins at home. Within reason, and guided by public health officials and government, first take care of yourself, your family*, your neighbours* (and neighbourhood), your friends*, and others close to you – even if they’re physically at a distance. Health and safety always being priorities.

Then do what you can to learn about the needs in your community, and how you might help. Time (many have some on their hands just now), skills, and money are all useful. Not just to Charities whose programs and services directly address the pandemic, but to all the other organizations that are just as important to our society.

A next step is to become involved in Charities in your community – if you aren’t already. They always need motivated and hard-working volunteers, now more than ever. Just ask friends, family, and others if they know of any group that needs help. Or, keeping it simple, donate money to suitable Charities. *Please define “family”, “neighbours”, and “friends” as you like.

DONATIONS FROM INDIVIDUALS

An individual can donate time, money, or materials and supplies, to a non-profit organization or a Charity. (Don’t donate anything other than money unless specifically asked to do so.) A key difference is that a Charity can issue a tax receipt for donated property (money), but a non-profit organization cannot.

Virtually all Charities are also non-profit societies, but not all non-profit societies are Charities. There are about 87,000 Charities in Canada, many based or operating in B.C. All of them will need support during and after the Covid-19 pandemic.

You can donate to a Charity at this time, and most can sure use the money. But a charity can’t use the money to directly help with the pandemic unless its purposes allow it to – if the purposes don’t allow it to do so, all it can do is give the money to a Charity that is able to help.

You can also donate to foreign organizations, but with rare exceptions they cannot issue a Canadian tax receipt. There are numerous Charities that do aid and development work in other countries, which should be considered instead. Some are large, well-known international organizations, with proven ability to help.

CROWD FUNDING

Many groups and individuals have started online “crowd funding” campaigns through websites like GoFundMe, FundRazer, Kickstarter, and so on, to meet immediate needs, particularly of individuals. They are of course free to raise money and give it away as they see fit, within whatever checks and balances the websites require. However, it is very much a “donor beware” situation. Be aware at all times that:

  • There may be individuals and groups that are trying to take advantage of others, if not outright defraud them.

  • There is no external agency that will necessarily step in if there are problems. (The Charities Directorate

    oversees Charities only.)

  • The terms of service of the websites may have anti-fraud policies, but enforcing them is another matter entirely.

  • Donations are entirely at the giver’s risk.

  • If you are attempting crowd-funding as an individual, non-profit, or Charity, you may acquire personal information from donors which legally must be protected. Communications with donors and recipients should be secure if not encrypted, and access to any personal information limited and password-protected.

Still have questions?

Submit an inquiry* to our Ask a Law Student service at the link below. https://www.pacificlegaloutreach.com/ask-a-law-student-1

* Our law students can only provide general legal information, not advice about what steps you should take in your specific circumstance. They also cannot provide legal opinions.



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