The Sector Source website is no longer being updated and will soon be retired. Some resources may be out of date. A new, updated Standards Community is in the works - Subscribe to our Newsletter for updates!

  • Standard A18 Explained

    Why is it important for the boards of nonprofits and charities to consist of at least three members that are at arm’s length to each other and to the most senior staff person? The Canada Not-for-profit Corporations Act states that any soliciting corporation must have a minimum of three directors.1...

  • Donations of non-qualifying securities

    A charity may generally not issue a tax receipt for the gift of shares or securities of a corporation unless they are publicly traded on a “prescribed stock exchange” or if the donor is at arm’s length from the charity and each of its director and officers. This is a complex area of the regulations...

  • Standard E2 Explained

    Why does my organization need to designate at least one person to be responsible for volunteer involvement? Over the past two decades, changes in patterns of giving and volunteering in Canada have prompted nonprofit and charitable organizations to increasingly incorporate management principles into...

  • Standard D10 Explained

    Why is it important to assess the performance of each employee at least annually? Assessing an employee’s performance helps ensure that they are accomplishing the goals of their position, contributing to the strategic direction of the organization, and acting in alignment with your organization’s...

  • Standard C13 Explained

    Why must organizations conducting face-to-face fundraising ensure that they: a. provide verification of the affiliation of the person representing the organization – Individuals may be suspicious of face-to-face fundraising efforts such as door-to-door solicitation, worrying that it could be...

  • Standard A3 Explained

    Definition: Most Senior Staff Person 1The person who reports to the board of directors and to whom any other employee of the organization reports either directly or indirectly. Common titles for the most senior staff person include President, Chief Executive Officer and Executive Director....

  • Standard A19 Explained

    Why is it important that board members of charitable and nonprofit organizations not receive financial compensation for their role as a director? This standard prohibits board members from receiving monetary compensation in return for their service as a director of the board. “In their capacity as...

  • Use of vacation property

    The use of a property is not the same as the transfer of a property. However, if the charity pays for the use of the property and the owner of the property donates that money back to the charity, the charity can issue a tax receipt for the donation (known as a cheque swap).Example 1: Jane and Paul...

  • Standard E4 Explained

    Why is it important for organizations to involve a diverse volunteer base? Community organizations serve diverse communities. A 2012 Statistics Canada study, Giving and Volunteering Among Canada’s Immigrants, reports that almost 1 in 5 Canadians is an immigrant.1 For many new Canadians,...

  • Standard D11 Explained

    Why is it important to assess the development needs of all fulltime employees and to develop plans to address any gaps? Ongoing professional development helps employees improve their performance in their roles and build the skills they need to advance.1 In a job market in which nonprofits compete...

Pages

Share this resource