Glossary:

Why do recruitment and selection practices need to be objective and consistent? Ensuring that all potential employees are assessed based on the same criteria ensures that the process of recruiting and selecting employees is fair and professional.¹ Criteria for selecting the appropriate candidate should be based on a position’s clearly defined written job description and easy-to-measure indicators to avoid biased assessments of potential candidates.² Selection processes may include interviews, written assessments, or relevant tests to determine a candidate’s suitability for a position.¹ Interviewing can be done in teams to assist with unbiased assessment and to help determine whether a candidate would be a good fit in your organization. Selection and screening methods should focus on the position’s required skills and abilities and must comply with human rights legislation.³

What does human rights legislation say about job recruitment and selection? The Alberta Human Rights Act protects individuals from discrimination as a result of:⁴

• Race 
• Religious Beliefs
• Colour
• Gender
• Physical Disability 
• Mental Disability
• Ancestry 
• Age
• Place of Origin 
• Marital Status
• Source of Income 
• Family Status
• Sexual Orientation

In spite of this, a study of HR management in small nonprofit organizations found that 3 out of 18 violated human rights legislation in their interview process. For instance, interview questions asking whether a candidate has a spouse or children were used as a way to gauge whether an interviewee would really be able to work overtime, while marital status and family status are both protected under the Alberta Human Rights Act.⁵

From "Accreditation Preparation Workbook Section D: Staff Management,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “HR Management Standards: Second Edition,” HR Council for the Nonprofit Sector, 2011.
2. “Recruitment,” Getting the Right People, in the HR Council for the Nonprofit Sector’s HR Toolkit.
3. “HR Management Standards: Second Edition,” HR Council for the Nonprofit Sector, 2011, p. 10.
4. “Selection & Hiring,” Getting the Right People, in the HR Council for the Nonprofit Sector’s HR Toolkit.
5. “Protected Areas and Grounds Under the Alberta Human Rights Act,” Alberta Human Rights Commission, February 2012.

Why is it important to give a letter of employment to all individuals who are offered a position? Although many organizations prefer to extend offers of employment in person or over the phone,¹ a formal letter of employment allows an organization to clearly communicate its expectations to new recruits, ensuring that they comprehend the terms of their employment² including salary, benefits, reporting and supervision relationships, as well as any conditions related to the offer. A letter of employment not only ensures shared understanding between your organization and a potential employee, but creates a formal record that the terms of employment are fully understood.

What should be included in a letter of employment?³

• Start date of employment
• Job title
• Starting salary or wage range
• Hours of work
• Notice period for resignation and termination
• Probationary terms
• Instructions on how to accept the offer of employment
• Any requirements for criminal records checks, security clearance, etc.
• Description of employee benefits
• Conditions of the offer if applicable
• Reporting or supervisory relationships
• Accommodation needs as agreed during the recruitment process if applicable
• Information on how to access HR policies and confirmation that the employee must adhere to them
• End date of employment for fixed term positions
• Reference to union status if applicable
• Cost of living allowance if applicable⁴

From "Accreditation Preparation Workbook Section D: Staff Management,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “Extending an Offer,” Nonprofit Hiring Toolkit,” The Bridgespan Group, 2012.
2. “Selection & Hiring,” Getting the Right People, in the HR Council for the Nonprofit Sector’s HR Toolkit.
3. “HR Management Standards: Second Edition,” HR Council for the Nonprofit Sector.
4. In Fort McMurray, Alberta, certain nonprofit staff positions qualify for a cost of living adjustment depending on the source of funding.

Why is it essential for employees to be provided with appropriate orientation and training? Orientation improves an employee’s performance, strengthens their commitment to their organization,¹ and can promote staff retention.² An effective orientation process not only conveys the practical information a new employee will require to succeed in their role, but should also familiarize him or her with the organization’s social environment and its unique culture.² Although orientation should begin as soon as an employee takes on a new position, it can take up to a year depending on the role.¹

New recruits to your organization may also need to undergo some form of training before they can fully take on their new role. Effective training improves an employee’s ability to contribute to organizational goals, to deal with challenges and change, and to manage or work on new initiatives.³ Training also improves staff productivity, motivation, and retention, and leads to a decreased need for supervision.³

Orientation can include information on:¹

• HR management policies
• Information on employee benefits
• The organization’s mission
• The organization’s governance, management, and reporting structures
• The organization’s funding structure
• The organization’s programs and services
• Expectations of the job
• Resources available to support the employee
• Roles and responsibilities of volunteers and staff
• The organization’s culture and values²
• The organization’s stakeholders (clients, donors, board, media, etc.)

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “HR Management Standards: Second Edition,” HR Council for the Nonprofit Sector, 2011.
2. “Orientation,” Getting the Right People,” in the HR Council for the Nonprofit Sector’s HR Toolkit.
3. “Getting Your Organization Ready for Employee Training and Development,” Learning, Training and Development, in the HR Council for the Nonprofit Sector’s HR Toolkit.

Why is it important for organizations to have a work plan or performance objectives? Work plans and/or performance objectives are a key ingredient of any performance management process and can help employees to be more effective in their roles.¹ Individual work plans and performance objectives should align with your organization’s strategic plans and annual work plans.² This will ensure that your organization is engaging all staff to work toward accomplishing its mission.

The HR Council for the Nonprofit Sector suggests that performance objectives should be SMART:¹

• Specific – clearly articulate what, who, and when
• Measurable – determine how you will know that the goal has been accomplished, using multiple measures if possible and addressing both qualitative and quantitative factors
• Attainable – develop goals that can reasonably be accomplished
• Realistic – goals should align with an employee’s experience and abilities as well as recognize complexity, including factors outside the employee’s control
• Time-bound – set clear expectations for the time by which the goal should be accomplished

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “Performance Management,” in the HR Council for the Nonprofit Sector’s HR Toolkit.
2. “HR Management Standards: Second Edition,” HR Council for the Nonprofit Sector, 2011.

Why does your organization need policies and procedures related to volunteer involvement? Policies and procedures formalize roles and responsibilities, ensuring that they are understood and carried out consistently throughout your organization.¹ Having formal policies and procedures in place related to volunteer involvement demonstrates your organization’s commitment to supporting its volunteers.² Policies and procedures are also an important component of risk management, clarifying expectations and guiding action and decision-making.³ By helping to ensure that your volunteer program is run effectively, policies and procedures can improve volunteer retention, productivity, and satisfaction.³

Policies and procedures related to volunteer involvement must comply with national and provincial / territorial legislation including legislation protecting human rights, privacy of information, and employment standards.¹

Which volunteer involvement policies and procedures does your organization need? In developing volunteer involvement policies, it is helpful to carefully consider why your organization involves volunteers.² According to your organization’s needs, you may develop policies and procedures related to:¹ 

• Volunteer roles
• Screening of volunteers
• Grounds for dismissal of volunteers
• Volunteer recruitment
• Volunteer orientation and training
• Reimbursement of volunteers’ expenses
• Support and supervision of volunteers 
• Insurance coverage for volunteers 
• Equal opportunities 
• Health and safety 
• Conflict resolution 
• Confidentiality

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.
2. “Writing a Volunteer Policy,” Volunteering Good Practice Guide, Volunteer Center, Brighton and Hove, 2009.
3. “Policies and Procedures,” Linda L. Graff, December 2009.

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 their volunteer programs.¹ Recruiting, coordinating, and managing volunteers is a complex responsibility that requires a particular skill set,² including knowledge of human resource management principles and an understanding of the value of volunteering.³ The National Survey of Nonprofit and Voluntary Organizations found that having a designated paid employee responsible for volunteer involvement was the most significant variable affecting an organization’s ability to effectively engage volunteers in its work.¹

Individuals responsible for volunteer involvement often play a role in:¹

• Volunteer recruitment
• Matching volunteers with volunteer opportunities
• Volunteer orientation and training
• Interviewing and screening volunteers
• Assessing the risks involved in an organization’s volunteer program
• Supervising volunteers

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “Managers of Volunteers: A Profile of the Profession,” Fataneh Zarinpoush, Cathy Barr, and Jason Moreton, Imagine Canada, 2004.
2. “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.
3. Noble et al., 2003 cited in “Managers of Volunteers: A Profile of the Profession,” Fataneh Zarinpoush, Cathy Barr, and Jason Moreton, Imagine Canada, 2004.

Why is it important for volunteer assignments to relate to the mission of your organization? Nonprofit and charitable organizations depend on volunteers to achieve their missions.¹ In order to ensure that volunteers contribute to accomplishing your organization’s goals, your volunteer involvement strategy should align with your organization’s strategic direction and its plan for disbursing its resources.¹

Volunteers are most often drawn to your organization because they are passionate about its cause and feel that their contribution will help your organization to achieve its mission.² Volunteers who understand how their work impacts the organization’s strategic goals are more likely to strive to accomplish their roles effectively.³

Why is it important for volunteer assignments to engage volunteers in meaningful ways that reflect their abilities, needs, and backgrounds? Volunteers are busy people. Employed Canadians and those with children living at home volunteer at higher rates than others, and younger Canadians (between 15 and 44) volunteer more than pre-retirees or seniors.⁴ Volunteer time is a valuable resource, and volunteers are unlikely to want to spend it in a position that is not engaging and rewarding.² Often, volunteers are looking for a role that will help them to develop skills, to use their existing skills to contribute to a cause they care deeply about,⁵ or to increase their employment opportunities.³ They may also be looking for a meaningful way to spend their time that enriches the community, the organization, and themselves.⁵

Overall, today’s volunteers have higher expectations of their roles and less time to contribute than they have in the past.³ As such, aligning volunteer opportunities with an individual’s abilities, needs, and background will ensure that your volunteers are best able to contribute to your organization while at the same time satisfying their reasons for volunteering.

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012, p. 13.
2. “Volunteer Role Design: The Key to Your Volunteer Program,” Cheryl Humphrey-Pratt, RCVO @ Volunteer Alberta, 2006, p. 1.
3. “A Matter of Design: Job Design Theory and Application to the Voluntary Sector,” Volunteer Canada, 2001, p. 4.
4. “Volunteering in Canada,” Mireille Vézina and Susan Crompton, Statistics Canada, April 16th 2012, p. 40.
5. “Volunteer Recruitment,” Cheryl Humphrey-Pratt, RCVO @ Volunteer Alberta, 2006, p. 2.

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, volunteering is a primary venue for integrating socially and economically into their communities.¹

Volunteer Canada’s Canadian Code for Volunteer Involvement states that a “healthy organization” will seek to involve volunteers who reflect the diversity of the community.² Cultivating a diverse volunteer base will improve your organization’s ability to effectively serve its community by increasing access to the skills and knowledge needed to design programs, develop policies, and make connections in your community.³

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. 28 “Giving and Volunteering Among Canada’s Immigrants,” Derrick Thomas, Statistics Canada, May 17th 2012.
2. 30 “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.
3. “A Guide for Cultural Competency Application of the Canadian Code,” Ontario Volunteer Center Network, July 2009.

Why is it essential to establish appropriate screening processes for volunteers? The primary purpose of volunteer screening is to ensure a safe environment for your organization’s clients, staff, and volunteers.¹ Organizations working with vulnerable populations in particular have a moral and legal obligation to screen volunteers, as stated in the concept of “Duty of Care,” which requires organizations to enact reasonable measures to ensure the safety of their beneficiaries.¹

Screening is essential to manage the risks associated with your organization’s volunteer program. However, it also accomplishes other goals such as helping to match volunteers with appropriate volunteer opportunities.¹

What does an effective screening process involve? Screening should be an ongoing process for all volunteers, and procedures must apply equally to all individuals within a particular role. Appropriate screening processes should be developed based on the level of risk associated with each volunteer role.² For instance, a volunteer who will be supervising children will require a different screening process than a volunteer who will be collecting tickets at the registration table of a fundraising event.²

Depending on the position, screening may involve an application form, interviews, reference checks and / or a police records check, orientation to a new position, and supervision and evaluation.³

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “Screening,” Volunteer Canada.
2. “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.
3. “Best Practice Guidelines for Screening Volunteers,” Public Safety Canada, Her Majesty the Queen in Right of Canada, 2008.

Why is it essential for volunteers to be provided with appropriate orientation and training? In order to be effective in their roles, new volunteers or volunteers who are taking on new responsibilities must receive adequate orientation and training. Orientation familiarizes volunteers with your organization’s policies and procedures and will help them to act in alignment with your organization’s values and practices.¹ In this respect, orientation is an important component of volunteer screening, especially when volunteers are new to their positions.² Training helps ensure that volunteers are able to perform their roles effectively and minimizes potential risks posed to themselves and others.¹

How can my organization effectively train its volunteers? Linda Graff suggests that in developing training opportunities for volunteers, nonprofit and charitable organizations:³

• Consider the learning needs of their volunteers, keeping in mind current knowledge levels about the topic as well as learning styles and levels of engagement
• Involve the volunteers themselves in the development of training opportunities to ensure that the training meets their needs
• Create clear and attainable learning objectives so that everyone is clear on the purpose of the training and has realistic expectations for learning
• Incorporate opportunities to apply the learning, recognizing that adult learning is facilitated by applying new concepts

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.
2. “Best Practice Guidelines for Screening Volunteers,” Public Safety Canada, Her Majesty the Queen in Right of Canada, 2008; “Safe Steps: A Volunteer Screening Process,” Volunteer Canada, 2001.
3. “Designing and Structuring Volunteer Training,” Linda Graff, November 2009.

Why is it important for volunteers to be given regular opportunities to offer and receive feedback? Feedback is a “direct response, positive or negative, to an activity performed in the interest of the organization.”¹ Providing feedback to volunteers is most effective if it is immediate, ongoing, and if it comes from the volunteer’s most direct staff contact in the organization.¹ Providing feedback to volunteers is an integral part of volunteer recognition, and can be an important strategy for helping volunteers to achieve their goals, especially if volunteers are seeking to build skills to enhance their employment opportunities.¹

It is also essential to provide frequent opportunities for volunteers to share their experiences in their roles with other members of your organization. Collecting feedback from volunteers related to their assignments as well as to broader organizational issues can help you improve your volunteer program as well as other aspects of your organization’s operations.²

Why is it important for volunteers to receive supervision appropriate to their role? Supervision helps ensure that volunteers are accomplishing their roles in an appropriate and professional manner.¹ Supervision arrangements should be determined according to the level of complexity and risk associated with a role.³ Effective supervision can improve the motivation and sense of belonging of your organization’s volunteers.³ It also increases the likelihood that they will perform their roles well and contribute to achieving your organization’s mission.³

In addition, supervision of volunteers builds relationships, supports them in their assignments, and creates a steady flow of communication between volunteers and supervisors.² If supervision uncovers a poor fit between a volunteer and a volunteer assignment, this provides an opportunity to adjust the job description or reassign the volunteer to a different role.²

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “A Matter of Design: Job Design Theory and Application to the Voluntary Sector,” Volunteer Canada, 2001.
2. “Best Practice 8: Providing Supervision,” in Best Practices in Volunteer Management: An Action Planning Guide for Small and Rural Nonprofits, Jennifer Ellis, Volunteer Canada, 2005.
3. “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.

Why is it important to acknowledge the contributions of volunteers? Recognizing the efforts of volunteers is one of the most important ways for your organization to retain current volunteers and attract new ones.¹ Recognition demonstrates your organization’s gratitude for the work of its volunteers, helping volunteers to feel that they are an integral part of your organization and that their contributions are valued.² In turn, this increases volunteer morale and productivity.² Recognition should occur formally and informally, internally and publicly, and should be meaningful to the individual volunteer.³

How can your organization effectively recognize the contributions of its volunteers? Volunteer Canada suggests that organizations implement the following best practices in volunteer recognition:¹

• Prioritize volunteer recognition – make volunteer recognition an official part of someone’s role in your organization
• Recognize volunteers often – say thank-you frequently and ensure that the contributions of volunteers are acknowledged consistently
• Recognize volunteers in a variety of ways – recognition should be both formal and informal, ranging from informal thank-you’s and treats to formal awards presentations, dinners, guest speakers, and sharing organizational milestones including how volunteers have contributed to achieving organizational goals
• When recognizing volunteers, be sincere – meaningfully reflect on and acknowledge the contributions of volunteers to your organization
• Focus on the individual, not the end result of their work – phrase recognition to emphasize the individual’s contribution, for instance “you did a great job” as opposed to “this is great work”
• The form of recognition should be appropriate to the volunteer’s contribution – an informal thank-you might be appropriate for a month of service, whereas 10 years of service might be honoured with a dinner or plaque
• Be consistent – establish standards for volunteer recognition and understand that the ways in which volunteers are recognized establishes expectations in other volunteers 
• Be timely – recognize volunteers when they have made a significant achievement. Delaying acknowledgement can diminish its meaningfulness
• Be unique – get to know your volunteers in order to understand what kinds of recognition would be most meaningful for them as individuals

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. “Best Practices in Volunteer Recognition,” Volunteer Canada.
2. “Volunteer Recognition: Matching Motivation to Rewards,” Cheryl Humphrey-Pratt, RCVO @ Volunteer Alberta, 2006.
3. “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.

Why is it important to evaluate the impact and contributions of your organization’s volunteers and volunteer program? Evaluating your organization’s volunteer program allows you to measure the impact of volunteers within your organization and to determine whether you are meeting the program’s goals.¹ It also helps you to track the quality of volunteers’ experiences and to uncover aspects of your volunteer program that may need improvement.¹ Evaluating your volunteer program provides for informed decision making and facilitates the growth and development of your program.¹

Evaluations of volunteer programs should review the program’s goals and objectives, collect feedback from volunteers and clients, and use qualitative and quantitative data to review the impact of volunteer involvement in your organization.²

From "Accreditation Preparation Workbook Section E: Volunteer Involvement,"  Katharine Zywert, Social Prosperity Wood Buffalo at the University of Waterloo, 2013.

1. 62 “Evaluating Your Volunteer Programme,” Volunteering Good Practice Guide, Volunteer Center, Brighton and Hove, 2009.
2. 65 “The Canadian Code for Volunteer Involvement: Values, Guiding Principles, and Standards of Practice,” Volunteer Canada, 2012.

When a donor gives the use of property (for example, provides the use of one's cottage or car) to a charity, this is not a transfer of property and is therefore not a gift. No tax receipt may be issued.

When a charity gives the use of property in return for a gift, however (for example, use of a charity's boardroom in return for a cash donation), this is an advantage. Assuming this advantage can be valued, the split receipting rules apply. If the advantage cannot be valued, then no receipt can be issued for the gift.

Example 1: Use of property as a donation
An individual wants to donate a week at his cottage as a silent auction gift. Since there is no transfer of property, no tax receipt may be issued. However, the charity could "rent" the use of the cottage for a week at its fair market value. The individual could then make a cash donation to the charity equal to the amount of the rent payment and receive a tax receipt in return. (In doing this, the individual may have to include the amount of rent as income, deduct appropriate expenses, and then claim the donation in the usual fashion when filing his or her tax return.)

Example 2: Use of property as an advantage to the donor
A business makes a $1,000 cash donation to a charity. In return, the charity wants to give the business use of its meeting room for a business meeting. If the fair market value of the use of the meeting room was $200, then the charity can issue a tax receipt for $800. As well, the business can likely treat the $200 paid for renting a meeting room as a deductible business expense.

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 Proudfoot have a cottage in the Gatineau Hills. They donate a week at the cottage to a silent auction run by their favourite charity. Because the donation of use of the cottage is not a transfer of property, a tax receipt cannot be issued. However, if the charity paid for a week at the cottage and the Proudfoot's donated the payment back to the charity, a charitable tax receipt could be issued. Of course, the Proudfoot's would have to declare this as income, and so there may not be any net benefit to them.

When a donor gives the use of property (for example, provides the use of one's cottage or car) to a charity, this is not a transfer of property and is therefore not a gift. No tax receipt may be issued.

When a charity gives the use of property in return for a gift, however (for example, use of a charity's boardroom in return for a cash donation), this is an advantage. Assuming this advantage can be valued, the split receipting rules apply. If the advantage cannot be valued, then no receipt can be issued for the gift.

Example 1: Use of property as a donation
An individual wants to donate a week at his cottage as a silent auction gift. Since there is no transfer of property, no tax receipt may be issued. However, the charity could "rent" the use of the cottage for a week at its fair market value. The individual could then make a cash donation to the charity equal to the amount of the rent payment and receive a tax receipt in return. (In doing this, the individual may have to include the amount of rent as income, deduct appropriate expenses, and then claim the donation in the usual fashion when filing his or her tax return.)

Example 2: Use of property as an advantage to the donor
A business makes a $1,000 cash donation to a charity. In return, the charity wants to give the business use of its meeting room for a business meeting. If the fair market value of the use of the meeting room was $200, then the charity can issue a tax receipt for $800. As well, the business can likely treat the $200 paid for renting a meeting room as a deductible business expense.

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 Proudfoot have a cottage in the Gatineau Hills. They donate a week at the cottage to a silent auction run by their favourite charity. Because the donation of use of the cottage is not a transfer of property, a tax receipt cannot be issued. However, if the charity paid for a week at the cottage and the Proudfoot's donated the payment back to the charity, a charitable tax receipt could be issued. Of course, the Proudfoot's would have to declare this as income, and so there may not be any net benefit to them.

Director of Finance, Imagine Canada

Bill has 30 years’ experience leading, managing and advising, primarily in the nonprofit sector. His broad strategic and operational experience includes extensive accounting and government regulatory activity. A Chartered Accountant and former CFO of the Institute of Chartered Accountants of Ontario, Bill was the primary project director and author of Imagine Canada’s Charity Tax Tools, a leading introductory resource for Canada’s charitable sector.

• is established as a corporation, a trust, or under a constitution;
• has exclusively charitable purposes;
• primarily carries on its own charitable activities, but may also gift funds to other qualified donees, (e.g., registered charities);
• more than 50% of its governing officials must be at arm's length with each other;
• generally receives its funding from a variety of arm's length donors; and
• its income cannot be used for the personal benefit of any of its members, shareholders, or governing officials.

(CRA : Charities Glossary)