Investment Policy for Canadian Charities: The Five Questions Every Nonprofit Board Must Answer

About this episode

This episode discusses the essential investment policy questions that Canadian charity boards must address to ensure compliance and protect directors from liability.

Managing charitable assets requires navigating a complex intersection of provincial legislation and federal tax regulations . Canadian charity boards must identify their specific legal investment powers , as founding documents or private acts can often override general provincial rules. Establishing a formal investment policy is essential for demonstrating fiduciary compliance and protecting directors from liability during audits. Boards must also distinguish between social investments governed by Ontario law and program-related investments defined by the CRA, as these frameworks have different reporting and disbursement requirements. Finally, implementing a structured disbursement policy ensures that organizations balance mission-based spending with the long-term preservation of endowed capital. ‍ B.I.G. Charity Law Group Professional Corporation A dedicated law firm exclusively serving charities and not-for-profits in Toronto, Ontario, and across Canada. Serving: CRA Charity Registration Nonprofit Incorporation Corporate Governance & CRA Compliance ONCA Updates (Ontario nonprofit compliance) Bylaw Reviews and Policy Development Ready to build, grow, or protect your…

Topics covered

• investment policy
• charity governance
• fiduciary compliance
• legal investment powers
• disbursement policy

Keywords

• charitable assets
• provincial legislation
• federal tax regulations
• social investments
• program-related investments
• audit compliance
• endowed capital

Mentioned in this episode

Organizations: B.I.G. Charity Law Group Professional Corporation, CRA, CRA Charity Registration, Ontario nonprofit compliance

Places: Ontario

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