The Freedom to Care Act came into force in Alberta in September 2021. The Act makes it easier for nonprofit organizations to identify existing exemptions to regulations and apply for one-time exemptions. The Act also provides individual volunteers with liability protections.
All registered charities in Canada have a “disbursement quota.” This is a term defined in the Income Tax Act, that generally refers to the minimum amount that registered charities are required to spend on their charitable activities on an annual basis. Effective for taxation years that begin on or after January 1, 2023, the disbursement quota amount was increased from 3.5% to 5% on the portion of property exceeding $1 million.
Now that we are returning to a more normal way of operating, it may be a good time for Alberta nonprofits to think through the best way to plan for their Annual General Meetings. Should you hold a virtual or an in-person meeting? Are you allowed to hold a virtual meeting? What about hybrid meetings where some people are in the room and some people are attending virtually? How should voting happen?