This episode addresses the crucial topic of executive compensation within Canadian charities (with some references to US charity law as well), emphasizing the need for fair and reasonable pay to attract and retain competent leadership while adhering to legal and ethical standards.

Canadian regulations, particularly by the CRA, define compensation broadly and strictly prohibit undue private benefit, requiring transparency through the T3010 form.

In the US, the IRS and organizations like Charity Navigator also stress reasonable compensation, suggesting reliance on comparability data and independent review processes, while acknowledging the complexities and competitive pressures of executive roles in often large, mission-driven organizations.

Ultimately, both jurisdictions underscore the importance of board oversight and accountability in ensuring responsible stewardship of charitable resources regarding executive pay.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883