Resources & Links
Infrequently Asked Questions
Do you have questions about the nonprofit/voluntary sector? Contact Volunteer Alberta and we will help direct you to the best resource or find the answer!
- What happens when a volunteer is paid an honorarium?
- Is there a provision for recognizing volunteer labour through the issuing of a charitable receipt?
- Is there a rule that dictates the maximum amount of donations that can be kept in the bank each year?
- What is PIPA and how does it apply to the nonprofit/voluntary sector?What about PIPEDA?
- Where should I go to obtain legal advice for my nonprofit?
- How do I go about starting a nonprofit organization? Are there any simple resources?
- Is it possible to provide a charitable tax receipt for gas donated to a nonprofit organization?
- Who owns the work I’ve done as a volunteer for a nonprofit organization: me or the organization?
1. What happens when a volunteer is paid an honorarium?
If the honorarium is to offset expenses such as gas, and no T4 is issued, you can count the volunteer hours. If a T4 is issued, the volunteer becomes an employee.
Here is a sample policy that should be considered when addressing the issue of paid volunteers:
Definition of Volunteer:
A volunteer is a person who by choice and without financial compensation contributes time and service to assist in fulfilling the mission of the organization.
Philosophy of Involvement:
Volunteers are valued and respected by everyone in the organization. The organization actively seeks the volunteers’ input on programs, policies and procedures and organizations concerns. The Board of Directors adopts a statement declaring the vital role of volunteers in achieving the organization’s mission.
As representatives of the community-at-large, volunteers actively participate at all levels of the organizations, ensuring that services and responsive to the needs of the clients and members.
Volunteers enhance the services provided and do not assume duties of paid staff.
Volunteers act as representatives of the organization. The extent of their relationships with clients or members is outlined in their position descriptions. Training and supervision is provided to ensure volunteers understand their roles, responsibilities and limitations and are able to undertake them in an appropriate and safe manner.
2. Is there a provision for recognizing volunteer labour through the issuing of a charitable receipt?
Short answer: No
Long Answer: According to The Canada Revenue Agency Gifts and Income Tax Pamphlet (P113(E) Rev. 06), “a gift in kind refers to a gift of property other than cash such as capital property (including depreciable property) and personal-use property (including listed personal property). These terms are defined in the glossary of guide T4037, Capital Gains. A gift in kind does not include a gift of services.”
Therefore Volunteer labour, which is a type of service, is not eligible for the issuing of a charitable receipt.
http://www.cra-arc.gc.ca/E/pub/tg/p113/p113-06e.pdf
For additional views on this topic, check out the research by Volunteer Alberta on Volunteer Tax Credits,
3. Is there a rule that dictates the maximum amount of donations that can be kept in the bank each year?
The short answer is no, but "Service Alberta may ask a charitable organization to provide its most recent audited financial statement if it has raised more than $250,000 in gross contributions."
"Charitable organizations must, to the best of their ability, ensure that contributions are used in accordance with donors' intentions and obtain the explicit consent of a donor or the donor's representative before altering the conditions of a gift."
Resources:
4. What is PIPA and how does it apply to the nonprofit/voluntary sector?
On January 1, 2004, nonprofit organizations in Alberta became subject to Alberta’s Personal Information Protection Act (PIPA). The Act contains a provision that limits the application of the Act to only certain personal information held by some nonprofit organizations. This information sheet explains section 56, and what it means for nonprofit organizations.
PIPA defines a nonprofit organization in section 56(1)(b). For the purposes of the Act, a nonprofit organizations is an organization that is:
- incorporated under the Societies Act,
- incorporated under the Agricultural Societies Act, or
- registered under Part 9 of the Companies Act.
Other organizations may operate on a not-for-profit basis, but the provisions in section 56 only apply to the organizations listed above. For other non-profit organizations, the entire Act applies to the personal information of their employees, volunteers, clients and donors.
Nonprofit organizations should continue to develop their own policies and practices around protecting and disclosing personal information.
For more information on PIPA and the definition of commerical activity, please visit their website:
pipa.alberta.ca http://pipa.alberta.ca/index.cfm?page=resources/NonProfit.html
Information sheet for nonprofits http://pipa.alberta.ca/resources/pdf/NonProfit.pdf
FAQs for nonprofits http://pipa.alberta.ca/index.cfm?page=faqs/NonProfitFAQs.html
An Alberta organization may be subject to PIPEDA for a transaction, where personal information is collected, used or disclosed across a border (provincial or international) as part of a commercial activity. This is the case whether the organization is a business or a nonprofit organization.
A Guide for Businesses and Organizations on the Personal Information Protection Act provides an overview of the Act with examples and tips for incorporating good privacy practices in the work place. http://pipa.alberta.ca/index.cfm?page=resources/PIPAguide.html
5. Where should I go to obtain legal advice for my nonprofit?
Lawyer Referral Service
1-800-661-1095
Operated by the Law Society of Alberta
This service offers a ½ hour of FREE legal advice from 3 different lawyers
How not-for-profit organizations can access this service:
- Dial 1-800-661-1095
- Speak to the operator, and provide the area of law the not-for-profit organization needs help in:
- Societies Act
- Companies Act
- Labour law
- Civil law
- Criminal law
- Or other legal matters
- Give a brief description of the problem
- Give the requesting organization’s community/location
- The not-for-profit organization will receive the names of 3 lawyers
- The not-for-profit organization MUST tell the lawyer they received his/her name from the Lawyer Referral Service to get the FREE ½ hour of services.
Volunteer Lawyers Service Now Operated by Pro Bono Law Alberta
As of August 4, 2009, the Volunteer Lawyers Service program (VLS) is now operated by Pro Bono Law Alberta (PBLA). VLS is a pro bono program that provides eligible charitable organizations with legal services and advice through an application process that matches the organization with a volunteer lawyer. For information, call the PBLA office at 403-541-4840
6. How do I go about starting a nonprofit organization? Are there any simple resources?http://www.su.ualberta.ca/services_and_businesses/services/student_groups/resources http://www.charityvillage.com/cv/guides/guide4.asp
http://www.managementhelp.org/strt_org/strt_np/strt_np.htm
These are only a few examples of the many online resources, let alone print resources, available. A simple Google search of “how to start a nonprofit” should take you to the right places, and a phone call to your local bookstore gets you the manuals you’re looking for. Another good place to call is the Resource Centre for Voluntary Organizations, or RCVO, located in Edmonton.
What if my community does not have a Volunteer Centre?
Visit Volunteer Alberta's website to connect with information on how to start a Volunteer Centre. Volunteer Canada’s UPS Toolkit is also a great place to start if you are starting a volunteer centre.
7. Is it possible to provide a charitable tax receipt for gas donated to a nonprofit organization?
The simplest way to solve this query is to have the volunteer issue an expense form or invoice to the organization for the gas consumed during the volunteer work at a fixed rate per kilometer, and then have the volunteer donate that amount back to the organization to receive a charitable tax receipt for the cash donation.
8. Who owns the work I’ve done as a volunteer for a nonprofit organization: me or the organization?
The answer to this question depends on the circumstance. If you have some sort of contract that states you have agreed to do the work on behalf of the organization, it becomes their “property”. This is the case more often than not. If you are planning to do some work as a volunteer that you wish to remain your property, create an agreement with the organization PRIOR to the start of work.
Looking for more? Please visit our Links page to visit other sites with additional resources.
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Volunteer Alberta - Speaker Request Form DOC
Volunteer Alberta - Speaker Request Form PDF