Most large-scale companies working for profit know the importance of having a lawyer on call. Professional firms can be there to offer legal advice on a range of issues whenever necessary. This is the case whether it’s a pending employment tribunal, a lawsuit over some form of infringement, or a tax matter. But what if you’re running a not-for-profit organization or charity? By their nature, charities are positive organizations for good, and founders wouldn’t think they’d end up in any legal trouble. However, there are lots of potential legal obstacles to overcome. That’s why any new Toronto nonprofit should hire legal assistance.
How Can A Charity Law Firm Help You?
The immediate question here is why you would need a lawyer as a nonprofit organization in Toronto. Well, there are actually quite a few reasons why it helps to have a professional charity lawyer on call. It all starts with registering a nonprofit with a Toronto lawyer and continues with all the legal issues of compliance, tax, and dealing with people in your organization. Here are some of the many ways that these law firms could help you:
Registering And Incorporating Not-For-Profit Organizations
It all starts with the process of getting your nonprofit off the ground. You need to get your organization registered as either a nonprofit or a charity to reap the benefits and stay compliant. It can take a lot of time and paperwork to get this sorted out, so much so that it can be off-putting for those with no previous experience. Charity laws can ensure that registering nonprofits is much more straightforward, with all the right legal paperwork. They’ll help explain everything you need to get registered and incorporated. This includes the Articles of Incorporation and all other forms of paperwork and red tape you might encounter along the way. They can make sure everything is complete and compliant while you focus on the more important matters of raising awareness and finding prospective donors.
When searching for the best lawyers for registering nonprofits, you’re looking at both the number of cases and the efficiency in processing them. You want someone who can take as little as a week to process charity applications and then no more than 6 months for the registration to go through. Check out their stats online and find reviews from current clients.
Dealing With Charity Tax Affairs
One of the main reasons why registering your nonprofit is so important is the implications for your tax status. A lot of people assume that a nonprofit and a charity are the same thing. However, there are actually some important legal distinctions. Therefore, you can’t call yourself a nonprofit and expect all the same perks as a charity. Similarly, you can’t call yourself a charity and conduct business in the same way as a nonprofit. One key example here is the issue of tax exemption.
All registered charities in Toronto are tax-exempt, so everything they earn from proceeds and donations stays within the organization. Fully legal registration and ongoing tax advice mean charities can handle their affairs and spend the money with a clear mind. It’s a little different for nonprofits, which are exempt from paying income tax, but not from tax on property or capital gains. When you have a skilled charity-focused law firm on your side, you have someone to help you with your tax affairs to make sure your nonprofit operates within the law. As soon as there are any concerns about tax discrepancies, it puts the integrity of a nonprofit into question. You don’t need that sort of PR nightmare.
Legal Advice For Handling Charity Matters
Once you’re all set up and your tax affairs are in order, it still helps to have reliable legal counsel for a host of other potential problems. The hope is that you’ll never have to deal with any of the following examples. However, you can’t be sure that your team won’t make mistakes or that others won’t try to sabotage you. One way lawyers can help is by advising on issues with other people in the organization. For example, you might find yourself struggling with the directors or partners in the company. Maybe they aren’t performing in the best interests of the charity, or there’s some sort of contract issue. Or, there may be a dispute with those working for the organization. You need to comply with worker rights for those under contract and those there as volunteers. Don’t take anyone there for granted.
Another potential issue comes when dealing with clients and donors, especially those with ongoing relationships with the company. Many will have direct debits or agreements for bequests and donations in the event of their death. These contracts need to be completely legitimate, with no concerns about what will happen years down the line. There’s also the issue of data protection. If you’re collecting a lot of contact information and bank details, that has to be completely secure. Expert legal advice can help.
Finally, there’s the risk of lawsuits from other organizations. If your organization is similar to another in the area, you have to be sure you aren’t at risk of any copyright infringement or trademark laws. This also extends to the intellectual property and content of other people. If they think you’ve stolen ideas or used content without permission, you could be in trouble. Your charity lawyer can advise you on what to do in these situations and how to avoid them.
Get The Best Toronto Charity Lawyers On Your Side
The factors listed here are a quick rundown of the potential hurdles facing any new Toronto charity or nonprofit. There could be plenty of others out there, and the best charity lawyers will advise you on all of them. They’ll tell you everything you need to do to stay compliant, help you with all the necessary paperwork, and be there whenever you need additional advice. With them on your side, it will be even easier to manage a successful organization and make a real difference.
