Standard 2: Compliance with Laws
The land trust fulfills its legal requirements as a non-profit charitable organization and complies with all relevant laws and statutes.
Background
A land trust must comply with applicable laws. An understanding of, and compliance with, the basic legal requirements is fundamental to operating a land trust. This includes such matters as becoming and remaining a charitable organization. A land trust that fails to comply with these requirements can face financial penalties and fines, which could also apply to directors, and even revocation of its charitable status. A lawyer who understands charitable organizations can assist, but ultimately it is the land trust board’s responsibility to see that all requirements are met. Requirements include, but are not limited to: completing all corporate filings, completing the Registered Charity Information Return, Form T3010; retaining charitable status; following charitable solicitation laws; and adhering to the relevant federal, provincial or local regulations on non-profits or land trusts (such as waiting periods before being able to hold conservation agreements in some provinces).
Relevant Law
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I; see
- Income Tax Act, SC 1985, c. I, s. 149.1 (6.3);
see also Canada Revenue Agency policy interpretations at
- Society Act, RSBC 1996, c. 433, s. 27.
- Canada Corporations Act, RSC 1970, c. C-32.
- Land Title Act, RSBC 1996, c. 250, s. 219:
- Receiver General – to hold Covenants in BC:
- Income Tax Act, SC 1985, c. I;
see Canada Revenue Agency guide “Employee or Self-Employed?” at:
- Income Tax Act, SC 1985, c. I, s. 149.1 (6.3);
see also Canada Revenue Agency policy interpretations at
- Expropriation Act, RSBC 1996, c. 125.
- Expropriation Act, SC 1996, c. E-21.
- Property Law Act, RSBC 1996, c. 377, s. 35.
- Land Title Act, RSBC 1996, c. 250, s. 218-223.
- Society Act, RSBC 1996, c. 433, s. 39, 41.
- Canada Not-for-profit Corporations Act, SC 2009, c. 23, s. 179-194.
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I; see:
- Society Act, RSBC 1996, c. 433; Society Act Regulations, BC Reg 4/78
- Canada Corporations Act, RSC 1970, c. C-32.
- Canada Not-for-profit Corporations Act, SC 2009, c. 23.
- Winding-Up and Restructuring Act, SC 1985, c. W-11.
- Land Title Act, RSBC 1996, c. 250, Parts 10 and 10.1
- Canada Revenue Agency policy interpretations of Income Tax Act, SC 1985, c. I; see:
- Lobbyists Registration Act, SBC 2001, c. 42, s. 3
- Employment Standards Act, RSBC 1996, c. 113.
- Workers Compensation Act, RSBC 1996, c. 492.
- Human Rights Code, RSBC 1996, c. 210.
- Canada Pension Plan, c. C-8.
- Employment Insurance Act, SC 1996, c. 23.
- Personal Information Protection Act, SBC 2003, c. 63
- Personal Information Protection and Electronic Documents Act, SC 2000, c. 5.
- Income Tax Act, SC 1985, c. I, s. 149.1 (6.3);
see also Canada Revenue Agency policy interpretation at
- Income Tax Act, SC 1985, c. I, s. 118.1;
see also Canada Revenue Agency policy interpretation at
- Society Act, RSBC 1996, c. 433.
- Canada Corporations Act, RSC 1970, c. C-32.
- Society Act, RSBC 1996, c. 433, s. 30.
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I;
see Income Tax Technical News No. 26 at:
- Taxation (Rural Area) Act, RSBC 1996, c. 447.
- School Act, RSBC 1996, c. 412.
- Police Act, RSBC 1996, c. 367.
- Property Transfer Tax Act, RSBC 1996, c. 378.
- Social Service Tax Act, RSBC 1996, c. 431.
PRACTICE
E. Public Policy
The land trust may engage in the public policy debate at the federal, provincial and/or municipal level (such as supporting or opposing legislation, advocating for sound land use policy, and/or endorsing public funding of conservation) provided that it complies with federal and provincial lobbying limitations and reporting requirements. All public policy activities must relate to the land trust's mandate and field of operations and should comply with the Canada Revenue Agency's limitations. Land trusts may not engage in political campaigns or endorse candidates for public office.
Background
Many land trusts engage in public policy at some level, even if they are not primarily advocacy organizations. While some land trusts deliberately avoid all policy discussion, believing it would interfere with their ability to protect land; most land trusts have some interest in policymaking at the local, provincial or federal level. Land trusts may wish to seek sound tax policies for land conservation; forestall threats to tax deductions for charitable contributions to charitable organizations; and/or become involved in a host of positive open space initiatives. This practice clarifies that land trusts may engage in non-partisan political activity, but all public policy activities must relate to the land trust's field of operations and should comply with the Canada Revenue Agency's (CRA) limitations on political activity. Land trusts should be aware of the percentage of resources allowed to be directed to political activity by the CRA. Provincial filing and reporting requirements must also be met. Land trusts with federal charitable status may not endorse political candidates. While political activity is only limited by the rules governing charitable organizations, prohibitions on political endorsements are absolute. Some provinces require additional information on lobbying to be submitted to the provincial government.
Assessment Questions
BC Assessment Questions
- Does the land trust engage in public policy work? If yes, the land trust understands and complies with (check all that apply):
- Limitations on lobbying
- Registration of Lobbyists
- Prohibitions on political activity for charities
- If yes, does the land trust review the CRA limitations on political activity at least once every 5 years?
CLTA Assessment Questions
- Does the land trust engage in public policy work?
- If yes, the land trust understands and complies with (check all that apply):
- Limitations on lobbying
- Prohibitions on political activity
