Standard 6: Financial and Asset Management
The land trust manages its finances and assets in a responsible and accountable way.
Background
Sound financial and asset management is critical for a land trust. Federal and provincial laws have financial reporting requirements, and financial records should be available to donors upon request. Poor financial management may jeopardize the future of the land trust and its land conservation programs. It could even lead to legal challenges against the land trust. Even a small land trust with modest revenue and expenditures should have annual budget and periodic financial reports, although the format of these may be simple. Organizations with larger budgets must follow specific reporting formats. Assuring sound financial management is one of the core responsibilities of the full board, no matter who keeps the books or prepares financial reports.
Relevant Law
- Society Act, RSBC 1996, c. 433, s. 39, 41.
- Canada Not-for-profit Corporations Act, SC 2009, c. 23, s. 179-194.
- Society Act, RSBC 1996, c. 433.
- Canada Corporations Act, RSC 1970, c. C-32.
- Society Act, RSBC 1996, c. 433, s. 30.
PRACTICE
H. Sale or Transfer of Assets
Including land and conservation agreements.
The land trust has established policies and/or procedures on the transfer or sale of assets, including real property. (See 4C, 9K and 9L.)
Background
A land trust may face a variety of situations in which it considers disposing of its assets. It may own a computer that no longer meets its needs or a building that is no longer cost- effective to manage and maintain. A land trust may have good reason for disposing of an asset, but it should take care in doing so, especially if it involves real property. It should thoroughly consider Canadian Revenue Agency requirements and required Environment Canada authorizations, the public trust doctrine, and the land trust’s public image and credibility, and create standard policies or procedures to follow. See also 9K and 9L for specific practices related to the sale or exchange of land.
