Canadian Money Forum banner

1 - 6 of 6 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter #1
Just a quick question gang. Board member of a small, 1st year softball league in my town. I want to pay the 4 members a little something for their time, but if possible avoid having to give them a T4. Also, this league has made a little money this year, but we aren't trying to take a profit as a group, just going to roll the cash for next year to cover expenses.

Should I be filing a business tax return for this? and as a league (not yet incorporated, as we aren't sure how long it will last), Or would this fall into a non profit category? Want to ensure we do it the right way, and not have out 4 volunteer committee members get screwed over at tax time.

Thanks!
 

·
Registered
Joined
·
4,372 Posts
If you're handling money, you should talk to someone to do the books.
It isn't too expensive, and any club that has a good person would be glad to send more business their way.

There are methods to pay out bursarys, not sure of the organization side, and that depends on it's structure, but the payments are simply income. T4 or not, they should declare them.
 

·
Registered
Joined
·
10,544 Posts
It seems to me this is a small non-registered society (association) that is not in the business to make a profit and is run by volunteers, except perhaps for out-of-pocket expenses incurred conducting the business of the association. What I would do is simply buy some gift certificates as a way of saying 'Thank you'. If it's in the low hundreds of dollars, there is no reason to have it characterized as remuneration. I've been on the Boards of a number of both registered and non -registered societies/associations over the years and providing gift certificates or a consumer good the individual would appreciate is not an issue. Record it on the books as 'Gift certificates of appreciation'.

Added: There is no need to file any tax returns for a non-registered society/association.
 

·
Registered
Joined
·
1,011 Posts
We were not allowed to hand out gift cards directly to staff at the bank. We were told CRA could view it as compensation. They had to be ordered through HR, tracked and I think a taxable benefit was paid.
 

·
Registered
Joined
·
4,372 Posts
It seems to me this is a small non-registered society (association) that is not in the business to make a profit and is run by volunteers, except perhaps for out-of-pocket expenses incurred conducting the business of the association. What I would do is simply buy some gift certificates as a way of saying 'Thank you'. If it's in the low hundreds of dollars, there is no reason to have it characterized as remuneration. I've been on the Boards of a number of both registered and non -registered societies/associations over the years and providing gift certificates or a consumer good the individual would appreciate is not an issue. Record it on the books as 'Gift certificates of appreciation'.

Added: There is no need to file any tax returns for a non-registered society/association.
I'd be careful.
If you're a group charging fees and providing services, and giving money to the people running it, that can start getting close to a business.
 

·
Registered
Joined
·
10,544 Posts
We were not allowed to hand out gift cards directly to staff at the bank. We were told CRA could view it as compensation. They had to be ordered through HR, tracked and I think a taxable benefit was paid.
I wouldn't do it in any sizeable operation, especially an incorporated structure with regulators and CRA peering over the shoulders of everyone.

What I have suggested has been the methodology occasionally used in small volunteer operations. No regulator/CRA is going to make a fuss if the amounts are small. BUT one thing I did not mention in my first post is whether such gifting could raise the shackles of some fee paying members. Softball parent A may be pissed at Board members ingratiating themselves with 'remuneration' so watch the optics of that one. I would pass on any such initiative rather than 'push buttons'.

FWIW, most of the volunteer boards I have been associated with have refused receipt of gifts even if they have been putting in 10-20 hours a month. They have it written into the Bylaws.
 
1 - 6 of 6 Posts
Top