We admire the scrappy, do-it-yourself spirit that permeates many nonprofits and charities. However, not fully understanding (or following) all the many rules and regulations of the Canadian benevolent sector is one of the top mistakes new charities make – so it’s not always wise to apply your DIY mindset to paperwork.
To get your compliance house in order, you might need to call in some help. But don’t despair! Working with an expert will save you time, money, and a lot of headaches in the long run.
Here are some signs it might be time to ask for help with your compliance filings:
1. Your inbox is full of friendly – or not-so-friendly – reminders from various governing bodies
If you are getting reminder notices from the CRA, BC Registries, or any other regulator with words like “default” or “revoke” in them, it’s time to reach out for help!
2. You have high board turnover
While boards need to be refreshed regularly, when you have unusually high board turnover, you tend to have lower corporate memory. That means important administrative information for your organization, like passwords, deadlines, or even keys to the filing cabinet, can get lost in the shuffle.
The key to surviving turnover is having a strategy for knowledge transfer – making sure new board members, executives, or administrative staff have the info they need to keep up with your compliance. By working with outside help, you can secure that precious information in brains outside your organization.
3. You don’t have a minute book
Unlike taking your grade 11 math exam, “winging it” is not a viable option for managing a nonprofit or charity in Canada. If you do not have a minute book that holds all your corporate information (by-laws, constating documents, registers of directors and members, financial statements, etc) you’re already out of compliance. Working with outside experts can help you get organized so you don’t get fined or, worse, lose your status.
Likewise, if you do have a minute book but you’re not quite sure where it… you know… is, it is definitely time to ask for help.
4. You’re the person who does everything
If you find you’re the only person on the board or within the organization responsible for everything compliance related, it’s time to get outside help. And maybe some new board members?
Relying on one person’s abilities or willingness to keep on top of things is fine – until that person has an unexpected life change or emergency right at a filing deadline. If you are doing everything, give yourself the gift of hiring external help to share the load and back you up when you need it most.
What to expect if you work with an outside organization
If you are starting to see any of these signs at your organization, please, please, don’t be ashamed to ask for help. Compliance is complicated even for the experts.
When shopping for help, look for agencies marked by good communication, benevolent sector-specific expertise, and a willingness to answer any and all of your questions.
Once you find the right fit, you can expect some friendly reminders (unlike those scary CRA letters), help keeping on top of your calendar, books so organized they’ll make you cry, and best of all, a deep sigh of relief.
At Cadence Charity Services, we offer compliance expertise specifically for the Canadian benevolent sector. If you’re starting to see any of these signs at your organization, check out our services page or give us a call.
