Through its charitable activities, the UNF Foundation wished to unite Ukrainian Canadians, on a non-partisan and non-sectarian basis, in accordance with the values of democracy, good Canadian citizenship, respect for the dignity of the individual, the practice of our cultural traditions, respect for the principles of Christianity, freedom for all peoples, including the people of Ukraine and to promote the spirit of unity among Canadian Ukrainians and an awareness of community interests.
The UNF Foundation supports the Ukrainian National Federation of Canada and its Branches who, on behalf of the Foundation coordinate cultural, educational and charitable activities of the Foundation by:
The Foundation was incorporated by letters patent under the Canada Corporations Act on September 27, 1978 and was granted charitable status effective on the same day designated as a public foundation under the Income Tax Act. As a Public Foundation it is required to give more than 50% of its income as gifts to other charities. Currently, the Foundation gives money to the U.N.F. Education & Recreation Society, as well as to some other Canadian charities, in order to maintain its designation as a public foundation.
A Public Foundation is established as a corporation or a trust and has exclusively charitable purposes. The UNF foundation is a Public Foundation. Generally, a Foundation gives more than 50% of its income annually to other qualified donees, which under CRA rules means registered charities. A Foundation can carry out some of its own activities and generally receives its funding from a variety of arm’s length donors. More than 50% of its governing officials must be at arm’s length of each other, and Foundation income cannot be used for the personal benefit of its members, shareholders or governing officials.
One of the key concerns for the UNF is whether the Affiliated Organizations of the UNF and the UNF, Branches are considered internal divisions of the UNF or separately incorporated entities.
The Ukrainian War Veterans and the Ukrainian Women’s Organization were instrumental in creating the UNF of Canada in 193 and subsequently the Ukrainian National Youth Federation.
Subsequent amendments to UNF’s 1950 Special Act in 1963 gave the UNF the ability to incorporate its branches, boards, committees or other bodies established by resolution of its board of directors and filing of such resolution with the Secretary of State for Canada and cause the publication of a notice in the Canada Gazette.
At the time of incorporation, there were 39 corporations listed. Of the 39 corporations listed, 34 of them were branches of the UNF except for the following 5:
Today there are 13 UNF Branches remaining.
The UNF of Canada has, since the inception of the UNF Foundation and the UNF Education and Recreational Society utilized each organization to process funds for purposes of issuing income tax receipts. There have been issues in the past with the process of not only receiving the funds, but also with the appropriateness of the use of the funds and gifts received.
The current process and relationship between the 3 entities is that the National Executive of the UNF of Canada nominates the Directors of the Foundation and the Society. Directors must be strong supporters of the UNF or be members the UNF and its Affiliated Organizations.
The purpose of the Foundation and the Society is to issue donation receipts for donations from the public and other charities. The Foundation collects donations and issues charitable receipts to donors, and then itself makes donations to the Society which funds various projects conducted by the UNF and its branches. The Foundation also makes gifts to other charities.
The Income Tax Act permits a registered charity to carry out its charitable purposes in two ways, namely by monies spent directly on the charity’s own charitable activities, or gifts made by the charity to qualified donees.
In the context of the UNF organization and the Foundation, it is not appropriate for the Foundation to issue receipts for donations paid to the UNF and its branches, unless the donations were clearly intended by the donors to benefit the Foundation and that the UNF and its branches are only acting as an agent for the Foundation in collecting the donations. It is noted that this was the true intention of the donors, but past practise was not appropriate.
Current practise is that all donors are making their donations directly to the Foundation, e.g. writing donation cheques payable to the Foundation (not the UNF or its branches), and the UNF and the branches on receipt of cash donations pass these donations on to the Foundation for deposit.
The UNF Foundation supports the Ukrainian National Federation of Canada and its Branches who,on behalf of the Foundation coordinate cultural, educational and charitable activities of the Foundation.
Registration # 891335382 RR00001
Copyright © The UNF Foundation. All Rights Reserved
