Family Business Association (FBA)
Newsletter Spring 2020
In this issue:
- Be Engaged & Stay Engaged
- Upcoming Events
- Program Survey Results
- Photo Gallery
- Member Referral Program
- Tax Season Tips
- Mentorship Program
- BC Employer Training Grant
- FBA Sponsors & Media Partners
- 2020/21 Platinum Sponsor Announced
- Member News
- Meet Some of our Members
- Thinking of Joining?
- Become a Member
- Join a Family Business Advisory (FBA) Team
- FBA Board of Directors
- FBA Mission & Vision
- Join us on LinkedIn & Facebook
FBA Member Information Package
FBA Non-Solicitation Policy
Member Referral Program
Mentor Application Form
Mentee Application Form
FBA Proud Member Logo
All events are catered - enjoy the food, company & topic!
- NEXT WEEK Hyper Sales Growth, Jack Daly - March 3, 2020
- Competitive Disruption, Your Next Level of Success, Sean Bacon - April 16, 2020
- Family Business Labour Markets, panel discussion - May 14, 2020
Program Survey Results
Suzanne Bradbury, Fort Properties, won the draw for a reduction in next season's membership fee.
Awards Photo Gallery
2020 Family Business Excellence Award Finalist
49th Parallel Grocery, Peter & Leslie Richmond
2020 Family Business Excellence Award Recipient
Nimmo Bay Wilderness Resort, Craig Murray, Founder
2020 Young Entrepreneur Award - Erin Boggs
L to R: Gayle Robinson & Erin Boggs, Robinson's Outdoor Store
Member Referral Program
Join us in helping FBA reach a membership of 100!
Refer a non-member to FBA, and if they become a member for a full season, you’ll receive a 50% discount on next season’s membership fee. If you prefer, you have the option of offering the discount to a prospective member as an incentive to join.
We know from experience that our members are powerful in giving a voice to membership benefits. Your involvement in FBA, the ways in which you have grown from your experiences and become part of our unique community, are so important in bringing FBA alive.
If you know of a family or advisor business who might benefit from FBA membership, ask them if they would like to learn more about FBA through an informal chat with our Executive Director. An email introduction will result in a coffee date with the prospective member who can then decide if membership is a fit.
Download the Member Referral Program at the bottom of this newsletter.
Tax Season Tips
Did you know…
You probably know that the infamous tax on split income (TOSI, for short) came into effect at the start of 2018. The TOSI tax penalizes a business owner who has their corporation sprinkle dividends on shares held by other adult family members (a form of income splitting).
If the other adult family members are “actively engaged” in the business, however, the TOSI tax is not triggered.
So, what does “actively engaged” mean?
Actively engaged means working an average of at least 20 hours per week in the calendar year in question. So if a family member holds shares and works in that business an average of 20 hours per week in 2019, such an actively engaged shareholder can receive unlimited dividends from the corporation without any TOSI tax.
Furthermore, if a family member has been actively engaged (meets the 20-hour per week test) in a corporation for any 5 previous calendar years (those years need not be consecutive), the TOSI rules will never apply to any dividends received by that family member from that corporation (even if the family member never works another day).
What if the business doesn’t require anyone to work 20 hours per week?
Assume, for example, that Mary incorporated Lawnco. Lawnco requires only 10 hours of work per week. Mary and her husband Bob both own shares in Lawnco. Mary works 5 hours and Bob works 5 hours. The CRA has confirmed that if a business requires fewer than 20 hours of labour per week, the actively engaged rule is still available. In this example, Mary and Bob each work 5 hours per week and the business requires only 10 hours of work in total from anyone – so TOSI would not apply to dividends paid to Mary or Bob on their shares in Lawnco.
As is the case with almost everything tax-related, it all depends on the exact facts -- so be sure to consult with your professional advisors on the application of TOSI in your family business situation.
Become a Mentor or Mentee
What is mentoring?
Mentoring is a special and confidential relationship in which an experienced person (the mentor) acts as a role model to listen, advise, guide, coach, teach, facilitate in a safe environment. The mentor assists another (the mentee) in developing specific skills and knowledge to help meet specific goals. There are no age requirements to be a mentor or mentee.
The goal of the FBA Mentorship Program is to provide a way for members to learn from each other, enhance learning and skills to better prepare themselves in the
family business environment.
The downloadable forms to become a mentor or mentee are at the end of this flier.
BC Employer Training Grant
Check out the answers to the most common questions on the right side of the screen.
- Remember that the program has some flexibility - so don’t get turned off by a rule without learning more about it by phoning.
- Family members are eligible.
- Funding is granted four times a year for up to $250,000 per year.
- A new line of grant allows for “in house training” as the government recognizes that often the best trainers are within the organization.
Doug Wittich, Wittich Environmental, FBA Member and Board Member, takes advantage of this terrific opportunity.
“Our company initiated a mandate that ALL staff will at one time or another, throughout the year, enter training in order to increase their knowledge within what they are currently doing, and or seek education to help move them into a new position within the company. The greatest concern by employers is how to retain employees in this very unique marketplace. Knowledge is power! Knowledge is confidence! Knowledge is security! Make someone feel special today and truly show everyone (not just upper management) that you want them to become a better person. “
Remember, training does not just need to be a direct relation to their job, but can and does extend into their mental wellness. HR programs, social refinements, etc. Often employees move on when they feel inadequate, struggle to fit in or find purpose. You now have support to help your employees grow. Our company is able to provide about 25,000 dollars in training each year for a cost to us of around 10,000. The value of training far exceeds health benefits and other carrot type offers you have in place."
Sponsors Attending the Awards Gala
2020/21 Platinum Sponsor Announced
L to R: Dean Innes, Platinum Sponsor & Trevor McCall, FBA President
Advisor Member Westland Insurance Brad Quissy
Advisor Member Scotia Wealth Management Matthias Raps
Advisor Member Dickson CPAs Kim Clews
Family Member, Erin Boggs, Robinson's Outdoor Store, is an Emerging Business Person finalist for the 2020 Greater Victoria Chamber Business Awards on May 12, 2020 - good luck Erin!
Thinking of Joining?
FBA helps you navigate the unique dynamics of owning a family business.
FBA has been providing a community of support to family businesses on Vancouver Island since 1999. We help families in business succeed through shared experience, education and resources. FBAVI is where Vancouver Island business families go to connect, grow and learn for sustainable success across generations.
- Networking and discussions with like-minded professionals
- Smaller group Advisory Teams for peer support
- Mentorship Program
- Sharing experiences & best practices
- Educational workshops and seminars
Founders and successors of family businesses, spouses, and children (active or not) and key staff members and advisors.
How Can I Join?
Visit our website, call or email us to schedule an introductory meeting.
Join a Family Business Advisory (FBA) Team
All members have the opportunity to become part of a team. The teams serve as your own mini board of directors where business leaders and advisors come together to support and help each other through challenges and opportunities. Team members leverage the perspectives of other family businesses, industries and generations of family business leaders.
All members are encouraged to join an FBA Team. Teams offer a unique opportunity to learn from each other, share ideas, and have the security of confidential discussions in a trusting and inviting environment. Members within a team are never from the same industry or profession and must be approved by existing team members before acceptance.
Examples of possible topics of discussion include: succession planning, challenges of working with other family members, staffing and human resources, managing the business and growth opportunities.
The experiences from those who have been there on topics like working with the family, managing the business and succession are among the areas discussed.
Call 250-532-2402 or email firstname.lastname@example.org for more information.
Family Business Association (FBA) Vancouver Island
To promote the sustainability and growth of Vancouver Island business families by providing education and support through community and shared experience.
We are an engaged and supportive community of vibrant Vancouver Island business families and advisors who connect, share ideas and learn from each others’ unique experiences.