ODSP and Arts Council Grants ODSP Action Coalition April 20, 2017
ODSP Action Coalition 15 years – founded in 2002 • Advocate for changes to ODSP law and policies • Shared leadership model: • o People on ODSP o Others who work in the field - e.g., legal clinics, agencies, disability organizations and advocacy groups Partners on this project – to give artists on ODSP • information about how art can be supported without jeopardising ODSP benefits: o Workman Arts o Tangled Arts+ Disability o Other arts organizations
The kinds of things we do
Deaf and Disabled Artists: A “priority group” Deaf and Disability arts: “Diverse artistic practices, • where artists explore complexities, perspectives, embodiments, histories and lived experiences of disability or Deaf culture, respectively” Canada Council for the Arts, Ontario Arts Council • and Toronto Arts Council – all have special “accessibility” grants for Deaf and disabled artists Councils also encourage applying for other • grants Application: Artists must say how they will use the • money, include a budget, and submit a final report on how the money was spent
Some types of arts grants Application Accessibility Support Funding • Materials for Visual Artists • Project Grants • • Creation (research) • Production • Professional Development Supporting Accessibility Costs for Successful Applications • Budgets may include: • Expenses for producing the artwork • “Living expenses” • Grants are not based on financial need •
“ We see a time and place where people who have experienced marginalization feel fully supported in their struggle for a creative life and career, including access to adequate housing, studio space and economic security. We believe that the expression and practice of art and active participation in culture-building is a human right, and that art and culture are critical elements of a healthy society .” Gallery Gachet
Income and ODSP • ODSP is a social assistance program Considered a “last resort” • • General rule about income: Deducted 100% -- e.g. CPP • • But, some types of income are fully or partially “exempt” i.e. you can keep some or all • • Wages from a job or net income from self- employment (after expenses): Partly exempt •
Arts Council Grants and ODSP No exemption for grants to artists • Note: there is one for some types of sports grants • Guided by law and policy, ODSP workers decide • whether any grant will be: Allowed with no deductions • Allowed with partial deductions • Not allowed – i.e., 100% subtracted from ODSP • Several possible ways arts grants may be treated : • Voluntary payment or gift • Disability-related expenses • Employment or self-employment income • Non-exempt income •
ODSP Policy Directive 5.1 Definition and Treatment of Income Canada Council for the Arts Grants and Ontario Arts Council Grants These grants are not specifically exempt under ODSP. This means these grants will be considered income. The amount that will be deducted from ODSP depends on whether the grant is considered business income, employment/training income or other income. The details of the specific grant should be reviewed to determine the nature of the grant, how it is paid and the circumstances under which the grant is provided. For example, some grants are considered business income for grant recipients that are self- employed. Other grants are considered employment/training income. Still other grants are considered neither business nor employment/training income. The grant should be treated according to ODSP rules for the income.
Voluntary payment ODSP law: Gifts or voluntary payments of up to $6,000 in any 12- • month period are exempt i.e., you can keep that much • Grants less than $6,000 should be considered gifts • Not wages or payments for a contract • Voluntary payments from arts council to encourage artists with • disabilities to pursue their art Best possibility for small arts council grants • Once accepted as “exempt” – no further reporting of expenses, • etc., as long as total amount of gifts does not exceed $6,000 in 12 months BUT an ODSP recipient is only allowed $5,000 in total liquid assets • or savings at any time So, if you get $6,000, need to spend first $1,000 in the first month • Payment is income in month received, and an asset thereafter •
Disability-related expenses ODSP law: Income specifically for a disability-related • expense is exempt I.e., you can keep the whole amount • ODSP worker must agree that money is truly is for a disability- • related expense. Some Arts council grants are for accessibility • I.e., to help an artist with a disability apply for a grant or • carry out their project ODSP should accept these grants as exempt • BUT arts council letter must clearly spell out that money is for • disability-related expenses
Self-employment ODSP law: Net income from self-employment – i.e., after • approved expenses are deducted – is partly exempt First $200 per month net income fully exempt – i.e., you keep • the full amount 50 % of remainder is subtracted from monthly ODSP • Most grants over $6,000 received by any individual artist • should be treated as self-employment income Budgets typically include project expenses – some are • disability-related – and fees for the artist’s own use Note: $100 Work-Related Benefit is added for each • month of net earnings from a job or self-employment
Self-employment Usually net income is reviewed and calculated once per year, then • averaged over the year Different from other income which must be reported monthly – • person’s monthly ODSP cheque changes each month if income changes Self-employed person must keep careful records of all income from • any source related to business or art, and all expenses ODSP caseworker reviews paperwork to decide which expenses are • approved, then calculates any deductions NOTE: Expenses approved by Revenue Canada are NOT necessarily • accepted by ODSP – they are two different laws Because process is done annually, overpayments often result, and • are deducted from monthly ODSP cheques over the next year To avoid overpayments, recipients and workers are supposed to • estimate income when self-employment starts
Temporary withdrawal from ODSP • Artists on ODSP who get very large grants and/or get grants but also have other income should consider temporarily withdrawing from ODSP • May still be able to get health benefits • May be eligible for “rapid reinstatement” after their income drops back down • Seek legal advice before withdrawing to understand all the implications
Project grants to collectives Arts councils can give grants to two or more artists • working as a collective Must have separate bank account and keep careful • records, including documentation from Arts Council that grant is going to the collective, not to an individual Collective pays project expenses to the individual artists • If ODSP recipient gets money from the collective as an • artists’ fee, only that amount would be income for ODSP purposes – not the whole grant The fee could be treated by ODSP in any of the ways we • are discussing today, depending on its purpose
Examples of how different arts grants could be treated by ODSP Scenario 1: Voluntary Payment • Artist on ODSP gets $5,000 Toronto Arts Council grant to create a series of paintings • Entire amount could be considered to be a “voluntary payment” • If ODSP agrees, whole amount is exempt – i.e., you can keep it all • Artist must still declare the grant to ODSP
Scenario 2: Disability-related expenses Artist on ODSP gets Ontario Arts Council Accessibility • Fund grant for $4,500 to pay for ASL interpretation during rehearsals for new stage play Since money is for disability-related expenses, grant • should be entirely exempt from income In many cases, grant may be considered a combination • of “Voluntary Payment” and “Disability -Related Expenses” If the part that is NOT for disability-related expenses is less • than $6,000, it could be considered a voluntary payment If all the rest is for accessibility, it is also exempt •
Scenario 3: Self-employment Artist on ODSP gets $10,000 grants in one year. • Budget approved by Arts Council includes $4,000 for expenses. Artist • has expense receipts for $4,000 and these expenses are all accepted by the ODSP worker $10,000 - $4,000 = $6,000 in net income left for the year, or $500 per • month average income First $200 in monthly net income is exempt. $500 - $200 leaves $300. • This amount is partially exempt – 50% of $300, or $150, is subtracted from monthly ODSP entitlement $100 Work-Related Benefit is added to monthly entitlement • When all calculations are done, artist can keep or use almost all of • the grant — but loses $50 per month, or $600 of the total grant amount for the year There may be a $600 ODSP overpayment, which likely will be • deducted at 5% of the monthly ODSP amount until recovered
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