Non-profits and charities can be unincorporated associations, trusts or corporations. Many factors will determine which is the most appropriate form.
It is important that non-profits and charities consider incorporation. It provides limited liability for the members and directors and a structured framework for corporate governance and holding property. We assist non-profits and charities with the incorporation and organization of the corporation. This involves many issues although probably the most important one is membership and control of the entity.
Obtaining Registered Charity Status with CRA
While some non-profits are not charities and do not have registered charitable status almost half of the non-profits have charitable status. For many charities having registered charity status is vital to their survival as they receive a majority of their funding from donations from individuals or from others who require that the recipient be a registered charity. Some think that applying for registered charity status is simple as filling in a form. It is therefore not surprising that in Canada, over half of charity applications are unsuccessful. While some charity applications may be relatively straightforward most are not. It can take in some cases up to a year to have a charity application approved and it vital that the application is carefully presented so that you avoid disappointment at the end of the process.