Starting A Non-Profit Society in British Columbia: A Complete Guide

Just a heads-up, things in the non-profit world shift. The Societies Act got a refresh as of May 4, 2023. You can find the rundown on the changes here: [BC Government Societies Act Amendments]. This guide focuses specifically on Nonprofit BC-specific rules.

Step 1: Building Your Core Team – Officers and Directors

First things first, you need people to run the show. Think of it like this:

• Officers: They're the hands-on folks, handling day-to-day operations. If you get funding, they're the ones who might hire staff or contractors.
• Directors: They're the big-picture strategists. They set the direction and make sure everything's running smoothly.

Now, in smaller non-profits, these roles often overlap, and that's okay. Especially when you're just starting out and budgets are tight. You'll need at least three directors, unless you're a member-funded society, then one is enough.

Think about who you're bringing on board. You want people with different skills. Someone good with finances, someone who knows fundraising, maybe someone with marketing experience. Each director should bring something valuable.

You'll need their full names and addresses for the incorporation paperwork. And each director has to give their written okay to take on the role. It doesn't have to be fancy; a simple note saying, "I agree to act as a director for [society name]," signed and dated, will do. You don't have to name your officers when you incorporate.

Step 2: Picking and Reserving Your Society's Name

Your name is your first impression, so make it count. Here's how:

• Make it unique: Do a quick Google search to make sure no one else is using it. You don't want any confusion.
• Make it descriptive: Your name should give people an idea of what your society does. If you're a birdwatching group, include words like "birds" or "nature."
• End it right: Your name has to end with either "Society," "Association," or "Club." Those are the rules.
• Watch out for restricted words: Some words, especially those related to government, hospitals, or locations, might need extra approvals. To be safe, give the provincial registrar a call at 1-877-526-1526. They can tell you if you need any special permissions.

Once you've got a few names you like, you can reserve one online. It costs a small fee, so have your credit card ready. You can also do it by mail or in person at a Service BC center, but it'll take longer.

Step 3: Defining Your Society's Purpose

While you're waiting for your name to be approved, get clear on why your society exists. Write it down as a "focus statement." It's a quick summary of what you're all about.

For example:

• "To promote the interests of bird-watching seniors in the North Vancouver area."
• "To provide an amateur softball league for elementary school children in Saanich."
• "To encourage and foster responsible exotic pet ownership in the Lower Mainland of British Columbia."

If you need more than one sentence to explain it, that's fine. Just make sure it's clear and to the point.

Step 4: Crafting Your Society's Bylaws

Think of your bylaws as your society's rulebook. They cover everything from how members join to how meetings are run.

Here's what they should include:

• The rights and duties of members.
• How directors are elected (and if they get paid).
• How the society manages its money (can you borrow money?).
• How meetings are conducted.

The provincial registrar provides a model set of bylaws, which is a great starting point. But you'll probably want to tweak them to fit your society's specific needs.

Remember, you can always change your bylaws later, but it takes time, effort, and approval from your members. And there might be fees involved. So, it's best to get them right from the start.

Also, be sure to fully understand the difference between Member funded, and non member funded societies. This will impact the rules your society will need to follow. [BC Government Member Funded Societies]

Step 5: Filing for Incorporation Online

Once your name is reserved, you can start the incorporation process online. You'll need:

• A copy of your purpose statement.
• Your bylaws.
• The names and addresses of your directors.
• Information on if you are member funded, or non member funded.
• A credit card to pay the filing fee.

You'll get an email confirming your name reservation. Use that to start the online process. Once you're done, you'll get your incorporation documents by email or mail.

Step 6: Opening a Bank Account for Your Society

Now that you're officially incorporated, you'll need a bank account. Take your incorporation documents to a bank or credit union.

Before you go, have a discussion with your board about internal controls. Ask yourselves:

• Who will have access to the account?
• How many signatures are needed for transactions?
• Is there a dollar limit for single signatures?

Typically, only directors or officers can sign on the account, and they'll need two pieces of ID.

Charitable Tax Status: A Separate Process

Getting charitable tax status is different from incorporating. It allows you to issue tax receipts for donations.

The Canada Revenue Agency (CRA) has all the details: [CRA Charities and Giving]. You'll need to show that your society's purpose is charitable. Also, review resources from Canadian charity law experts, such as those found at charitylawgroup.ca.

Key Considerations for Long-Term Success

• Record-keeping: Keep accurate records of everything – meetings, finances, etc.
• Regular reviews: Your bylaws and purpose might need updates over time.
• Legal advice: Don't hesitate to seek legal advice if you're unsure about anything.
• Insurance: Consider liability insurance to protect your directors and society.
• Volunteer management: If you use volunteers, have clear policies for recruitment and training.
• Communication: Keep your members and stakeholders informed.

Setting up a non-profit takes time and effort, but it's a rewarding experience. Just follow these steps, and you'll be well on your way.

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Do you need help setting up your Society in British Columbia? Schedule a free 15 minute free consultation with our team here, or contact us at ask@charitylawgroup.ca or call 416-488-5888

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