How to Register a Charity in Canada

Starting a charity in Canada can feel like a big task, but with the right steps and experienced legal guidance, you can set up your organization to make a real difference. Whether you're in Toronto, Vancouver, Calgary, or anywhere else in Canada, this guide will help you understand the process clearly and easily.

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What Makes an Organization a Charity in Canada?

Before diving into registration, it’s important to know what qualifies as a charity. According to the Income Tax Act, charities in Canada must meet these key criteria:

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1. Charitable Purpose: Your organization’s mission must fall under one of these categories:

• Helping people in poverty

• Advancing education

• Supporting religion (i.e., registering a mosque, church, or temple as a charity)

• Other purposes that benefit the community include protecting the environment or promoting health.

2. Public Benefit: The work your charity does must benefit the public or a specific group of people.
3. Non-Profit Structure: Your organization cannot exist to make a profit. Any extra funds should go back into supporting your mission.

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Step 1: Incorporate Your Organization

Many charities start by incorporating as a nonprofit organization under federal or provincial laws. This step gives your organization a formal structure and makes applying for charitable status much smoother.

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How to Incorporate:

• Federal Incorporation: Register under the Canada Not-for-Profit Corporations Act through Corporations Canada. This is a great option if you plan to work in multiple provinces.

• Provincial Incorporation: Register under your province’s nonprofit laws, like the Ontario Not-for-Profit Corporations Act or the Societies Act in British Columbia.

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Documents You’ll Need:

• Articles of incorporation

• Your organization’s bylaws

• A list of directors, including their names and addresses

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Step 2: Clearly Define Your Charitable Purpose

Your charitable purpose is the heart of your application. It should fit into one of the categories the Canada Revenue Agency (CRA) recognizes and be written clearly.

Example:

If your charity focuses on education, you might describe your purpose like this:

"To provide free online tutoring for underprivileged high school students in rural areas across Canada."

Keep it simple, specific, and easy for others to understand.

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Step 3: Create Your Governing Documents

Governing documents outline how your charity will operate and show the CRA that you’re organized. These documents should include:

1. Your Charity’s Mission: Clearly state your goals.
2. Rules for Operations: Include details about board member responsibilities and how you’ll handle conflicts of interest.
3. What Happens if You Close: Include a dissolution clause explaining that all assets will go to another registered charity if your organization shuts down.

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Step 4: Fill Out the CRA Application

When you’re ready, submit your Application to Register a Charity under the Income Tax Act to the CRA, via the CRA's MyBusiness or Represent a Client portals.

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Here’s what to include:

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• Detailed Description of Activities: Provide examples of your programs or initiatives.

• Financial Plan: Share your budget, where your funding will come from, and how you’ll use it.

• List of Directors: Include their names, addresses, roles, dates of birth, occupations, and employer name (homemaker and retired are acceptable as well).

• Supporting Documents: Attach your incorporation certificate, governing documents, and proof of your charitable purpose.

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Step 5: Answer CRA Questions

Once you submit your application, the CRA might have follow-up questions or ask for more information. Be ready to respond quickly and thoroughly to keep things moving.

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Step 6: Get Your Charitable Status

When your application is approved, you’ll receive a Charity Registration Number. This number allows you to:

• Issue tax receipts for donations

• Be exempt from certain taxes

• Access grants and other funding opportunities

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Common Challenges and How to Handle Them

• Unclear Purpose:
  Make sure your purpose is detailed and matches one of the CRA’s recognized categories.

• Missing Documents:
  Double-check that everything is included before you submit your application.

• Delays in Communication:
  Respond to CRA requests quickly and keep records of all your communications.

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Why Is It Worth Registering as a Charity?

Becoming a registered charity has many benefits:

• More Trust: Donors and partners will see your organization as credible.
• Tax Perks: You can issue tax receipts, making it easier to attract donors.
• Access to Grants: Many funding programs are only open to registered charities.

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Final Thoughts

Starting a charity takes time and effort, but it’s worth it. By following these steps, you can create an organization that positively impacts your community and inspires others to join your cause. Take it one step at a time, and don’t hesitate to seek help when needed. With determination and a clear plan, you can make your vision a reality.

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If you're looking to start a charity anywhere in Canada, our experienced team of lawyers and law clerks can assist with registering your charity quickly, efficiently and affordably.  

Call us today at 416-488-5888 or email ask@charitylawgroup.ca and join our thousands of satisfied clients who we've helped with successful nonprofit incorporation and charity registration.