Registering a Charity in Halifax, Nova Scotia

Starting a charity in Halifax is an exciting and impactful way to give back to the community. But before you dive into your charity's mission, you need to follow several legal steps to ensure everything is set up correctly. Whether you're a first-time founder or looking to formalize an existing organization, this guide will walk you through everything you need to know to register your charity in Halifax, Nova Scotia.

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1. What Is a Charity?

First things first—what qualifies as a charity in Canada?

A charity is an organization that operates for a public benefit and focuses on one of the following purposes:

• Advancing education
• Relieving poverty
• Promoting religion (such as registering a church, mosque, or temple)
• Supporting other recognized charitable purposes (such as advancing health, environmental preservation, and the like)

To qualify as a charity in Halifax, your organization must meet these criteria and be non-profit (meaning it cannot distribute profits to members or directors).

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2. Choosing Your Charity’s Name

The name of your charity is crucial as it represents your mission and connects you with the community. Before finalizing your name, you need to ensure that it is:

• Unique: It must not be identical or too similar to an already registered charity.
• Clear: It should reflect your charity’s purpose and avoid any misleading implications.

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Use the Government of Canada’s name search tool to check if your desired name is available. If you plan to incorporate, you’ll also need to register the name with the Nova Scotia Registry of Joint Stock Companies or with Corporations Canada Online Filing Centre.

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3. Set Up Your Charity’s Structure

In Nova Scotia, charities typically operate as non-profit organizations. There are two main ways to incorporate your charity:

• Provincial Incorporation: If your charity will primarily operate within Nova Scotia, you can choose to incorporate under the Nova Scotia Companies Act. This is known as provincial incorporation and allows your organization to register in Nova Scotia.
• Federal Incorporation: If your charity plans to operate across Canada or in multiple provinces, it’s beneficial to incorporate federally under the Canada Not-for-profit Corporations Act (CNCA). This allows for more flexibility and recognition across all provinces.

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Both provincial and federal incorporation come with their own set of rules and procedures, but federal incorporation provides nationwide recognition, which is helpful if your charity plans to expand.

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If you plan to operate in multiple provinces, you will also need to meet extra-provincial registration requirements. This means registering your charity in each province where it will be operating, such as Ontario, British Columbia, or others.

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4. Prepare Your Governing Documents

Regardless of whether you incorporate provincially or federally, you’ll need to draft your governing documents. These include:

• Articles of Incorporation: This is a formal document that outlines your charity's name, charitable purposes, and operational structure. If you are incorporating federally, this document is submitted to the Corporations Canada office.
• Bylaws: These rules guide how your charity will run day-to-day. They cover matters such as the selection of board members, meetings, and voting procedures.

Make sure your governing documents comply with the requirements set by Canadian law. A charity lawyer can help ensure your documents are properly drafted.

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5. Apply for Charitable Status with the Canada Revenue Agency (CRA)

Once your governing documents are in place and your charity structure is set, it’s time to apply for charitable status through the Canada Revenue Agency (CRA). This status allows your charity to issue official tax receipts for donations, which is a key part of attracting support.

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Here’s what you’ll need for the CRA application:

• A completed Application to Register a Charity under the Income Tax Act
• A copy of your articles of incorporation and bylaws
• A detailed description of your charitable purposes and activities (explaining how your charity will serve the public)
• Financial statements and a budget for how your charity will manage funds

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The CRA will review your application and may request more details if needed. This process can take several months, so be prepared for a wait.

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6. Wait for Approval from the CRA

Once your application is submitted, the CRA will review it to determine if your charity meets all the legal requirements for charitable status. The review process may take a few months, and the CRA may ask for additional information during this time.

If your charity is approved, you’ll receive a charitable registration number, officially making your organization a registered charity. With this number, you can begin issuing tax receipts for donations, a key part of fundraising efforts.

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7. Ongoing Compliance and Reporting

Registering your charity is just the beginning. Once you are a registered charity, you must stay compliant with various ongoing requirements:

• Annual Information Return: Each year, you must file a T3010 form, which provides details about your charity’s activities, finances, and governance.
• Accurate Record-Keeping: Maintain proper financial records and documentation of your charity’s activities.
• Transparency: Your charity must remain transparent with donors about how their contributions are being used.

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8. Fundraising and Engaging Donors

As a registered charity, you can fundraise and issue tax receipts. To build credibility and attract donations, here are some strategies to keep in mind:

• Develop a Fundraising Plan: Set clear fundraising goals and strategies for achieving them.
• Engage with the Community: Build relationships through events, social media, and partnerships with local businesses.
• Communicate Regularly with Donors: Let your donors know how their contributions are helping further your charitable work.

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Conclusion

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Registering a charity in Halifax is a detailed process, but it’s a necessary step to ensure that your organization operates legally and ethically. Whether you incorporate provincially or federally, it’s crucial to follow the proper steps, including filing for charitable status with the CRA and complying with ongoing reporting requirements.

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If you plan to operate in other provinces, don’t forget about the extra-provincial registration requirements to ensure your charity is recognized across Canada. By following these steps, you can set up a charity that has the legal foundation to make a real difference in your community and beyond. Want your charity application expedited? Contact our team of experienced charity lawyers for a free consultation to discuss how we can help with a streamlined and fast charity application at 416-488-5888.

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