Start a Charity in Victoria, BC: What You Need to Know

Establishing a charity in Victoria, the picturesque capital of British Columbia, is a fulfilling endeavour that allows you to give back to your community and make a lasting impact. Whether your goal is to address homelessness, promote environmental sustainability, or advance education, the process of setting up a charity involves several critical steps. Here is a comprehensive guide to help you navigate the charity registration process in Victoria, BC, with clarity and ease.

‍

1. Understand What a Charity Is

Before diving into the registration process, it is important to understand what defines a charity in Canada. According to the Canada Revenue Agency (CRA), a charity must fall under one of the following categories:

• Relief of poverty
• Advancement of education
• Advancement of religion
• Other purposes beneficial to the community (e.g., promoting health, protecting the environment, or providing support to vulnerable groups)

A charity’s activities must exclusively focus on these charitable purposes, and it cannot operate for private gain.

‍

2. Develop a Clear Purpose and Mission

Your charity’s purpose and mission are the foundation of your organization. Clearly outline what you aim to achieve and how you plan to do it. This step will help you draft your governing documents and satisfy CRA’s requirements for charity registration.

Example: If your charity focuses on addressing homelessness in Victoria, your mission might be: “To provide shelter, meals, and employment training to individuals experiencing homelessness, with the goal of fostering long-term stability.”

‍

3. Choose a Suitable Legal Structure

Charities in Canada are typically organized as:

• Nonprofit Corporations: This is the most common structure for charities. Incorporation provides legal protections, makes it easier to secure funding, and lends credibility to your organization.
• Trusts or Unincorporated Associations: These are less common and may lack the legal protections and funding opportunities associated with incorporation.

‍

Options for Incorporation:

• Provincial Incorporation: Incorporate under British Columbia’s Societies Act by filing with BC Registry Services. This option is suitable if you plan to operate primarily within BC.
• Federal Incorporation: Incorporate under the Canada Not-for-profit Corporations Act (NFP Act) through Corporations Canada Online Filing Centre. This option is ideal if your charity intends to operate across multiple provinces or territories.

‍

Federal incorporation offers advantages such as nationwide recognition and a streamlined process for operating in multiple jurisdictions. However, it requires filing annual returns with Corporations Canada in addition to CRA compliance.

‍

4. Draft Governing Documents

Your governing documents, such as bylaws and a constitution, must align with the Societies Act and CRA’s charity registration requirements. These documents should include:

• The charity’s name and purpose
• Membership rules
• Procedures for meetings and decision-making
• Financial management policies

Ensure that these documents explicitly prohibit any profit distribution to members or directors.

‍

5. Apply for Incorporation

To incorporate your charity:

• Reserve a Name: Use the BC Name Request System (for provincial incorporation) or NUANS name search (for federal incorporation) to ensure your charity’s name is unique and meets naming requirements.
• File Incorporation Documents: Submit your governing documents and incorporation application to BC Registry Services (for provincial incorporation) or Corporations Canada (for federal incorporation).
• Pay Fees: The incorporation fee in BC is $100, while federal incorporation fees are $200.

Once incorporated, you will receive a Certificate of Incorporation.

‍

6. Complete Extra-Provincial Registration (if applicable)

If your charity plans to operate in other provinces or territories outside of British Columbia, you must complete an extra-provincial registration. This process involves:

• Researching Requirements: Each province or territory has its own registration rules and fees.
• Filing with the Respective Jurisdiction: Submit your incorporation documents, Certificate of Incorporation, and any additional forms required by the jurisdiction where you wish to operate.
• Maintaining Compliance: Ensure you adhere to ongoing reporting requirements in each jurisdiction.

Extra-provincial registration ensures your charity complies with legal obligations when expanding beyond BC’s borders.

‍

7. Register as a Charity with CRA

After incorporation, you must apply to the CRA for charitable status. This step allows your organization to issue tax receipts to donors and access other benefits, such as tax exemptions.

‍

Steps to Register:

• Complete the Application to Register a Charity: This is the application to register a charity under the Income Tax Act.
• Provide Supporting Documents: Include your governing documents, financial statements, and a detailed description of your planned activities.
• Submit the Application: Mail your application to the CRA’s Charities Directorate.

The CRA may take several months to process your application and may request additional information or clarification.

‍

8. Set Up Operations and Compliance

Once registered, focus on establishing operational procedures to ensure compliance with CRA regulations. Key areas to address include:

• Financial Management: Set up a separate bank account and maintain accurate financial records.
• Annual Filings: File an annual T3010 form to report your charity’s activities and finances to the CRA.
• Governance: Hold regular board meetings and maintain minutes to demonstrate proper oversight.

Public Benefit: Ensure your activities align with your stated charitable purposes and benefit the public.

‍

9. Engage Your Community

To build support for your charity, actively engage with the local community. Consider the following:

• Host Events: Organize fundraisers or awareness campaigns to connect with potential donors and volunteers.
• Collaborate: Partner with other local organizations to amplify your impact.
• Utilize Social Media: Share your mission, stories, and updates to attract supporters.
• ‍

Setting up a charity in Victoria, BC, requires dedication and attention to detail, but the rewards of making a difference in your community are immeasurable. By following these steps, you can establish a strong foundation for your organization and navigate the registration process with confidence. With your passion and commitment, your charity can create a lasting impact in British Columbia’s capital and beyond.

Need assistance with incorporating your nonprofit or society and registering your charity? Schedule a free call with our team to learn how we can assist, or call us at 416-488-5888.

‍