What's the Difference between a Charity and a Not-for-Profit?
Registered charities are charitable organizations, public or private foundations that are registered in Canada. All charities in Canada have to have a charitable purpose that falls into one or more of the following categories:
- The advancement of education
- The relief of poverty
- The advancement of religion
- Other purposes that benefit the community
Registered charities can issue tax receipts, which helps them fundraise, as they are able to induce private individuals to donate for the benefit of receiving a tax credit. Registered charities are also tax exempt, and in almost all cases do not have to pay income tax on revenue.
Not-for-Profit organizations are associations, clubs or societies that are not charities but rather are organized and operated exclusively for:
- Social welfare
- Civic improvement
- Pleasure
- Sports Clubs
- Sports leagues
- Professional Associations
- Recreation, or
- Any other purpose except profit
If you think Charity Registration is right for your organization, please visit our website: charitylawgroup.ca for more information on how to go about registering as a Canadian Charity.
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