Your Saskatoon Charity: A Guide to Getting Started

Starting a charity in Saskatoon is an inspiring and impactful endeavor. It allows you to address pressing social issues, build community initiatives, and make a lasting difference. However, it also involves navigating several legal and administrative steps to ensure your charity operates smoothly and complies with Canadian laws. This guide walks you through the process, from incorporation to obtaining charity registration.

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Understand the Basics of Starting a Charity

Before you begin, it’s crucial to understand what a charity is and the obligations it entails. In Canada, a charity must operate exclusively for charitable purposes, such as relieving poverty, advancing education, or promoting health. These purposes must provide a public benefit.

If your goal is to start a nonprofit organization that doesn't seek charitable status, you can follow a slightly different process focused on incorporation without registering as a charity with the Canada Revenue Agency (CRA).

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1. Incorporate Your Charity: Federal or Provincial Options

Incorporating your charity gives it legal status, allowing it to own property, enter contracts, and limit the liability of its members. You can choose to incorporate federally or provincially in Saskatchewan.

While incorporating a charity provides legal and financial protections, it’s not required to start one. You can operate an unincorporated charity, but this approach may limit your ability to access funding, protect your personal assets, and issue tax receipts. Incorporation provides these benefits and is recommended for most charity founders.

Federal Incorporation

• Who Should Choose This? Federal incorporation is ideal if your charity plans to operate across multiple provinces or if you want national recognition.
  
  
• Steps to Incorporate Federally:
  1. Choose a unique name and conduct a name search using NUANS.
  2. Prepare your incorporation documents, including articles of incorporation.
  3. File your application with Corporations Canada.
  4. Once approved, you will receive a certificate of incorporation.

Provincial Incorporation in Saskatchewan

• Who Should Choose This? Provincial incorporation is suitable if your charity will primarily operate within Saskatchewan.
  
  
• Steps to Incorporate Provincially:
  1. Reserve your charity’s name with the Saskatchewan Corporate Registry.
  2. Prepare and submit incorporation documents, including your bylaws and objectives.
  3. Pay the applicable fees and file your application.
  4. Receive your certificate of incorporation once the application is approved.

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2. Apply for Extra-Provincial Registration

If your charity is incorporated federally or in another province but plans to operate in Saskatchewan, you must register it extra-provincially.

Steps for Extra-Provincial Registration:

1. Obtain your certificate of incorporation from the originating jurisdiction.
2. Submit an application for extra-provincial registration with the Saskatchewan Corporate Registry.
3. Provide supporting documents, including a copy of your bylaws and articles.
4. Pay the registration fee and wait for approval.

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3. Draft Your Governing Documents

Your governing documents, such as bylaws and articles of incorporation, are the foundation of your charity’s operations. These documents should outline:

• The charity’s mission and objectives.
• Membership rules and voting procedures.
• The roles and responsibilities of directors and officers.

Ensure your objectives align with the four categories of charity recognized by the CRA: relief of poverty, advancement of education, advancement of religion, or other purposes beneficial to the community.

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4. Apply for Charity Registration with the CRA

Charity registration allows you to issue tax receipts to donors and access various tax benefits.

Steps to Register as a Charity:

1. Complete the Application to Register a Charity: Provide detailed information about your organization’s activities, objectives, and finances.
2. Submit Supporting Documents: Include your governing documents, financial projections, and a description of planned activities.
3. Respond to CRA Questions: The CRA may request additional information or clarifications before approving your application.
4. Receive Your Charity Number: Once approved, the CRA will issue a charity registration number.

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5. Set Up Organizational Structures

After incorporation and registration, you need to establish effective structures to manage your charity. This includes:

• Appointing directors and officers.
• Setting up a bank account in your charity’s name.
• Creating operational policies and procedures.

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6. Stay Compliant with Ongoing Requirements

Maintaining compliance is essential to avoid penalties or revocation of your charity status. Some key requirements include:

• Filing Annual Returns: File the T3010 Registered Charity Information Return annually with the CRA.
• Updating Governing Documents: Notify authorities of any changes to your charity’s name, address, or bylaws.
• Maintaining Records: Keep accurate records of financial transactions and meeting minutes.

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Additional Tips for Starting a Charity in Saskatoon

• Engage Your Community: Reach out to local stakeholders and build partnerships with other organizations in Saskatoon.
• Seek Professional Help: Consult a charity lawyer or accountant experienced in Canadian charity law to ensure compliance.
• Plan for Sustainability: Develop a fundraising strategy and consider diversifying your revenue streams to sustain your charity long-term.

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Starting a charity in Saskatoon involves several steps, but with careful planning and dedication, you can create a lasting impact. Whether you choose to incorporate federally or provincially, always ensure your charity aligns with Canadian laws and remains committed to its charitable objectives.

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