FAQs — Non-Profit Registrations in Canada
What is a non-profit corporation and how is it different from a charity?
A non-profit operates to serve a mission or public purpose and reinvests all surplus back into its activities. A charity is a specific type of non-profit recognized by CRA to issue official donation tax receipts and must operate for exclusively charitable purposes.
Do I have to incorporate a non-profit or can I operate without incorporation?
You can operate informally, but incorporation provides legal identity, liability protection for directors, the ability to enter contracts, and access to banking and grant opportunities.
What are the steps to register a non-profit in Canada?
The general steps include: choosing a unique name, defining the mission, preparing articles & bylaws, filing the incorporation application (federal or provincial), and receiving the incorporation certificate.
Is it better to register federally or provincially?
Federal incorporation offers nationwide name protection and flexibility to operate across Canada. Provincial incorporation is best if the organization mainly operates within one province.
How much does it cost and how long does registration take?
Costs vary depending on province or federal filing requirements. Processing can be quick if documentation is accurate. Charitable status adds additional application review time by CRA.
Can a non-profit hire employees and pay wages?
Yes — non-profits can employ staff and pay salaries as long as compensation is reasonable and aligns with the mission and finances of the organization.
What ongoing compliance requirements exist for non-profits?
Non-profits must maintain records, file required updates when directors or addresses change, and follow applicable reporting requirements. Charitable organizations must also follow CRA governance & reporting rules.
Do I need a lawyer or legal service to register a non-profit?
No — it can be done independently. However, using a corporate filing service or legal assistance can help ensure bylaws, articles, and filings are compliant and professionally structured.
