Not-for-profit guide

Table of contents

Introduction
Not-for-profit incorporation
Managing the books
Charitable status
Taxation
Funding
Other resources

Introduction

Not-for-profit corporations are organizations that provide products or services without making profit. They are generally dedicated to activities that improve or benefit a community. A not-for-profit may generate revenue, but only if the revenue goes back into the organization to further its aims and projects. For example, a social club may hold an art sale or craft fair in order to raise money for the services it provides to the community. The money made by a not-for-profit is not for the personal gain of its directors, members or officers.

There are several kinds of not-for-profit organizations such as:

  • Professional or community organizations
  • Sport or athletic
  • Social clubs
  • Service clubs (for example Kiwanis or Lions)
  • Charities

This guide provides information on not-for-profit corporations. To set up an informal not-for-profit, you may wish to speak with a lawyer. The Law Society of Upper Canada's lawyer referral service may be able to assist you in finding a lawyer, based on your needs.

Use online:
Law Society of Upper Canada's lawyer referral service

If you are interested in information on setting up a co-operative, please refer to our cooperatives guide.

Not-for-profit incorporation

You can structure your not-for-profit organization as a federal or provincial corporation. The process and requirements for setting up your corporation will vary based on the option you choose.

Federal incorporation

For information on creating a federal not-for-profit corporation, you can contact Corporations Canada or refer to their website.

Read online:
Creating a not-for-profit corporation

To set up a federal not-for-profit corporation, you can file online or submit the following documents to Corporations Canada.

Contact Corporations Canada:
1-866-333-5556

You can also learn more about the specific rules for operating a federal not-for-profit corporation on the Corporations Canada website.

Read online:
Operating a federal not-for-profit corporation

Provincial incorporation

If you would like more information about the requirements for setting up and operating a provincial not-for-profit corporation in Ontario, refer to the not-for-profit incorporator's handbook.

Read online:
Not-for-profit incorporator's handbook

To set up a provincial not-for-profit corporation, you will need to submit the following documents (hard copy) to the Ministry of Government and Consumer Services:

  • Application for Incorporation of a Corporation without Share Capital - Form 2 completed in duplicate with original signatures on both copies
  • Ontario-biased NUANS Name Search Report
  • Fee of $155 (standard service – processing time 6-8 weeks) or a fee of $255 (expedited service – processing time 7 business days)
  • Supporting documents, if required
  • Covering letter giving a contact name, return address and telephone number

Contact the Ministry of Government and Consumer Services:
1-800-361-3223

There are new rules governing the incorporation and operation of Ontario not-for-profits. Find out how your not-for-profit corporation may be affected by the new laws.

Read online:
Modernizing the not-for-profit sector

Managing the books

Once you’ve incorporated your not-for-profit, you will have ongoing responsibilities that are specific to not-for-profit corporations, including:

  • Maintaining records and making them available to directors
  • Proper filing and income reporting
  • Making sure that any changes to the structure of the corporation conform to the articles of incorporation

Federal

You can find out more about the financial record-keeping and reporting obligations of a federal not-for-profit from Corporations Canada.

Contact Corporations Canada:
1-866-333-5556
Financial Statements and review

Provincial

You can find out more about the financial record-keeping and reporting obligations of a provincial not-for-profit from the Ministry of the Attorney General website.

Read online:
Corporate maintenance and filing requirements

Charitable status

You may want charitable status for your not-for-profit corporation in order to issue tax receipts or be eligible for specific tax incentives. Although many not-for-profit corporations are registered as charities, charitable status is not automatically obtained when you set up a not-for-profit. Refer to our document on charitable status for more information.

Taxation

If you sell goods and services in Ontario and make $50 000 or more within any 12 month period, you must register for a business number to charge, collect and remit the Harmonized Sales Tax (HST).

Read online:
HST for businesses, charities, and public service bodies

As a not-for-profit organization, you are generally exempt from paying income tax but may be required to file a T1044 - Non-Profit Organization (NPO) Information Return with the Canada Revenue Agency (CRA). The information return is filed annually and, depending on your organization’s activities, you may also need to file additional forms. Speak with CRA for more information.

Contact CRA:
1-800-959-5525

Funding

Canada Business can help you find government financing options for your business. There are programs that apply to businesses across Canada, and others that apply only to businesses in Ontario. Use the Canada Business financing search tool or browse by type of financing.

Search online:
Canada Business: Government grants and financing

The following financing program also applies specifically to not-for-profit organizations.

The Trillium Foundation

The Trillium Foundation offers a variety of funding programs in support of organizations that give back to the community. Charitable or not-for-profit businesses are eligible for funding.

Contact the Trillium Foundation:
1-800-263-2887
Ontario Trillium Foundation

Other resources

Managing 

From day-to-day operations to long-term planning, learn how to manage your business efficiently.

Associations

Industry specific links

If you are interested in finding an association, use our secondary market research service request and have us search for one based on your needs.

You can also find books, magazines and other relevant print material at business service organizations in your community. To locate a Canada Business Ontario (CBO) community partner, contact us at 1-888-576-4444.