Showing posts with label charities. Show all posts
Showing posts with label charities. Show all posts

Wednesday, April 2, 2014

How To Start a Non-Profit Corporation

The non profit sector is one of the fastest growing in North America today.  With over 15,000 registered charities in Canada alone, it is important for newly formed non profits to fill an existing need in the community.  Non profit organizations must have a clear understanding of their mission and goals in forming the organization in order to not impede on existing corporations and to find success as an organization.

Similarly to corporations, non profits need to also address the legal requirements associated with starting their organization.  Non profit corporations are required to have a board of directors.  Likely this will be a group of founding members of the organization.  The board should be established right off the bat so that all other decisions are made by those who have a vested interested in the corporation.  Mission, roles, responsibilities, headquarters and financing will need to be hashed out before any legal paperwork can be started.  Most importantly, the board will need to establish a name for the organization and whether to incorporate the organization, become a registered charity, or both.

After selecting and registering your corporate name, you may choose to incorporate your non profit.  Though not essential to do so, incorporating will give the organization a legal status and with it rights and responsibilities.  The process to incorporate a non profit is generally the same as a corporation.  You can incorporate federally or provincially and requirements are dependent upon the jurisdiction in which you incorporate.  The one difference is the option to also register for charitable status.

In order to be granted charitable status, you must apply through the Canada Customs and Revenue Agency by fulfilling a number of requirements. In order for an organization to be registered its purpose needs to either relieve poverty, provide advancement in education, advancement in religion, or benefit the community in certain ways in which a court has deemed acceptable.  The process can take up to 8 months to complete, but after completion your non profit will have the advantage of providing tax receipts to charitable donors as well as receiving certain tax deductions. 

Following these first steps will help your non profit corporation achieve success in its mission and future activities in the community!

Click here to find out more about non profit incorporation and to start the incorporation process!

Friday, July 10, 2009

Nonprofits: A Growth Sector in Canada: Part II

Database Management, Consultants, Staffing and Branding

Despite large operating budgets, the bigger Canadian charities don't invest so much into IT such as economical database or web-based CRM programs that they could use to help with volunteer management, according to Artez Interactive CEO Philip King. Though mom-and-pop businesses are being employed by a few charities, “Few sophisticated, modern businesses have turned their attention to the charitable sector,” he says.

According to CharityVillage.com, the top 1% of nonprofits in Canada that have large budgets and earn about 59% of all revenue have too many consultants as it is. And 42% of Canadian charities operate with $30,000 or less. Charity consultant Alex Gill points to mid-sized charities as having potential because they are looking for efficient ways to improve their operations.

One area these groups may be willing to invest in is consultants and staff for projects in areas such as finance, fundraising and HR; if there are quality professionals available for less money. These may be easier to find in the current economy.

Another area is branding. Even though some ad agencies will work pro-bono for nonprofits, some charities are willing to invest in paying an agency that specializes in their sector and can work within a limited budget to develop the organization's identity.

However, King cautions that it takes awhile to build up a trusting work relationship with many charities and those groups are not so free with spending money. On the other hand, “For smart, patient people, it’s a good business — and a rewarding business,” he says.


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