Establishing an organization for charitable purposes.

All the essential information for establishing and launching a federal not-for-profit corporation is provided below.

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Incorporating

To create a not-for-profit corporation, you must go through the process of incorporation. The most efficient and convenient method is to incorporate online.

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Articles language

The articles can be written in the language of your preference. This means they can be:

• in a format that utilizes either of the official languages (English or French)
• in a format that employs both English and French
• in a fully bilingual format, using both official languages interchangeably

Professional associations

Incorporating a professional association (which indicates it describes itself as an association of professionals) does not grant the corporation the authority to practice or regulate a profession. It is the responsibility of the corporation to adhere to provincial laws regarding professions.

Post-incorporation tasks

After the corporation has been created, several other considerations must be taken into account. The subsequent steps following incorporation provide guidance on what needs to be done after establishing a corporation, as well as how to operate a not-for-profit corporation under the NFP Act.

You will also need to submit specific documents to Corporations Canada (refer to Your reporting obligations under the Canada Not-for-profit Corporations Act).

By-laws

During the first organizational meeting, the directors have the authority to establish by-laws. The process can be streamlined by referring to the Model by-laws – Not-for-profit corporations, which offer guidelines suitable for a typical not-for-profit corporation.

Corporations Canada has also developed an online interactive tool called the By-law builder: not-for-profit corporations. This tool allows you to create customized by-laws for your corporation by selecting provisions that best suit its specific requirements from various options.

Charity registration under the Income Tax Act

To issue official donation receipts and receive tax exemption, corporations created and operated solely for charitable purposes must register with the Canada Revenue Agency (CRA) as charities. For more details, consult the guide on How to draft purposes for charitable registration.

Incorporating as a not-for-profit corporation under the NFP Act does not automatically grant tax-exempt status or registered charity status under the Income Tax Act.

If your corporation intends to become a registered charity, review CRA's guidelines on Applying to become a registered charity before preparing the incorporation documents, particularly with regard to the statement of the corporation's purposes. It is crucial that this statement aligns with CRA requirements for charitable registration.

Non-profit corporations and organizations without profit

When incorporating under the NFP Act, it is important to note that this does not automatically grant tax exemption under the Income Tax Act. If you wish to be recognized as a non-profit organization according to the Income Tax Act, please visit the website of the CRA for more information.

Additional information

• Registration of a federal corporation in a specific province or territory