Types Of Not-For-Profit Organizations In Canada

There are a vast number of not-for-profit organizations in Canada. These organization provide a variety of services involving drug abuse, environment, child abuse, LGBT rights, human rights and civil liberties, health and diseases, grant giving, criminal justice, disabilities, education, animal rights, and communities. However they can be legally classified into the following types:

Charitable organizations

Charitable organizations provide services for the public benefit and are based on non profit and philanthropic goals. These organizations collect funds through means of donation. This money is used to further their cause. Organizations listed as charities enjoy certain tax benefits by the Canadian government. Charities may also include religious organizations. Unlike other not for profit organizations, the assets of a charity are not distributed to its members after dissolution, but given to other charities.

There are two methods to make your organization a charitable entity. In the first method, the provincial legislature can pass a private bill or a special act establishing a charity. Few charities are created through this process today. In the second method, a federal Letters Patent needs to be issued through Industry Canada. Letters Patent can be issued under Canada Not-for-Profit Corporations Act.

Non charitable organizations:

These include:

Foreign entities

Foreign entities are organizations that provide international services not bound to a particular country. For example, Wikipedia the free encyclopedia is an online educational resource.

Community groups

Community groups are not-for-profit organizations aimed at bringing a variety of activities and services at the community level. They are aimed at improving social well-being in communities as well as providing a source for recreation.

Service groups

This is a gathering of professional and business people aimed at promoting community welfare and goodwill. Unlike community groups, they are not exclusive of ideological motives and may have a well thought out agenda.

Trade organizations

Trade organizations are not-for-profit entities created for the purpose of promoting trade between businesses, provinces or countries. They may be informal or formal in nature. They discuss rates of products in other countries, duty on products, and the kind of products that are acceptable for trade.

Government & Quasi-government organizations

Governmental not-for-profit organizations are those which provide health, education, infrastructure, social services in the public sector. They are generally affiliated with other not-for-profit organizations. They are entities with no transferable ownership rights. Public benefit is their main goal. Members, contributors, and other resource providers do not, in such capacity, benefit financially from this organization.

Recreational clubs

These not-for-profit organizations are set up solely for entertainment purposes. They arrange a host of activities such as competitions, fairs, and health checkups. They are funded by the local community.

These organizations can be set up by submitting the requisite documents to the government. If you want to form a charity corporation, then legal counsel is recommended.