LawLPS provides the following legal services:

• Creation of the charity or non-profit entity by incorporation or by trust;

• Preparation of and obtaining registered charitable status with the Charities Directorate, Canada Revenue Agency;

• Provision of legal advice about maintaining charitable status and dealing with CRA requirements;

• Provision of legal advice about maintaining non-profit status and dealing with the requirements under the Income Tax Act;

• Preparation of agency and joint venture agreements to facilitate foreign charitable activities;

• Provision of legal advice about corporate governance, and director, officer and trustee duties and responsibilities; and

• Provision of general counsel advice.

What is a charity?

A charity has charitable objects/purposes which are recognized as charitable at law: those objectives/purposes which advance religion, advance education, relieve poverty and which provide other recognized community benefits.  For the purpose of charitable registration with the CRA, a charity must be established as either a corporation or as a trust.  Typically, active charitable organization will incorporate and private family foundations will be established by a trust.  The choice of structure will depend on the individual facts and the intent and purpose of the founders.

What is a not-for-profit?

A not-for-profit is an entity set up for non-charitable purposes which include but are not limited to social and civic purposes, such as a professional association, a mutual benefit association or cultural centre to name a few. A not-for-profit can be created by a constitution among the members of the not-for-profit but it is always recommended to incorporate the not-for-profit to avoid potential legal issues amongst the members.

What is the difference between a charity and a not-for-profit?

• Both the charity and the not-for-profit are exempt from tax under the Income Tax Act.

• The objects/purposes are different: what the entity will do and who it will benefit.

• A charity which is a registered with the CRA can issue an official donation receipt to its donors; a non-profit can receive donations but cannot issue an official donation receipt.