A Guide to Canadian Nonprofits
Not-for-profit organizations are at the core of Canadian communities. From education and leisure to crucial healthcare and sustainability initiatives, nonprofits and charities serve households, businesses, and government institutions. They are organizations that address social, environmental, and cultural issues to help us access important resources when we need them, to improve the way our society operates in general.
Here, we’ll outline the difference between nonprofits and charities and explore how nonprofits are organized and funded, as well as the ways you can support nonprofits and charities that you’re passionate about.
What are nonprofits?
Nonprofit organizations and charities both work to support key causes without seeking profit, but there are some key distinctions between them.
Nonprofit organizations are not charities – they include associations, clubs, and societies that are dedicated to causes that are not related to profit, such as social welfare, recreation, environmental activism, civic services, or cultural entertainment.
Charities are a little different, as they must be dedicated exclusively towards charitable purposes that help relieve poverty, advance education, advance religion, or benefit the community. In order to be classed as a registered charity, these organizations must apply and be approved by the Canada Revenue Agency (CRA). Once approved, they’ll receive a charitable registration number and can use donation receipts for income tax purposes.
Nonprofits don’t need to register with the CRA. This means they won’t have a charitable registration number and can’t use donation receipts for tax purposes. Like charities, they are typically eligible for income tax exempt status but, unlike charities, they may have to pay tax on property or capital gains income.
How to find registered charities
When looking for registered charities and nonprofits, you can search the CRA’s list of charities and other qualified donees to check that an organization that you’re interested in supporting is officially classed as a not-for-profit in Canada.
You can also search our database, which has an updated list of charities – search by name or CRA number and click through to support them directly through your GoFundMe profile.
The scope of the Canadian nonprofit sector
Canada’s nonprofit sector isn’t only vital for the people who engage with services it provides – it’s also a crucial part of our economy.
According to the most recent Statistics Canada report, 2.2 million people work for nonprofits and charities and the not-for-profit sector contributes an estimated $185.8 billion to Canada’s GDP (which equals 9%).
As well as being a key employer and economic driver, the not-for-profit sector is an important part of many people’s lives. According to Imagine Canada, volunteers contribute 1.7 billion hours to charitable and nonprofit organizations and give more than $14 billion each year to registered charities.
Forming and operating a nonprofit
If you want to provide goods and services as a not-for-profit in Canada, there are some key things you need to consider before getting started. Specific criteria include registering with relevant government bodies, setting up an internal structure, disclosing financial information, and establishing funding sources.
Legal requirements
One of the first steps towards registering as a not-for-profit involves incorporating your organization. This means you must find a suitable corporate name and decide whether you will incorporate federally (so you can operate in multiple provinces) or provincially (so you can operate in one specific province).
Once you have applied and been approved to incorporate your organization, the CRA will issue you a business number (BN) so you can register for tax, payroll, and other essential business functions.
Structure and governance
After incorporating your organization, you’ll need to take official steps to establish your not-for-profit’s internal organization and structure. This begins with two crucial meetings that must take place within a certain timeframe:
- The first directors’ meeting, in which the directors of the organization get together to align on resolutions, establish by-laws, establish records, appoint key officers and roles, issue memberships, make financial arrangements, and outline other essential operational functions.
- The first members’ meeting, which involves sharing the results of first directors’ meeting with members, confirming by-laws, electing directors and officials, and making other necessary changes to the organization and structure.
During these initial meetings, you’ll shape the structure of your not-for-profit organization and create rules and guidance for how it is to be run. You’ll also cover all the essential business aspects of the organization, including key financial arrangements.
Once you’ve prepared everything you need, you’ll register your not-for-profit with CRA using your BN, in which you’ll be required to file your formation documents, financial records, income and expenses, and other key paperwork.
You may also need to take further administrative action depending on specific provincial regulations and regulatory permits required for operating within your sector. Check with your provincial government and local authorities for more information.
Funding and sustainability
Securing funding is one of the key aspects of running a not-for-profit and requires ongoing effort and a diverse strategy. There are many different types of funding sources that you can explore.
Government resources and programs for nonprofits
The Government of Canada provides many different types of programs and funding opportunities for nonprofits and charities. You can search the online database for the most up-to-date funding opportunities and filter by core sector – they cover everything from arts and culture to environment, health, and beyond.
You can also explore more localized sources of funding through your provincial government, municipal government, and city initiatives.
Other sources of funding for nonprofits
As well as government grants and programs, charities and nonprofits can obtain funding through:
- Private industry associations, clubs, and governing bodies that are related to your sector and may have available funding to support your cause
- Private foundations that are committed to supporting charities and nonprofits that represent their values
- Corporate Social Responsibility (CSR) programs in which companies provide funding to relevant nonprofits and charities through partnerships and sponsorships
Find out more about creating a not-for-profit corporation.
Key nonprofit sectors
There are more than 170,000 charities and nonprofits in Canada, which cover a wide range of sectors and causes to cater different types of issues and needs. These organizations are structured to help people on an individual level, as well as support businesses and government institutions.
Social services and community development
There are many different types of nonprofits that are dedicated to supporting social causes and community initiatives, including organizations that are designed to support people in need through youth and family services and housing assistance, alongside large organizations that support entire communities, such as hospitals, care facilities, chambers of commerce, and business associations.
Some key organizations in Canada that support social services and community development include:
- World Vision Canada, which provides emergency relief, transformational development, and promotion of justice in order to help children around the world.
- Canadian Cancer Society, which funds cancer research and support services, as well as shapes public policies.
- Sick Kids Foundation, which invests in scientific advances in order to improve the health and lifestyle of children in Canada and around the world
Environment and conservation
Environmental charities and conservation organizations work to promote sustainability, environmental restoration, habitat protection, and beyond.
From policy making to fighting climate change to protecting local parks and nature reserves, there are many different ways to support environmentalism through not-for-profit initiatives. Some of Canada’s largest conservation-oriented nonprofits and charities include:
- Nature Conservancy of Canada, which works to conduct conversation research, restore ecosystems, and work in partnership with the government to protect Canada’s natural landscape
- Oceanwise, which works to protect the ocean and the shoreline through a variety of avenues including shoreline cleanup, plastic reduction, marine life conservation, and policymaking
- David Suzuki Foundation, which works to promote sustainability, climate solutions, and wildlife protection through government partnerships, research, and action-based initiatives
Arts, culture, and education
From artistic initiatives and cultural resources to educational institutions, nonprofits and charities are often responsible for the important cultural cornerstones and learning hubs that form the core of our communities. Some of the most popular sources include:
- Museums and galleries
- Seasonal events and celebrations, such as parades and festivals
- Universities and colleges
Looking to support an incredible cause? Explore 25 of the best Canadian charities to donate to.
How to support Canadian nonprofits
There are many ways you can support Canadian nonprofits, from donating resources to educating your community about the amazing initiatives that we all have access to.
Donations
Donating to nonprofits and charities is a great way to support their efforts. You can often donate money directly to an organization through their website – they may accept general donations or direct you towards specific channels that they require support for.
They may also be looking for resources beyond financial donations, such as food, gently used clothing, technology, or other items.
Volunteering
Volunteering is a great way to support charities and nonprofits in your area and beyond. You can spend your time and dedicate your skills towards moving their cause forward. This might involve in-person activities or digital support – there are many ways to volunteer in our modern world!
If you have a specific nonprofit or charity that you want to support, visit their website and look for volunteer opportunities or contact them directly. If you’re not sure where you want to dedicate your time, look for local volunteer opportunities in your neighbourhood or community.
Advocacy
There are many ways you can support charities and nonprofits through advocacy. All organizations will appreciate it when responsible and dedicated supporters spread the word about their causes.
You can practice advocacy on your personal channels and in your network by sharing content on social media and getting the word out in your local community.
You can also drive advocacy on behalf of businesses and professional organizations that you’re involved with – if you own a business, consider partnering or sponsoring a nonprofit through a CSR program. Alternatively, you can talk to your employer about ways that your company may be able to get involved with charities and nonprofits that are connected to your sector.
Fundraising
Fundraising is a great way to support a nonprofit or charity that you feel passionate about. There are many ways to raise money on behalf of an organization – start by creating a page on GoFundMe that is connected to your chosen cause.
From there, you can spread the word and drive engagement with your campaign in a variety of ways. Whether you’re fundraising individually or as part of a group, you can hold an event, ask people to sponsor an activity, take on a challenge, host a keynote speaker, and get creative – check out our fundraising ideas for nonprofits for more inspiration.
Start your own charity fundraiser
Ready to dedicate your energy to a nonprofit or charity? Creating a fundraising campaign is the perfect way to engage your network, tell the story of your organization, and generate excitement about the causes you believe in.
With GoFundMe’s charity database, it’s easy to find the specific organization that you want to support or to explore sectors and find a match that aligns with your beliefs. Get started today and check out our top fundraising tips that will help you launch a successful charity fundraiser.