Table of contents

Introduction
Not-for-profit incorporation
Managing the books
Charitable status
Taxation
Financing
Other resources

Introduction

Not-for-profit corporations are organizations that provide products or services to improve or benefit a community. Money made by a not-for-profit goes back into the organization to further its aims and projects instead of profiting its directors, members or officers. For example, a social club may hold an art sale or craft fair in order to raise money for the services it provides to the community. 

There are several kinds of not-for-profit organizations such as:

• social, recreational, or hobby groups (bridge clubs, curling clubs, and golf clubs)
• certain amateur sports organizations (hockey associations, baseball leagues, and soccer leagues)
• certain festival organizations (parades and seasonal celebrations)

This guide provides information on not-for-profit corporations. If you want to start a not-for-profit without incorporating, speak with a lawyer to understand what is involved. You can search for a lawyer through the Law Society of Ontario's Lawyer Referral Service

Charitable status

Depending on the activities and purpose of your organization, you may want to register as a charity. Registered charities and non-profit organizations (NPOs) both operate on a non-profit basis, however they are different. If you want to issue official donation receipts and not have to pay income tax, you have to apply to be a registered charity. Refer to our document on charitable status for more information.

Cooperatives

If you are looking for information on setting up a cooperative, please refer to our Starting a co-operative guide.

Not-for-profit incorporation

You can structure your not-for-profit organization as a federal or provincial corporation. The process and requirements vary based on the option you choose.

Federal incorporation may be a good option for nation-wide business name protection or for operating internationally.

If you plan to operate in only one province, you may wish to incorporate provincially. Consulting a lawyer can help when choosing the best option for your organization. 

Federal incorporation

To set up a federal not-for-profit corporation, you can file online through the Corporations Canada website. You will need to:

• Use the online system to get a Canada-wide NUANS name search report that is not older than 90 days
• Fill out the online forms
• Pay the online filing fee of $200

You can get more information from the following links:

Not-for-profit corporations

Creating a not-for-profit corporation
Naming a corporation – How to get a name

If you cannot file online, you will need to make a request for the paper forms, obtain a corporation key (required for all paper transactions) and then submit the following documents to Corporations Canada: 

• Articles of Incorporation- Form 4001
• Initial Registered Office Address and First Board of Directors – Form 4002
• A Canada-wide NUANS name search report that is not older than 90 days
• The filing fee

Contact Corporations Canada:
1-866-333-5556 

Provincial incorporation

To set up a provincial not-for-profit corporation, you will need to submit the following to the Ministry of Public and Business Service Delivery and Procurement:

• Your completed and signed Articles of Incorporation under the Ontario Not-for-Profit Corporations Act, 2010 (ONCA)
• The North American Industry Classification System (NAICS) primary activity code that best fits your activities
• An Ontario-biased NUANS Name Search Report
• A fee of $155
• Supporting documents, if required
• A contact name, address and telephone number

For information on the requirements and specific rules for setting up and operating a provincial not-for-profit corporation in Ontario, refer to the Ministry of Public and Business Service Delivery and Procurement: 
1-844-286-8404
Not-for-profit corporations 
Guide to the Not-for-Profit Corporations Act, 2010 

Rules for not-for-profit and charitable corporations 

Managing the books

Once you’ve incorporated your not-for-profit, you will have ongoing responsibilities that are specific to not-for-profit corporations, including:

• Maintaining records and making them available to directors
• Proper filing and income reporting
• Making sure that any changes to the structure of the corporation conform to the articles of incorporation

You can get more information from the following organizations, based on whether you set up a federal or a provincial not-for-profit organization.

Federal

Refer to Corporations Canada to get information on financial record-keeping and reporting obligations for federal not-for-profit organizations: Financial Statements and review: Financial Statements and review.

Provincial

Refer to the Ministry of the Attorney General’s Not-for-Profit Incorporator's Handbook to get information on financial record-keeping and reporting obligations for provincial not-for-profit organizations. 

Taxation

If you sell goods and services in Ontario and make $50 000 or more within any 12-month period, you must register for a business number to charge, collect and remit the Harmonized Sales Tax (HST).

Read online:
GST/HST Information for Non-Profit Organizations

As a not-for-profit organization, you are generally exempt from paying income tax but may be required to file a T1044 - Non-Profit Organization (NPO) Information Return with the Canada Revenue Agency (CRA). 

To learn about your obligations as a not-for-profit organization, contact CRA directly: 
1-800-959-5525

Financing

The Trillium Foundation

The Trillium Foundation offers a variety of funding programs in support of organizations that give back to the community. Charitable or not-for-profit businesses are eligible for funding.

Contact the Trillium Foundation:
1-800-263-2887
Ontario Trillium Foundation

Other resources

• Best Practice Guidelines for Screening Volunteers
• Creating and maintaining a social enterprise
• Annual Non-Profit Institutions Human Resource Module: Interactive tool
• Quarterly Non-Profit Institutions Economic Account: Interactive tool
• Non-profit institutions and volunteering: Economic contribution, first quarter to fourth quarter 2023
• Charity Insights Canada Project (CICP) Survey Project (CICP)