Ever get that feeling. Like, you've got this idea you just can't shake. This drive to make a real difference right here in BC.
David:Oh, absolutely.
Sara:You know? That kind of energy that makes you think, hey. Maybe starting a nonprofit is the way to go. It's gotta be incredibly rewarding to give back like that. But then you hit that wall.
David:Yeah.
Sara:Where do you even begin?
David:It can be so overwhelming. Like that initial spark, that inspiration is amazing, but turning it into something real, that's where things can get a little tricky. But that's what we're here to help you with today, giving you a solid foundation for taking those first steps towards launching a nonprofit right here in beautiful British Columbia.
Sara:Couldn't have said it better myself. And we've been digging into this awesome guide, it's called Starting a Nonprofit society in British Columbia, a complete guide. Super helpful stuff. Now just a heads up for everyone listening. The rules around nonprofits, they got a bit of a refresh back in May 2023.
David:That's right.
Sara:With some amendments to the Societies Act. We're gonna make sure to drop a link in our resource notes, we're calling them that now, to the BC Government Societies Act amendments page.
David:Yeah.
Sara:You know, if you wanna get into the nitty gritty legal details. But today, we're keeping it practical, focusing on those nonprofit BC guidelines that'll actually get you moving.
David:Absolutely. And our mission here is to make this whole process clear, easy to understand, and totally manageable. We're breaking it down step by step, those initial actions you need to take. You know, the goal is for you to walk away feeling empowered, like you've got this. So you can take that incredible vision and make it a reality for your community.
David:We're all about turning the complex into something simple, something you can actually use.
Sara:Awesome. Now the guide jumps right into building your core team. This involves both officers and directors. So if you're just getting started, what's the real difference between these roles? I think it's easy to get them mixed up at first.
David:You're so right. It's a super important question. Think of officers as the people handling the day to day operations. Down the line, if your society gets funding, these are the folks likely responsible for things like hiring staff or managing any contractors you might need.
Sara:Got it. So they're more focused on the immediate stuff, the day to day activities.
David:Exactly. Then you've got your directors. They're more big picture thinkers, strategic. They set the overall direction for the organization, making sure everything's running smoothly. Is key, staying true to that core mission you've defined.
Sara:So you've got the strategic oversight from the directors and then the operational side, the actual execution often falls to the officers.
David:Makes sense. And I know the guide mentions that in smaller organizations, especially at the very beginning, those roles can often overlap. I mean, you're probably wearing multiple hats anyway. For
Sara:sure. Especially when you're starting out, it's all hands on deck.
David:But is there like a minimum number of people you absolutely need to get things off the ground? The magic number is three. Usually you need at least three directors to incorporate a non profit society in BC. Okay. But, and this is the big but, there's an exception.
David:If you're setting up what's called a member funded society, then you only need one director.
Sara:Oh, interesting. So that's a really key difference. Huge. We'll definitely make sure to include a link to the BC Government Member Funded Societies page in our resources. That way you can check it out and see if it's a good fit for you.
Sara:Now when you're putting together this initial team, are there specific skills or information you should be looking for, you know, to make sure you've got all your bases covered?
David:Absolutely. You want a team with a variety of skills and perspectives. Like having someone comfortable with finances, maybe a bit of a numbers person, is super valuable. Or someone with a knack for fundraising. Because let's be real, you'll need those resources.
David:And don't underestimate the power of getting the word out. Someone with marketing or communication skills can be a game changer.
Sara:Makes sense. A well rounded team.
David:Exactly. Each person bringing something unique to the table.
Sara:You don't want everyone with the same strengths and weaknesses. Now when you're actually incorporating, what specific information do you need from these directors for the paperwork? Like what do they need to provide?
David:For the official incorporation documents, you absolutely need their full legal names. No nicknames or anything like that. And of course, their current addresses. That's essential for the government records.
Sara:And what about their agreement to take on the role? Is there like a formal process? Do they need a lawyer or something?
David:Oh no, no. It's much simpler than that. Each director just needs to give their written consent. Doesn't have to be anything fancy, just a straightforward note. Saying they agree to be a director for the society using the exact name you've chosen.
David:Signed and dated, of course. That's enough for this stage.
Sara:So no need to overcomplicate things.
David:Not at all.
Sara:And one more thing. Do you need to name your officers right away during the incorporation?
David:Nope. That can wait. You can sort that out later as your organization starts to take shape.
Sara:Okay. So step one. Get your team together, at least three directors just one if you're going the member funded route. Make sure you've got a good mix of skills, get their full names, addresses, and a simple written consent from each of
David:them. Perfect.
Sara:What's next?
David:Alright, so once you've got your team, the next big thing is picking and reserving your society's name. Sounds easy, Ryder, but it's actually pretty important. You gotta put some thought into it because this is your organization's public face.
Sara:Oh, for sure. Your name is your first impression. It's how people are gonna remember you.
David:Right. So you wanna make sure it's good.
Sara:Absolutely. So what should we be thinking about when we're brainstorming names?
David:Well, first things first, you gotta make sure the name is unique. No one else out there using the same one, especially not another organization in BC doing something similar. It's all about avoiding confusion. Do a good Google search. That usually does the trick.
Sara:Good point. Wouldn't want people contacting the wrong group.
David:Exactly.
Sara:Besides being unique, what else?
David:Well, the name should ideally tell people what your society does. Like, if you're focused on protecting local waterways, using words like water, rivers or conservation just makes sense. It immediately tells people what you're about.
Sara:Makes it easy for people to understand your mission to connect
David:with
Sara:it.
David:Exactly. Yeah. Now there are some rules about how the name has to end. It has to end with either society, association, or club. Those are the only options in BC.
Sara:Oh, interesting. Okay. So it's gotta be unique, descriptive, and end with one of those three words. Are there any words we should be extra careful about using? Like maybe ones that need special permission?
David:Oh, yeah. You definitely wanna be careful about using words related to government stuff, hospitals, or even specific places. Those might need extra approvals and sometimes they're totally off limits. Best thing to do is give the Provincial Registrar a call. Their number is 702026.
David:They can answer any questions about restricted words or if you need special permission. It's always better to check early on.
Sara:Love that tip. A quick phone call could save a lot of headaches later. So let's say we've got a few good names that fit all the criteria. How do we actually reserve one?
David:Once you've narrowed it down, you've got to officially reserve your chosen name. Fastest way is usually online. There's a small fee, so you'll need a credit card handy. You can also do it by mail or in person at a service BC center. But fair warning, those options take longer.
David:Online is usually the best bet if you're all about efficiency.
Sara:Efficiency is key. Okay. So we've got our team. Our name is reserved, what's the next step in laying the foundation for our nonprofit?
David:While you're waiting for your name to get officially approved, which can take a bit of time, the next crucial step is defining exactly why your society exists. This is where you create what's called a focus statement.
Sara:A focus statement. What's that exactly and why is it so important?
David:It's basically a clear and concise statement of your mission. Like what's the core purpose of your society? Why does it exist? It's important because it becomes your guiding star. It helps you stay on track.
David:And it also lets everyone else know what you're all about. Potential members, volunteers, donors, the whole community. It's all about clarity.
Sara:Got it. So are there any examples of what these focus statements might look like?
David:Yeah, the guide has some great ones like to promote the interests of bird watching seniors in the North Vancouver area or to provide an amateur softball league for elementary school children in Saunich or even to encourage and foster responsible exotic pet ownership in the Lower Mainland Of British Columbia.
Sara:Crafting ours?
David:Keep it clear, concise, and specific. You can use more than one sentence, but don't make it a novel. Avoid jargon and fancy words. It should be easy for anyone to understand. This statement is the heart of your society.
David:It's the why behind everything you do.
Sara:Okay, that makes sense. So we've got our team, our name, our purpose. What's next on our nonprofit checklist?
David:Now it's time to create your society's bylaws. These are your operating rules, like your internal rule book.
Sara:A rule book sounds a bit serious. What kind of stuff goes in there?
David:All the important stuff, the rights and responsibilities of your members, how your board of directors gets elected and whether they'll be paid, how you manage your finances, including if you can borrow money and even the rules for how you'll conduct meetings.
Sara:Wow, it covers a lot. Is there any help with creating these bylaws, like a template or something?
David:Absolutely. The Provincial Registrar provides a model set of bylaws. It's a fantastic resource, gives you a solid framework, covers all the bases, and it's legally sound. But, and this is important, it's just a starting point. You'll want to customize it to fit your specific society and how you want to operate.
Sara:So we need to think about our unique situation.
David:Exactly. One size doesn't fit all.
Sara:And the guide mentions that while you can technically change the bylaws later, it's better to get them right from the start. Why is that?
David:Changing bylaws later can be a real hassle. You usually need a formal decision from your board, then you have to tell your members and they need to approve it at a meeting. Plus, there might be fees to register the changes. So, yeah, better to get it right up front and save yourself the trouble.
Sara:Good advice. Always better to plan ahead. Now remember how we talked about member funded and non member funded societies? Does that difference affect the bylaws we create?
David:Oh yeah. Big time. Yeah. The rules can be quite different depending on which type of society you are. Things like membership rules, how you govern yourselves, even financial reporting, it can all change.
David:So yeah, make sure you know which category you fall under because it'll directly impact your bylaws and how you run things. We'll make sure that link to the BC government member funded societies page is easy to find.
Sara:Perfect. So, step four. Create our bylaws. Starting with the model provided but making it our own, and always keeping in mind if we're member funded or not. Got it.
Sara:What's the next step towards making our non profit official?
David:Okay. So you got your name reserved, bylaws ready to go. Now it's time for step five. Filing for incorporation online. This is where you officially register with the province.
Sara:So all the prep work is done. Now it's time to make it legal. What do we need for this online filing?
David:You'll need a digital copy of your POPU statement, your finalized bylaws, usually as a PDF, the full names and addresses of all your directors, and you have to officially declare if you're member funded or not. Oh and you'll need a credit card to pay the filing fee. It's all done online.
Sara:So gotta have all our digital ducks in a row.
David:Absolutely.
Sara:What's the process like once we start the online application?
David:You'll get an email confirming your name reservation. That email usually has a link to start the application on the government website. You just follow the steps, fill in the blanks, upload your documents and pay the fee. If everything looks good, you'll get your official certificate of incorporation either by email or regular mail.
Sara:Awesome! We're officially incorporated. What's next on our to do list?
David:Now it's time to open a bank account specifically for your society. This is super important. You gotta keep your personal finances totally separate from the organization's money. It's all about accountability and transparency.
Sara:Makes sense. Separate is always better. Do we just walk into any bank with our incorporation papers?
David:Almost. But before you do, it's a good idea for your board to chat about some internal financial controls.
Sara:Oh, I get
David:Like who's allowed to access the account? How many signatures are needed for different transactions? Are there any limits on single signature transactions? It's all about managing your finances responsibly right from the start.
Sara:So we're putting checks and balances in place.
David:Exactly.
Sara:And who can actually sign on the account? Just anyone.
David:Usually, it's limited to directors or officers. Mhmm. And the bank will wanna see two pieces of ID from each person.
Sara:Got it. So we're all set up legally. We've got our bank account. Now a lot of people starting nonprofits want to be able to give those official tax receipts for donations. Does that come automatically with incorporation?
David:Ah, that's a great question. And the answer is no. Getting charitable tax status is a totally separate process from incorporating. Just because you're a non profit society doesn't mean you can automatically issue tax receipts.
Sara:Okay, that's important to know. So what's the benefit of getting charitable status and how do we apply?
David:The main benefit is that you can issue those official tax receipts. This makes a huge difference when you're fundraising. People are more likely to donate if they can get a tax break. It's a win win.
Sara:Makes sense. So how do we get this charitable status?
David:You have to apply to the Canada Revenue Agency, the CRA. It's a federal thing.
Sara:Not provincial? Nope. Got it. Where can we find more info about this?
David:The CRA has a website with tons of info. We'll link to their CRA Charities and Giving section in our resource notes. They've got all the details about the process, the requirements and what you need to do if you get approved.
Sara:Okay. And what are some of the things the CRA looks for when deciding who gets charitable status?
David:The biggest thing is whether your purpose and activities are actually charitable according to Canadian law. There are specific legal definitions of what counts as charitable. You have to show that your organization fits into one of those categories like relieving poverty, advancing education or other things that benefit the public.
Sara:So we need to prove we're doing good.
David:Basically. And the guides recommends checking out resources from charity law experts. They can really help with navigating all the legal stuff. One good website is CharityLawGroup.ca.
Sara:Great tip. To recap, we incorporate with the province to become a legal nonprofit in BC. But if we want to issue tax receipts, need to apply separately to the CRA and prove we're a legit charity.
David:You got it.
Sara:Two separate things. Important distinction. Now the guide also talks about things to consider for the long term success of our nonprofit. What are some of the key take aways there?
David:Getting started is just the beginning. You got to think about the long game. The guide emphasizes the importance of good record keeping minutes from meetings, financial records, all the important decisions and events. It's all about accountability and transparency.
Sara:So keep everything organized.
David:Exactly. And good governance is key too. Your board needs to understand their roles and avoid conflicts of interest. You should also review your bylaws and purpose statement from time to time. Things change, you know, so you need to adapt.
Sara:Makes sense. We've got to be flexible. And what about getting professional help?
David:Don't be afraid to seek legal or financial advice if you need it. It's better to be safe than sorry. And insurance is another important thing to consider. You want to protect your directors and the society itself from potential lawsuits.
Sara:Okay. Insurance. Got it. Anything else?
David:Yeah. If you're going have volunteers, which most nonprofits do, you need clear policies for how you recruit, train, and manage them. And don't forget about communication. Keep your members and the community informed about what you're doing and how you're making a difference.
Sara:So it's not just about the paperwork. It's about running a responsible effective organization.
David:Exactly.
Sara:Alright. Let's do a quick recap of those essential first steps for starting a nonprofit in BC. First, build your core team of at least three directors, unless you're going member funded. Then pick a unique descriptive name, make sure it ends with society, association, or club, and reserve it officially. While you're waiting for that, create your focus statement outlining your purpose clearly and concisely, then craft your bylaws starting with the model and customizing it for your needs.
Sara:Once your name is reserved, file for incorporation online, have all your documents and payment ready, and after you're officially incorporated, open a dedicated bank account for your society, making sure you've got those internal financial controls in place.
David:Nailed it. That's a great summary. And the key takeaway for you listening is that starting a nonprofit takes effort, for sure. But if you follow these steps, you'll be off to a great start. Just remember those specific BC rules and don't forget about the separate process for charitable tax status if you want to issue those receipts.
Sara:And for those who want to dive deeper, check out those links we mentioned in our resource notes: BC Government Societies Act Amendments and BC Government Member Funded Societies. And if tax receipts are a must have, explore the CRA's CRA Charities and Giving page and consider resources like CharityLawGroup.ca.
David:Absolutely. And as you embark on this amazing journey, here's a final thought. Beyond all the legal stuff and paperwork, what's that one unique thing your nonprofit will bring to the community? And how will you keep that initial passion alive to create a real and lasting impact? Something to think about.
Sara:Absolutely. It's all about making a difference.
David:That's what it's all about.