The Canadian Charity Law Podcast

This episode outlines the necessary steps for establishing a not-for-profit corporation in Toronto.

The process involves choosing a unique name, preparing Articles of Incorporation, appointing directors, defining bylaws, and submitting an incorporation application.

The guide also mentions the optional step of obtaining charitable status through the Canada Revenue Agency for additional tax advantages.

This episode is jointly sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm exclusively serving charity and not-for-profit clients in Toronto, Ontario and across Canada with registration and governance, and B&H Charity Accounts Group, a bookkeeping firm serving Canadian charities in Ontario with all their financial and tax filing needs. Hat tip to our friends at OrgHub.ca, a new, innovative software platform that provides not-for-profits and charities across Canada with a solid foundation for incorporation and streamlined corporate governance. 


https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

Creators and Guests

DJ
Producer
Dov Goldberg, J.D.
Dov Goldberg is a manager partner at B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm Providing Services Exclusively to Charities Across Canada

What is The Canadian Charity Law Podcast ?

Exploring the ins-and-outs of Canadian Charity Law in a way that can be understood by the layperson, including Charity Registration, Not-for-Profit Incorporation, Charity Governance, Charity Fundraising, Tax Receipting, and much more!

David:

Hey, everyone. Welcome back. Ready for another deep dive. Today, we're tackling something a little different. We're gonna be looking at how to actually create a not for profit corporation, specifically in, Toronto.

Sara:

Sounds good.

David:

Yeah. We're gonna be using, some excerpts from creating a Canadian not for profit corporation. It's like this step by step guide.

Sara:

Okay.

David:

So whether you're, like, seriously thinking about starting your own nonprofit or just kinda curious of the whole process, stick with us. We're gonna uncover some, like, really interesting stuff. You know, things like, did you know there's a whole system to check if your amazing nonprofit name is already taken by someone else?

Sara:

Right.

David:

Or that getting charitable status isn't actually required, but it can unlock some serious perks. We're gonna break it all down, so let's get started.

Sara:

Yeah. And I think, you know, it's so important to understand, like, the why behind incorporating. You're not just, you know, filing paperwork. You're really setting up, like, a strong legal foundation for your organization.

David:

Mhmm.

Sara:

You know, something that's gonna be attractive to funders, to partners, and even potential members.

David:

Oh, for sure. Yeah.

Sara:

Especially in a city like Toronto. I mean, the nonprofit scene here is so vibrant. You really gotta stand out. And, like, proving you're credible is, like, essential.

David:

Yeah. Totally. It's super easy to get caught up in, you know, the excitement of the mission and forget about those practicalities.

Sara:

Exactly.

David:

So speaking of practicalities, let's talk about the first step. Right? Understanding the basics.

Sara:

Okay. Yeah.

David:

I mean, I'm sure some of our listeners are already familiar with this, but for those who aren't, like, where do we even begin?

Sara:

Right. We don't wanna leave anybody behind. Right. So the corporations Canada website, I mean, that's really your go to starting point.

David:

Okay.

Sara:

But, you know, I'll give you a pro tip that, like, I wish I knew when I was starting out. Use their online tool called list of dissolutions. It lets you find names, like recently dissolved nonprofits. In Toronto, specifically. It's kind of a gold mine, especially if you're looking for a name, you know, that maybe has some existing recognition in the community.

David:

Oh, that's a fantastic tip. Yeah. So once we've got those basics down, then we get to move to the, I think, the fun part. Right? Choosing the name.

Sara:

Yes.

David:

Sounds simple enough, but I'm guessing there are probably some some pitfalls to avoid.

Sara:

For sure. You want a name that, like, really reflects your mission, that's memorable, something that resonates with your target audience.

David:

Right.

Sara:

But, you don't wanna get too attached to an idea before checking if it's, like, already in use. Yep. And that's where the NUANS system comes in.

David:

Okay.

Sara:

It's surprising how many organizations, you know, kinda skip this step, and then they run into legal issues down the road. So

David:

Oh, yeah.

Sara:

You definitely wanna avoid that.

David:

Definitely wanna avoid that. Yeah. So we've got our name right.

Sara:

Yes.

David:

It's unique. It's awesome. What's next?

Sara:

Well, next up is drafting your articles of incorporation. Think of it as your organization's birth certificate. Right?

David:

Okay.

Sara:

It outlines your nonprofit's purpose, how it's structured. It even lists, like, the initial board members.

David:

You

Sara:

know, this is where things can get a little overwhelming for some folks, but Corporations Canada, they actually offer templates and guides, which is super helpful.

David:

Oh, that's good. Yeah.

Sara:

But I will say, if your nonprofit has, you know, a complex structure, getting legal advice early on can, like, save you a ton of headaches in the future.

David:

Yeah. Absolutely. Now speaking of the board, right, how important is it to choose the right team? I mean, I'm guessing it's it's gotta be more to it than just picking friends who, you know, are passionate about the cause.

Sara:

Totally. You hit the nail on the head there. Yeah. Having a strong, diverse board. I mean, people with a range of skills, that's critical.

Sara:

Think about fundraising, legal expertise, financial management. You know, your board needs this mix of skills to really guide your nonprofit effectively. And, you know, of course, they need to be committed to the mission and willing to put in the work.

David:

Right. Okay. So we've got our name. Our articles of incorporation are done. We've got the dream team assembled.

David:

What else do we need to know before, like, we can officially make this thing happen?

Sara:

Okay. So now we're gonna talk bylaws. These are basically the internal rules that govern how your nonprofit operates. Right? Like, how are you gonna make decisions?

Sara:

What are your membership policies? How are you gonna run your meetings?

David:

Okay.

Sara:

Corporations Canada, they offer guidance on this stuff, but this is actually where I think a lot of new organizations can really benefit from looking at the bylaws of, like, similar successful nonprofits, you know, maybe even some here in Toronto

David:

Right.

Sara:

Just for inspiration.

David:

Right. Yeah.

Sara:

You don't have to reinvent the wheel.

David:

That's smart. Borrow from the best. Right. Right. Okay.

David:

So finally, how do we actually submit our incorporation application? How do we make this dream a reality?

Sara:

Well, the good news is it's mostly online these days. I mean, it's way easier than it used to be.

David:

Oh, okay. Good.

Sara:

So you submit everything to Corporations Canada, pay the filing fee, and then, you know, just wait for approval. Mhmm. The processing time, you know, it can vary, so definitely factor that into your timeline.

David:

Okay. Perfect. Now we touched on charitable status earlier. And, you know, I know this can be a real game changer for a lot of nonprofits. Can you kind of break down, like, what it actually means and why it's so important?

Sara:

Sure. Charitable status means the CRA, you know, the Canada Revenue Agency, they recognize you as operating for, like, a charitable purpose. And this opens up a whole world of tax benefits

David:

Okay.

Sara:

Including the ability to, like, issue official donation receipts. And that that's huge for attracting donors.

David:

Right. So it's not just about, you know, tax breaks for the organization itself. It's about for the people who are supporting it.

Sara:

Exactly. Yeah.

David:

Okay. That makes a lot of sense. So what about the application process for that? Is that is that complicated?

Sara:

Well, the CRA, they have, like, specific categories for what they consider charitable purpose.

David:

Right.

Sara:

Your activities need to match up with, you know, one or more of these categories. So you have to provide detailed information about your programs, your finances, your governance structure. It can be a bit of a lengthy process. Uh-huh. But usually, the benefits are worth it, especially in a benefits are worth it, especially in a city like Toronto where donors are, you know, actively looking to support registered charities.

David:

Okay. Well, we've covered a lot of ground. Right? From, like, choosing the right name to putting together a board to understanding all the ins and outs of incorporation and charitable status. I mean, it's clear starting a nonprofit.

David:

It's a journey.

Sara:

It is. Yeah. But, you know, while there's a lot to think about, remember, there are resources out there, like corporations Canada, the CRA, and even, you know, mentorship programs from established nonprofits that can help you every step of the way.

David:

That's great to hear. You don't have to do it alone. Exactly. And like you were saying earlier, you know, the nonprofit sector in Toronto, it's vibrant. It's collaborative.

David:

There's a real sense of, like, helping each other succeed. Right?

Sara:

Absolutely.

David:

So as we're wrapping up here, what would you say is, like, the one piece of advice you would give to someone who's just starting out on this on this journey?

Sara:

I would say don't underestimate the power of networking and building relationships. You know, go to events, connect with other nonprofits that are doing similar work, find mentors. I mean, the Toronto non nonprofit community is, like, incredibly welcoming and supportive.

David:

That's such great advice. So for our listeners, if you're feeling inspired, take that first step. You know? Do your research, make those connections, and start building the nonprofit of your dreams. Who knows?

David:

Maybe someday, you'll be the one sharing your wisdom and experience with others.

Sara:

That's right.

David:

Thanks for joining us on this deep dive. We'll see you next time.