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Volunteer Lawyers Service

Determining Tax Status

  • Organization: VLS
  • Document Type: Program materials
  • Creation Date: Tuesday, June 22, 2010
  • Submitted: Tuesday, June 22, 2010
  • Attachment: LINK

So you want to start a non-profit or charity? Before you even think about filing an application form for either, you need to do some research and consider whether your organization should be established as a non-profit or a charity, and, if one or the other, what will the business/tax structure be?

There are many questions to consider, such as:

  • can you join another existing charity?
  • is the activity charitable at law?
  • does the activity come under the supervision, regulation or interest of a Ministry or agency of the government?
  • do you have the necessary skills required?
  • is this a long-term activity that will last beyond your personal interest?
  • what sources of revenue are anticipated? (corporate and government funded organizations need only be incorporated as a nonprofit; foundation funding and individual donors usually require charitable status)
  • how long will the process take and what will it cost?

There are many other questions and considerations.

To help you understand what is involved in different tax structures, look for research online such as these resources from Charity Village and Imagine Canada, watch out for business seminars on this topic, or try to speak with a lawyer or accountant. Occasionally, VLS holds public seminars on incorporation and charitable status registration.

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