{"id":177,"date":"2020-08-27T14:10:31","date_gmt":"2020-08-27T18:10:31","guid":{"rendered":"http:\/\/patientcommando.com\/patient-focused\/?p=177"},"modified":"2022-12-20T09:25:22","modified_gmt":"2022-12-20T14:25:22","slug":"appendix-d-the-differences-between-a-registered-charity-and-a-non-profit-organization","status":"publish","type":"post","link":"http:\/\/patientcommando.com\/patient-focused\/2020\/08\/27\/appendix-d-the-differences-between-a-registered-charity-and-a-non-profit-organization\/","title":{"rendered":"Appendix D: The differences between a registered charity and a non-profit organization"},"content":{"rendered":"\n<p id=\"end29\">We are sharing CRA\u2019s information in full on the differences between a registered charity and a non-profit organization as their descriptions are clear and concise.[<a href=\"http:\/\/patientcommando.com\/patient-focused\/2020\/08\/31\/endnotes\/#end29\">29<\/a>]\u00a0<\/p>\n\n\n\n<p>\u201cRegistered charities and non-profit organizations (NPOs) both operate on a non-profit basis, however they are not the same. This page explains the differences between them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Registered charities<\/h2>\n\n\n\n<p>Registered charities are charitable organizations, public foundations, or private foundations that are created and resident in Canada. They must use their resources for charitable activities and have charitable purposes that fall into one or more of the following categories:<\/p>\n\n\n\n<ul><li>the relief of poverty<\/li><li>the advancement of education<\/li><li>the advancement of religion<\/li><li>other purposes that benefit the community<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Examples of registered charities<\/h2>\n\n\n\n<p>Some examples of registered charities under each of the four categories:<\/p>\n\n\n\n<ul><li>relief of poverty (food banks, soup kitchens, and low-cost housing units)<\/li><li>advancement of education (colleges, universities, and research institutes)<\/li><li>advancement of religion (places of worship and missionary organizations)<\/li><li>purposes beneficial to the community (animal shelters, libraries, and volunteer fire departments)<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Note:<\/h3>\n\n\n\n<p>If you are operating as a charity and want to issue official donation receipts and not have to pay income tax, you have to apply to be a registered charity. If you are not registered, you do not qualify for these advantages.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Non-profit organizations<\/h2>\n\n\n\n<p>Non-profit organizations are associations, clubs, or societies that are not charities and are organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Examples of non-profit organizations<\/h2>\n\n\n\n<p>Here are a few types of non-profit organizations and examples of each:<\/p>\n\n\n\n<ul><li>social, recreational, or hobby groups (bridge clubs, curling clubs, and golf clubs)<\/li><li>certain amateur sports organizations (hockey associations, baseball leagues, and soccer leagues)<\/li><li>certain festival organizations (parades and seasonal celebrations)<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table alignwide\"><table><thead><tr><th><strong>Topic<\/strong><\/th><th><strong>Registered charity<\/strong><\/th><th><strong>NPO<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Purposes<\/td><td>\u2022 must be established and operate exclusively for charitable purposes<\/td><td>\u2022 can operate for social welfare, civic improvement, pleasure, sport, recreation, or any other purpose except profit <br>\u2022 cannot operate exclusively for charitable purposes<\/td><\/tr><tr><td>Registration<\/td><td>\u2022 must apply to the CRA and be approved for registration as a charity<\/td><td>\u2022 does not have to go through a registration process for income tax purposes<\/td><\/tr><tr><td>Charitable registration number<\/td><td>\u2022 is issued a charitable registration number once approved by the CRA<\/td><td>\u2022 is not issued a charitable registration number<\/td><\/tr><tr><td>Tax receipts<\/td><td>\u2022 can issue official donation receipts for income tax purposes<\/td><td>\u2022 cannot issue official donation receipts for income tax purposes<\/td><\/tr><tr><td>Spending requirement (disbursement quota)<\/td><td>\u2022 must spend a minimum amount on its own charitable activities or as gifts to qualified donees<\/td><td>\u2022 does not have a spending requirement<\/td><\/tr><tr><td>Designation<\/td><td>\u2022 is designated by the CRA as a charitable organization, a public foundation, or a private foundation<\/td><td>\u2022 does not receive a designation<\/td><\/tr><tr><td>Returns<\/td><td>\u2022 must file an annual information return (Form T3010) within six months of its fiscal year-end<\/td><td>\u2022 may have to file a T2 return (if incorporated) or an information return (Form T1044) or both within six months of its fiscal year-end<\/td><\/tr><tr><td>Personal benefits to members<\/td><td>\u2022 cannot use its income to personally benefit its members<\/td><td>\u2022 cannot use its income to personally benefit its members<\/td><\/tr><tr><td>Tax exempt status<\/td><td>\u2022 is exempt from paying income tax<\/td><td>\u2022 is generally exempt from paying income tax <br>\u2022 may have to pay tax on property income or on capital gains<\/td><\/tr><tr><td>GST\/HST<\/td><td>\u2022 generally must pay GST\/HST on purchases <br>\u2022 may claim a partial rebate of GST\/HST paid on eligible purchases <br>\u2022 most supplies made by charities are exempt <br>\u2022 calculates net tax using <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/forms-publications\/publications\/gi-066.html\">the net tax calculation for charities<\/a><\/td><td>\u2022 must pay GST\/HST on purchases <br>\u2022 may claim a partial rebate of GST\/HST paid on eligible purchases only if it receives significant government funding <br>\u2022 few supplies made by NPOs are exempt <br>\u2022 calculates <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/forms-publications\/publications\/rc4022\/general-information-gst-hst-registrants.html#H1_112\">net tax<\/a> the regular way<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>We are sharing CRA\u2019s information in full on the differences between a registered charity and a non-profit organization as their descriptions are clear and concise.[29]\u00a0 \u201cRegistered charities and non-profit organizations (NPOs) both operate on a non-profit basis, however they are not the same. This page explains the differences between them. Registered charities Registered charities are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":36,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[5],"_links":{"self":[{"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/posts\/177"}],"collection":[{"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/comments?post=177"}],"version-history":[{"count":8,"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/posts\/177\/revisions"}],"predecessor-version":[{"id":331,"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/posts\/177\/revisions\/331"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/media\/36"}],"wp:attachment":[{"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/media?parent=177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/categories?post=177"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/patientcommando.com\/patient-focused\/wp-json\/wp\/v2\/tags?post=177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}