I get asked this question a lot. The process is really easy when you are starting form a place of purpose and passion.
It's hard to keep going when 'shit hits the fan' if you have no passion for the cause.
My partners and I started OPEN.innovate in 2019 with nothing but drive and passion. We knocked on doors and sold our idea to everyone that would listen. In 2020 we started selling out all our workshops and events. in 2021 we got our first large government grant to continue to do the work.
Registering your non-for profit organization seems a lot more daunting than it really is!
LET ME SHOW YOU WHAT YOU NEED BEFORE YOU REGISTER YOUR NOT-FOR-PROFIT ORGANIZATION IN ONTARIO.
----> Here are 3 vital steps you need to take before you start filling out your application.
But first....
What is a Non-For Profit Organization
A non-profit is a corporation. A corporation can own property in its name, enter into contracts and agreements and even sue or be sued just like a person. A corporation is managed by an elected board of directors that do not own the corporation.
Before you start your application to register your not-for-profit organization you need to,
1. Determine your organization's OBJECTS.
Objects are concise statements of the ultimate purpose of your not-for-profit (NFP) organization. It’s not a list of your organization's activities but instead the organization's primary purpose or community it's serving.
Take time when developing your organization's objects since it basically acts like your blueprint and is used to determine if your organization qualifies for particular grants or funding down the road.
TIP: I would check out what grants and opportunities are currently available through the government, banks or private corporations and see if you can use similar language for your NFP’s objects. Don’t just copy what they are looking for if it has nothing to do with what your organization is doing, find the grants that relate to your mission and set your objects close to it.
This first step is so important to ensure you actually get some funding and government support for your cause.
2. After you have determined your organization's precise purpose and done some grant research to make sure your objects are relevant, you need determine what category your NFP fits in.
Most times, grants and funding opportunities are broken up in the categories below.
Types of NFP Corporations.
Below are categories of the most common types of not-for-profit corporations:
General includes professional associations and community organizations
Sporting and Athletic Organizations: Hockey & Basketball clubs
Social Clubs - these are corporations with objects of a social nature (i.e bird watching therapy club)
Service Clubs such as Rotary, Lions, Kiwanis and Optimist;
Charities - these would include religious organizations and organizations that are engaged in carrying out certain good works that are of benefit to society. Charities require a lot more reporting and supervision.
Remember: Not-for profit corporations are purpose driven organizations with activities, goals, resources and plans that do not include monetary gain. - another time for the kids in the back!
Now it's time to make a decision on whether you want to incorporate your organization or not. The answer to incorporate or not depends on your business and community goals. When my partners and I started OPEN.innovate we incorporated our organization from the beginning because we learned really early on that we wouldn’t be able to meet our community goals, do the work we aimed for or apply for any community funding if we were not incorporated.
Should you incorporate your Not-for Profit Organization?
It is not mandatory for a not-for-profit organization to incorporate. There are thousands of unincorporated non-for profit organizations that operate in Ontario.
Incorporating your organization offers many advantages including government funding and grants for your programming. Also, unincorporated organizations do not have a separate legal existence apart from their members and are personally liable for a corporation's debts and obligations in certain instances.
On the other side, a disadvantage to incorporating your NFP is the number of responsibilities that come with it. Including yearly filing, board meetings and taxes.
‘‘Failure to comply with reporting or disclosure requirements could render the corporation and its directors and officers liable to certain penalties, including the cancellation of the corporation.”
3. Naming Your NFP Corporation
Naming your NFP organization is very important because not following the guidelines provided in their handbook could get your application rejected.
Here are the basic naming guidelines:
Distinctive: a unique word, phrase or geographical location that identifies the corporation.
Descriptive: describes the nature of the objective and should not be misleading or deceiving.
Legal: indicates the status of the organization by using Inc. for Incorporated, Corp. for Corporation. The use of a legal element is optional.
Some general rules to follow when brainstorming names.
Names can NOT,
Be too general
Suggest a connection with the Crown or Royal Family
Suggest a connection to the government
Use the name of any province without the permission of the Director of Corporations Branch or Registrar of Companies.
Be part of the prohibited words in (O.Reg 181) that include College, University, Engineer, Numerals etc. A more detailed list can be found in section 2.10 of the handbook.
It will save you time and money if you put thought into the corporation's name and follow the guidelines provided. When you've made the decision on what to name your organization, it’s time to do a name search report. You can find all search houses at www.nuans.com.
PSSST: Your name search report is needed before you even start the application
Your objects, NFP category and consciously choosing a name are the most important parts of starting and registering your non-for-profit organization.
NOW YOU'RE READY TO APPLY!
At this time you have 2 options depending on how much time and or money you want to spend.
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