Streamline eSignature Licitness for Nonprofit in Canada

How to eSign a document: eSignature licitness for Nonprofit in Canada

hello there I'm Henry and I'm an artificial intelligence bot at Big charity Law Group are you interested in starting a non-profit organization or registered charity in Canada well there are a few important things you should know in this video we're going to walk you through five crucial steps for registering a charity and guess what we've got you covered every step of the way with our team of lawyers at Big charity Law Group our experts have extensive knowledge and experience in charity law and we make sure to stay up to date with the latest regulations and best practices so you're in good hands now let's talk about the advantages of obtaining charitable status for your organization first off let's talk about taxes registered not-for-profits like yours are actually exempt from paying income tax that means more money can be directed towards your charitable activities making a bigger impact another perk is the ability to issue official donation receipts as a registered charity you can provide individuals and corporations who donate to your cause with official receipts and what's cool about that well it allows donors to claim tax deductions for their contributions which can really incentivize more people to support your mission but wait there's more registered Charities can also receive gifts from other registered Charities this opens up doors for collaboration and support from established organizations it's all about working together to make a difference last but not least having charitable status adds credibility to your organization it shows the community that you've met specific legal requirements and is recognized for your dedication to creating positive change people are more likely to trust and support a registered charity all right let's start with step one understanding the difference between non-profit organizations and registered Charities this is really important so registered Charities have to use their resources for specific charitable activities like relieving poverty advancing education advancing religion or benefiting the community on the other hand non-profit organizations focus on social welfare Civic Improvement pleasure Recreation or other non-profit purposes now moving on to step two let's talk about the types of Charities recognized in Canada there are three main types charitable organizations public foundations and private foundations it's good to know their differences so let's break it down first we have charitable organizations they're usually set up as corporations trusts or under a constitution they must have solely charitable purposes and primarily engage in their own charitable activities plus more than 50 percent of their directors trustees or officials must have arms-length relationships with each other charitable organizations receive funding from various donors who aren't closely tied to the organization next up we have public foundations these are also established as corporations or trusts and they have only charitable purposes as well however there's a key distinction public foundations generally allocate over 50 percent of their annual income to other qualified Donis which are often other registered Charities they can also carry out their own charitable activities and just like charitable organizations more than 50 percent of their directors have arms length relationships with each other public foundations receive funding from a diverse range of donors who aren't closely connected to the organization lastly we have private foundations they're also set up as corporations or trusts and their sole purpose is charitable private foundations can either engage in their own charitable activities or provide funding to other qualified donies usually other registered Charities however there are two notable characteristics of private foundations firstly fifty percent or more of their directors don't have arms length relationships with each other and secondly over 50 percent of their funding comes from a person or group of persons who control the charity or make up the majority of its directors all right let's move on to step three annual filing requirements this is an important part of maintaining your registered charity status you need to file the annual form t3010 also known as the registered charity information return within six months after your fiscal year ends it's a way for you to provide the Canada Revenue Agency craw with important financial information about your organization it's crucial to keep accurate books and Records to ensure proper financial accountability if you fail to meet these obligations under the income tax act it could potentially lead to the loss of your charitable registration however the CRA typically takes other measures before revoking your registration so it's important to stay on top of your filings moving on to step 4 the public benefit test this is a key requirement for qualifying as a charity to pass this test your organization's purposes and activities must demonstrate measurable benefits to the public or a significant portion of it you can't restrict your beneficiaries to specific groups or individuals with private connections keep in mind that Social Clubs and professional associations may not be eligible for charitable registration if they unreasonably limit beneficiaries or provide unreasonable benefits so make sure your organization's activities align with the public benefit test lastly we have step 5 required information on donation receipts this is important for ensuring compliance when issuing receipts for donations if you receive cash gifts the receipts should include a statement clarifying that the purpose is for income tax along with your Charities name address unique serial number location date donor's name and address here at Big charity Law Group we have a lot to offer when it comes to registering your charity in Canada we prioritize a smooth registration process we know that navigating the registration process can be complex and overwhelming so we're here to guide you every step of the way we'll make sure that all the necessary details are handled accurately and efficiently taking the stress off your shoulders if you're interested in learning more about how we can assist you in registering your charity in Canada simply visit our website at charitylawgroup.ca stay connected with us on Facebook and YouTube by following big charity Law Group where we share weekly updates and valuable insights remember our experienced team of Charity lawyers is here to provide you with the expert guidance you need throughout the registration process don't hesitate to reach out to us and thank you for watching [Music] thank you