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MAF1002: Strategy, Governance and Management Accounting

Summer 2021

Non-profits and charities

What is the difference between a non-profit and a registered charity?

"The priority within a for-profit business is to scale your business and create significant revenues for your social cause. On the other hand, a not-for-profit framework best suits a business that intends to use all profits exclusively for promoting its stated social objectives.

A registered charity assumes that all profits go towards your social mission and all profit-making activities meet the definition of a “related business”, as determined by the Canada Revenue Agency. “Related business” includes activity related to the charity as well as unrelated activity so long as the majority of employees involved are volunteers." From - Choosing a Legal Structure for a Social Purpose Business

Web Resources on Non-Profits