Author: Press Secretary

Charitable organizations must ensure their grant activities align closely with their stated purposes. This brief overview highlights the importance of this alignment and when amendments might be necessary, supported by clear examples.

Key Points in Charitable Granting:

1. Alignment with Stated Purposes: Grants must directly further the specific charitable purposes of an organization, as outlined in its governing documents.
2. Expanding Within Existing Purposes: Many charities can broaden their grant-making activities without needing to alter their foundational purposes.
3. When Amendments are Needed: If a charity wishes to grant for a purpose not included in its original documents or outside the four common law categories of charity, amendments are essential.
4. Beyond Generic Grant-Making: Charities should have specific goals beyond just “making grants”, ensuring their purposes align with broader charitable objectives.

Examples of Purpose-Specific Grants:

1. For Education: “To advance education by providing scholarships and educational materials to underprivileged students.”
2. For Poverty Relief: “To alleviate poverty by supplying essential living items and support services to homeless individuals.”

Effective charitable grant-making hinges on aligning grants with the organization’s set purposes and being open to necessary amendments for expansion. These examples demonstrate how specific purposes guide impactful giving. For deeper insights, additional resources on defining and amending charitable purposes are recommended.

Navigating director compensation rules can be complex.

At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.

Get professional support today by email at info@northfield.biz, by phone at (416) 317-6806, or visit us or Schedule your free consultation to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.

Ready for better nonprofit reporting?

At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.

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What We Do!

We’re often asked by prospective clients what our Bookkeeping Service covers?  People want to know what specific tasks we do, and what their responsibility is.  This brief explainer page will answer that question.  This is by no means an exhaustive list, but covers the most frequently asked questions.

Getting Started

• Review your existing books for needed corrections or back-work
• Chart of accounts setup or amendment
• Assistance with setting up bank feeds
• Limited assistance* with setting up payroll (QBO or Gusto only)
• Your books brought current and reconciled if needed

Ongoing Monthly Bookkeeping

• After-the-fact transaction recording
• Post to general ledger
• Post to other ledgers (as needed)
• Bank account reconciliation
• Monthly financial statements
• Other bookkeeping services, as required
• Best-practice bookkeeping advice and counsel

Year End

• Assistance with 1099-NEC preparation*
• Assistance with 1099-MISC preparation*
• Year-end financial statements and period-end closing

What We Don’t Do

Pay bills

We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).

Payroll tax responsibility

Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state.  Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.

*Payroll deductions and benefits

We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data.  We do not assist in state registrations, benefits, or advise on deductions.  Those service areas are provided directly by either QBO or Gusto.

Preparation of W2s

Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.

Sales tax reporting

For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.

Donation recording

We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.

Administrative tasks

We cannot provide administrative services unrelated to our bookkeeping function.

Attend board meetings

Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.

Let’s Collaborate & Make a Difference!

Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!

Book a Call

Contact us today to schedule your consultation.

Working with Our Firm

In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.

By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.

Book a Consultation with Northfield & Associates

Your Trusted Partner in International Bilateral Relations

At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.

Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.

Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.

Northfield & Associates

Advancing Global Partnerships, Together.

Take the First Step Today

If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.

Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.

We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.

• If you or anybody that you know, think that you meet the requirements and wish to receive further information.
• We can help you start the application process and confirm eligibility requirements to participate.
• We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.

Book a Consultation Today

Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.

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About Northfield

Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.

Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Questions?

info@northfied.biz

Within Corporate Newsroom  

Media Contact:

media@northfied.biz

Press contact 

PR consultants
press@northfied.biz

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.

How to Register a Federal Nonprofit in BC Extra-Provincial

Setting up a nonprofit in Canada can involve more than just incorporation. If you’re wondering how to start a non profit in BC, you’ll need to understand extra-provincial registration. If your federal nonprofit corporation plans to operate in British Columbia (BC), you must complete an additional process known as “extra-provincial registration.” This article will guide you through what extra-provincial registration means, why it’s necessary, and how to complete the process in BC.

What is Extra-Provincial Registration?

Extra-provincial registration allows a federal nonprofit to legally operate in provinces or territories outside of its original jurisdiction. If you’re researching how to start a non profit society in BC, you should know that a federally incorporated nonprofit must register with the BC Corporate Registry before conducting business in the province. This ensures compliance with BC’s laws and allows your nonprofit to operate fully within the province.

Why Do Federal Nonprofits Need to Register in British Columbia?

Even though federal incorporation allows your nonprofit to operate across Canada, each province has its own rules for organizations within its borders. In British Columbia, any nonprofit incorporated federally must register as an extra-provincial entity before legally conducting activities. Registration enables your organization to fundraise, run programs, recruit local volunteers, and lease office space in BC without legal complications.

Steps to Register Your Federal Nonprofit Extra-Provincially in British Columbia

If you want to learn how to start a non profit organization in BC, follow these steps to complete the extra-provincial registration process:

1. Determine if Extra-Provincial Registration is Required

• Assess whether your nonprofit activities qualify as conducting business in BC. You must register if your nonprofit has employees, operates facilities, holds events, or has a physical presence in the province.
• Confirm requirements with the BC Corporate Registry or seek advice from a professional familiar with nonprofit regulations.

2. Prepare the Necessary Documentation

BC’s Corporate Registry requires specific documents for extra-provincial registration, including:

• Certificate of Incorporation: A copy of your federal incorporation certificate.
• Certified Copies of Articles: A certified copy of your Articles of Incorporation, including any amendments.
• Notice of Address: Addresses for your head office and any BC locations.
• Ensure all documents are up-to-date and signed by an authorized director of the nonprofit.

3. Submit the Extra-Provincial Registration Application

• Apply for extra-provincial registration through BC’s Corporate Registry portal.
• Pay the application fee, typically around $100 CAD, online when submitting your application.
• Ensure accuracy in the application to prevent delays or rejection.

4. Wait for Confirmation of Registration

• The BC Corporate Registry typically processes applications within a few business days.
• Once approved, you will receive a Certificate of Registration, confirming that your nonprofit is legally registered in BC.
• Retain this certificate and all related documents for future reference.

Key Considerations for Extra-Provincial Registration

Ongoing Compliance Requirements

Once registered, your nonprofit must adhere to ongoing compliance requirements, including:

• Annual Filings: Submit annual filings to both federal and BC registries. Missing deadlines can result in penalties or dissolution.
• Financial Reports: If your nonprofit solicits donations in BC, it may need to file financial reports with provincial regulatory bodies, especially if it reaches certain fundraising thresholds.
• Address & Director Changes: Report changes in your nonprofit’s addresses or board members promptly to maintain compliance.

Consult with a Charity Lawyer

Nonprofit regulations can change, so consulting a Society/Nonprofit and Charity Lawyer can help with registration and compliance, ensuring your nonprofit remains in good standing with both federal and provincial laws.

Benefits of Extra-Provincial Registration for Your Nonprofit

Completing your extra-provincial registration is not just a legal formality—it provides significant advantages:

• Enhanced Fundraising Opportunities: Registering in BC allows access to grants and funding specific to the province, helping expand your nonprofit’s reach.
• Local Credibility and Trust: Official registration increases credibility with local communities, government agencies, and businesses, helping attract volunteers and supporters.
• Access to Local Resources: Operating legally in BC gives access to training programs, local facilities, and volunteer networks to strengthen your nonprofit’s impact.

Common Challenges with Extra-Provincial Registration

While the process is straightforward, some challenges may arise:

• Compliance Management: Managing compliance at both federal and provincial levels can be difficult, especially for smaller nonprofits. Consider compliance management tools or external assistance.
• Understanding Filing Requirements: Federal and BC reporting requirements differ, so understanding both is essential to avoid penalties.

Final Thoughts

If you want to operate a federal nonprofit corporation in British Columbia, it’s crucial to register it extra-provincially. Whether you’re learning how to start a non profit in BC, how to start a charity in BC, or how to start a non profit society in BC, extra-provincial registration ensures legal compliance, access to local resources, and credibility within the community. By following the necessary steps and staying compliant, you can establish a strong foundation for your nonprofit’s success in British Columbia.

Frequently Asked Questions

We’ve compiled answers to common questions about registering corporations and businesses across provinces in Canada. These responses help clarify the requirements for extra-provincial and federal business registration.

How do I register an extra-provincial corporation in BC?

We register through BC Registry Services by filing Form 4 with our corporation’s charter documents from the home jurisdiction. We need a registered office address in BC, pay the $350 fee, and provide proof of good standing from our original province. The registration allows us to legally conduct business in BC.

Can I register a business in another province in Canada?

We can register our corporation in other provinces through extra-provincial registration. Each province has its own requirements and fees. We need to maintain good standing in our home province and file the proper forms with the target province’s corporate registry office.

What is extra-provincial registration in Canada?

We use extra-provincial registration to legally operate our corporation in provinces other than where we originally incorporated. This registration gives us the right to conduct business, own property, and enter contracts in the new province while keeping our original corporate structure.

How to register a federal company in BC?

We register federally incorporated companies in BC through extra-provincial registration with BC Registry Services. We file Form 4, provide our federal certificate of incorporation, pay the $350 fee, and maintain a BC registered office address. This lets our federal corporation operate legally within BC.

How much does it cost to register a federal corporation in Canada?

We pay $200 to incorporate federally online through Corporations Canada. Express service costs $300 and processes within 24 hours. Paper applications cost more and take longer. These fees cover the basic federal incorporation process.

How much does it cost to register a business in BC?

We pay $350 to incorporate a BC company online. Extra-provincial registration also costs $350. Sole proprietorships and partnerships cost less, around $35-$100 depending on the structure. Additional services like name reservations and express processing have separate fees.

---

Working with Our Firm

In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.

By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.

At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.

Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.

Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.

Take the First Step Today

If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.

We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.

• If you or anybody that you know, think that you meet the requirements and wish to receive further information.
• We can help you start the application process and confirm eligibility requirements to participate.
• We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.

---

About Northfield

Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.

Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Questions?

info@northfied.biz

Within Corporate Newsroom  

Media Contact:

media@northfied.biz

Press contact 

PR consultants
press@northfied.biz

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Bookkeeping and Record Keeping for Registered Charities

Bookkeeping and record keeping are essential for registered charities to stay compliant with legal rules and maintain trust with donors.

You need to keep accurate financial records, track donations, expenses, and important documents to meet regulatory requirements and show transparency. This helps you manage your charity’s funds properly and avoid problems with tax authorities.

Your records should include details like donations received, how money is spent, board meeting minutes, and proof of your charity’s activities.

Good bookkeeping supports reporting to the government and helps you communicate your impact clearly to supporters.

Without careful record keeping, it becomes difficult to prove your charity’s work and financial health.

Core Bookkeeping and Record Keeping Requirements

Your registered charity must maintain clear and organized financial records to comply with legal rules.

These records include detailed documentation of income, expenses, and key organizational activities.

Keeping accurate books and records supports transparency and helps with audits or financial reviews.

Definition of Books and Records

Books and records are detailed documents that show all financial and administrative activities of your charity.

This includes your general ledger, which tracks all financial transactions like donations, grants, and expenses.

You must keep bank statements, receipts, invoices, and payroll records.

Meeting minutes and official organizational records are also part of your recordkeeping.

These documents prove how your charity manages funds and carries out its purpose.

Good bookkeeping tracks every dollar coming in and going out.

This ensures your charity’s financial health is clear and verifiable.

Importance of Accurate Record Keeping

Accurate record keeping is essential for your charity to prove compliance with tax laws and regulations.

It protects your organization during IRS examinations by providing clear evidence of income and expenses.

Well-maintained records help you prepare annual returns, like Form 990, and track unrelated business income if applicable.

Clear records also support financial transparency, helping your board and donors trust your management.

Poor record keeping increases risks like penalties, audit delays, or loss of tax-exempt status.

Detailed and organized records let you respond quickly and confidently to any financial questions.

Retention Periods for Documentation

You are required to keep your financial books and records for a specific time.

Usually, documents should be retained for at least 3 to 7 years depending on local laws and the IRS.

Important records to keep include your general ledger, bank statements, donor records, receipts, and meeting minutes.

You might need them longer if your charity is under audit or involved in legal matters.

Organize your files so you can access documents easily.

Keeping digital backups alongside paper copies protects your records from loss or damage.

Following retention rules helps you stay compliant and ready for reviews.

Legal and Regulatory Compliance for Charities

Your charity must follow specific laws and rules to keep its tax-exempt status and operate legally.

This means you need to file the proper forms, maintain key documents, and understand the risks if you fail to meet requirements.

Tax-Exempt Status and Reporting Obligations

To keep your tax-exempt status, you must operate according to rules set by tax authorities like the IRS in the U.S.

Your charity needs to have articles of incorporation and bylaws that outline your mission and governance structure.

You must track all income and expenses accurately.

This allows you to fill out forms such as Form 990 or Form 990-N (the electronic postcard) each year.

These reports explain your financial activities and prove you follow nonprofit rules.

If your charity earns income unrelated to its mission, you may have to file Form 990-T and pay tax on that income.

Proper record keeping ensures that you can support everything you report to the IRS.

IRS and CRA Filing Requirements

In the U.S., most tax-exempt charities must submit Form 990, 990-EZ, or 990-N annually to report their finances.

The IRS requires you to keep all records, including receipts, donations, and minutes from meetings.

This makes audits easier and keeps your organization transparent.

In Canada, the CRA has similar filing rules for registered charities.

You need to complete the T3010 Registered Charity Information Return and keep financial documents ready for inspection.

Missing or late filings can lead to penalties or loss of status.

Keeping accurate, up-to-date records and understanding what forms apply to your charity will help you meet these obligations confidently.

Consequences of Non-Compliance

Failing to meet legal filing and record-keeping rules risks losing your charity’s tax-exempt status.

The IRS or CRA can impose fines, penalties, or revoke registration, meaning your organization would owe taxes and lose credibility.

Non-compliance can also hurt donor trust and affect your ability to raise funds.

You might face audits requiring you to produce detailed books and records, which can be time-consuming and costly.

To avoid these consequences, stay organized with your financial records, file all required forms on time, and ensure your charity follows its governing documents and tax regulations at all times.

Nonprofit Bookkeeping Principles and Standards

You need to follow specific rules and guidelines to keep your nonprofit’s financial records clear and accurate.

These rules help you track income and expenses properly and report them in ways that meet legal and tax requirements.

Overview of GAAP and FASB Guidelines

Your nonprofit’s bookkeeping must follow Generally Accepted Accounting Principles (GAAP).

GAAP sets the foundation for how you record, report, and disclose financial information.

These guidelines ensure transparency and consistency in your financial statements.

The Financial Accounting Standards Board (FASB) creates detailed rules that build on GAAP specifically for nonprofits.

These rules guide how you should handle donations, grants, and fundraising income.

For example, you must distinguish between restricted and unrestricted funds and report them separately.

Using GAAP and FASB standards correctly helps you avoid mistakes that could lead to legal issues or lost tax-exempt status.

It also builds trust with donors and stakeholders by showing that you manage funds responsibly.

Differences Between Nonprofit and For-Profit Accounting

Your nonprofit’s accounting is different from a for-profit business in important ways.

Unlike for-profits, where the goal is profit maximization, nonprofits focus on how funds support your mission.

One key difference is in how you report income.

You must track donations and grants separately and show how these funds are used for programs or operations.

Profit-driven businesses focus mainly on sales and profits.

Also, your nonprofit must clearly report restrictions placed by donors.

For-profits don’t usually have these kinds of restrictions.

Your bookkeeping should reflect this by separating funds into categories like temporarily restricted or permanently restricted.

These differences mean you need to use bookkeeping methods designed for nonprofits to stay in compliance and maintain your tax-exempt status.

Fund Accounting and Financial Management

Understanding how to organize and manage your charity’s funds is essential for clear financial oversight and legal compliance.

You need to track money based on its purpose and ensure donors’ wishes are followed.

Good financial management protects your charity’s assets and supports informed decisions by your board.

Fund Accounting Structure

Fund accounting divides your charity’s money into separate “funds” to keep transactions clear.

Each fund represents a set of resources with a specific purpose or restriction.

You will typically work with:

• Restricted funds: Money given for a particular project or use.
• Unrestricted funds: Money available for general operations and expenses.

This system helps you show how every dollar is spent and keeps accounting transparent.

It aligns with your fiduciary duties by ensuring funds are used properly and reported accurately to your board and regulators.

Fund accounting also separates net assets based on restrictions, which is critical for audits and financial reports.

Managing Restricted and Unrestricted Funds

You must carefully track restricted funds to avoid misusing donations.

These funds require spending only as donors or grant agreements specify.

Mishandling them can harm trust and lead to compliance issues.

Unrestricted funds give you flexibility to cover your charity’s daily needs and unexpected costs.

Managing both types requires up-to-date records and regular reconciliation.

Your financial management should include:

• Coding transactions by fund type.
• Reporting separately on restricted and unrestricted funds.
• Communicating fund status clearly to your board of directors.

This level of detail helps your board fulfill their oversight role and protects your charity’s reputation.

It also ensures your financial statements truthfully reflect the state of your net assets.

Donation and Income Tracking

You need to keep detailed and accurate records of all donations and other income your charity receives.

This includes tracking cash gifts as well as non-cash contributions, and making sure donors receive proper acknowledgments for their support.

Tracking and Recording Donations

You must record every donation promptly and clearly.

For cash donations, note the amount, date, donor’s name, and payment method.

If donors give $5,000 or more, you must keep extra details to meet IRS requirements.

Organize donation data so you can easily report it on your annual tax forms.

This helps with transparency and donor trust.

Use a consistent system, whether a software tool or manual ledger, to track donations.

Keep your records updated and accurate to avoid issues during audits or financial reviews.

In-Kind Donations and Contribution Records

In-kind donations are gifts of goods or services rather than money.

You must value these fairly and record them with details like donor name, description of the gift, and estimated value.

Tracking in-kind donations is essential because you report this information on tax forms and use it when demonstrating your charity’s impact.

Make sure to get written confirmation from donors about their in-kind gifts.

This can protect your organization and provide proof during financial audits or government checks.

Donation Receipts and Acknowledgements

For every donation, you must provide a receipt or acknowledgement letter.

This should include the donor’s name, the donation amount or description of the gift, and the date received.

Receipts are important for donors to claim tax deductions.

They also show your charity is transparent and organized.

Make acknowledgements timely.

For cash gifts, send receipts soon after receiving the donation.

For in-kind gifts, include an estimated value or note that the donor is responsible for determining value for tax purposes.

Financial Reporting and Essential Statements

You need clear, accurate financial statements to track your charity’s money and show how well you manage resources.

These reports detail your assets, income, expenses, and cash movement.

They help you meet legal rules and build trust with donors and regulators.

Statement of Financial Position

The Statement of Financial Position shows what your charity owns and owes at a specific date.

It lists assets, liabilities, and net assets (or fund balance).

Assets include cash, donations receivable, and equipment.

Liabilities cover debts like unpaid bills or loans.

This statement helps you check your charity’s financial health.

You can see if your assets are enough to cover your liabilities.

Accurate records here are vital because this report is part of your annual filings to regulators and key for board decisions.

Statement of Activities

This is also called the income statement.

It tracks your charity’s revenues and expenses over a set time, like a year.

You report donations, grants, program income, and other earnings as revenues.

Expenses include program costs, salaries, fundraising, and management.

This statement shows if your charity runs at a surplus or a deficit.

It’s important to detail program expenses separately to prove that money is spent on your mission.

Clear reporting helps donors see how funds are used.

Statement of Cash Flows

This report details the flow of cash into and out of your charity.

It breaks down cash from operating activities, investing, and financing.

You use it to track if your charity generates enough cash to pay bills and continue programs.

Unlike the income statement, it focuses on actual money moving, not just accounting entries.

Maintaining a cash flow statement supports budgeting and planning.

It also reassures donors and regulators that your charity handles cash responsibly.

Preparation of Monthly and Annual Reports

You should prepare monthly reports to monitor ongoing finances.

These include summaries of income, expenses, and cash position.

Monthly reports help spot issues early.

Annual reports combine all financial statements and provide a full view of your charity’s year.

They usually include notes explaining key accounting methods and unusual entries.

Accurate, timely reports ensure compliance and improve transparency.

You may need them to file tax forms and funding applications.

Consider using accounting software or hiring experts to keep reports reliable.

Implementing Internal Controls and Best Practices

Setting up clear steps helps protect your charity’s money and keeps your records accurate.

You need strong checks, regular reviews of your bank statements, and the right tools to manage your finances efficiently.

Internal Controls and Fraud Prevention

Internal controls are rules and processes you put in place to stop mistakes and fraud.

You should divide financial tasks among different people.

For example, one person approves expenses while another handles payments.

This limits the chance any one person can misuse funds.

Always require dual approvals for large purchases.

Keep detailed records of all transactions to make it easy to track money.

Training your staff regularly on these rules makes sure everyone knows their role.

Bank Reconciliation Procedures

Bank reconciliations are important to compare your records with the bank’s records.

This ensures your books are accurate.

Perform these reconciliations monthly or quarterly.

Check every deposit, withdrawal, and fee listed by the bank against your records.

If you find differences, investigate right away.

Common issues could be outstanding checks or bank errors.

Choosing and Using Accounting Software

The right accounting software can make your bookkeeping easier and more secure.

Look for software designed for nonprofits.

It should offer features like tracking donations, managing budgets, and generating financial reports.

Cloud-based options give you real-time access and automatic backups.

Use software that supports bank reconciliations and has built-in controls for handling expenses and approvals.

Make sure your staff knows how to use the software properly to avoid data mistakes.

Regular updates and technical support are also important.

Conclusion

If you need expert help with your charity’s bookkeeping and record-keeping requirements, reach out to the specialists at Northfield & Associates. We understand all the CRA rules about what records to keep, how long to store them, and the best ways to organize your financial documents. Our team can help you set up proper systems from the start so you can focus on your charity’s mission instead of worrying about compliance issues.

Good bookkeeping isn’t just about following rules—it protects your charitable status and keeps your organization running smoothly. The experts at Northfield & Associates work with charities across Canada to make financial management simple and stress-free. Whether you’re just starting a new charity or need help fixing existing record-keeping problems, they have the experience to guide you through every step.

Frequently Asked Questions

You need to keep detailed records, use appropriate bookkeeping tools, and follow the right accounting methods to manage your charity’s finances.

Understanding the legal standards and proper reporting will help you maintain compliance and transparency.

What are the record keeping requirements for charities?

You must keep minutes of all board and member meetings.

These should be stored as long as your charity exists and for two years after its status ends.

Donation receipts need to be kept for at least two years after the end of the year they were issued.

For gifts lasting ten years, keep receipts for two years after your charity loses its status.

Financial statements, ledgers, tax returns, and source documents must be kept for six years.

If your charitable status is revoked, keep these for two years after the revocation date.

What is the bookkeeping software for charities?

You should use software designed for nonprofit needs.

Many options track donations, grants, and expenses clearly.

Choose software that helps maintain compliance and generates reports for audits.

Cloud-based options offer easy access and data backup.

What is the best accounting method for nonprofit organizations?

Most charities use accrual accounting.

This method records income and expenses when they occur, not when money changes hands.

Accrual accounting provides a clearer picture of your charity’s financial health.

Some small nonprofits may use cash basis accounting if simpler tracking fits their work.

What is the accounting standard for charity?

Charities follow Generally Accepted Accounting Principles (GAAP) or similar nonprofit accounting standards in their country.

These standards ensure your financial records are accurate and comparable.

They require clear tracking of restricted and unrestricted funds.

What is the journal entry for charity?

When your charity receives a donation, debit the cash or bank account and credit donation income.

If a donation has restrictions, credit a separate restricted fund account.

When you spend from this fund, reverse these entries to track use properly.

What are the reporting requirements for charities?

You must prepare annual financial statements showing income, expenses, assets, and liabilities.

Submit tax returns and reports to government bodies.

Keep these documents accessible in case of audits.

---

Working with Our Firm

In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.

By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.

At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.

Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.

Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.

Take the First Step Today

If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.

We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.

• If you or anybody that you know, think that you meet the requirements and wish to receive further information.
• We can help you start the application process and confirm eligibility requirements to participate.
• We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.

---

About Northfield

Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.

Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Questions?

info@northfied.biz

Within Corporate Newsroom  

Media Contact:

media@northfied.biz

Press contact 

PR consultants
press@northfied.biz

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.

You want to make a difference in your community, but you’re not sure whether starting a charity is the right move. Maybe your cause doesn’t fit neatly into traditional charitable categories, or perhaps you want more flexibility in your activities. Starting a nonprofit in Ontario might be exactly what you need.

Here’s what many people don’t realize: nonprofits and charities aren’t the same thing. While all charities are nonprofits, not all nonprofits are charities. This distinction matters more than you might think, especially when it comes to what you can do, how you raise money, and what paperwork you’ll face.

Starting a nonprofit in Ontario has become more straightforward since the Ontario Not-for-Profit Corporations Act (ONCA) came into effect, but there are still plenty of ways to trip up if you don’t know what you’re doing. The good news? With proper planning and the right guidance, you can have your nonprofit up and running in a matter of weeks.

Let’s walk through everything you need to know to start a nonprofit in Ontario, from choosing the right structure to maintaining compliance once you’re operational.

Nonprofit vs Charity: Which Structure is Right for You?

This is the first big decision you’ll face, and getting it wrong can limit your organization’s effectiveness for years to come.

What Makes a Nonprofit Different from a Charity

Nonprofits are organizations that don’t distribute profits to owners or shareholders. Any money left over after expenses goes back into the organization’s mission. That’s it – pretty simple.

Charities are a special type of nonprofit that meets specific legal requirements under Canadian law. They have exclusively charitable purposes (relief of poverty, advancement of education, advancement of religion, or other purposes beneficial to the community) and get special tax benefits in exchange for following strict rules.

When to Choose Nonprofit Structure

A regular nonprofit might be right for you if:

• Your purposes don’t fit the narrow definition of charitable purposes
• You want to engage in political advocacy as a primary activity
• You need flexibility to pursue different types of activities
• You’re focused on membership services rather than public benefit
• You want to start operating immediately without waiting for charity approval

Examples of organizations that work well as nonprofits include advocacy groups, professional associations, sports clubs, cultural organizations, and social clubs.

When Charity Status Makes More Sense

Charity status is usually better if:

• Your work clearly fits charitable purposes
• You plan to rely heavily on donations from individuals
• You want to apply for grants restricted to registered charities
• Tax receipts will be important for fundraising
• You’re comfortable with stricter oversight and regulations

If you’re torn between the two, remember that you can start as a nonprofit and apply for charitable status later. Many successful organizations begin as nonprofits and convert to charities once they’re established and ready to handle the additional compliance requirements.

The Hybrid Approach

Some organizations use a two-entity structure with both a nonprofit and a charity. The nonprofit handles advocacy and political activities while the charity focuses on direct service. This approach requires careful legal planning but can provide maximum flexibility.

Ontario Nonprofit Incorporation Process (ONCA)

Ontario’s nonprofit incorporation process is governed by the Ontario Not-for-Profit Corporations Act (ONCA), which modernized the rules for nonprofit organizations in the province.

Why ONCA Matters for New Nonprofits

ONCA replaced outdated legislation with clearer rules and better governance requirements. For new nonprofits, this means:

• More straightforward incorporation process
• Clearer governance requirements
• Better protection for directors and members
• More flexibility in organizational structure

Basic Requirements for Incorporation

To incorporate a nonprofit in Ontario, you need:

• At least three directors (who don’t have to be Ontario residents)
• A unique name that complies with naming rules
• Articles of incorporation that set out your basic structure
• Bylaws that govern how your organization operates

The Online Application Process

Ontario uses an online system called Ontario Business Registry (OBR) for nonprofit incorporation. The process involves:

1. Name search: Check if your preferred name is available ($8)
2. Prepare articles of incorporation: Basic information about your organization
3. Submit application: Online through OBR with supporting documents
4. Pay fees: $155 for online filing
5. Receive certificate: Usually within 5-10 business days

Choosing Your Nonprofit Name

Your name must:

• Be unique and not confusingly similar to existing organizations
• Include a legal element like “Inc.,” “Incorporated,” “Corporation,” or “Corp.”
• Not suggest government affiliation unless you actually have it
• Not include restricted words without proper authorization

Consider getting a numbered company if you’re having trouble with name availability. You can operate under a business name while using the numbered corporation for legal purposes.

Articles of Incorporation Essentials

Your articles must include:

• Organization name and any French version
• Purpose of the organization (can be broad for nonprofits)
• Classes of membership and voting rights
• Number of directors (minimum and maximum)
• Restrictions on business activities (if any)
• Location of registered office

Keep your purposes reasonably broad to allow for evolution as your organization grows. You can always add more specific details in your bylaws.

Required Documents for Ontario Nonprofit Registration

Getting your paperwork right from the start saves headaches later. Here’s what you need to prepare:

Articles of Incorporation

This is your organization’s basic charter. Think of it like a birth certificate that establishes your legal existence. The articles are public documents that anyone can access, so keep sensitive information out of them.

Key sections include:

• Statement of purposes (keep these broad)
• Membership structure (if you plan to have members)
• Board composition and director qualifications
• Registered office location

Corporate Bylaws

Bylaws are your organization’s internal operating manual. Unlike articles, bylaws aren’t usually public documents, so you can include more detailed operational information.

Essential bylaw provisions cover:

• Board meeting procedures and voting requirements
• Officer roles and responsibilities
• Member rights and meeting procedures (if applicable)
• Conflict of interest policies
• Financial management and signing authorities

Initial Resolutions and Minutes

After incorporation, you’ll need to hold organizational meetings to:

• Adopt bylaws
• Elect officers
• Appoint an accountant
• Set up banking arrangements
• Approve initial policies

Document these decisions in formal resolutions and meeting minutes. Proper records protect your organization and demonstrate good governance to funders and partners.

Conflict of Interest Policy

ONCA requires nonprofits to have conflict of interest procedures. Your policy should cover:

• Definition of conflicts of interest
• Disclosure requirements for directors and members
• Procedures for handling conflicts
• Record-keeping requirements

Other Important Policies

While not legally required, these policies help your organization operate effectively:

• Financial management and investment policies
• Human resources policies (if you plan to hire staff)
• Privacy and information management policies
• Risk management and insurance policies

Governance Requirements Under ONCA

ONCA sets out specific governance requirements that Ontario nonprofits must follow. Understanding these upfront helps you structure your organization properly.

Board of Directors Requirements

Every Ontario nonprofit needs a board of directors with:

• Minimum three directors (unless you have fewer than three members)
• At least 18 years old
• Not bankrupt or mentally incapacitated
• Majority must be Canadian residents (unless you have fewer than four directors)

Directors have legal responsibilities including duty of care, duty of loyalty, and duty to act in the organization’s best interests.

Member Rights and Protections

If your nonprofit has members, ONCA gives them specific rights:

• Right to receive financial statements
• Right to vote on fundamental changes
• Right to requisition meetings
• Right to nominate directors

You can have different classes of members with different rights, but all members must be treated fairly within their class.

Meeting Requirements

ONCA requires:

• Annual member meetings (if you have members)
• Proper notice for all meetings
• Quorum requirements for valid decisions
• Minutes recording all significant decisions

Board meetings should happen regularly, even if not legally required. Good governance means staying engaged with your organization’s activities.

Financial Reporting and Accountability

Ontario nonprofits must:

• Keep proper accounting records
• Prepare annual financial statements
• Have financial statements reviewed or audited (depending on size)
• Make financial information available to members

Amendment Procedures

Changes to articles of incorporation require:

• Board resolution authorizing the change
• Member approval (if you have members with voting rights)
• Filing with the government
• Payment of amendment fees

Banking and Tax Considerations for Ontario Nonprofits

Setting up your financial systems properly from the start prevents problems later.

Opening a Business Bank Account

You’ll need a business bank account as soon as you’re incorporated. Most banks require:

• Certificate of incorporation
• Articles of incorporation and bylaws
• List of signing authorities (usually directors and officers)
• Valid identification for all signing authorities

Shop around for banks that offer nonprofit accounts with reduced fees. Some credit unions provide better service and lower costs for nonprofit organizations.

Tax Status for Nonprofits

Ontario nonprofits that aren’t registered charities have specific tax obligations:

• Generally exempt from income tax on revenues related to their exempt purposes
• May pay tax on investment income or unrelated business income
• Must file T2 corporate tax returns if required
• Pay HST on taxable supplies (may be eligible for rebates)

HST Registration and Rebates

Nonprofits must register for HST if their taxable supplies exceed $50,000 annually. However, nonprofits can claim rebates on HST paid:

• 50% rebate for qualifying nonprofits
• Higher rebates available for specific types of nonprofits
• Must file separate rebate applications

Bookkeeping and Financial Management

Establish proper financial systems early:

• Use accounting software designed for nonprofits
• Track restricted and unrestricted funds separately
• Maintain documentation for all transactions
• Prepare regular financial reports for your board

Common Legal Mistakes New Ontario Nonprofits Make

Learning from others’ mistakes can save you time, money, and legal headaches.

Mistake #1: Confusion About Charitable Status

Many people think incorporating as a nonprofit automatically makes them a charity. It doesn’t. If you want to issue tax receipts or be exempt from income tax, you need separate charity registration with the CRA after incorporation.

Mistake #2: Inadequate Governance Documentation

Failing to properly document board decisions, maintain corporate records, or follow your own bylaws creates legal vulnerabilities. Keep good records from day one.

Mistake #3: Poor Financial Controls

New nonprofits often operate informally without proper financial controls. This can lead to problems with funders, auditors, and regulatory compliance. Establish signing authorities, approval limits, and oversight procedures early.

Mistake #4: Ignoring ONCA Compliance

ONCA has specific requirements for things like financial reporting, member rights, and governance procedures. Ignoring these requirements can result in penalties or forced dissolution.

Mistake #5: Mixing Personal and Organizational Finances

Using personal accounts for organizational business creates legal and tax problems. Open a business bank account immediately after incorporation and use it exclusively for organizational activities.

Mistake #6: Operating Beyond Your Stated Purposes

While nonprofit purposes can be broad, you still need to operate within them. Activities that fall outside your stated purposes can jeopardize your tax-exempt status.

Ongoing Compliance for Ontario Nonprofits

Once you’re incorporated, staying compliant involves regular filings and good governance practices.

Annual Filings with Ontario Government

Ontario nonprofits must file annual returns through the Ontario Business Registry:

• Due within 60 days of your fiscal year-end
• $20 filing fee
• Basic information about directors, registered office, and activities

Missing filing deadlines can result in penalties and eventual dissolution of your corporation.

Corporate Tax Filings

Depending on your activities and income, you may need to file:

• T2 corporate tax returns (if required)
• HST returns (if registered)
• Payroll remittances (if you have employees)

Maintaining Corporate Records

ONCA requires nonprofits to maintain:

• Articles of incorporation and bylaws
• Board and member resolutions
• Minutes of meetings
• Financial statements and accounting records
• Register of directors and members

Keep these records organized and accessible. You may need to produce them for audits, funding applications, or legal proceedings.

Insurance and Risk Management

Consider essential insurance coverage:

• General liability insurance for your activities
• Directors and officers insurance to protect board members
• Property insurance if you own equipment or lease space

Regular Governance Reviews

Periodically review and update:

• Bylaws to ensure they meet current needs
• Policies to reflect best practices
• Board composition to ensure appropriate skills and diversity
• Strategic plans to guide organizational development

Converting Your Ontario Nonprofit to Charity Status

Many nonprofits eventually decide they want charitable status for the tax benefits and grant opportunities it provides.

When Conversion Makes Sense

Consider applying for charitable status when:

• Your activities clearly fall within charitable purposes
• You’re ready to handle additional compliance requirements
• Tax receipts would significantly help your fundraising
• You want access to grants restricted to registered charities

The Conversion Process

Converting to charity status involves:

1. Ensuring your purposes and activities qualify as charitable
2. Amending your governing documents if necessary
3. Applying for charitable status with the CRA (Form T2050)
4. Waiting 6-12 months for approval
5. Implementing charity compliance systems

This process is similar to registering a charity in Ontario from scratch, but with the advantage that your organization is already established and operating.

Legal Considerations for Conversion

Before applying for charitable status:

• Review your articles and bylaws to ensure they meet charity requirements
• Assess whether your current activities all qualify as charitable
• Consider whether you can handle the additional oversight and restrictions
• Plan for the transition period while your application is being processed

Professional Help for Conversion

Converting to charity status involves complex legal requirements. Most organizations benefit from working with experienced charity lawyers who understand both nonprofit law and charity requirements.

Starting a nonprofit in Ontario gives you flexibility to pursue your mission while building toward potential charity status later. The key is understanding your options, following proper procedures, and maintaining good governance from the beginning.

Whether you’re considering the costs involved in starting a charity or want to begin with a nonprofit structure, proper legal guidance helps you make informed decisions that support your long-term goals.

Northfield & Associates helps Ontario organizations navigate both nonprofit incorporation and charity registration processes. The right professional support ensures you choose the structure that best serves your mission while maintaining compliance with all legal requirements.

Ready to start your nonprofit in Ontario with confidence?

Work with experienced professionals who understand the legal landscape and can guide you through each step of building a successful organization that makes a real difference in your community.

Contact Northfield & Associates for expert guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.

Get professional support today by email at info@northfield.biz, by phone at (416) 317-6806, or visit us or Schedule your free consultation to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.

Ready for better nonprofit reporting?

At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.

GET IN TOUCH

What We Do!

We’re often asked by prospective clients what our Bookkeeping Service covers?  People want to know what specific tasks we do, and what their responsibility is.  This brief explainer page will answer that question.  This is by no means an exhaustive list, but covers the most frequently asked questions.

Getting Started

• Review your existing books for needed corrections or back-work
• Chart of accounts setup or amendment
• Assistance with setting up bank feeds
• Limited assistance* with setting up payroll (QBO or Gusto only)
• Your books brought current and reconciled if needed

Ongoing Monthly Bookkeeping

• After-the-fact transaction recording
• Post to general ledger
• Post to other ledgers (as needed)
• Bank account reconciliation
• Monthly financial statements
• Other bookkeeping services, as required
• Best-practice bookkeeping advice and counsel

Year End

• Assistance with 1099-NEC preparation*
• Assistance with 1099-MISC preparation*
• Year-end financial statements and period-end closing

What We Don’t Do

Pay bills

We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).

Payroll tax responsibility

Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state.  Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.

*Payroll deductions and benefits

We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data.  We do not assist in state registrations, benefits, or advise on deductions.  Those service areas are provided directly by either QBO or Gusto.

Preparation of W2s

Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.

Sales tax reporting

For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.

Donation recording

We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.

Administrative tasks

We cannot provide administrative services unrelated to our bookkeeping function.

Attend board meetings

Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.

Let’s Collaborate & Make a Difference!

Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!

Book a Call

Contact us today to schedule your consultation.

Working with Our Firm

In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.

By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.

Book a Consultation with Northfield & Associates

Your Trusted Partner in International Bilateral Relations

At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.

Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.

Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.

Northfield & Associates

Advancing Global Partnerships, Together.

Take the First Step Today

If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.

Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.

We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.

• If you or anybody that you know, think that you meet the requirements and wish to receive further information.
• We can help you start the application process and confirm eligibility requirements to participate.
• We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.

Book a Consultation Today

Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.

Book a call with a Consultation

Join the community of Northfield & Associates

Connect with peers and community ambassadors to hear real experiences, tips, and advice about studying abroad.

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About Northfield

Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.

Forward-Looking Information

This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.

Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Questions?

info@northfied.biz

Within Corporate Newsroom  

Media Contact:

media@northfied.biz

Press contact 

PR consultants
press@northfied.biz

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.