Category: Financial Institution & Services

Letters Patent vs Articles of Incorporation in Canada

If you’re thinking about starting a charity or nonprofit in Canada, especially in Ontario, you may have come across terms like Articles of Incorporation and Letters Patent. They might sound the same, but they’re not and understanding the difference between letters patent and articles of incorporation is crucial for your organization’s legal compliance and governance.

Whether you’re incorporating a new nonprofit, transitioning an existing organization under ONCA, or applying for CRA charity registration, knowing which governing document applies to your organization affects everything from board structure to amendment procedures. In this guide, we’ll break down what these terms mean, how they differ, and what you need to know about federal vs provincial nonprofit incorporation in Canada.

What Are Letters Patent?

Letters patent are an old-fashioned way of officially and legally starting a nonprofit. Before 2010, this was the legal document you received from the government when your nonprofit was approved in Ontario. Think of it like a birth certificate it gave your group legal life.

The word patent comes from a Latin phrase meaning “open letter.” It’s called that because it’s a public document. The government uses it to show that they’ve allowed a group or company to exist.

What Is the Purpose of Letters Patent?

The purpose of a letter patent was to create a legal entity. It told the world:

• Who started the organization
• What its goals are (like helping the community, raising awareness, or providing services)
• Who’s running it (called directors)
• What rules will it follow
• Rules for amending the organization’s structure
• Restrictions on dissolving the organization

For charities, the letters patent also included charitable objects, which are specific goals your organization must stick to in order to stay registered as a charity with the CRA.

Are Articles of Incorporation the Same as Letters Patent?

Not exactly. Articles of Incorporation replaced letters patent when newer laws came into effect.

• For Ontario nonprofits, the Not-for-Profit Corporations Act (ONCA) came into force in October 2021. Since then, new nonprofits apply using Articles of Incorporation instead of letters patent. Organizations that didn’t transition by the ONCA deadline (October 19, 2024) faced administrative dissolution, though some extensions were granted.
• For federal nonprofits, the Canada Not-for-profit Corporations Act replaced the old system in 2011. That means federally incorporated charities and nonprofits now also use Articles of Incorporation.

So if you’re starting a nonprofit or charity today, you won’t use letters patent anymore. But if your organization was created before these new laws, you might still have letters patent on file. That’s why you’ll hear both terms, even though only one is still used for new applications.

What Are Articles of Incorporation?

Articles of Incorporation are the modern version of letters patent. They’re a form you submit to either:

• Corporations Canada, if you want to register your nonprofit at the federal level, or
• ServiceOntario, if you’re incorporating a nonprofit within Ontario

This document includes similar information to letters patent:

• The legal name of your organization
• The purpose or mission of the nonprofit or charity
• The structure (who the directors are, where the office is, etc.)
• Any special rules or restrictions

Once approved, you officially exist as a legal nonprofit or charity. You can then open bank accounts, hire staff, apply for grants, and register as a charity if eligible.

How Letters Patent and Articles of Incorporation Affect CRA Charity Registration

Whether your organization operates under letters patent or articles of incorporation has direct implications for your CRA charity registration. Here’s what you need to know:

Charitable Objects Must Be Clearly Stated

Both documents must contain your organization’s charitable objects—the specific purposes that qualify your organization as a charity under Canadian law. The CRA requires these objects to fall into one or more of the four recognized charitable categories:

• Relief of poverty
• Advancement of education
• Advancement of religion
• Other purposes beneficial to the community

CRA Requirements for Charitable Purposes

When drafting either letters patent or articles of incorporation for a charity, the charitable objects must be:

• Exclusively charitable: Your organization cannot have non-charitable purposes mixed in
• Specific and clear: Vague language like “doing good works” won’t meet CRA standards
• Legally compliant: Objects must align with current charity law definitions

Common Mistakes in Drafting Charitable Objects

Many organizations run into problems when their governing documents contain:

• Purposes that are too broad or vague
• Non-charitable activities listed as objects (like political activities)
• Objects that could benefit private individuals rather than the public
• Language that doesn’t match CRA’s interpretation of charitable purposes

Transitioning Your Governing Documents

If you’re transitioning from letters patent to articles of incorporation, you generally do not need to reapply to the CRA for charity registration. However, you must:

• Ensure your charitable objects remain substantially the same
• Notify the CRA of any changes to your governing documents
• Submit updated articles to the CRA within required timelines
• Maintain consistency between your articles and your T3010 annual return

If you’re making significant changes to your charitable objects during the transition, consult with a charity lawyer first material changes may require CRA approval to maintain your registered status.

Key Differences: Letters Patent vs Articles of Incorporation

Understanding the practical differences between these two types of governing documents helps you appreciate why transitioning from letters patent to articles of incorporation offers significant advantages:

Governance Flexibility

Letters Patent:

• Often specify exact number of directors (e.g., “seven directors”)
• Rigid board structure requirements
• Limited flexibility for organizational growth

Articles of Incorporation:

• Allow for variable board sizes (e.g., “minimum 3, maximum 15 directors”)
• More adaptable governance structures
• Easier to adjust as organization evolves

Amendment Process

Letters Patent:

• Require supplementary letters patent for most changes
• More complex and costly amendment procedures
• Government approval needed for structural changes

Articles of Incorporation:

• Can be amended through special resolution in most cases
• Simpler, faster amendment process
• More cost-effective to update

Modern Governance Features

Letters Patent:

• Limited provisions for electronic meetings
• Older proxy and voting procedures
• May not address current governance best practices

Articles of Incorporation:

• Specifically allow electronic meetings and voting
• Modern member rights and notification requirements
• Built-in provisions for current governance standards

Director Liability Protections

Letters Patent:

• Often lack specific indemnification clauses
• May have outdated liability provisions

Articles of Incorporation:

• Include modern indemnification protections for directors
• Clear provisions regarding director duties and liabilities
• Better alignment with current corporate law protections

Reporting Requirements

Letters Patent:

• May be subject to older reporting regimes
• Less standardized disclosure requirements

Articles of Incorporation:

• Clear, standardized annual filing requirements
• Consistent reporting across all organizations under same Act
• Better compliance tracking systems

Do I Need to Worry About Letters Patent?

If you’re starting a new nonprofit, probably not. You’ll be using Articles of Incorporation instead.

But if you’re already part of a charity that was formed before 2011 (federal) or before 2021 (Ontario), your organization may still be governed by letters patent. That means:

• You should review your letters patent and bylaws
• You may need to update your documents to meet current laws
• You might need to switch over to the new rules (called “transitioning under ONCA” in Ontario or “continuance” federally)

How to Transition from Letters Patent to Articles of Incorporation

If your organization still operates under letters patent, transitioning to articles of incorporation—known as continuance—is an important step for compliance and modernizing your governance structure.

Why Transition?

Transitioning from letters patent to articles of incorporation provides several benefits:

• Legal compliance: Meet current provincial or federal requirements
• Governance flexibility: Adopt modern governance practices like electronic meetings
• Simplified amendments: Make future changes more easily and cost-effectively
• Better indemnification: Protect your directors with updated liability provisions
• Clearer structure: Benefit from standardized, contemporary corporate language

ONCA Transition Requirements (Ontario)

For Ontario nonprofits, the ONCA transition deadline was October 19, 2024. Organizations that missed this deadline risked administrative dissolution, though some received extensions. If your organization hasn’t transitioned yet:

• Contact ServiceOntario or a charity lawyer immediately
• File your articles of amendment or continuance
• Update your bylaws to comply with ONCA
• Ensure your charitable objects remain compliant with CRA requirements

Federal Continuance Process

For federal nonprofits operating under letters patent, the continuance process involves:

• Filing articles of continuance with Corporations Canada
• Adopting new bylaws that comply with the Canada Not-for-profit Corporations Act
• Passing special resolutions at a members’ meeting
• Updating your charitable objects if necessary

What Documents Need Updating

When transitioning, you’ll typically need to update:

• Articles of Continuance or Amendment: Your new governing document
• Bylaws: Must comply with current Act (ONCA or federal NFP Act)
• Charitable objects: Reviewed and confirmed to meet CRA standards
• Member register: Updated to reflect new requirements
• Director register: Ensuring compliance with new standards

Costs and Timeline

The continuance process typically involves:

• Government filing fees: $155-$330 depending on jurisdiction
• Legal fees: $2,000-$5,000+ depending on complexity
• Timeline: 2-6 months from start to completion, depending on organization’s readiness

Organizations with complex structures, multiple classes of members, or unique charitable objects may require more time and legal support.

Working with Legal Counsel

Transitioning from letters patent to articles of incorporation is a legal process that affects your organization’s fundamental structure. It’s recommended to work with a charity lawyer who can:

• Review your current letters patent and bylaws
• Draft compliant articles of continuance
• Ensure charitable objects meet CRA requirements
• Guide your board through required resolutions and meetings
• File all necessary documents with government authorities

Common Mistakes to Avoid

When dealing with letters patent and articles of incorporation, organizations frequently make these mistakes:

Not Transitioning by Required Deadlines

Many Ontario nonprofits missed the ONCA transition deadline, resulting in administrative dissolution or scrambling for last-minute compliance. Always monitor regulatory deadlines and plan your transition well in advance.

Changing Charitable Objects Without CRA Approval

If you’re a registered charity transitioning to articles of incorporation, don’t make substantial changes to your charitable objects without consulting the CRA. Material changes could jeopardize your registered status.

Assuming Letters Patent Automatically Convert

Letters patent do not automatically become articles of incorporation. You must file the proper continuance or amendment documents with the government to complete the transition.

Not Updating Bylaws

Transitioning your governing document without updating your bylaws creates inconsistencies. Your bylaws must align with your new articles of incorporation and comply with the current Act.

Failing to Involve Legal Counsel

Corporate transitions are complex legal processes. Organizations that attempt DIY transitions often end up with non-compliant documents, miss required filings, or create governance problems that are costly to fix later.

Ignoring Member Approval Requirements

Continuance typically requires a special resolution passed by members. Failing to properly notify members, hold required meetings, or achieve the necessary voting threshold can invalidate your transition.

Final Thoughts

To keep it simple: Letters patent are the old version, and articles of incorporation are the new version of the same idea legally forming your nonprofit or charity.

If you’re unsure what your organization has, or if you’re starting fresh, let us help. Getting it right at the beginning or transitioning correctly is key to running a successful charity that meets both government and CRA requirements.

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Frequently Asked Questions

Letters patent served as the old legal document for forming nonprofits before 2010 in Ontario. Articles of incorporation replaced them under modern federal and provincial laws.

Understanding these documents helps clarify how Canadian nonprofits are legally established today.

What are letters patent in Canada?

Letters patent were the original documents used to form nonprofits and corporations in Canada, granting them legal existence. They were public documents containing key information like the organization’s name, purpose, and rules. In Ontario, they were used until 2010; federally, until 2011. Organizations with older structures may still operate under letters patent but may need to update their documents to comply with modern laws.

What are Articles of Incorporation in Canada?

Articles of incorporation are now the standard legal documents for creating nonprofits and corporations in Canada. They are filed with either Corporations Canada or ServiceOntario, depending on whether the organization is federal or provincial. Articles include important details about the organization’s name, purpose, structure, and rules. Once approved, the organization becomes a legal entity and can operate officially.

What is a certificate of Incorporation in Canada?

A certificate of incorporation is the official document issued by the government after your articles of incorporation are approved. It confirms your organization’s legal status and includes details like the incorporation date and number. This certificate is often required to open bank accounts or conduct business in Canada.

What are articles of association in Canada?

Articles of association are not commonly used in Canadian law. Instead, Canada uses articles of incorporation, which serve the same purpose of outlining the structure and rules of a corporation. Some older organizations might still have articles of association, but most use articles of incorporation along with bylaws for governance.

What are the forms of articles of association?

Canada does not use articles of association as standard. The typical documents are articles of incorporation, bylaws, and sometimes policies and procedures. These documents together set out how a corporation is structured and governed, with specific forms varying by federal or provincial incorporation.

What implications do Letters Patent and Articles of Incorporation have on the governance and structure of a Canadian corporation?

Both letters patent and articles of incorporation create the legal framework for a corporation, setting its purpose and rules. Letters patent often mean an older governance structure, which may need updating to comply with current laws. Articles of incorporation offer more flexibility, such as variable board sizes and electronic voting. Transitioning to articles can modernize governance and ensure compliance with today’s legal requirements.

Do I need to convert my letters patent to articles of incorporation?

If your organization is incorporated in Ontario and was formed before October 2021, you were required to transition to articles of incorporation under ONCA by October 19, 2024. Organizations that missed this deadline may face administrative dissolution. For federal nonprofits formed before 2011, continuance under the Canada Not-for-profit Corporations Act is strongly recommended but may not have a hard deadline. Transitioning provides governance flexibility and ensures compliance with current corporate law.

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.

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

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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.

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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. They understand all the CRA rules about what records to keep, how long to store them, and the best ways to organize your financial documents. Their 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.

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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.

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.

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

Get professional support today

Email info@northfield.biz

Phone (416) 317-6806

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What We Do!

We’re often asked by prospective clients what our Bookkeeping service. 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.

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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.

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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.

Contact us today to schedule your free consultation.

Northfield & Associates

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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.

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Legal Guidelines for Fundraising Events for Canadian Charities

If you organize a charity fundraising event, you are not authorized to provide receipts for donations made on behalf of the charity. Only the charity has the authority to issue such receipts. Furthermore, providing its registration number for receipting purposes may cause a charity to lose its registration.

To provide receipts for a fundraising event or activity, it is essential to evaluate the worth of the advantages offered to all people involved. These advantages must be deducted from the gift total prior to being able to provide a receipt for the eligible sum. The process of establishing the eligible amount of a gift is known as split receipting.

“Intention to make a gift” threshold?

If the worth of the advantage gained exceeds 80% of the gift’s value, it is typically deemed that the intention to contribute the gift is not genuine, and a receipt may not be issued.

Understanding Charity Tax Receipt Authority

Who Can Issue Tax Receipts?

Only registered charities have the legal authority to issue official tax receipts for donations. As an event organizer, you cannot provide these receipts yourself, even when organizing events on behalf of a charity.

Critical Warning: Never share a charity’s registration number for receipting purposes. This serious mistake can cause the charity to lose its official registration status with the Canada Revenue Agency (CRA).

Split Receipting: Calculating Eligible Donation Amounts

Split receipting determines how much of each contribution qualifies for a tax receipt. You must evaluate and subtract all benefit values from the total donation amount before issuing receipts.

The 80% Gift Intention Rule

Canadian tax law requires genuine gift intention for all charitable donations. If benefits exceed 80% of the total donation value, the CRA considers the intention to make a gift as not genuine, and no tax receipt can be issued.

This threshold protects the integrity of charitable giving by ensuring donors make genuine contributions rather than purchasing goods or services.

Benefits That Must Be Deducted From Donations

Primary Event Benefits

These advantages form the main purpose of your fundraising event and must be subtracted from donation amounts:

Fundraising Dinners:

• Meal costs
• Entertainment value
• Venue access fees

Golf Tournaments:

• Green fees and course access
• Cart rental charges
• Meal and refreshment costs

General Events:

• Ticket value equivalent to similar commercial events
• Activity participation fees

Additional Benefits to Calculate

Unless the De Minimis rule applies, deduct these benefit values from gift amounts:

• Door prizes and giveaways
• Complimentary gifts (pens, keychains, branded items)
• Achievement prizes (closest-to-the-pin awards, contest winnings)

Benefits You Can Usually Ignore

Celebrity Appearances: The presence of celebrities at charity events typically doesn’t count as a taxable benefit. However, if you charge extra fees for exclusive access or activities with specific individuals, those amounts cannot qualify for tax receipts.

Minimal Odds Prizes: Golf tournament closest-to-the-pin prizes can be excluded since the CRA considers winning odds nominal.

Charity Auction Receipt Rules

Receipts for Donated Auction Items

Contributors who donate items for charity auctions can receive tax receipts based on fair market value at the time of donation. However:

• Fair market value must be clearly determinable
• Items may be subject to deemed fair market value rules
• No receipt can be issued if value cannot be established

Receipts for Auction Purchases

Auction buyers can receive tax receipts only when specific conditions are met:

• Fair market value must be calculated and disclosed to all bidders before the auction
• Winning bids must stay under 80% of the posted item value
• The purchase must meet genuine gift intention requirements

Pro Tip: Set minimum bids at 125% of fair market value to ensure receipt eligibility for winning bidders.

Want to learn about broader fundraising compliance beyond events? Read our full guide on Nonprofit Fundraising Rules and Guidelines in Canada.

Advantages that are the objective of the event

In order to calculate the eligible amount of a gift, it is necessary to deduct the value of any benefits provided from the total gift amount. Some examples of these advantages include:

• The cost of a meal provided at a fundraising dinner
• The price of green charges, cart rentals, and meals provided at a golf tournament
• A ticket price similar to that of a fundraising event.

Other advantages

To determine the eligible amount of a gift, the worth of any advantages must be deducted from the gift amount, unless the De Minimis rule is applicable. Some examples include:

• Door prizes
• Complimentary gifts such as pens and key chains
• Accomplishment prizes such as the closest-to-the-pin reward.

Note: The presence of celebrities at charity events is generally not deemed an advantage. However, if an extra fee is charged to participate in an activity (such as dinner or golf) with a specific individual, it cannot be regarded as a gift. Therefore, a receipt cannot be issued for the additional amount paid.

Auctions

Issuing receipts for donated auction items:

• A receipt may be given to the contributor for the item’s fair market value as of the moment it is contributed to the organization.
• The contributed item could potentially be subjected to the rule of deemed fair market value.
• In the event that the donated item’s fair market value is unable to be determined, a receipt may not be issued.

Providing receipts for auction acquisitions:

• The fair market value of the item must be calculated and disclosed to all individuals ahead of the auction for a receipt to be issued.
• The winning bid must not surpass 80% of the posted value of the item, as this would not meet the threshold for a genuine gift.

Tip: To fulfill the threshold for intending to make a gift, the organization can determine the minimum bid by multiplying the item’s fair market value by 125%.

Fundraising dinners

Here are some general guidelines and examples for valuing various items at fundraising events:

• Meals should be valued at the price that a comparable facility would charge for a similar meal. This can be based on the restaurant’s regular price, group or banquet rates, or similar factors.
• Complimentary items should be valued at their typical retail price.
• Door and achievement prizes should be valued based on their retail value, and the total value should be prorated per ticket sold.
• Entertainment should be valued at the typical and up-to-date ticket price.
• If raffle tickets are accounted for in the admission cost, the prizes will be considered as door prizes, and the value of the prizes must be included when calculating the amount of the advantage. However, if the raffle is performed separately, it will be deemed a lottery, and the cost of the raffle tickets will not be treated as a gift. The value of the different prizes that can be won should not be factored in when calculating the amount of the advantage.
• Generally, auctions at fundraising events are not considered an advantage.

Golf tournaments

Below are some general instructions and instances to assess the value of different items at golf events:

• The value of green fees for golf events is determined based on the standard cost charged to non-members using the course at the time of the event, whether it is an individual fee or a group fee. Members are not allocated an amount if they are not typically required to pay green fees.
• Cart rentals should be valued using their usual price.
• Meals are valued at the standard price charged for separate meal purchases at the course, either at the group or individual rate.
• Giveaways are valued at their typical retail cost.
• Door and accomplishment prizes are valued by their retail worth, totaled, and prorated per ticket sold.
• Closest-to-the-pin prizes can be excluded since the odds of winning are considered nominal by the CRA.
• Raffle tickets – If accounted for in the participation fee, the prizes are considered door prizes and are factored in to determine the sum of the advantage. Though, if the raffle is performed separately, it is deemed a lottery, and the price of the raffle tickets should not be treated as a gift. When calculating the amount of the advantage, you should not consider the value of the different prizes that could be won.

Note: According to the CRA, purchasing a lottery ticket is not considered a gift, and a receipt cannot be issued for the ticket’s cost.

How to Organize a Successful Charity Fundraising Event

Pre-Event Planning and Legal Compliance

Partner with Registered Charities Early: Establish clear agreements about receipt processing, registration number protection, and benefit calculation responsibilities.

Document Everything: Maintain detailed records of all costs, benefits, fair market values, and pricing decisions for CRA compliance.

Understand Your Limitations: Remember that you cannot issue tax receipts or share charity registration numbers under any circumstances.

Event Structure for Maximum Donations

Keep Benefit Costs Low: Design events where benefits represent less than 80% of ticket prices to ensure receipt eligibility.

Separate Premium Experiences: Offer high-value experiences as separate paid add-ons rather than including them in base ticket prices.

Strategic Auction Planning:

• Get professional appraisals for high-value donated items
• Display fair market values prominently before bidding begins
• Set minimum bids at 125% of fair market value

Handle Raffles Properly: Separate raffle sales from main event admission to avoid benefit calculation complications.

Working Successfully with Charities

Before Event Planning:

• Understand their specific receipt policies
• Confirm their compliance procedures
• Align event goals with their mission

During Event Planning:

• Provide clear benefit calculations for their review
• Respect their authority over tax receipt decisions
• Keep them informed of all cost and pricing changes

After the Event:

• Supply detailed financial records promptly
• Let them handle all receipt processing
• Support their follow-up donor communications

Common Compliance Mistakes to Avoid

• Never issue receipts yourself – only charities have this legal authority
• Never share charity registration numbers with vendors, venues, or participants
• Don’t ignore benefit values when calculating eligible donation amounts
• Don’t treat lottery tickets as donations – they cannot receive tax receipts
• Don’t exceed the 80% benefit threshold when setting ticket prices
• Don’t assume celebrity presence adds benefit value unless charging premium access fees

Maximizing Charitable Impact

Smart Pricing Strategies:

1. Set ticket prices where benefits stay well under 80% of total cost
2. Offer multiple giving levels with different benefit packages
3. Provide “donation only” options with minimal or no benefits
4. Create VIP experiences as separate premium purchases

Donor Communication:

1. Clearly explain what portions of payments qualify for receipts
2. Provide benefit breakdowns in advance
3. Help donors understand the 80% rule implications
4. Facilitate direct donation opportunities beyond event participation

Long-term Relationship Building:

1. Create annual events that build donor loyalty
2. Develop corporate sponsorship packages with clear benefit structures
3. Establish donor recognition programs that comply with benefit rules
4. Build databases that respect privacy while enabling future fundraising

Conclusion

Successful charity fundraising events balance generous giving opportunities with strict compliance requirements. Focus on creating meaningful experiences while keeping benefit costs reasonable, and always work closely with registered charities to ensure proper receipt handling.

By understanding split receipting rules, the 80% gift intention threshold, and proper benefit valuation methods, you can organize events that maximize charitable contributions while maintaining full CRA compliance.

Remember: your role is event organization and donor engagement – leave tax receipt processing to the registered charities who have the legal authority and expertise to handle these critical responsibilities properly.

Need Expert Guidance on Charity Fundraising Compliance?

Navigating charity law and fundraising regulations can be complex. If you’re planning a fundraising event or need clarity on tax receipt requirements, the experienced team at Northfield & Associates is here to help. We specialize in Canadian charity law and can guide you through every aspect of compliant fundraising.

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

• Email us at info@northfield.biz
• Call (416) 317-6806
• Visit https://www.northfield.biz/
• Schedule a FREE consultation

to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.

Frequently Asked Questions

Here are quick answers to the most common questions about organizing charity fundraising events and understanding Canadian compliance requirements.

How do you organize a fundraising event for charity?

Partner with a registered charity and keep benefit costs under 80% of ticket prices for tax receipt eligibility. Calculate all benefit values (meals, entertainment, prizes), set appropriate ticket prices, and document everything carefully. Only the charity can issue tax receipts – never provide these yourself or share their registration number.

What are the rules of fundraising?

Follow the 80% gift intention rule – if benefits exceed 80% of donation value, no tax receipt is allowed. Calculate and subtract all benefits through split receipting. Only registered charities issue tax receipts, organizers cannot share registration numbers, and fair market values must be disclosed for auction items before bidding.

What is the difference between fundraising and donations?

Donations are direct gifts with no benefits, allowing full tax receipts. Fundraising provides benefits, so only the amount above benefit value qualifies for receipts. A $100 dinner with $30 meal value creates a $70 tax-deductible donation. Fundraising requires benefit calculations while direct donations don’t.

How does charity fundraising work?

Events generate revenue while providing benefits to participants. Calculate fair market values of all benefits and subtract from participant payments. The remaining amount qualifies as tax-deductible if it exceeds 20% of total payment. The charity issues receipts and handles compliance while organizers manage event planning.

---

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.

Six Fundraising Approaches New Charities Should Avoid

Starting and running a new charities organization can be both challenging and expensive. Convincing people to support an organization that is just getting off the ground or doesn’t yet exist can be an uphill battle. While there are various fundraising strategies to consider, it’s essential to be aware of what not to do. In this article, we’ll explore six common fundraising methods that, when used alone or excessively, can pose challenges for new charities organizations.

Introduction

Funding a new charity organization can be a daunting task. People don’t typically rush to donate to every charities they come across, especially those that are new or just starting out. Fundraising ideas and strategies may come from various sources, but not all of them are advisable, particularly if you rely solely on one method.

Here are six fundraising approaches that, if overemphasized or used exclusively, can present challenges for new charities.

1. Grants

Grants can be a valuable means of generating revenue, but they may not be the most suitable option for new charities. Many foundations that offer grants prefer organizations with at least three years of operational experience, allowing them to demonstrate the effectiveness of their programs. Even with three years of program data, relying solely on grants to sustain your entire organization is often ill-advised.

Foundations vary in their focus areas, which may be limited to specific program types, demographics, or geographic regions. Additionally, the process of applying for grants can be time-consuming and challenging. While there are numerous foundations that provide funding, not all of them will align with your charity’s mission. Diversifying your funding sources is crucial.

2. Events and Fundraisers

Fundraising events, statistically speaking, tend to offer the lowest return on investment compared to other fundraising methods. Organizing and hosting events require substantial time and effort, which could potentially be channeled into more productive activities. Events also come with associated costs that can add up significantly, regardless of the event’s nature.

Moreover, the COVID-19 pandemic has severely impacted many events, forcing them to cancel or go virtual. Reliance on events as a primary source of revenue can pose substantial risks to a charities, particularly in the current environment.

While well-executed signature fundraising events can generate publicity and much-needed funds, they should not be the sole means of funding a new charities.

3. Corporate Donations

Corporate donations are often tied to fundraising events and may not be as readily attainable as one might assume. Corporations typically donate with an expectation of receiving something in return, such as exposure to their target audience, publicity, or enhanced corporate image. Acquiring corporate donations can be challenging, and success often hinges on personal connections within the company.

Board members and volunteers can play a pivotal role in establishing these connections and advocating for your charities’s cause. However, even with a connection, there may be stringent rules and specific timeframes for requesting corporate donations. Furthermore, corporate donations are not guaranteed to be renewed annually, and securing them can be competitive.

4. Appeals to the Wealthy

Targeting wealthy individuals solely based on their income may prove to be a challenging approach. People with substantial wealth often have specific charitable interests and preferred causes. Not everyone with financial resources is inclined to donate to charitable organizations, making it unwise to target individuals based solely on their household income.

Instead of focusing on income levels, it’s more effective to target potential donors based on their values and interests. Donors are more likely to contribute to your charities if they are passionate about the work you do. Prioritizing individuals who resonate with your cause, rather than their net worth, is a more strategic approach.

5. Crowdfunding

Crowdfunding has gained popularity, thanks in part to the growth of social networking sites and numerous online platforms. However, crowdfunding may not yield significant results if your charities lack an existing online following. Successful crowdfunding campaigns typically require a substantial online presence.

Crowdfunding should not be viewed as a “build it, and they will come” model. People do not typically wake up with an impulse to donate to random causes they find online. To make crowdfunding effective, you must actively promote and publicize your campaign. Additionally, some individuals may have reservations about donating through crowdfunding websites, particularly if your charities lacks an established track record.

6. Self-Funding

While you may have initially funded your charities organization with your personal resources, relying solely on self-funding is inadvisable unless you are independently wealthy. This approach can limit the organization’s growth and impact. Some individuals choose this path because they are reluctant to seek external funding, but it can hinder the organization’s development.

Self-funding effectively conceals the organization’s financial needs from potential donors. To outsiders, it appears that the organization is self-sufficient, which can deter potential supporters. Furthermore, attempting to fund the organization entirely on your own can become overwhelming and financially unsustainable in the long run.

Conclusion

Securing donations for your new charities organization requires a targeted approach. It begins with identifying the right donors and crafting the right message. None of the fundraising methods mentioned above are inherently bad; in fact, they can all be valuable tools. However, relying solely on any single method can be risky. The key is to diversify your fundraising efforts.

The important thing is to diversify your approach and consider multiple fundraising strategies. While grants, events, corporate donations, appeals to the wealthy, crowdfunding, and self-funding all have their place, a balanced approach is key to success.

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 to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.

Get started now:

• Email us at info@northfield.biz
• Call (416) 317-6806
• Visit https://www.northfield.biz/
• Schedule a FREE 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.

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.

Advocacy is a powerful tool for Canadian charities to influence public opinion and policy. However, navigating the rules requires a thoughtful approach to ensure your efforts are effective and compliant. Let’s explore how advocacy can help your charity make a difference.

What is Advocacy in the Charitable Context?

‍

Advocacy means speaking up about issues that matter to your charity’s mission. It can involve raising awareness, influencing policies, or inspiring action all while staying non-partisan and mission-focused.

‍

1. Educational Campaigns

Educating the public is one of the best ways to advocate. For example:

• An environmental charity could launch a campaign on renewable energy benefits.
• A mental health charity might share resources to reduce stigma.

2. Engage Stakeholders

Bring together community members, policymakers, and other stakeholders to discuss important issues. Hosting a public forum on youth homelessness, for example, could spark collaborative solutions.

3. Encourage Grassroots Action

Ask your supporters to sign petitions, attend rallies, or write letters to their representatives. A charity focused on education might organize a petition to increase funding for public schools.

Staying Within Legal Limits

To make sure your advocacy efforts are compliant with CRA rules:‍

1. Stick to Your Mission

Keep advocacy activities tightly aligned with your charitable goals. For example, a wildlife charity should focus on protecting natural habitats rather than unrelated issues.

2. Avoid Partisanship

While it’s okay to criticize or support policies, never endorse or oppose a political party or candidate. Neutral, factual language is key.

3. Balance Advocacy and Core Activities

Don’t let advocacy overshadow your primary charitable work. Advocacy should support your mission without becoming the sole focus.

Use CRA Resources to Guide Your Efforts

The CRA’s webinar on registered charities and political activities offers valuable insights to help charities engage in advocacy responsibly.

Advocacy can help Canadian charities address systemic issues and create meaningful change. By understanding the rules and using available resources, your charity can make a lasting impact while staying compliant. For more information, visit the CRA’s webinar on this topic.

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.

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.

Explore Northfield & Associates community

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.

Charitable organizations that serve the needs of Indigenous communities fall under the recognized category of philanthropic purposes. These purposes extend beyond providing direct assistance to the community and include other beneficial activities acknowledged as charitable under the law. This rule is for groups that help Indigenous people in Canada.

To become a charity, a group has to prove that what they do helps the public or is a big part of it. Courts have affirmed that organizations with restricted purposes and activities related to the needs of Aboriginal Peoples of Canada qualify as philanthropic entities, meeting the public benefit test.

Groups that create programs for Indigenous peoples that respect their traditions, customs, and cultural needs can become charities.

Organizations may be eligible under the broader category of charitable purposes, including shelters for youth or victims of abuse

• family counseling services
• suicide prevention lines
• rape crisis centers
• counseling centers for alcoholism and substance abuse
• organizations addressing medical conditions prevalent in Aboriginal communities,
• youth groups, drop-in centers, seniors’ recreational associations
• community centers
• and facilitators for community well-being.

However, organizations cannot justify restricting their benefits solely to the Aboriginal peoples of Canada. These include

• hospitals
• ambulance services
• fire protection services
• disaster relief funds
• rescue and safety organizations
• Meals on Wheels
•  block parents
• recycling services
• environmental protection organizations
• parks
• recreational grounds.

If an indigenous charity only allows people from one nation and excludes others, it doesn’t meet the requirement of benefiting the public. To be allowed to target a specific indigenous nation, the organization must demonstrate that it addresses a charitable need specific to that limited group(e.g., issues faced only by the Métis or a particular nation).

‍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.

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.

Explore Northfield & Associates community

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.

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info@northfied.biz

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Media Contact:

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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.

Canadian charities can participate in political activities, but only within strict limits set by the law. They are allowed to engage in public policy dialogue and advocacy as long as their actions are non-partisan and directly support their charitable purpose.

This means charities can influence laws and policies but cannot support or oppose any political party or candidate.

These rules help charities focus on their mission without becoming involved in election campaigns or political endorsements. Charities must keep their political work connected to their stated purposes and avoid anything that looks like backing a specific party or candidate, especially during elections.

Understanding these guidelines is important for anyone interested in how charities operate within Canada’s legal system. This article will explain what is allowed and what is prohibited, offering clear insight into the political role of Canadian charities.

Legal Status of Political Campaign Participation

Canadian charities have clear legal boundaries when it comes to engaging in political campaigns. These boundaries are set by charity law and the Income Tax Act, which regulate the nature and extent of political involvement allowed while maintaining charitable status.

The Canada Revenue Agency (CRA) plays a key role in overseeing compliance with these laws.

Charity Law and the Income Tax Act

Charity law in Canada requires that a charity have exclusively charitable purposes. Political purposes, such as supporting a political party or candidate, are not considered charitable.

The Income Tax Act (ITA) reflects this by restricting charities from engaging in partisan political activities.

Charities can participate in non-partisan political activities if these are connected and subordinate to their charitable goals. Non-partisan political activities include public policy dialogue and communications that do not explicitly support or oppose any political party or candidate.

The ITA prohibits charities from spending too much of their resources on political activities that stray beyond their charitable purposes. Attempting to influence laws or government policies for partisan reasons can risk their registered status.

Registered Charities and Charitable Status

To maintain registered charity status, organizations must devote all their resources to charitable purposes. Charities may engage in political activities only if these further their stated charitable objectives without bias toward political parties.

If a charity focuses largely on political campaigns or partisan actions, it risks losing its charitable status. Any political activity must remain secondary and limited in scope.

Charities can inform the public about issues, but cannot call for political action supporting specific parties or candidates.

Charities that want to participate extensively in political campaigning can set up separate non-charitable organizations. These bodies can freely engage in politics but cannot issue tax receipts or receive funding from the charity for political purposes.

Canada Revenue Agency Oversight

The CRA monitors charities to ensure compliance with the Income Tax Act and charity law. It assesses whether political activities are non-partisan and connected to charitable purposes.

The CRA may investigate if a charity appears to use too much of its resources on political activities or partisan causes.

The agency provides guidance to charities on allowable political activities and enforces rules against illegal or partisan involvement. It requires that charities avoid explicitly supporting or opposing political parties or candidates in public communications.

Failure to follow CRA rules on political activities can result in penalties or the revocation of charitable status. The CRA regularly updates its policies to reflect changes in law and consults with the voluntary sector to clarify acceptable political engagement.

Defining Political Activities and Charitable Purposes

Canadian charities must clearly separate their charitable purposes from political activities. They can engage in some political actions but only if these are non-partisan and support their charitable goals without crossing legal limits.

Understanding the differences helps charities stay compliant.

Charitable Purposes vs. Political Purposes

Charitable purposes are goals recognized by law to provide a public benefit. These include activities like relieving poverty, advancing education, or protecting the environment.

A charity’s purpose must be clearly stated in its governing documents.

Political purposes focus on supporting or opposing a political party or candidate, or trying to change laws or government decisions. These are not allowed as a charity’s main goal because political purposes do not meet the legal definition of charity.

Courts say charities must avoid taking sides in political debates.

A charity may partake in political activities only if they are directly connected and subordinate to its charitable purpose. This means political efforts must help further its main goals, not replace them.

Types of Political Activities

Political activities include efforts to influence public policy or encourage political action. These must be non-partisan or neutral.

Prohibited activities include:

• Supporting or opposing a political party or candidate
• Partisan campaigning or direct political lobbying

Permitted political activities are:

• Public policy dialogue related to the charity’s purpose
• Providing well-reasoned information without urging support for a party or candidate
• Encouraging public engagement in policy debate in a neutral way

Charities must ensure political activities do not become their primary focus to maintain their registered status.

Political Campaigns and Advocacy

Charities are not allowed to take part in election campaigns by supporting or opposing candidates or parties. Doing so risks their charitable status.

However, charities can engage in advocacy to influence policies that align with their charitable purposes. This means informing the public, commenting on laws, or speaking with policymakers about issues relevant to their mission.

All advocacy must avoid direct political endorsements and must be based on solid evidence and charity goals. Advocacy cannot ask the public to vote for or against specific candidates or parties.

It must contribute to public policy debate without becoming partisan.

Permitted Political Activities for Charities

Canadian charities can engage in specific political activities if they relate directly to their charitable purposes. These activities must not support or oppose any political party or candidate.

Charities focus on influencing public policy in ways that benefit the public and align with their missions.

Public Policy Dialogue and Development Activities

Charities may take part in public policy dialogue and development activities (PPDDAs) when these activities further their charitable purposes. This includes research, advocacy, or discussions aimed at changing laws, policies, or government decisions.

For example, a charity focused on education might lobby for better school funding. These activities must provide a clear public benefit and be connected to the charity’s stated purpose, such as advancing education or providing social services.

There are no limits on how much time or resources a charity can dedicate to PPDDAs, as long as they do not support political parties or candidates directly or indirectly.

Non-Partisan Political Activity

Charities must remain non-partisan in their political activities. This means they cannot directly or indirectly support or oppose any political party or candidate, even during elections.

They may share information about the policy positions of parties in a neutral way, but must avoid endorsement or criticism of specific individuals running for office.

Examples of prohibited actions include endorsing a candidate on social media, donating resources to a campaign, or allowing a political party to use charity facilities. Instead, charities focus on issues, not parties or candidates.

Public Awareness Campaigns

Charities may run public awareness campaigns to educate people about issues related to their charitable purposes. These campaigns often aim to inform the public or influence government policy on topics like poverty, health, or the environment.

Such campaigns must be factual and not misleading. They can include social media posts, newsletters, or public events but must avoid partisan content or calls to support or oppose a political party or candidate.

These campaigns help charities advance their causes by raising understanding and encouraging participation in public policy discussions without getting involved in partisan politics.

Prohibited Political Activities and Partisanship

Canadian charities must avoid any actions that support or oppose political parties or candidates. Their activities must remain neutral to keep their registered status.

Certain political activities are specifically banned to prevent partisanship and protect the charity’s focus on its stated purpose.

Partisan Political Activities

Partisan political activities are illegal for Canadian charities. These include any direct or indirect support or opposition to political parties or candidates for public office.

For example, charities cannot endorse a political party, fund a campaign, or publicly oppose a candidate.

This restriction applies broadly to activities involving elected representatives and public officials. Even indirect actions, such as providing resources that benefit one party or candidate, are prohibited.

Charities must keep their advocacy strictly non-partisan and focused on issues, not on election outcomes.

Endorsement of Political Parties or Candidates

Charities cannot endorse or appear to support political parties or candidates in any way. This includes social media posts, public speeches, or invitations to events that favor one candidate over others.

Showing partiality during elections damages neutrality and breaks legal rules.

Inviting all candidates equally to speak is allowed, but favoring one is not. Charities also cannot donate funds, provide free services, or allow their assets to be used by political parties or candidates.

Monitoring public platforms for partisan comments and removing these is recommended to maintain compliance.

Consequences for Violations

Violating these rules can lead to serious consequences. The Canada Revenue Agency (CRA) may revoke the charity’s registration, removing its tax-exempt status.

Charities can also face penalties or legal action for improper political involvement. Loss of status means charities lose donor tax benefits and face increased scrutiny.

Maintaining clear records showing no partisan activity helps charities during audits. Even unintentional support or opposition, revealed through internal documents or staff actions, can be grounds for sanctions.

Operational Guidelines and Best Practices

Canadian charities must carefully manage how they engage in political activities to stay within legal limits and maintain their status. Proper use of resources, detailed record-keeping, and focusing on public policy rather than elections are essential to comply with CRA rules and avoid risks.

Resource Allocation and Expenditure Limits

Charities can devote up to 100% of their resources to public policy dialogue and development activities (PPDDAs) linked to their charitable purposes. The Income Tax Act does not set a specific limit on spending for these activities.

However, charities must avoid any direct or indirect support of political parties or candidates.

Spending on media campaigns, such as newspaper ads or mail campaigns, must relate strictly to policy issues, not election outcomes. Charities may transfer resources to qualified donees for political advocacy that aligns with their purposes.

All expenditures should be reasonable, necessary, and proportionate to the charity’s mission, following CRA’s policy statement CPS-022.

Transparency and Record-Keeping

Maintaining clear and accurate records is critical. Charities must document how each political activity furthers their stated charitable purpose.

This includes internal communications like emails, meeting minutes, and strategic reports, as well as external materials like newsletters, social media posts, and advertisements. Records should show the connection between political activities and public benefit.

A communications specialist can help ensure that public messages are truthful, not misleading, and comply with CRA guidelines. Transparent record-keeping also prepares charities for audits and supports continued registration.

Engaging in Public Policy Without Campaigning

Charities may advocate for changes to laws, policies, or government decisions linked to their charitable goals but must avoid supporting or opposing any political party or candidate.

This means they can lobby or mobilize the public on issues but cannot endorse or campaign for election winners.

Activities like hosting public forums with all candidates or promoting policy issues evenly among parties are permitted. Charities should focus on policy-based messaging and avoid partisan language.

Following CRA’s guidelines helps them use advocacy to further their mission without risking legal problems.

Recent Changes and Evolving Guidance

Canadian laws and policies have changed to give charities clearer rules on political activities. These changes focus on what charities can do without risking their registered status.

Updates to laws and policy statements help define limits and provide more flexibility for advocacy that matches their charitable goals.

Amendments to the Income Tax Act

The Income Tax Act now allows charities to engage in unlimited public policy dialogue and development activities (PPDDAs) as long as these activities further their stated charitable purposes.

This means charities can spend up to 100% of their resources on advocacy, lobbying, or other public policy efforts that support their mission.

However, the Act strictly forbids charities from supporting or opposing any political party or candidate. This ban covers both direct and indirect support.

Charities may express opinions about laws or policies but cannot endorse or work for any candidate or party.

CRA Policy Statement Updates

The Canada Revenue Agency (CRA) replaced its previous policy statement CPS-022 with updated guidance on political activities. This guidance clarifies what is allowed under the new legal framework.

It emphasizes the need for charities to keep detailed records showing how their political activities connect to their charitable purposes.

The updated policy also explains that charities can provide information, conduct research, advocate for policy changes, and mobilize public participation. It warns against any actions that look like direct or indirect support for political parties or candidates, especially during elections.

Impact on Charities in Canada

These changes have expanded the advocacy space for charities. Charities are now encouraged to take a more active role in public policy.

They can engage in debates and influence laws related to their objectives without fearing loss of status. At the same time, charities must carefully avoid prohibited activities.

Maintaining transparency in communications and monitoring public platforms help prevent unintentional political endorsements. The evolving guidelines require charities to balance active participation with strict legal compliance.

This ensures their political work remains focused on charitable goals.

Lobbying and Advocacy Techniques for Charities

Canadian charities use specific methods to influence public policy and support their missions. These methods must follow rules to keep their status and remain non-partisan.

Effective lobbying and advocacy include working with officials and focusing on issues. Charities must also respect legal limits.

Collaborating with Public Officials

Charities can meet with public officials to share information and suggest policy changes related to their cause. These meetings are a chance to provide evidence-based advice without endorsing any political party or candidate.

It is important for charities to be clear and factual when talking with public officials. Staying mission-focused helps build trust and keeps charities involved in policy discussions.

Charities must record their contacts and keep track of the topics discussed. This transparency supports accountability and compliance with federal rules.

Conducting Issue-Based Campaigns

Charities can run campaigns that focus on specific social or environmental issues tied to their goals. These campaigns raise public awareness and aim to influence policy without supporting parties or candidates.

Tools include publishing reports and hosting educational events. Social media can also be used to share non-biased information.

This approach helps charities build community support and encourage public discussion. Campaigns should avoid political language or partisan messages.

The focus stays on facts and solutions related to the charity’s mission. This keeps advocacy legal and effective.

Working Within Legal Boundaries

Charities must follow strict regulations when engaging in lobbying and advocacy. Activities should not overshadow their main charitable work.

They must avoid partisan political actions. Federal rules require charities to register certain lobbying efforts and report them properly.

Staff and volunteers should be trained on these rules to avoid problems. Maintaining detailed records of all advocacy activities helps charities prove compliance.

This protects their registered status and ensures they can continue influencing policy safely.

Practical Tips for Staying Compliant

If you’re part of a Canadian charity, you might be wondering how you can get involved in political issues while staying within the rules. Political engagement can be a powerful way to advocate for your mission, but it’s important to follow the guidelines set by the Canada Revenue Agency (CRA). This article breaks down these rules and offers practical tips to help your charity make an impact without crossing any lines.

‍What Are the Rules for Charities Engaging in Politics?

In Canada, registered charities are allowed to engage in political activities, but only under certain conditions. The CRA’s rules aim to ensure charities remain focused on their charitable goals and steer clear of partisan politics.‍

1. Non-Partisan Activities Only

Your charity cannot support or oppose a specific political party or candidate. Here’s what this means:

• Allowed: Raising awareness about an issue that aligns with your charity’s purpose, like hosting a community forum on climate change.
• Not Allowed: Publicly endorsing a candidate in an election.

2. Advocacy Must Connect to Your Mission

Charities can advocate for changes to laws or policies as long as it’s tied to their mission. For example:

• An environmental charity might campaign for stronger pollution regulations.
• A health charity could push for better mental health funding.

3. Resource Allocation Matters

While there’s no longer a strict percentage limit on political activities, these efforts must not overshadow your core charitable work. Keep political advocacy secondary to your main activities.

How Can Charities Engage Without Crossing the Line?

Here are some practical ways your charity can get involved in political discussions while staying compliant:

1. Educate the Public

Create opportunities to inform your community about issues you care about. For instance, publish educational materials or host workshops. A charity focused on poverty reduction might hold seminars on affordable housing policies.

2. Submit Policy Proposals

Write evidence-based recommendations for policymakers. For example, a charity working on food security could present ideas for reducing food waste to a provincial government.

3. Collaborate with Others

Work with other organizations to amplify your voice. Teaming up with like-minded groups can make your message stronger—just ensure the focus stays on the issue, not politics.

4. Be Strategic on Social Media

Social platforms are great for spreading your message but keep your posts neutral. Share facts, encourage discussion, and avoid showing support for any political party or candidate.

Consequences of Non-Compliance

Failing to follow CRA guidelines can have serious consequences, including losing your registered charity status. To stay on track:

• Keep Records: Document your activities, including what you did, why, and how it aligns with your mission.
• Train Your Team: Make sure staff and volunteers understand the rules.
• Use Available Resources: The CRA’s webinar on registered charities and political activities is a great place to start.

Conclusion

Canadian charities can engage in political activities, but only within clear legal limits. Their actions must be non-partisan and connected to their charitable purposes.

They should not support or oppose any political party or candidate. Understanding these rules helps charities avoid risks to their registered status.

Engaging in political issues is a meaningful way for Canadian charities to drive change. By following CRA rules, your charity can participate in public policy discussions while protecting its registered status. Learn more by checking out the CRA’s webinar on this topic reference above.

For charities with questions or concerns about political involvement, contacting Northfield & Associates is a smart step. They offer expert advice on navigating complex rules and ensuring compliance.

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.

Frequently Asked Questions

Canadian charities must carefully follow rules on political activities. These rules limit donations, campaigning, and partisan support to ensure charities stay within legal boundaries.

Missteps can risk their registered status.

Can charities donate to political campaigns?

No. Canadian charities cannot donate money or resources to political parties or candidates.

Giving funds to support political campaigns is against the rules and can threaten a charity’s registration.

Can federal employees volunteer for political campaigns?

Yes, federal employees may volunteer for political campaigns, but they must follow specific workplace rules to avoid conflicts of interest.

Their volunteering should be done on personal time without using their official position.

Are political parties non profit?

Political parties in Canada are not considered charities, but they operate as nonprofit organizations. They have separate rules and regulations distinct from charities.

This is especially important regarding fundraising and political activities.

Can Canadian charities participate in political campaigns?

Canadian charities cannot directly support or oppose political parties or candidates. They may engage in public policy dialogue and advocacy connected to their charitable purposes.

These activities must be clearly non-partisan.

What does “non-partisan” mean for charities?

For charities, non-partisan means not supporting or opposing any political party or candidate. Charities may discuss issues related to their mission but cannot endorse or criticize specific parties or politicians.

What happens if a charity violates the CRA’s political activity rules?

If a charity breaks the rules, the Canada Revenue Agency (CRA) can investigate.

Consequences include warnings, penalties, or removal of charitable status.

Losing charitable status stops the charity from issuing tax receipts and receiving tax benefits.

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.

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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.

Sample Bylaws for Nonprofits Incorporated in Ontario

We are often asked by not-for-profits for a sample of bylaws that they can use for their Not-for-Profit and Charity.

Below is a bylaw template which can be used by Not-for-Profits incorporated specifically in Ontario. It was drafted with the pending ONCA legislation, which is likely to come into force in the coming year (2022/2023)

Please see our sister post with sample bylaws which can be used specifically by Not-for-Profits incorporated federally, under the Not-for-Profits Act (Canada).

Note that:

1. Bylaws have unlimited possibilities which can have a very real impact on  the long-term viability of a not-for-profit, so it is recommended that your bylaws should be carefully reviewed by a lawyer who specializes in charity and not-for-profit law, to ensure that all governance risks are addressed.

2. The bylaws sample below is specifically for single class membership nonprofits. We typically recommend dual membership classes for greater control to our non-for-profit and charity clients. For a sample of dual membership class bylaws, please contact our office at the number below.‍

BYLAW NO. 1

A bylaw relating generally to the transaction of the business and affairs of __________________ (the “Corporation”).

1. General

1. Definitions
2. “Act” means the Corporations Act (Ontario) until such time as the Ontario

Not-for-profit Corporations Act, 2010, (“ONCA”) is proclaimed in force, and thereafter shall mean the ONCA, together with the Regulations as from time to time is amended and every statute and Regulation that may be substituted therefore and, in the case of such substitution, any reference in these bylaws to provisions of the Act shall be read as references to the substituted provisions in the new statutes or Regulations;

2. “AGM” means the Annual General Meeting;
3. “Board” means the board of directors of the Corporation;
4. “Director” means an individual occupying the position of director of the Corporation by whatever name he or she is called;
5. “Member” means a member of the Corporation;
6. “Members” means all classes of membership in the Club as set out in Article 8; and
7. “Meeting of the Members” means any meetings of the classes of membership.
8. Interpretation

Other than as specified in Section 1.01, all terms contained in this By-law that are defined in the Act shall have the meanings given to such terms in the Act. Words importing the singular include the plural and vice versa, and words importing one gender include all genders.

3. Severability and Precedence

The invalidity or unenforceability of any provision of this By-law shall not affect the validity or enforceability of the remaining provisions of this By-law. If any of the provisions contained in the by-laws are inconsistent with those contained in the Articles or the Act, the provisions contained in the Articles or the Act, as the case may be, shall prevail.

4. Seal

The seal of the Corporation, if any, shall be in the form determined by the Board.

5. Execution of Contracts

Deeds, transfers, assignments, contracts, obligations and other instruments in writing requiring execution by the Corporation may be signed by any two of its Officers or Directors. In addition, the Board may from time to time direct the manner in which and the person by whom a particular document or type of document shall be executed. Any Director or Officer may certify a copy of any instrument, resolution, by-law or other document of the Corporation to be a true copy thereof.

1. Election and Term
2. Directors

The Directors shall be elected by the Members. The term of office of the Directors (subject to the provisions, if any, of the articles) shall be from the date of the meeting at which they are elected or appointed until the next annual meeting or until their successors are elected or appointed. At the end of their respective term each Director may stand for re-election.

2. Vacancies

The office of a Director shall be vacated immediately:

1. if the Director resigns office by written notice to the Corporation, which resignation shall be effective at the time it is received by the Corporation or at the time specified in the notice, whichever is later;
2. if the Director dies;
3. if the Director becomes bankrupt;
4. if the Director is found to be incapable of managing property by a court or under Ontario law; or
5. if, at a meeting of the Members, a resolution is passed by at least a majority of the votes cast by the Members removing the Director before the expiration of the Director’s term of office.
6. Filling Vacancies

A vacancy on the Board shall be filled only by a vote of the Members.

4. Committees

Committees may be established by the Board as follows:

1. The Board may appoint from their number a managing Director or a committee of Directors and may delegate to the managing Director or committee any of the powers of the Directors excepting those powers set out in the Act that are not permitted to be delegated; and
2. Subject to the limitations on delegation set out in the Act, the Board may establish any committee it determines necessary for the execution of the Board’s responsibilities. The Board shall determine the composition and terms of reference for any such committee. The Board may dissolve any committee by resolution at any time.
3. Remuneration of Directors

No Director shall directly or indirectly receive any profit from occupying the position of Director or from providing services to the Corporation in another capacity. However, Directors may be reimbursed for reasonable expenses that they incur in either of those capacities.

1. Calling of Meetings
2. Board Meetings

Meetings of the Directors may be called by the Chair, president or any two Directors at any time and any place on notice as required by this by-law

2. Regular Meetings

The Board may fix the place and time of regular Board meetings and send a copy of the resolution fixing the place and time of such meetings to each Director, and no other notice shall be required for any such meetings.

3. Notice

Notice of the time and place for the holding of a meeting of the Board shall be given in the manner provided in Section 10 of this by-law to every Director of the Corporation not less than seven days before the date that the meeting is to be held. Notice of a meeting is not necessary if all of the Directors are present, and none objects to the holding of the meeting, or if those absent have waived notice or have otherwise signified their consent to the holding of such meeting. If a quorum of Directors is present, each newly elected or appointed Board may, without notice, hold its first meeting immediately following the annual meeting of the Corporation.

4. Chair

The Chair shall preside at Board meetings. In the absence of the Chair, the Directors present shall choose one of their number to act as the Chair.

5. Voting

Each Director has one vote. Questions arising at any Board meeting shall be decided by a majority of votes. In case of an equality of votes, the Chair shall have a second vote or casting vote.

6. Participation by Telephone or Other Communications Facilities

If all of the Directors of the Corporation consent, a Director may participate in a meeting of the Board or of a committee of Directors by telephonic or electronic means that permit all participants to communicate adequately with each other during the meeting. A Director participating by such means is deemed to be present at that meeting.

1. Banking
2. Financial

The Board shall by resolution from time to time designate the bank in which the money, bonds or other securities of the Corporation shall be placed for safekeeping.

2. Financial Year

The financial year of the Corporation ends on December 31 in each year or on such other date as the Board may from time to time by resolution determine.

1. Officers
2. Officers

The Board shall appoint from among the Directors a Chair and may appoint any other person to be president, treasurer and secretary at its first meeting following the annual meeting of the Corporation. The office of treasurer and secretary may be held by the same person and may be known as the secretary-treasurer. The office of Chair and president may also be held by the same person. The Board may appoint such other Officers and agents as it deems necessary, and who shall have such authority and shall perform such duties as the Board may prescribe from time to time.

2. Office Held at Board’s Discretion

Any Officer shall cease to hold office upon resolution of the Board.

3. Duties

Officers shall be responsible for the duties assigned to them and they may delegate to others the performance of any or all of such duties.

4. Duties of the Chair

The Chair shall perform the duties described in sections 3.04 and 9.05 and such other duties as may be required by law or as the Board may determine from time to time.

5. Duties of the President

The president shall perform the duties described in Schedule A and such other duties as may be required by law or as the Board may determine from time to time

6. Duties of the Treasurer

The treasurer shall perform the duties described in Schedule B and such other duties as may be required by law or as the Board may determine from time to time.

7. Duties of the Secretary

The secretary shall perform the duties described in Schedule C and such other duties as may be required by law or as the Board may determine from time to time.

6. Protection of Directors and Others
7. Protection of Directors and Officers

No Director, Officer or committee member of the Corporation is be liable for the acts, neglects or defaults of any other Director, Officer, committee member or employee of the Corporation or for joining in any receipt or for any loss, damage or expense happening to the Corporation through the insufficiency or deficiency of title to any property acquired by resolution of the Board or for or on behalf of the Corporation or for the insufficiency or deficiency of any security in or upon which any of the money of or belonging to the Corporation shall be placed out or invested or for any loss or damage arising from the bankruptcy, insolvency or tortious act of any person, firm or Corporation with whom or which any moneys, securities or effects shall be lodged or deposited or for any other loss, damage or misfortune whatever which may happen in the execution of the duties of his or her respective office or trust provided that they have:

1. complied with the Act and the Corporation’s articles and By-laws; and
2. exercised their powers and discharged their duties in accordance with the Act.
3. Conflict of Interest
4. Conflict of Interest

A Director who is in any way directly or indirectly interested in a contract or transaction, or proposed contract or transaction, with the Corporation shall make the disclosure required by the Act. Except as provided by the Act, no such Director shall attend any part of a meeting of Directors or vote on any resolution to approve any such contract or transaction.

1. Members
2. Members

The Board may, by resolution, approve the admission of the Members of the Corporation. Members may also be admitted in such other manner as may be prescribed by the Board by resolution. The following conditions of Membership shall apply:

Members shall be individuals who have applied and been accepted for Membership in the Corporation. The term of Membership shall be one year, subject to renewal in accordance with the policies of the Corporation.

Subject to the Act and the Letters Patent, each Member is entitled to receive notice of, attend, and vote at all meetings of Members, and each Member shall be entitled to one (1) vote at such meetings.

2. Membership

A Membership in the Corporation is not transferable and automatically terminates if the Member resigns or such Membership is otherwise terminated in accordance with the Act.

3. Disciplinary Act or Termination of Membership for Cause

1. Upon 15 days’ written notice to a Member, the Board may pass a resolution authorizing disciplinary action or the termination of Membership for violating any provision of the articles or By-laws.
2. The notice shall set out the reasons for the disciplinary action or termination of Membership. The Member receiving the notice shall be entitled to give the Board a written submission opposing the disciplinary action or termination not less than 5 days before the end of the 15-day period. The Board shall consider the written submission of the Member before making a final decision regarding disciplinary action or termination of Membership.
3. Annual Meeting
4. Members’ Meetings

The annual meeting shall be held on a day and at a place within Ontario fixed by the Board. Any Member, upon request, shall be provided, not less than 21 days before the annual meeting, with a copy of the approved financial statements, auditor’s report or review engagement report and other financial information required by the By-laws or articles. The business transacted at the annual meeting shall include:

1. receipt of the agenda;
2. receipt of the minutes of the previous annual and subsequent special meetings;
3. consideration of the financial statements;
4. report of the auditor or person who has been appointed to conduct a review engagement;
5. reappointment or new appointment of the auditor or a person to conduct a review engagement for the coming year;
6. election of Directors; and
7. such other or special business as may be set out in the notice of meeting.

No other item of business shall be included on the agenda for annual meeting unless a Member’s proposal has been given to the secretary prior to the giving of notice of the annual meeting in accordance with the Act, so that such item of new business can be included in the notice of annual meeting.

2. Special Meetings

The Directors may call a special meeting of the Members. The Board shall convene a special meeting on written requisition of not less than onetenth of the Members for any purpose connected with the affairs of the Corporation that does not fall within the exceptions listed in the Act or is otherwise inconsistent with the Act, within 21 days from the date of the deposit of the requisition

3. Notice

Subject to the Act, not less than 10 and not more than 50 days written notice of any annual or special Members’ meeting shall be given in the manner specified in the Act to each Member and to the auditor or person appointed to conduct a review engagement (Section 55(1)(a) & (c)).

Notice of any meeting where special business will be transacted must contain sufficient information to permit the Members to form a reasoned judgment on the decision to be taken (Section 55(8)(a)). Notice of each meeting must remind the Member of the right to vote by proxy (Section 65).

4. Quorum

A quorum for the transaction of business at a Members’ meeting is a majority of the Members entitled to vote at the meeting, whether present in person or by proxy (Section 64(1)). If a quorum is present at the opening of a meeting of the Members, the Members present may proceed with the business of the meeting, even if a quorum is not present throughout the meeting.

5. Chair of the Meeting

The Chair shall be the chair of the Members’ meeting; in the Chair’s absence, the Members present at any Members’ meeting shall choose another Director as chair and if no Director is present or if all of the Directors present decline to act as chair, the Members present shall choose one of their number to chair the meeting.

6. Voting of Members

Business arising at any Members’ meeting shall be decided by a majority of votes unless otherwise required by the Act or the By-law provided that:

1. each Member shall be entitled to one vote at any meeting;
2. votes shall be taken by a show of hands among all Members present and the chair of the meeting, if a Member, shall have a vote;
3. an abstention shall not be considered a vote cast;
4. before or after a show of hands has been taken on any question, the chair of the meeting may require, or any Member may demand, a written ballot. A written ballot so required or demanded shall be taken in such manner as the chair of the meeting shall direct;
5. if there is a tie vote, the chair of the meeting shall require a written ballot, and shall not have a second or casting vote. If there is a tie vote upon written ballot, the motion is lost; and
6. whenever a vote by show of hands is taken on a question, unless a written ballot is required or demanded, a declaration by the chair of the meeting that a resolution has been carried or lost and an entry to that effect in the minutes shall be conclusive evidence of the fact without proof of the number or proportion of votes recorded in favour of or against the motion.
7. Adjournments

The Chair may, with the majority consent of any Members’ meeting, adjourn the same from time to time and no notice of such adjournment need be given to the Members, unless the meeting is adjourned by one or more adjournments for an aggregate of 30 days of more. Any business may be brought before or dealt with at any adjourned meeting which might have been brought before or dealt with at the original meeting in accordance with the notice calling the same.

8. Persons Entitled to be Present

The only persons entitledto attend a Members’ meeting are the Members, the Directors, the auditors of the Corporation (or the person who has been appointed to conduct a review engagement, if any) and others who are entitled or required under any provision of the Act or the articles to be present at the meeting. Any other person may be admitted only if invited by the Chair of the meeting or with the majority consent of the Members present at the meeting.

1. Services
2. Notices

Any notice required to be sent to any Member or Director or to the auditor or person who has been appointed to conduct a review engagement shall be provided by telephone, delivered personally (Section 196), or sent by prepaid mail, facsimile, email or other electronic means to any such Member or Director at their latest address as shown in the records of the Corporation and to the auditor or the person who has been appointed to conduct a review engagement at its business address, or if no address be given then to the last address of such Member or Director known to the secretary; provided always that notice may be waived or the time for the notice may be waived or abridged at any time with the consent in writing of the person entitled thereto.

2. Computation of Time

Where a given number of days’ notice or notice extending over any period is required to be given, the day of service or posting of the notice shall not, unless it is otherwise provided, be counted in such number of days or other period.

3. Error or Omission in Giving Notice

No error or accidental omission in giving notice of any Board meeting or any Members’ meeting shall invalidate the meeting or make void any proceedings taken at the meetings

11. Adoption and Amendment of By-laws‍

11.1. Amendments to By-laws

The Members may from time to time amend this By-law by a majority of the votes cast. The Board may from time to time in accordance with the Act pass or amend this By-law other than a provision respecting the transfer of a Membership or to change the method of voting by Members not in attendance at a meeting of Members.

Enacted by the Board on the day of , 20   .

Schedule A Position Description of the President Role Statement

The president provides leadership to the Board, ensures the integrity of the Board’s process and represents the Board to outside parties. The president co-ordinates Board activities in fulfilling its governance responsibilities and facilitates co-operative relationships among Directors and between the Board and senior management, if any, of the Corporation. The president ensures the Board discusses all matters relating to the Board’s mandate.

Responsibilities

Agendas. Establish agendas aligned with annual Board goals and preside over Board meetings if also holding the office of Chair. Ensure meetings are effective and efficient for the performance of governance work. Ensure that a schedule of Board meetings is prepared annually.

Direction. Serve as the Board’s central point of communication with the senior management, if any, of the Corporation; provide guidance to senior management, if any, regarding the Board’s expectations and concerns. In collaboration with senior management, develop standards for Board decision-support packages that include formats for reporting to the Board and level of detail to be provided to ensure that management strategies and planning and performance information are appropriately presented to the Board.

Performance Appraisal. Lead the Board in monitoring and evaluating the performance of senior management, if any, through an annual process.

Work Plan. Ensure that a Board work plan is developed and implemented that includes annual goals for the Board and embraces continuous improvement.

Representation. Serve as the Board’s primary contact with the public.

Reporting. Report regularly to the Board on issues relevant to its governance responsibilities.

Board Conduct. Set a high standard for Board conduct and enforce policies and By-laws concerning Directors’ conduct.

Mentorship. Serve as a mentor to other Directors. Ensure that all Directors contribute fully. Address issues associated with underperformance of individual Directors.

Succession Planning. Ensure succession planning occurs for senior management, if any, and Board. Committee Membership. Serve as Member on all Board committees.

Schedule B Position Description of the Treasurer Role Statement

The treasurer works collaboratively with the president and senior management, if any, to support the Board in achieving its fiduciary responsibilities.

Responsibilities

Custody of Funds. The treasurer shall have the custody of the funds and securities of the Corporation and shall keep full and accurate accounts of all assets, liabilities, receipts and disbursements of the Corporation in the books belonging to the Corporation and shall deposit all monies, securities and other valuable effects in the name and to the credit of the Corporation in such chartered bank or trust company, or, in the case of securities, in such registered dealer in securities as may be designated by the Board from time to time. The treasurer shall disburse the funds of the Corporation as may be directed by proper authority taking proper vouchers for such disbursements, and shall render to the Chair and Directors at the regular meeting of the Board, or whenever they may require it, an accounting of all the transactions and a statement of the financial position, of the Corporation. The treasurer shall also perform such other duties as may from time to time be directed by the Board.

Board Conduct. Maintain a high standard for Board conduct and uphold policies and Bylaws regarding Directors’ conduct, with particular emphasis on fiduciary responsibilities.

Mentorship. Serve as a mentor to other Directors.

Financial Statement. Present to the Members at the annual meeting as part of the annual report, the financial statement of the Corporation approved by the Board together with the report of the auditor or of the person who has conducted the review engagement, as the case may be.

Schedule C Position Description of the Secretary Role Statement

The secretary works collaboratively with the president to support the Board in fulfilling its fiduciary responsibilities.

Responsibilities

Board Conduct. Support the president in maintaining a high standard for Board conduct and uphold policies and the By-laws regarding Directors’ conduct, with particular emphasis on fiduciary responsibilities.

Document Management. Keep a roll of the names and addresses of the Members. Ensure the proper recording and maintenance of minutes of all meetings of the Corporation, the Board and Board committees. Attend to correspondence on behalf of the Board. Have custody of all minute books, documents, registers and the seal of the Corporation and ensure that they are maintained as required by law. Ensure that all reports are prepared and filed as required by law or requested by the Board.

Meetings. Give such notice as required by the By-laws of all meetings of the Corporation, the Board and Board committees. Attend all meetings of the Corporation, the Board and Board committees.

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.

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• Review your existing books for needed corrections or back-work
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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.

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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.

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We cannot provide administrative services unrelated to our bookkeeping function.

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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.

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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.

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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.

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