Can a Non-Profit Make Money in Canada?

When you hear the word non-profit, you might think of an organization that barely scrapes by — always fundraising, always asking for help. But here’s something that surprises a lot of people: Non-profits and charities in Canada can make money.

Yes, you read that right. They’re allowed to earn income — and many do! The important thing is what they do with the money.

Let’s walk through how this works in Canada, in simple, real-life terms.

What Exactly Is a Non-Profit or Charity?

In Canada, a non-profit organization is a group set up to support a cause or serve a community — not to make money for owners or shareholders. A charity is a special kind of nonprofit that’s registered with the CRA (Canada Revenue Agency) and can give charitable tax receipts when people donate.

These organizations focus on making a difference — whether that’s helping kids, feeding families, protecting animals, supporting education, or something else entirely.

But here’s the key difference between a regular business and a nonprofit or charity: nonprofits can earn money, but they can’t personally profit from it.

So... Can Non-Profits Make Money?

Absolutely.

If you’ve been wondering, “Can a non-profit make money in Canada?” — the answer is yes.

They can run programs, charge fees, host events, sell products, even run businesses — as long as the money goes back into the organization. That means paying staff, running services, improving programs, and covering everyday costs like rent and supplies.

Here are just a few ways nonprofits and charities in Canada can make money:

• Donations (from people, businesses, or foundations)
• Government grants
• Memberships or program fees

• Corporate sponsorships
• Fundraisers (like walk-a-thons or charity dinners)
• Selling goods or services (like a secondhand shop or a summer camp)

In short, if you’re asking “how can non-profits make money?” — the options are wide open.

Where Do Nonprofits Get Most of Their Money?

This is one of the most common questions we hear: “Where do nonprofits get most of their money?”

In Canada, many nonprofits rely on a mix of:

• Government funding
• Public donations
• Corporate sponsorships
• Events and campaigns
• Sometimes, earned income (like workshops, merchandise, or training)

Some larger charities even earn money from investments or rental properties, and that’s okay too, as long as the money supports their mission and follows CRA guidelines for related business.

How Much Money Can Non-Profits Make?

This might surprise you: there’s no legal limit to how much money non-profits can make in Canada.

Some Canadian charities raise millions of dollars every year. Others may bring in smaller amounts, but still enough to keep their programs running and grow their impact.

What really matters isn’t how much they earn — it’s how they spend it. Every dollar must be used to support their mission. No one can pocket the profits, and any money left over at the end of the year should be reinvested into the work they do.

What Is the Most Profitable Non-Profit?

Now you might be asking, “What is the most profitable non-profit?” Well, it depends on how you define “profitable.” Some of the biggest, most successful charities in Canada are:

• Hospitals and healthcare foundations
• Universities and education charities
• Large humanitarian organizations, like the Canadian Red Cross

These organizations raise and spend millions, but all of it goes toward helping people, running programs, or improving systems. That’s the difference: profit doesn’t go into someone’s pocket — it goes back into the cause.

Can a For-Profit Own a Nonprofit in Canada?

This is an important one: Can a for-profit own a nonprofit in Canada? No, they can’t.

A for-profit company can support a nonprofit, help fund it, or even start one, but it can’t own it. Nonprofits and charities in Canada must be independent and governed by a board of directors.

In other words, you can’t “buy” a nonprofit like a business. You can help lead or support one, but the control stays with the board, and the mission comes first.

Real Talk: Making Money the Right Way

So let’s bring it all together:

• Can non-profits make money? Yes
• Can a non-profit make money in Canada? 100% yes
• How can non-profits make money? Through donations, grants, events, fees, and even business activities
• How much money can non-profits make? As much as they need, if it goes back into their cause
• Can a for-profit own a nonprofit in Canada? Nope — but it can support or sponsor one
• What is the most profitable non-profit? Many hospitals, universities, and large national charities lead the way

Final Thoughts

Running a nonprofit or charity in Canada doesn’t mean you have to struggle. It does mean you need to use your money responsibly and for the greater good. If done right, your nonprofit can be financially strong and make a big difference in people’s lives.

And if you're thinking of starting your own nonprofit or charity in Canada, don’t be afraid to dream big. Just make sure your heart — and your books — are in the right place.

Need help getting started? We help Canadians register nonprofits and charities with clear, predictable, fixed-fee legal support — no hidden costs, no confusion, just a simple path to getting your organization off the ground and registered with the CRA. Schedule a complimentary consultation with our team to determine the best and quickest way to register your charity.

B.I.G. Charity Law Group Professional Corporation

   416-488-5888

   ask@charitylawgroup.ca

Frequently Asked Questions

Non-profits in Canada can earn money through several different methods.

They can make a profit as long as they use the money to support their mission instead of giving it to owners or shareholders.

How do non profits make money?

Non-profits earn money from donations, government grants, membership fees, corporate sponsorships, fundraising events, and selling goods or services. Some also earn from investments or rental properties. All income must support the organisation's mission.

Can a not-for-profit make a profit in Canada?

Yes, not-for-profits can make a profit. Unlike regular businesses that give profits to owners, not-for-profits must use all profits for their charitable purpose. Leftover money goes back into programs and services. No person can take the profits personally.

Can you make money with a nonprofit?

You can earn a salary working for a nonprofit. Many pay competitive wages to staff. Directors and board members can get paid too, but rules vary by province. Your pay must be reasonable for your work. You cannot take excessive payments or profits.

Can you make money from starting a nonprofit organization?

No, you cannot make money as profit from starting a nonprofit. If you work for it, you can get a reasonable salary that matches your work. You cannot use a nonprofit to avoid personal taxes. Starting a nonprofit should be about the mission, not personal money.

Can a non-profit organization (Canada) put money in a Wealthsimple savings account?

Yes, non-profits can put money in investment accounts like Wealthsimple. They can invest to earn extra income. The investment income must support the organisation's charitable purpose. All returns must go back into supporting the mission.

What are the reporting requirements for non-profits in Canada with regards to their financial activities?

Most non-profits in Canada must file form T1044 with the Canada Revenue Agency each year. This form reports their financial activities and confirms they maintain their tax-exempt status.

Registered charities have additional requirements. They must file form T3010 and give detailed information about their programs and finances.

The reporting deadline is usually six months after the organisation's fiscal year end. Filing late can lead to penalties or loss of tax-exempt status.

Non-profits must keep detailed financial records. These records should show all income sources and how they spent money on charitable activities.