How Do You Register a Nonprofit in Toronto, Ontario?

Starting a nonprofit in Toronto or anywhere in Ontario can be a rewarding way to make a difference in your community. Whether you want to support social causes, provide community services, or promote the arts, registering your nonprofit properly ensures legal recognition and allows you to operate effectively. This guide will walk you through the steps required to register a nonprofit in Toronto, Ontario, including key legal requirements and best practices.

What Is a Nonprofit Organization in Ontario?

A nonprofit organization is a group formed for a purpose other than making a profit. Unlike businesses, nonprofits reinvest any revenue back into their mission rather than distributing it to members or directors. In Ontario, nonprofits can take different legal structures, including:

• Incorporated Nonprofits – Organizations registered under Ontario’s Not-for-Profit Corporations Act (ONCA) or the Canada Not-for-Profit Corporations Act (CNCA).
• Unincorporated Nonprofits – Informal organizations without legal incorporation, which limits liability protection. This means that the nonprofit's directors or trustees are exposed to liability.
• Registered Charities – Nonprofits that receive official status from the Canada Revenue Agency (CRA) to issue tax receipts and access certain tax exemptions.
  If you plan to grow your nonprofit, receive grants, or apply for charitable status, incorporation is highly recommended.

Step 1: Choose a Name for Your Nonprofit

Your nonprofit’s name must be unique and cannot be too similar to existing organizations. Follow these guidelines:

• The name should clearly reflect your nonprofit’s purpose.
• It must comply with Ontario’s naming regulations.
• If incorporating, check name availability through Ontario Business Registry or Corporations Canada (for federal incorporation).
• You may need a NUANS name search report to confirm name availability.

Step 2: Determine the Legal Structure

Before proceeding with registration, decide whether to incorporate at the provincial or federal level:

• Incorporating Provincially (Ontario) – Register under the Ontario Not-for-Profit Corporations Act (ONCA) if your activities are primarily within Ontario.
• Incorporating Federally (Canada) – Register under the Canada Not-for-Profit Corporations Act (CNCA) if you plan to operate across multiple provinces.
  Most nonprofits in Toronto and Ontario incorporate provincially unless they require broader operations.

Step 3: Prepare and File Incorporation Documents

To incorporate a nonprofit in Ontario, you must submit the following documents to the Ontario Business Registry:

• Articles of Incorporation (Form 2 - Ontario)
• Initial Registered Office Address and First Board of Directors Form
• NUANS Name Search Report (if applicable)
• Government Filing Fee ($155 for online filing directly with the government)
  For federal incorporation, submit incorporation documents through Corporations Canada along with a $200 filing fee.
  Once approved, you will receive a Certificate and Articles of Incorporation, confirming your nonprofit’s legal status.

Step 4: Draft Your Bylaws and Governance Structure

Bylaws are internal rules outlining how your nonprofit operates. Key elements include:

• The roles and responsibilities of directors and officers.
• Membership structure and voting rights.
• Conflict of interest policies.
• Financial management and reporting requirements.
  Strong bylaws help maintain transparency and compliance with ONCA regulations.

Step 5: Obtain a Business Number (BN) from the CRA

Once incorporated, apply for a Business Number (BN) from the Canada Revenue Agency (CRA). This number is required to:

• Open a nonprofit bank account.
• File taxes if applicable.
• Register for HST/GST rebates if your nonprofit qualifies.
  You can apply for a BN through the CRA’s online Business Registration system.

Step 6: Apply for Charitable Status (If Needed)

If your nonprofit intends to issue tax receipts for donations, you must apply for charitable registration with the CRA. To qualify, your nonprofit must fit within one of the four recognized charitable purposes:

1. Relief of Poverty (e.g., food banks, shelters)
2. Advancement of Education (e.g., scholarships, schools)
3. Advancement of Religion (e.g., religious organizations)
4. Other Purposes Beneficial to the Community (e.g., animal welfare, health, environmental causes)
   Applying for charitable status involves submitting the Application to Register a Charity along with supporting documents, such as your organization’s activities, governance structure, and financial plans.

Step 7: Comply with Ongoing Legal and Financial Obligations

Once registered, maintain compliance with Ontario’s nonprofit regulations by:

• Filing Annual Returns – Incorporated nonprofits must file an annual return with the Ontario Business Registry.
• Holding Annual General Meetings (AGMs) – Members must meet annually to review finances and elect directors.
• Keeping Financial Records – Proper bookkeeping is required, and some nonprofits must file T2 Corporate Tax Returns or T3010 (if registered as a charity).
  Failure to comply may result in fines or dissolution of your nonprofit.

How Long Does It Take to Register a Nonprofit in Ontario?

The timeline for registration depends on the method:

• Provincial Incorporation: 1-5 business days
• Federal Incorporation: Typically same day
• Charitable Status Approval: 3-7 months (depending on complexity, whether a charity, private or public foundation, and comprehensiveness of the application)
  Planning ahead helps prevent delays in launching your nonprofit’s activities.

Conclusion: Start Your Nonprofit in Toronto Today

Registering a nonprofit in Toronto, Ontario, involves several key steps, including choosing a name, incorporating, drafting bylaws, and obtaining a business number. If you plan to operate as a charity, additional registration with the CRA is required. While the process may seem complex, following these steps ensures your nonprofit is legally recognized and able to achieve its mission effectively.

If you need assistance with incorporation, governance, or charitable registration, consulting a Toronto not-for-profit lawyer can help simplify the process and ensure compliance with Ontario laws. Call us at 416-488-5888, email us at ask@charitylawgroup.ca, or schedule a free meeting with our legal team here.

Frequently Asked Questions

Starting a nonprofit in Toronto, Ontario can feel overwhelming, but we’ve helped many organisations navigate the process. Here are answers to the questions we hear most often.

How much does it cost to register a non-profit in Ontario?

Registering a nonprofit in Ontario usually costs $155 if we file online through the Ontario Business Registry. If we incorporate federally, the fee is $200. Extra costs may apply for name searches, legal help, or drafting bylaws.

How to register a charity in Toronto?

To register a charity in Toronto, we first need to incorporate as a nonprofit, either provincially or federally. Then, we apply to the Canada Revenue Agency (CRA) for charitable status by completing Application to Register aCharity Under the Income Tax Act. We must include our governing documents, detailed activity descriptions, and a budget.

How long does it take to register a non-profit in Canada?

In Ontario, incorporating a nonprofit can take a few days to a few weeks, depending on how quickly we prepare our documents and the processing time at the registry. Applying for charitable status with the CRA can take 6 to 12 months.

What are the new rules for nonprofit organizations in Ontario?

Ontario now follows the Not-for-Profit Corporations Act, 2010 (ONCA). The law updates rules for governance, member rights, and financial reporting. We must make sure our bylaws match ONCA requirements to stay compliant.

How much do nonprofits make in Ontario?

Nonprofit revenue in Ontario varies widely. Some small groups operate on less than $50,000 a year, while large organisations manage millions. Our income depends on our funding sources, such as donations, grants, and program fees.