Start a Charity in Victoria, BC: What You Need to Know

Establishing a charity in Victoria, the picturesque capital of British Columbia, is a fulfilling endeavour that allows you to give back to your community and make a lasting impact. Whether your goal is to address homelessness, promote environmental sustainability, or advance education, the process of setting up a charity involves several critical steps. This comprehensive guide will help you navigate the charity registration process in Victoria, BC, with clarity and ease, from initial planning through to full operation.

Why Start a Charity in Victoria, BC?

Victoria boasts one of the most vibrant charitable sectors in British Columbia, with a strong culture of community engagement and volunteerism. The city's unique demographics—including a growing senior population, increasing housing pressures, and environmental conservation needs—create meaningful opportunities for charitable work that truly makes a difference.

Starting a charity in Victoria offers several advantages. The city's relatively compact size fosters strong community connections, making it easier to build partnerships with local organizations, businesses, and government agencies. Victoria residents demonstrate high levels of charitable giving and volunteer participation, providing a solid foundation of community support for new charitable initiatives. Additionally, British Columbia's Societies Act provides a clear legal framework for establishing and operating charitable organizations throughout the province.

Whether you're addressing food security, youth programming, environmental protection, or any other charitable purpose, Victoria's engaged community and supportive charitable ecosystem can help your organization thrive.

Understand What a Charity Is

Before diving into the registration process, it's important to understand what defines a charity in Canada. According to the Canada Revenue Agency (CRA), a charity must fall under one of the following categories:

• Relief of poverty – Providing assistance to individuals or communities experiencing financial hardship
• Advancement of education – Promoting learning, skills development, or knowledge dissemination
• Advancement of religion – Supporting religious worship, teaching, or spiritual development
• Other purposes beneficial to the community – This includes promoting health, protecting the environment, supporting vulnerable groups, advancing arts and culture, and other activities that provide public benefit

A charity's activities must exclusively focus on these charitable purposes, and it cannot operate for private gain. All profits must be used to further the charity's mission.

Charitable vs Non-Charitable Purposes

It's equally important to understand what does NOT qualify as charitable. Common activities that cannot form the basis of a registered charity include:

• Political activities as a primary purpose (though limited political advocacy is permitted)
• Private recreation or social clubs
• Promoting a particular business or commercial interest
• Providing benefits primarily to members rather than the public
• Activities that benefit only a select group of individuals (such as a specific family)

If you're uncertain whether your proposed activities qualify as charitable, consulting with a charity lawyer can help clarify your organization's eligibility before you invest time and resources in the registration process.

Develop a Clear Purpose and Mission 

Your charity's purpose and mission are the foundation of your organization. Clearly outline what you aim to achieve and how you plan to do it. This step will help you draft your governing documents and satisfy CRA's requirements for charity registration.

Example: If your charity focuses on addressing homelessness in Victoria, your mission might be: "To provide shelter, meals, and employment training to individuals experiencing homelessness, with the goal of fostering long-term stability."

Choose a Suitable Legal Structure

Charities in Canada are typically organized as:

• Nonprofit Corporations: This is the most common structure for charities. Incorporation provides legal protection, makes it easier to secure funding, and lends credibility to your organization.
• Trusts or Unincorporated Associations: These are less common and may lack the legal protections and funding opportunities associated with incorporation.

Options for Incorporation:

• Provincial Incorporation: Incorporate under British Columbia's Societies Act by filing with BC Registry Services. This option is suitable if you plan to operate primarily within BC. Under the BC Societies Act, you'll need a minimum of five founding members to incorporate. You can choose to structure your society as either a member-based or non-member-based organization, depending on your governance preferences.
  
  
• Federal Incorporation: Incorporate under the Canada Not-for-profit Corporations Act (NFP Act) through Corporations Canada Online Filing Centre. This option is ideal if your charity intends to operate across multiple provinces or territories. Federal incorporation requires a minimum of three directors.

Federal incorporation offers advantages such as nationwide recognition and a streamlined process for operating in multiple jurisdictions. However, it requires filing annual returns with Corporations Canada in addition to CRA compliance. Provincial incorporation in BC keeps your reporting obligations within one provincial system, which many Victoria-based charities find simpler to manage.

Key Considerations for BC Incorporation:

• Director Requirements: BC societies must have at least three directors, all of whom must be individuals (not corporations)
• Membership Structure: Decide whether your society will have members with voting rights or operate as a non-member society where directors hold all governance authority
• Registered Office: Your society must maintain a registered office address in British Columbia

Draft Governing Documents

Your governing documents, such as bylaws and a constitution, must align with the Societies Act and CRA's charity registration requirements. These documents should include:

• The charity's name and purpose
• Membership rules (if applicable)
• Procedures for meetings and decision-making
• Financial management policies
• Director roles and responsibilities

Ensure that these documents explicitly prohibit any profit distribution to members or directors. Your bylaws must also include a proper dissolution clause stating that upon dissolution, remaining assets will be distributed to another qualified donee (another registered charity or the Crown).

Apply for Incorporation

To incorporate your charity in British Columbia:

Step 1: Reserve a Name

Use the BC Name Request System to ensure your charity's name is unique and meets naming requirements. The name must:

• Not be confusingly similar to existing organizations
• Do not include restricted words without proper authorization
• Include a corporate designation (such as "Society" or "Association")

Typical timeframe: Name approval usually takes 1-3 business days 

Cost: £30 for a name request (if choosing a unique name rather than a numbered society)

Step 2: File Incorporation Documents

Submit your constitution and bylaws to BC Registry Services through their online portal. You'll need to provide:

• Your approved name or request a numbered society name
• Your constitution (statement of charitable purposes)
• Complete bylaws that comply with the Societies Act
• Information about your founding directors

Typical timeframe: Incorporation is usually processed within 1-3 business days for online filings 

Cost: £100 incorporation fee

For federal incorporation through Corporations Canada: 

Typical timeframe: 7-14 business days 

Cost: £200 incorporation fee, plus £20 for a NUANS name search

Once incorporated, you will receive a Certificate of Incorporation—a crucial document you'll need for opening bank accounts and applying for charitable status.

Estimated Timeline and Costs

Understanding the timeline and costs involved in starting a charity helps you plan effectively and set realistic expectations. Here's what to expect when establishing a charity in Victoria, BC:

Timeline Breakdown:

Cost Breakdown:

Important Notes:

• CRA charity registration itself has no filing fee
• Professional assistance is optional but strongly recommended, especially for complex organizations
• Extra-provincial registration adds £100-£300 per additional jurisdiction
• Ongoing costs include annual BC Registry fees (£51.63) and accounting/bookkeeping

Money-Saving Tips:

• Use BC Registry Services' online portal for faster, cheaper filings
• Prepare thorough documentation before applying to CRA to avoid delays and requests for additional information
• Consider using template bylaws (available from BC Registry Services) if they suit your needs
• Budget for accounting assistance from the start—proper financial setup prevents costly corrections later

Complete Extra-Provincial Registration

If your charity plans to operate in other provinces or territories outside of British Columbia, you must complete an extra-provincial registration. This process involves:

• Researching Requirements: Each province or territory has its own registration rules and fees.
• Filing with the Respective Jurisdiction: Submit your incorporation documents, Certificate of Incorporation, and any additional forms required by the jurisdiction where you wish to operate.
• Maintaining Compliance: Ensure you adhere to ongoing reporting requirements in each jurisdiction.

Extra-provincial registration ensures your charity complies with legal obligations when expanding beyond BC's borders. For Victoria-based charities, common extra-provincial registrations include Alberta and Ontario if serving clients or conducting fundraising activities in those provinces.

Register as a Charity with CRA

After incorporation, you must apply to the CRA for charitable status. This step allows your organization to issue tax receipts to donors and access other benefits, such as tax exemptions.

Steps to Register:

• Complete the Application to Register a Charity: This is the application to register a charity under the Income Tax Act. The application requires detailed information about your organization's structure, governance, activities, and finances.
  
  
• Provide Supporting Documents: Include your governing documents (constitution and bylaws), Certificate of Incorporation, detailed activity descriptions, projected budgets for the first two years, and information about your directors.
  
  
• Submit the Application: Applications must be mailed to the CRA's Charities Directorate. Electronic submission is not currently available for initial registration applications.

The CRA may take several months to process your application and may request additional information or clarification. During this review period, CRA officers assess whether your proposed activities are exclusively charitable, whether your governing documents meet legal requirements, and whether your organization's structure provides proper accountability.

What Happens After CRA Approval

Once approved, you'll receive:

• Charitable registration number: A unique 9-digit number followed by RR0001 (for registered charities)
• Effective date of registration: Usually, the date CRA received your complete application
• Official notification letter: Confirming your registered charity status

Next Steps After Approval:

1. Set up your CRA My Business Account: This online portal allows you to manage your charity's information, file returns, and communicate with CRA
2. Understand your T3010 filing deadline: Your first T3010 Registered Charity Information Return is due within six months of your fiscal year-end
3. Order official donation receipts: Ensure they meet CRA's requirements for content and format
4. Update your registration: Notify CRA of any changes to directors, address, or governing documents within specific timeframes

Set Up Operations and Compliance 

Once registered, focus on establishing operational procedures to ensure compliance with CRA regulations. Key areas to address include:

Financial Management

• Separate Bank Account: Open a dedicated bank account in your charity's legal name. Keep personal and charitable finances completely separate.
• Accurate Record-Keeping: Maintain detailed financial records, including all income, expenses, donations, and receipts issued. Use accounting software designed for charities if possible.
• Books and Records Retention: CRA requires charities to keep books and records for a minimum of seven years. This includes financial statements, minutes of meetings, donation records, and correspondence with CRA.

Annual Filing Requirements

• File Annual T3010 Form: Report your charity's activities and finances to the CRA every year. This form is publicly available on CRA's website, so ensure accuracy and completeness.
• BC Annual Report: File your annual report with BC Registry Services, confirming your directors and registered office address. The annual fee is £51.63.
• Meet Disbursement Quota: Most registered charities must spend a minimum amount on charitable activities each year—typically 3.5% of the average value of property not used in charitable activities. Track this carefully to maintain compliance.

Governance

• Hold Regular Board Meetings: Conduct meetings at the frequency specified in your bylaws (typically quarterly at a minimum)
• Maintain Proper Minutes: Document all decisions, votes, and discussions. Minutes provide evidence of proper oversight and decision-making.
• Director Responsibilities: Ensure directors understand their duties of care, loyalty, and obedience. Directors can be held personally liable for certain violations, including failing to meet payroll obligations or knowingly allowing the charity to issue false receipts.

Public Benefit

• Align Activities with Purpose: Ensure your activities align with your stated charitable purposes and benefit the public, not private interests.
• Document Your Impact: Keep records demonstrating how your activities achieve charitable purposes. This documentation is essential for annual T3010 filing and for communicating impact to donors.
• Avoid Prohibited Activities: Do not provide undue benefits to members, directors, or related parties. Political activities must remain non-partisan and within permitted limits (generally less than 10% of resources).

Common Mistakes to Avoid When Starting a Charity in Victoria

Learning from others' experiences can save you significant time, money, and frustration. Here are the most common mistakes new charities make—and how to avoid them:

1. Not Researching Existing Charities

Before investing time and resources, search CRA's database of registered charities to see if similar organizations already exist. If numerous charities serve the same purpose in your area, consider whether starting a new organization is the best approach or whether volunteering with or partnering with an existing charity might achieve your goals more effectively.

2. Drafting Inadequate Governing Documents

Many applications are delayed or rejected because bylaws don't meet CRA requirements. Common problems include:

• Missing or improper dissolution clauses
• Purposes that are too narrow or too broad
• Failing to prohibit private benefit explicitly
• Not addressing how the organization will wind up if it ceases operations

Using template bylaws without proper customization or legal review often creates these problems. Invest in proper governing documents from the start.

3. Unclear or Non-Charitable Purpose

Your stated purposes must be exclusively charitable and clearly articulated. Vague language like "helping the community" or "making the world better" won't satisfy CRA. Be specific about who you serve, what problems you address, and how your activities achieve recognized charitable purposes.

4. Poor Financial Record-Keeping from Day One

Many new charities treat financial management casually in their early stages, leading to serious problems during CRA registration or later audits. From your first dollar received or spent:

• Keep detailed records
• Use separate bank accounts
• Track donations properly
• Save all receipts and documentation

Trying to reconstruct financial records later is difficult, time-consuming, and may jeopardize your charitable status.

5. Misunderstanding Disbursement Quota

Many new charities don't understand that registered charities must spend a minimum amount annually on charitable activities. Plan your activities and budget with this requirement in mind. Simply accumulating donations without spending them on charitable purposes violates CRA requirements and can result in penalties or revocation.

6. Failing to Budget for Professional Help

While you can technically start a charity on your own, the complexity of charity law, tax regulations, and corporate governance often exceeds most founders' expertise. Cutting corners on legal and accounting advice frequently costs more in the long run when mistakes must be corrected or opportunities are missed. Budget realistically for professional assistance, at least during formation and your first year of operation.

7. Not Planning for Sustainability

Too many charities focus entirely on registration without adequate planning for ongoing operations. Before registering, develop realistic plans for:

• Ongoing funding sources
• Volunteer recruitment and retention
• Board development and succession
• Programme delivery and growth

Registration is just the beginning—operational sustainability requires thoughtful planning.

Engage Your Community 

To build support for your charity, actively engage with the local community. Consider the following:

• Host Events: Organize fundraisers or awareness campaigns to connect with potential donors and volunteers. Victoria's strong community spirit makes events particularly effective for building support.
• Collaborate: Partner with other local organizations to amplify your impact. Many Victoria charities benefit from collaborations with complementary organizations.
• Utilize Social Media: Share your mission, stories, and updates to attract supporters. Highlight your local Victoria connections and the specific community impact you're making.
• Build Local Partnerships: Connect with Victoria Foundation, Volunteer Victoria, and other community organizations that can provide advice, resources, and connections.

Victoria-Specific Resources and Support

Starting and operating a charity in Victoria means you have access to valuable local resources designed to support charitable organizations:

Government and Regulatory Resources

• BC Registry Services
  
  
  • Online portal for incorporation and annual filings
  • Template bylaws and constitution documents
  • Contact: 1-877-526-1526 | www.bcregistry.gov.bc.ca
• CRA Charities Directorate
  
  
  • Charity registration applications
  • Annual filing (T3010) submission
  • Guidance documents and webinars
  • Contact: 1-800-267-2384 | www.canada.ca/charities-giving

Local Support Organizations

• Victoria Foundation
  
  
  • Community foundation supporting local charitable work
  • Grants and capacity-building support
  • Networking opportunities with other local charities
  • www.victoriafoundation.bc.ca
• Volunteer Victoria
  
  
  • Volunteer recruitment and management resources
  • Capacity building for charitable organizations
  • Networking and professional development
  • www.volunteervictoria.bc.ca
• United Way of Greater Victoria
  
  
  • Community impact initiatives
  • Potential funding opportunities
  • Collaborative programmes
  • www.uwgv.ca

Professional Services

When you need expert guidance for incorporation, charity registration, governance, or compliance matters, working with professionals who specialize in charity law ensures your organization is set up correctly from the start.

• Charity Law Specialists: B.I.G. Charity Law Group serves charities across Canada, including Victoria, providing incorporation, CRA registration assistance, and ongoing compliance support.
  
  
• Accounting Services: Look for accountants with charity-specific experience who understand T3010 filing, disbursement quota calculations, and charitable receipting requirements.

Educational Resources

• CRA's Guidance Documents: CRA publishes extensive guidance on charitable registration, operations, and compliance at www.canada.ca/charities-giving
  
  
• BC Societies Act Resources: Access the Act itself, policy bulletins, and interpretive guidance through BC Registry Services
  
  
• Charity Law Publications: Stay informed about legal developments, best practices, and compliance requirements through charity law blogs and newsletters

Conclusion 

Setting up a charity in Victoria, BC, requires dedication and attention to detail, but the rewards of making a difference in your community are immeasurable. By following these steps—from understanding charitable purposes through incorporation, CRA registration, and establishing strong operational practices—you can build a solid foundation for your organization and navigate the registration process with confidence.

Victoria's supportive charitable sector, engaged community, and clear regulatory framework provide an excellent environment for new charities to thrive. Whether you're addressing local housing challenges, supporting vulnerable populations, advancing education, or working toward environmental sustainability, your passion and commitment can create lasting positive change in British Columbia's capital and beyond.

Remember that charity registration is not the end goal but rather the beginning of your organization's journey. Focus not just on meeting legal requirements but on building a sustainable, well-governed organization that effectively serves your community and achieves your charitable mission.

Need assistance with incorporating your nonprofit or society and registering your charity? Schedule a free call with our team to learn how we can assist, or call us at 416-488-5888.

Frequently Asked Questions 

How long does it take to register a charity in Victoria, BC?

The complete process typically takes 4-7 months from start to finish. BC incorporation usually completes within 1-3 business days, but CRA's charity registration review takes 3-6 months (sometimes longer if additional information is requested). You can speed up the process by submitting a complete, well-prepared application with all required supporting documents.

Do I need a lawyer to start a charity in Victoria?

While it's legally possible to incorporate and register a charity without a lawyer, professional assistance is strongly recommended. Charity law is complex, and mistakes in governing documents or CRA applications commonly cause delays, rejections, or compliance problems later. A charity lawyer ensures your documents meet all legal requirements and helps you avoid costly errors. Most charities find that professional fees are worthwhile investments that save time and money in the long run.

What's the difference between a BC Society and a registered charity?

A BC Society is a type of corporate structure created under British Columbia's Societies Act. Not all societies are charities—many are clubs, associations, or other nonprofit organizations. A registered charity is an organization that CRA has approved to operate for exclusively charitable purposes under the Income Tax Act. Most charities in BC are structured as BC Societies, but they must complete both provincial incorporation (becoming a BC Society) and federal registration (becoming a registered charity with CRA) to issue tax receipts to donors.

Can I start a charity in Victoria if I'm not a Canadian citizen?

Yes, you can start a charity in Victoria without being a Canadian citizen. However, the majority of your board of directors must be Canadian residents. This requirement ensures that the charity's governance and control remain primarily within Canada. Directors who are not Canadian residents may serve on the board, but cannot constitute the majority.

How many board members do I need for a Victoria charity?

Under the BC Societies Act, you need a minimum of three directors. However, CRA typically expects registered charities to have at least three directors who are not related to each other (arm's length directors). Many charities find that 5-9 directors provide an effective balance—enough diversity of perspective and workload distribution without becoming unwieldy. Choose directors who bring different skills, connections, and perspectives to support your charity's mission.