What Are the Types of Charities in Canada?
If you’ve ever wondered how charities work in Canada or what kinds of causes they support, you’re not alone. Many Canadians donate to charities or even think about starting one, but few understand the different categories and structures that exist.
In this blog, we’ll explore the types of charities in Canada, how they are categorized by purpose, and how the CRA designates them. Understanding this can help you choose the right charity to support — or help you start one of your own.
What Are the Four Types of Charities?
When people ask, “What are the four types of charities?”, they’re usually referring to the purposes that the Canada Revenue Agency (CRA) uses to register a charity.
According to Canadian law, every registered charity must fit into one or more of these four categories:
1. Relief of Poverty
These charities help people in financial need — like food banks, homeless shelters, or affordable housing organizations.
2. Advancement of Education
These charities focus on learning and knowledge. They might offer tutoring, operate schools, give scholarships, or provide job training.
3. Advancement of Religion
Religious charities promote faith-based teachings and spiritual development. Churches, mosques, synagogues, temples, and similar organizations often fall into this category.
4. Other Purposes That Benefit the Community
This is a catch-all category for charities that don’t fit into the first three, but still help the public, such as those promoting health, arts and culture, animal welfare, protecting the environment, or supporting seniors.
These categories help the CRA determine whether an organization qualifies for charitable status and can issue tax receipts for donations.
What Are the Three Types of Charities in Canada?
When people ask, “What are the three types of charities in Canada?”, they’re usually talking about the designations assigned by the CRA after a charity is registered.
In Canada, all registered charities fall under one of these three designations:
1. Charity (Charitable Organization)
This is the most common designation. A charitable organization mainly runs its own programs and services. For example, a local food bank that buys and distributes food would fall under this category.
2. Public Foundation
A public foundation typically gives grants to other charities rather than running programs itself. It is funded by multiple donors and is governed by a board of directors.
3. Private Foundation
A private foundation is often funded and controlled by a single donor, family, or organization. It doesn’t usually run its own programs, but provides funding to other registered charities through grants.
Understanding these types of designations helps you know how a charity operates, how it gets its money, and how it spends it.
What Is the Most Common Charity?
The most common type of charity by purpose is one that helps with education, poverty, or religious activities. But by designation, the most common type is a charitable organization, since they are the ones that usually run direct programs in the community.
So if you volunteer at a shelter, donate to a youth camp, or support a literacy program, chances are you’re helping a charitable organization.
What Are the Top 10 Charities in Canada?
Many people search, “What are the top 10 charities in Canada?” because they want to give to trustworthy and impactful organizations. While the list may change slightly each year, here are some well-known Canadian charities that are often ranked highly for impact, transparency, and national reach:
- Canadian Red Cross
- SickKids Foundation
- United Way Centraide Canada
- World Vision Canada
- UNICEF Canada
- The Salvation Army Canada
- Doctors Without Borders / Médecins Sans Frontières
- Heart and Stroke Foundation
- Canadian Cancer Society
- Children’s Aid Foundation of Canada
These charities support a wide range of causes — from healthcare and children’s services to disaster relief and international aid.
Why Knowing the Types of Charities Matters
When you understand the different types of charities and their CRA designations, you’re in a better position to:
- Choose a cause that fits your values
- Know how your donation is being used
- Understand how to set up your own registered charity in the right category
Whether you’re a donor, volunteer, or future charity founder, knowing the types of public charities helps you make informed decisions.
Final Thoughts
Canada has a clear framework for how charities are registered, structured, and monitored. From the four types of charitable purposes to the three CRA designations, these categories help make sure that registered charities are working for the public good.
Have questions about different types of Canadian charities? Call us at 416-488-5888 or email ask@charitylawgroup.ca and schedule a complimentary strategy session with our team to determine the best way forward for registering your charity with the CRA.
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