Who this is for
Directors, treasurers and volunteers of community associations, cultural and religious organizations, sports clubs, parent groups and other BC societies. Also donors who want to know what a receipt from an organization is worth.
The seven differences
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Purpose. A registered charity is established and operated exclusively for charitable purposes recognised in law. A nonprofit is organized for social welfare, civic improvement, pleasure, recreation, sport or any other purpose except profit.
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Registration. A charity applies to the CRA and, if approved, receives a charitable registration number. A nonprofit is not registered with the CRA and has no such number. Incorporation as a society is a provincial step and is separate from both.
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Donation receipts. A registered charity can issue official donation receipts that donors use on their tax returns. A nonprofit cannot. This is the difference that matters most at fundraising time.
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Spending rules. A charity must spend a minimum amount each year on its own charitable activities or qualifying disbursements. A nonprofit has no such requirement.
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Annual filings. A charity files Form T3010 within six months of its fiscal year end, even if it did nothing that year. A nonprofit may have to file Form T1044 if it meets certain thresholds, and may also have to file a T2 corporate return. Our T1044 guide explains the thresholds.
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Income tax. A charity is exempt from income tax. A nonprofit is generally exempt too, but can be taxed on certain property income and capital gains.
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GST. Charities and nonprofits have different GST rules: which supplies are exempt, and whether the organization can claim a rebate of GST paid. A nonprofit’s rebate generally depends on receiving significant government funding.
One thing many people do not realize
An organization can be a BC society, run entirely by volunteers, and do good work in the community, and still not be a registered charity. Until the CRA registers it as a charity, it cannot issue official donation receipts. A receipt it issues anyway is not valid for the donor’s tax return. Donors who are promised receipts by a nonprofit are being promised something the organization cannot give.
What to prepare
- The organization’s incorporation documents and bylaws
- Its CRA business number, and any charitable registration number
- Last year’s financial statements
- A list of fundraising activities planned for the year
When professional help may make sense
Deciding whether to apply for charitable registration, receiving a large gift, starting a business activity, or discovering that past receipts were issued without registration. Each has consequences for the organization and its donors.
How Rex Tax may be able to help
Bookkeeping, T1044 and T2 filings for nonprofits, and bookkeeping support for registered charities. We do not handle applications for charitable registration; that is a legal process with the CRA’s Charities Directorate.
Official sources
- CRA: Differences between a registered charity and a non-profit organization
- CRA: Income tax guide to the Non-Profit Organization (NPO) information return (T1044)
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.