What is the difference between a registered charity and non-profit organization?

by | Interesting |

This year, the Ontario SPCA and Humane Society is celebrating its 150th anniversary! As we reflect on this milestone anniversary, we are sharing some fun details and explaining what the organization does and how it operates. In this blog, we are outlining the difference between a registered charity and a non-profit organization. 

According to canada.ca, registered charities and non-profit organizations (NPOs) both operate on a non-profit basis; however, they are not the same. Read on for the differences between them. 

Registered charities 

Registered charities are charitable organizations, public foundations, or private foundations that are created and resident in Canada. They must use their resources for charitable activities and have charitable purposes that fall into one or more of the following categories: 

  • the relief of poverty 
  • the advancement of education 
  • the advancement of religion 
  • other purposes that benefit the community 
Examples of registered charities 

Some examples of registered charities under each of the four categories: 

  • relief of poverty (food banks, soup kitchens, and low-cost housing units) 
  • advancement of education (colleges, universities, and research institutes) 
  • advancement of religion (places of worship and missionary organizations) 
  • purposes beneficial to the community (animal shelters, libraries, and volunteer fire departments) 
Non-profit organizations 

Non-profit organizations are associations, clubs, or societies that are not charities and are organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit. 

Examples of non-profit organizations 

Here are a few types of non-profit organizations and examples of each: 

  • social, recreational, or hobby groups (bridge clubs, curling clubs, and golf clubs) 
  • certain amateur sports organizations (hockey associations, baseball leagues, and soccer leagues) 
  • certain festival organizations (parades and seasonal celebrations) 

 

The differences between a registered charity and a non-profit organization 
Topic  Registered charity  NPO 
Purposes 
  • must be established and operate exclusively for charitable purposes 
  • can operate for social welfare, civic improvement, pleasure, sport, recreation, or any other purpose except profit 
  • cannot operate exclusively for charitable purposes 
Registration 
  • must apply to the CRA and be approved for registration as a charity 
  • does not have to go through a registration process for income tax purposes 
Charitable registration number 
  • is not issued a charitable registration number 
Designation 
  • is designated by the CRA as a charitable organization, a public foundation, or a private foundation 
  • does not receive a designation 
Personal benefits to members 
  • cannot use its income to personally benefit its members 
  • cannot use its income to personally benefit its members 
The Ontario SPCA is not a government agency 

The Ontario SPCA and Humane Society is not a government agency and relies on the generosity of our donors to operate. It is both a registered charity and non-profit organization and does not receive annual government funding. 

Enforcement of the province’s animal cruelty legislation transitioned back to the provincial government in 2019. Animal welfare concerns are now reported to the Province of Ontario’s Provincial Animal Welfare Services (PAWS) at 1-833-9Animal, as they investigate cruelty matters. If you think an animal is in distress or being abused, call the Provincial Animal Welfare Services or contact your local police services. The Ontario SPCA and Humane Society does not have the legal authority to investigate cruelty concerns. 

Click here to learn how you can celebrate 150 years of caring for animals.