Interesting reading this week. I didn’t know that you couldn’t be both a non-profit and a charity. Does that mean that the common phrase “non-profit charity organization” should be phased out of usage?
Second question I had was whether or not a society’s constitution and/or bylaws need to explicit state whether they are a charity or not.
Hope everyone’s enjoying the course so far, I know I am.
Thanks Kent, believe it or not, only Revenue Canada explicitly states that an organization is either a non profit or a Charity – and they explain the difference. I used the terms non profit and charity interchangeably for decades and only when forced to think about it through a governance lens was it useful to know the difference. Yet, I do think funders and donors need to know so that they can make decisions about where to give.
Your Constitution should not include your non profit or Charitable status – primarily because charitable status can be lost or not renewed voluntarily, and then a Charity defaults to being a non profit.