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Not for Profit Corporation
This corporation may be incorporated under federal or provincial law. In Ontario and federally, the not-for-profit is created under the Corporations Act, (not the Business Corporations Act). There are different rules, procedures and fees.
Basically, the not-for-profit corporation has members, not shareholders. Excess of revenues over expenses are surpluses not profits and the purpose of the corporation must comply with the Corporations Act.
A corporate status, protects the members and officers of the organization, gives it a separate legal status which can enter into and enforce contracts.
A not-for-profit can not grant charitable tax receipts. This requires an application and registration by CRA (Revenue Canada).
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