Charity grants are given to registered charities, non-profit organizations, or individuals for specific purposes. Charities and non-profit organizations can look for grant opportunities in the following places:
- Google search
- Their Board
- Gain Publicity
- Continue fundraising
- Hire a Grant writer
- Canadian Government
What is the Difference Between a Registered Charity and a Non-Profit Organization?
- Registered Charities
These are charitable organizations, private foundations, or public foundations that are created in Canada. Specific requirements must be met. They must have one or more of the following:
- Advancement of education – colleges, research institutes and universities
- Relief of poverty- soup kitchens, food banks, low-cost housing
- Advancement of religion-missionary organizations or places of worship
- Purposes that benefit the community- libraries, animal shelters, and volunteer fire departments, for example. For a charity to issue donation receipts and not pay income tax, they must be registered. They will then be issued a registration number.
- A registered charity is permitted to issue official donation receipts for income tax purposes.
- A registered charity must be established and exclusively operate for charitable purposes.
- The charitable organization has a spending requirement disbursement quota. They must also file an annual information return. The members of the charitable organization cannot benefit personally from its income.
- Amateur sports organizations (hockey and baseball leagues, figure skating)
-recreational, social, or hobby groups (curling clubs, golf clubs, and bridge clubs)
- Some festival organizations (seasonal celebrations and parades)
You cannot be considered a Non-Profit Organization if you are operating as a charity.
- A Non-Profit Organization cannot operate for charitable purposes exclusively. Therefore Non-Profit Organizations are not issued a charitable registration number. They cannot issue official donation receipts for income tax purposes. A non-profit organization does not receive as designation as a registered charity does. Non-Profit organizations do not have a spending requirement but cannot use the income for personal benefit to its members.
Canada Revenue Agency
The CRA is responsible for deciding if an organization qualifies to be tax-exempt.
Charitable organizations usually pay GST and HST on purchases but may claim a partial rebate on eligible purchases. The Net Tax Calculation for Charities is used.
Non-Profit organizations must pay GST and HST on purchases. If the organization has received significant government funding, they may be eligible for a partial rebate on eligible purchases. Net tax is calculated the regular way.
Royal Bank of Canada
The Royal Bank of Canada works with charitable organizations and non-profit organizations, in the community where it does business. The Royal Bank provides donations that can cover up to 20% of the cost of a project. However, only 0.5% of the bank’s contribution can make up your operating costs. You can apply for a general donation. However, your chances increase if you apply for a specific program.
RBC Youth Mental Health Project
The RCB provides financial funding to groups associated with assisting children and teens with mental health services.
The Mixed Capital Opportunities Fund
This program is available to both charitable organizations and non-profit organizations. You must attend an informational session. Approximately a month later, you must provide a detailed business plan with the submission of your application. Normally the fund holds two sessions in a year. Funding is awarded $10,000-$30,000. If approved, half of the funds are a grant, the other half a loan. Groups and organizations in the Toronto-Hamilton area are eligible for this opportunity.