Not-for-profit organizations, which return their income back to the company, are occasionally referred to as charities, because of the type of service, which is the mandate of their business. As they are a charitable organization, they typically have limited funds to work with. They often need a grant to at least help them get started.
The Nature of the Business
For those who are starting a not-for-profit business, and want to apply for a grant, they will have to go through a process. At the same time, they should be aware of what other resources are available to them. For example, some banking institutions will provide some of their services at a reduced rate. A company which falls into this category has to be very clear about the nature of their business, to ensure it is a charity based entity.
The Grant Process
There are many different charitable organizations in Canada, but it should never be assumed that they all qualified or even applied for a grant. In addition to going through each step to apply for this money, a review will take place to determine if the company qualifies. Other action has to be taken. Experts in the field of being the end provider of the grants suggest the following:
- Look at other charities: Look carefully at what other charities are offering, and determine how they are running their organizations. This is a good way of making sure the charity looking for the grant is using a similar business plan, which shows they are non-profit making.
- Talk to others: Talking to others who operate a charity business, and have been successful at obtaining a grant, can be a great way of getting some guidance. They have been through the process, so they have first-hand knowledge as to how it works.
- Sourcing out lending institutions: Quite often, when the government of Canada is offering charity grants, they will pick financial institutions to oversee the applications and the release of the funds. There will always be an application form which needs to be completely filled out. Before doing this, the organization should determine if the specific grant being offered applies to their type of charity. Otherwise, they are just wasting their time. In addition to the application process, there may also be a requirement for the applicants to attend an information session.
Charities in most provinces have to be registered if they want to be able to receive the tax breaks which these organizations have available to them. This registration may also be required if the organization is going to apply for a grant.
Charities play a vital role, and aside from grants, they are mostly dependent on donations.