Difference between revisions of "Draft a Non-Profit Constitution (Societies Act FAQs)"
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== | ==Constitution== | ||
Under the 'Societies Act' a non-profit's constitution can only contain its name and purpose. | |||
A | ===What is a constitution?=== | ||
A non-profit’s constitution is one of the two foundational documents that are required in order for a non-profit to incorporate. The constitution sets out: | |||
* the name of the non-profit, and | |||
* the purposes of the non-profit. | |||
===Can anything else be in the constitution?=== | |||
No. Only the name of the non-profit and the non-profit’s purposes can be in the constitution. Any other provisions, such as winding up and dissolution clauses, limits on membership, or office location, should be in the bylaws. | |||
==Can | ===Can the constitution be changed?=== | ||
Yes. The non-profit can change the constitution by passing a special resolution at a meeting of members, such as an AGM or SGM. Once members have passed a special resolution, the non-profit must file a constitution amendment application through BC Societies Online. | |||
Exception: if the non-profit was incorporated before the new ''Societies Act'' took effect on November 23, 2016 and has not yet transitioned, special rules apply when those non-profits transition to the new Act. See the transition appendix for more information. | |||
==Name== | |||
===What can the non-profit be named?=== | |||
The name of the non-profit that is in the constitution must be one that was approved by the registrar. For more information on non-profit names, see the Name Request section. | |||
==Purposes== | |||
===What purposes are allowed?=== | |||
The purposes of the non-profit determine what actions the non-profit can undertake, and can include agricultural, artistic, benevolent, charitable, educational, environmental, patriotic, philanthropic, political, professional, recreational, religious, scientific, social or sporting purposes. Examples would include a theatre company, a curling club, a daycare, and a youth treatment centre. Note that not all permitted non-profit purposes are charitable, which could cause issues if in the future the non-profit wishes to become a registered charity. For more on charitable purposes, see the [https://www.canada.ca/en/services/taxes/charities.html CRA Charities Directorate website]. | |||
==What | ===What purposes are not permitted?=== | ||
The non-profit may not state as its purpose the carrying on of a business for profit or private gain. In other words, the non-profit’s purpose can’t be to make money. | |||
However, this doesn’t prevent the non-profit from running a business, so long as the business proceeds go toward the non-profit purposes of the non-profit. For example, a seniors network might operate a thrift shop (a business), but all the proceeds go toward providing services and programming for seniors (the non-profit’s purpose). | |||
== | ==(Optional) Member Funded Society Clause== | ||
If a non-profit wishes to be a member funded society, the constitution must include a clause to that effect. | |||
However, member funded society status is a unique status that must be considered very carefully. For more information, see the member funded societies page. | |||
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