Member-Funded Societies (Societies Act FAQs)

What is a member-funded society?

A member-funded society is a society that exists primarily for the benefit of their members. It does not receive public donations or government funding. Examples include professional or trade associations, or social or sports clubs. In its constitution, the member-funded society must declare: “This society is a member-funded society. It is funded primarily by its members to carry on activities for the benefit of its members. On its liquidation or dissolution, this society may distribute its money and other property to its members.”

What kinds of societies cannot become member-funded societies?

Societies that cannot become member-funded societies include:

1. societies that have received public donations, government funding, or a combination of the two with a total value greater than $20,000 or 10%, whichever is greater, of the society’s gross income within a period of two financial years immediately preceding the current financial year of the society,
2. societies that are registered charities as defined in the Income Tax Act,
3. societies that are designated recipients of the Provincial Sales Tax Act or are otherwise entitled to receive taxes, fees, or other revenue received by the government as agents of the society,
4. are student societies as defined in the College and Institute Act or University Act,
5. are hospitals or manage/operate a community care facility as defined in the Hospital Act, or that are designated as hospital societies, or
6. are in a class of societies that is prohibited under the regulations from having the statement in its constitution

If you still have questions, the Registry has a useful table on page four of their Transition Guide that helps determine whether a society can become a member-funded society: BC Registry Transition Guide

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