View source for Societies, Charities, and Federal Not-For-Profit Corporations - What's the Difference? (Societies Act FAQs)

===What is a charity?===
Charities are registered with the Canada Revenue Agency (CRA). Charities can issue tax receipts for donations, but they have more stringent reporting requirements than societies. It can take 9-12 months to become a registered charity and is a major undertaking. A charity’s activities must be exclusively charitable. There are also only four purposes the CRA accepts for charities: advancement of education; relief of poverty; advancement of religion; other purposes beneficial to the community (e.g. health, environment). According to CRA policy, while a charity can run a business, it must be either run substantially by volunteers or linked and subordinate to the charity’s purpose. An organization will usually have to be legally established (i.e. incorporated) before it can apply for charitable status. This means that it is possible for some societies with appropriate charitable purposes and activities to later register for charitable status. For more information on registering for charitable status, see the CRA’s [https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/applying-registration/questions-answers-about-applying-registration.html Charity Registration FAQs], the CRA’s [https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/registering-charitable-qualified-donee-status/apply-become-registered-charity.html Charity Registration Guide] and [https://www.charitycentral.ca/ Charity Central].