This course will discuss when it may be advantageous for a Canadian registered charity to create an additional registered charity, sometimes referred to as a parallel foundation. Such a charity could be involved in fundraising, accumulating long-term funds or endowments, running a DAF, or holding certain property such as real estate or intellectual property.
In this course, we will discuss:
- Introduction and Overview of Course
- Who should care about Parallel Foundations?
- Some Resources Included in Course
- Issues to Consider
- Options for Structuring an Initiative for Public Good such as a Social Enterprise, Non-profit or Charity
- Benefits of Multiple Structures Working Together
- Key Considerations
- Timelines and Legal Costs
- Discussion – Parallel Foundation that is a registered charity
- Discussion – NPO instead of a registered charity
- Some potential advantages of having a parallel foundation
- Some potential disadvantages of having a parallel foundation
- Some Bad Reasons to Set Up a Parallel Foundation
- Control and Alignment
- Qualified Donees
- Incorporation and Organization of Non-Profit Corporation
- Charitable Purposes
- How to Apply for Registered Charity Status
- Restrictions on Canadian Registered Charities
- CRA’s Application Review Process
- Why Charity Applications Fail (according to CRA)
- Myths About Charity Registration
- Tips and Tricks for a Successful Charity Application
- Conclusion
This course will be of interest to those working typically in large Canadian registered charities, or their professional advisors, considering whether it makes sense to establish one or more registered charities for the existing registered charity. It might also be of interest to funders and government agencies wanting to understand why groups would set up a parallel foundation. It might also be helpful for groups who have a parallel foundation and are wondering whether it still makes sense to maintain the parallel foundation.