Co-ops and Charities

Fact sheet on co-operatives operating as charities.

 Excerpt:

Introduction 

Co-operatives can operate as either not-for-profit or for-profit organizations, and in some cases, they may wish to operate with charitable status. Charities are organizations that meet the Canada Revenue Agency’s legal and administrative standards of charitable work, and must be operated solely for public benefit.  If a co-op wishes to operate as a charitable organization, there are some specific things that must be done during incorporation and while the co-op operates in order to maintain both its co-operative and   charitable status. 

There are pros and cons for co-ops to consider when deciding whether or not charitable status is appropriate for them.  Co-ops are urged to contact a lawyer and/or an accountant when making the decision about whether or not to pursue charitable status. 

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