Non-Profit Information Index

Introduction to the Law (Part 1)
General Legislation
Differences between Charities and Non-Profit Organizations
Organizational Structure
Organizational Legislation
Tax Legislation
Employment Standards Information

The Difference between a Non-Profit Organization and a Registered Charity?

The Income Tax Act does not define what a charity is; however, the common law case of Commissioners for Special Purposes of Income Tax v. Pemsel, [1891] A.C. 531 (H.L.) indicates that charities must fall within 4 purposes: relief of poverty, development of education, advancement of religion, and other charitable purposes.

A not-for-profit organization is one which which is not a charity -

1. Not be a charity
2. Be an organization for social promotion, civil improvement, pleasure, or recreation
3. Operate for a purpose to which it was specifically organized
4. Do not use its income for the benefit of any member, owner, or shareholder, with the exception for the promotion of amateur athletics in Canada.

The Legal Version (from the Income Tax Act, above):
149. (1)(l) a club, society or association that, in the opinion of the Minister [Minister of National Revenue], was not a charity within the meaning assigned by subsection 149.1(1) and that was organized and operated exclusively for social welfare, civic improvement, pleasure or recreation or for any other purpose except profit, no part of the income of which was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder thereof unless the proprietor, member or shareholder was a club, society or association the primary purpose and function of which was the promotion of amateur athletics in Canada.

What Bank is the best for Non-Profit Organizations?

There are several banks in the greater Edmonton area. National, Regional, Credit Unions.... There are several things to consider - what bank offers the lowest fees, proximity, existing relationship, etc.

Here is a fee table for NPO Accounts:


The two best are Servus Credit Union (which isn't a surprise since they are a non-profit organization) and perhaps surprisingly, Bank of Montreal.

Something to consider is the quantity of deposit that you may make - as BMO allows a $5000 monthly deposit as an NPO - and as such although smaller NPOs may not be affected, larger ones might be.

The banks to avoid for charges are CWB with no free transactions can easily rise substantially and RBC with a low monthly deposit.

Lastly, banks often have programs to remit fees for larger fund-raising events -talk to your bank for more information.

Alberta Employment Standards

Alberta has a wide variety of employment standards with exceptions pertinent to non-profits that deal with recreational and athletic programs specifically.

Workers Help provides a summary of each Province's basic Employee Standard Codes in an easy to understand format. A summary is included below.

• A Pay Period must be no longer than one work month


• Wages must be paid within 10 consecutive days from the end of the pay period


• Minimum wage is $8.80 (an increase has been passed and will be implemented shortly).


• An employee may not deduct wages for faulty workmanship, cash shortages, earnings off-set, but can by court-order, through a collective bargaining agreement, or via written instruction by the employee.

Relevant Alberta Legislation:

• Alberta Employment Standards Code


• Alberta Employment Standards Regulation

NPO Law – Tax Legislation

NPO Law – Organizational Legislation

There exists legislation which determines the framework of any legal organization.

The Corporation


The Partnership


The Sole-Proprietorship


The Non-Profit Organization


The Professional

NPO Law – Organizational Structure