Learning The Difference Between A Charity and a Non Profit Organization

How To | May 6, 2013

I’ll be the first to admit, I  thought that charities and non-profits were the same thing.  And after being involved in dozens of conversations on the topic of “charity”, it appears that I am not alone. Perhaps this is because in the US, the two definitions are one in the same, or perhaps it’s because a charity is a not for profit corporation…But the fact remains, charities and non-profits are not the same thing, at least not in Canada. The most important difference between the two is that charities can issue tax receipts while non profit organizations cannot.

I asked for help identifying the differences and subtle nuances between charities and non profit organizations and came up with this chart:

difference between non profit organization and charity

Which with help, transformed into this:


Leaving me with both a better understanding about the differences along with more questions and more opportunities to expand…. which means there are more posts to come.

But for now, how about you? Did this leave you asking any questions? Ask in the comments.


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