Government of Saskatchewan
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Monday, November 24, 2014
Saskatchewan Justice

The Non-profit Corporations Act, 1995 sets out the rules for the incorporation of non-profit organizations in Saskatchewan, and for the registration of extra-provincial non-profit corporations.

The Act provides that any one or more individuals or corporations, or combinations of individuals and corporations, may incorporate as a non-profit corporation.

It is not mandatory for non-profit organizations to incorporate. However, non-profit organizations of all types and sizes can benefit from the advantages of a corporation. For instance, non-profit corporations may hold title to land and may qualify for grants or funding from government agencies.

Directors and officers of non-profit corporations are not personally liable in any civil action for acts or omissions connected with their responsibilities to a non-profit corporation. However, the immunity extends only to acts done in good faith and not to fraud or profit-taking at the expense of the corporation. Directors and officers of non-profit corporations remain liable for certain statutory liabilities, e.g., unpaid tax remissions and unpaid wages.

Non-profit corporations are formed for the purpose of providing a service to members or the public.  Any profits received from activities must be used to further their purpose.

There are two kinds of non-profit corporations:

  • charitable; and
  • membership.

Charitable corporation

A charitable corporation carries on its activities primarily for the benefit of the public and is usually funded by donations, grants or other public money.

Corporations are deemed to be charitable corporations if they:

  • carry on activities that are not primarily for the benefit of members;
  • solicit or have solicited donations or gifts of money or property from the public;
  • receive or have received any grant of money or property from a government or government agency in excess of ten per cent of their total income in any fiscal year;
  • are a registered charity within the meaning of the Income Tax Act (Canada).

Membership corporation

A membership corporation carries on activities primarily for the benefit of its members and may be financed by its members through membership fees, loans, member donations, commercial lenders or a combination of these (e.g., a golf or curling club, board of trade or chamber of commerce.) It does not usually solicit donations from the public or receive government grants.



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