The guide to funding for non-profits and charities in Canada

Non-profits and charities in Canada are funded mainly by government programs, community and private foundations, provincial gaming or lottery money, city grants and wage subsidies for hiring. Which ones you can apply to depends a great deal on your legal status: a registered charity can reach more foundation money than a non-profit that is not registered. Start by knowing your status, then check your organization against the programs or browse the page for non-profits.

This guide covers the main sources, the difference between a registered charity, a non-profit and a qualified donee, how to hire with wage subsidies, and what reporting to expect. Each program we name has its own page with its current status, amounts and rules, so check the program page before you plan around it.

Is my organization a registered charity, a non-profit or a qualified donee?

These three terms decide which doors are open to you, so it's worth getting them right before you search.

• Non-profit. An organization that operates for a purpose other than profit, such as a club, association or community group. It may be incorporated or not. A non-profit that is not a registered charity can't issue tax receipts for donations.
• Registered charity. A charity registered with the Canada Revenue Agency. It can issue tax receipts for donations and must follow the federal rules for charities, including annual reporting.
• Qualified donee. The category of organizations that registered charities, including most foundations, are allowed to give to. Registered charities are qualified donees, and so are some other bodies named in the tax rules, such as municipalities.

Why it matters: many foundations can only grant to registered charities and other qualified donees. Some have other ways to fund groups that aren't registered, for example by working through a sponsoring charity. Government programs are often open to incorporated non-profits as well as charities. Each program sets its own rules, so read the eligibility section on the program page. Our guide on how to read eligibility rules explains the common terms.

Where do non-profits and charities get funding?

Federal government programs

Federal departments fund non-profits for specific purposes. Two examples on CanGrant:

• New Horizons for Seniors community-based projects fund community projects that support seniors, led by non-profits and other organizations.
• The Canada Cultural Spaces Fund helps non-profit arts and heritage organizations renovate spaces and buy specialized equipment.

Federal programs usually open for a set intake, so it pays to watch what is closing soon.

Provincial programs and provincial foundations

Provinces fund community groups directly and through arm's-length bodies. In Ontario, the Ontario Trillium Foundation is a major funder of non-profits, with streams for starting, growing and building community projects. See our guides to funding in Ontario and funding in British Columbia.

Gaming and lottery grants

Some provinces share gaming revenue with community organizations. In British Columbia, Community Gaming Grants fund non-profits that run programs serving the broader community. The rules on what programs qualify and how the money can be used are specific, so read them closely.

Community foundations

A community foundation pools gifts from local donors and grants them back to local causes. On CanGrant you'll find, among others:

• Vancouver Foundation and the Victoria Foundation in British Columbia;
• the Toronto Foundation, Ottawa Community Foundation, Hamilton Community Foundation and London Community Foundation in Ontario.

Many community foundation grants are limited to registered charities and other qualified donees. Check each program page.

City grants

Cities fund local non-profits through community, cultural and neighbourhood grants. Examples include Surrey cultural grants, Kelowna cultural grants and London community grants. Browse the city pages for Vancouver, Victoria, Surrey, Kelowna, Nanaimo, Toronto, Ottawa, Mississauga, Hamilton and London. Our post on federal, provincial and city funding layers explains how these levels fit together.

What can non-profit funding pay for?

Most grants are for a project with a clear start, end and result. Fewer cover general operating costs, and those are often limited to organizations the funder already knows. Common purposes:

• Community programs and services, such as seniors' activities, youth programs or food security. See the community topic page.
• Arts, culture and heritage projects, from festivals to exhibits. See the arts projects topic page.
• Capital projects, such as renovating a space or buying equipment.
• Hiring, through wage subsidies for students and young workers.
• Energy upgrades to buildings you own or lease. See the energy topic page.

Most grants are cost-sharing or ask for matching funds. Some funders accept in-kind contributions, such as volunteer time or donated space, as part of your share. Each program sets its own rules, so check the program page.

Can a non-profit hire staff with a wage subsidy?

Yes, and it is one of the most common ways small organizations add help. Canada Summer Jobs funds summer jobs for young people at non-profits, public sector employers and small businesses. Other programs fund work placements for post-secondary students, such as the Student Work Placement Program.

Read the guide to wage subsidies and hiring programs and the post on hiring a student with a wage subsidy, and browse the hiring topic page.

How do I write a strong non-profit grant application?

Funders read many applications. The ones that succeed are clear about need, plan and result.

1. Read the applicant guide and the funder's priorities before you start.
2. Show the need with facts from your community: who is affected and how you know.
3. Describe the plan in concrete steps, with who does what and when.
4. Name the results you will measure, and how.
5. Build a budget of eligible costs that matches the plan, with your own share and any partners. See the grant project budget guide.
6. Don't spend before approval unless the program allows earlier costs. Read apply before you spend.
7. Check stacking rules if other funders support the same project. See can you combine grants?.

Our grant application checklist and the post on how to write a grant application go further. Thinking of paying someone to write it? Read should you hire a grant writer? first.

What reporting do funders expect?

Getting the grant is the start of the relationship, not the end. Expect some or all of these:

• An agreement. Government funders usually sign a contribution agreement that sets the budget, timeline and reporting.
• Claims or progress reports. You may be paid in instalments after you send a claim showing what you spent.
• A holdback. Some funders keep back part of the grant as a holdback until the work is done.
• A final report. A final report describes what you did, what changed and how you spent the money.

Keep receipts, timesheets, attendance and photos as you go. Read what happens after you apply and getting paid: claims and reports.

How do non-profits avoid grant scams?

Real funders don't charge you to apply. Be wary of anyone who asks for a fee to unlock a grant, promises guaranteed approval, or claims to be the government in an unsolicited message. Read how to spot a grant scam and our scam tips. CanGrant is independent and free, and we don't take applications: each program page links to the funder.

Frequently asked questions

Do I need to be a registered charity to get grants?

Not always. Many government programs and some city grants accept incorporated non-profits. Many foundations, though, can only grant to registered charities and other qualified donees. Check the eligibility rules on each program page.

What is the difference between a non-profit and a registered charity?

A non-profit operates for a purpose other than profit. A registered charity is registered with the Canada Revenue Agency, can issue tax receipts for donations and must follow the federal rules for charities. Every registered charity is a non-profit, but not every non-profit is a registered charity.

Can a grant pay for our general operating costs?

Some can, but most grants are for projects. Operating funding is less common and often goes to organizations a funder already supports. The program page says what costs are eligible.

Can our non-profit hire summer students with funding?

Yes. Canada Summer Jobs funds summer jobs for young people at non-profits, and other programs fund student work placements. See the guide to wage subsidies and hiring programs.

Where do I find community foundation grants near me?

Look at the CanGrant pages for your province and city, such as British Columbia or Ontario, or run the funding check. Each community foundation sets its own areas, priorities and deadlines.