Menu
Housing & Communities Planning for the Future Death & Estates Health Older Adults Consumer Protection Non-Profit Organizations & Charities Debts & Credit Government Agencies Courts & Legal Systems Crimes & Fines Victims Legal Information for Teachers Legal Information for Newcomers Family Law Saskatchewan About PLEA Contact Us Search

Why Become a Non-Profit?

Incorporating gives an organization legal status. Non-profit organizations are not required to incorporate. Whether an organization decides to incorporate or not depends on its activities and the type of organization.

When a non-profit organization is incorporated it becomes a legal entity with virtually the same powers as an individual. An incorporated organization can enter into contracts, buy land, borrow money, hold bank accounts, etc., in its own name.

Advantages to incorporating include...

  • liability of the members and directors is limited (for example, they are not personally liable for debts of the corporation)
  • continuity of the organization is assured while the membership may change
  • a corporation can own property in its name regardless of membership change
  • ability to bring a legal action in its own name (an unincorporated body cannot)
  • likelihood of receiving government grants may increase because of the appearance of stability of the organization

An unincorporated association is created by an agreement between individuals, and has no legal status. The members are personally liable to the creditors for the full amount of any debts. An unincorporated body cannot sue or be sued; members must sue or be sued personally. Title to property must be in all the members' names if the group is not incorporated. This can make selling the property difficult.

How helpful was this article? *

PLEA can provide you with information to help you understand many legal matters you, a family member or friend may be facing.

Have a question?

ASK US We're here to help.

Housing & Communities

Planning for the Future

Death & Estates

Health

Older Adults

Consumer Protection

Non-Profit Organizations & Charities

Debts & Credit

Courts & Legal System

Government Agencies

Crimes & Fines

Victims

About PLEA

PLEA gratefully acknowledges our primary core funder the Law Foundation of Saskatchewan for their continuing and generous support of our organization.