Ontario Non-Profit Corporation

Tax Benefits: Non-profit organizations in Canada are automatically exempt from taxes automatically, if the groups qualify under the definition of an NPO in the Income Tax Act. These groups pay no federal, state, or local taxes, which means more of your funds can go directly to your cause instead of going to the taxman. Just make sure you fit the rules under the Income Tax Act.

Limited Liability Protection: Nonprofits gain the advantage of tax-exempt status and protection of directors, officers, and members from personal liability. Personal assets of officers and board members are generally exempt from organizational debt and liability. 

Increased Credibility and Legitimacy: Being incorporated as an Ontario non-profit gives your group a serious credibility boost. People, grant providers, and the public are more likely to trust and support an official organization with paperwork and bylaws in place.

Access to Funding Sources: Non-profit status also makes groups eligible to receive special grants or government funding, and special rates on services or even postage. Public and private grants available to incorporated organizations only can be accessed by some nonprofits.

Perpetual Existence: Unlike unincorporated associations, a corporation continues to exist even if founders or board members leave, providing organizational stability and continuity.

Better Governance Structure: The not-for-profit corporation has an enhanced ability, through its governing documents, to address membership status issues (e.g., removal for unpaid dues or death, and expulsion for disciplinary reasons). 

Easier Tax-Exempt Status: While a group or association that has not been formed under state law can apply for tax-exempt status, it is generally easier for a statutory business entity (and especially a corporation) to get IRS approval.