How do you write grants for a profit?

Not for Profits:

NGOs. Not for profit. Charitable Organization.

Not for profits: Are NFP’s in the slides. Are incorporated under the Canada Not for Profit Corporations
Act.
Main sources of income from donations, from grants or legacies of money/properties from
individuals/entities.
Main Activities: Write grants. A friend graduated from Trent, charges 100 dollars to a percentage of the
grant. Fundraising activities, an auction drive. Charitable events in communities, you can claim some
income.

Registered Charities: Are usually NFP’s that want to be registered with the Canada CRA. Canada Trust.
Can issue tax receipts to individual/entity donors for tax deduction purposes.

CRA not favourable for individuals to donate a lot of money. They tax you high because they want
people to pay taxes. They don’t allow you to offset 100 percent of your income by donating.

Corporations: the entire 100% can be deducted against corporate income. You must still pay some taxes.

Whatever amount is not used can carry over for the next five years.

Once you are registered with CRA it comes with restrictions. They don’t want you to abuse the tax
reduction. You must be doing something good for the economy or the government. You must relief
poverty for the homeless or help people with food security help with higher education, advance religion
and places of worship, or the community like animal shelters and libraries.

If you are a not for profit planning to get money from donation, you must register from CRA. You could
diversify, if you write grants then you don’t have to register with CRA. You could get gifts instead of
donations.

Some charitable organizations have had their charity organizations revoked. You never filed your
financial information to CRA. The company decided they don’t want to be a charitable organization and
don’t want to be in the four charitable categories. Always check before you do any donation. They do
events to get the money. Cash flow wise they are uncertain and not so certain for the long term.
Safeway. Get the right grants every year. Once they don’t get the grant they will collapse and close shop.
They are not so sustainable and that’s why we need social enterprise.
For Profit Enterprises.

What if you incorporate a for profit enterprise to do the money raising for your company.

They have an active business like a café. Passive income includes rents, fees, royalties, and dividends.
They are passive not really a business. If you are a reed, then you are in the business of renting out.

We can incorporate under the provincial level. Only if you only do your business in the province. There
may not be need to incorporate at the federal level.

All legal business activities are allowed in Canada. If you want to start a company, the nature of this…

They will tell you that a business will fall within a certain industry and certain codes. The codes are
similar between US and Canada.

FP are owned by shareholders. They will appoint a CEO. The CEO will appoint the rest of the team.

Very sustainable, but too focused on profit with no care for people and community.

Has no legal obligation to care for society and the environment. Will often get sued by the shareholders.

Elon Musk when he wanted to buy out a company then he had to pay a lot.
Social Enterprise

Be less focused on profit.

Set up using the NFP SE most of the directors in SE are voluntary, except the executive director. The
board cannot distribute dividends. Operations and you’re working full time you should get salary. Part-
time should get salary as well.

Conflict of interest.

NFP directors have real problems in conflicts of interests. There isn’t enough people on the board and
doing operations. All non-profit gets three years, you have to find ways to increase your funding so the
directors can just be directors. They want to give them enough time to find more fundings.

The tricky thing is when they also have a for profit business and need to pay its business tax. You have to
apply for more grants and likely you won’t get as much money because of the recession. Set up a small
café to make some real business and make some real money. It’s taxable it’s a social business.

Unlike traditional NFP, NFP Social Enterprise can have a social business that creates revenue. More
sustainable to have a social business.
For Profit Social Enterprise

CEO can also be the chairman of the board and the executive of the board. Reducing Green house gas
emission, reducing homeless people in Peterborough, example of social mission. Buying apartments and
renting at a cheap rate to the community, hard working people who need an affordable rental every
month. This is a real business. The rest of the money can go to new projects.

Can receive donations, gifts, and grants, but they are not emphasized. The business is emphasized.

The final slide makes it more clear in a table.

Coops are cooperative where everyone works together. If we were all farmers, then every year we buy
the same things, so why don’t we pool our money together and form a company so that we can play the
volume game. Buy the fertilizer in bulk, and the equipment in bulk. Every member enjoys the discount.
Everyone also has only one vote. Same tax treatment as for profit.