Succession Planning for Founders of BC Charities and Non-Profits

Founders often play an important role in shaping a charity or non-profit organization. They may have developed the original vision, recruited the first board members, established relationships with donors, and spent years building trust within the community. Over time, however, an organization that depends too heavily on one person can face serious challenges when that person decides to retire, reduce their involvement, or leave unexpectedly.

Founder-led organizations often reach a point where informal practices that worked well in the early years no longer provide enough structure. Important relationships, passwords, banking authority, contracts, and organizational knowledge may all be concentrated with the founder. Nonprofit succession planning in BC helps address these issues before a leadership change becomes urgent.

A successful charity founder transition is not about replacing everything the founder built. It is about preserving that work while ensuring the organization can continue to serve its charitable purposes well into the future.

Recognizing the Risks of Founder Dependency

Founder involvement can be an enormous strength, but problems arise when too much authority or information rests with one individual. The founder may be the primary contact for donors, hold signing authority over bank accounts, manage government filings, maintain passwords, supervise staff, and sustain relationships with key partners.

If that individual suddenly becomes unavailable, the organization may struggle to perform basic tasks. Board members might discover they cannot access financial accounts, retrieve important records, renew contracts, or communicate with key donors. What appeared to be an efficient arrangement can quickly become a serious operational problem.

Legal Counsel in Strategic Planning concerns can surface as well. A society is a separate legal organization and should be governed according to its constitution, bylaws, applicable legislation, and the decisions of its board and members. Even where a founder remains highly influential, the board continues to carry its own responsibilities. Directors should understand their duties and feel comfortable exercising appropriate oversight.

A nonprofit leadership transition can expose weaknesses that have developed gradually. Board meetings may have become informal because the founder handles most decisions. Policies may not have been updated for years, or the bylaws may no longer reflect how the organization operates. Succession planning provides an opportunity to identify these issues while there is still time to address them thoughtfully.

Preparing the Board and Organization for Transition

Good succession planning should begin well before a departure date is announced. One of the first priorities is ensuring that the board understands how the organization operates and where important information is located.

Signing authority should be reviewed carefully. Banking, contracts, government accounts, insurance policies, payroll systems, domain names, websites, social media accounts, and cloud storage should not depend entirely on one person’s access. Organizations should maintain secure records showing who has authority and how access can be transferred when leadership changes.

The board should also review its governing documents. Bylaws may contain provisions dealing with directors, officers, elections, vacancies, meetings, and decision-making authority. If these documents no longer reflect the organization’s needs, amendments may be appropriate as part of society continuity planning in BC.

Employment and contractor arrangements may require attention as well. A founder may serve simultaneously as a director, employee, executive director, or contractor if certain conditions are met. Those roles should be clearly distinguished. When a founder steps away from one position but remains involved in another, everyone should understand where their authority begins and ends.

Relationships are another important part of any transition. Donors, community partners, employees, and volunteers may have dealt primarily with the founder for many years. Introducing other leaders before the transition helps move those relationships from the individual to the organization itself.

The founder can play a valuable role in this process by documenting institutional knowledge and helping new leaders understand the history behind important decisions. A thoughtful handover can preserve accumulated experience without preventing the next generation of leadership from developing its own approach.

Building an Organization That Can Continue Without Its Founder

Effective nonprofit succession planning in BC is ultimately about organizational stability. A strong charity should be able to experience changes in directors, employees, volunteers, and senior leadership without losing its ability to function.

This means establishing clear governance practices rather than relying on individual habits. Important decisions should be properly documented. Corporate records should be complete and accessible. Financial controls should involve appropriate oversight, and key responsibilities should be understood by more than one person.

Succession planning can also help reduce conflict. Founder transitions sometimes become difficult when expectations have never been clearly discussed. A founder may expect to remain closely involved while a new executive director or board believes a clean transition is necessary. Discussing roles, authority, timelines, and expectations in advance can prevent misunderstandings from becoming larger disputes.

The process does not need to diminish the founder’s contribution. In many cases, a well-planned transition is one of the most meaningful steps a founder can take to protect the organization they worked so hard to establish. Strong governance allows the original mission to continue even as the people responsible for carrying it forward change.

At L. Johnson Law Group, we assist charities and non-profit organizations with governance, bylaws, board transitions, and society continuity planning in BC. If your organization is preparing for a charity founder transition or considering how to strengthen its succession plan before leadership changes occur, we are here to help you put a practical legal framework in place for the years ahead.

Planning a leadership transition for your organization? Contact L. Johnson Law Group to discuss a succession plan that fits your charity.

Frequently Asked Questions

1. When should a non-profit begin succession planning?

Ideally, succession planning should begin before a departure is anticipated. Having procedures in place for both planned and unexpected leadership changes gives the board time to transfer knowledge, authority, and important relationships properly.

2. What happens if a charity founder suddenly leaves?

The impact depends on how responsibilities have been structured. If the founder controls important accounts, records, or relationships, the organization may experience significant disruption. A continuity plan helps ensure other authorized people are able to keep operations moving.

3. Should a founder remain on the board after stepping down?

There is no single answer that suits every organization. Remaining on the board may provide useful continuity in some situations, while a cleaner separation may work better in others. The organization’s bylaws, governance needs, and the roles of incoming leaders should all be considered.

4. Should signing authority be changed during a leadership transition?

Yes. Signing authorities and account access should be reviewed whenever key personnel change. This can include bank accounts, contracts, government accounts, technology platforms, and other systems used to conduct the organization’s affairs.

5. Do bylaws need to be updated when a founder leaves?

Not necessarily, but a founder transition is a good opportunity to review them. If the bylaws no longer reflect how directors, officers, members, or leadership positions operate in practice, amendments may help strengthen governance for the future.

6. How can a charity make a leadership transition easier?

Planning early is one of the most effective approaches. Clear documentation, shared access to important information, strong board involvement, well-defined roles, and careful communication with staff, donors, and partners can all contribute to a smoother nonprofit leadership transition.

Renting Space to Other Organizations: Legal Issues BC Charities Often Miss

Many charities and non-profit organizations have office, meeting, or program space that sits unused for portions of the week. Renting that space to another organization can seem like a practical way to offset operating costs and make better use of an existing property. It can also support collaboration between organizations serving the same community.

A nonprofit property rental in BC, however, involves more than agreeing on a monthly payment and handing over the keys. Once another organization begins using the property, questions can arise around insurance, liability, permitted uses, taxes, and responsibility for damage or repairs. Problems often develop because arrangements that started informally between friendly organizations were never properly documented.

A written agreement and careful planning at the outset can help charities protect their property, maintain good relationships with other organizations, and avoid unexpected legal or financial consequences.

Before Your Charity Rents Out Its Space

One of the first questions to consider is whether the charity is legally permitted to rent the space for the proposed use. If the organization leases rather than owns its premises, its existing commercial lease may restrict subleasing, licensing, or sharing space without the landlord’s consent. The charity should review its lease before making any commitments to another organization.

Zoning and municipal requirements also matter. A property approved for one type of activity may not be approved for another. Office space used occasionally by another administrative organization may raise different concerns than space rented for child care, public events, counselling, food preparation, or other activities. Before entering into a charity lease agreement in BC, it is important to confirm that the intended use is permitted.

Insurance should be addressed early as well. The charity’s existing policy may not automatically cover activities conducted by another organization. Both parties should determine what coverage is needed and whether proof of insurance should be required. The charity may also want to speak with its insurance broker about whether the rental changes its risk profile.

Liability provisions deserve particular attention. If someone is injured while attending the tenant organization’s program, who is responsible? What happens if the tenant damages the building or equipment? These questions are far easier to address before an incident occurs.

Indemnity clauses are commonly included in lease and licence agreements to allocate certain risks between the parties. These provisions can have significant consequences and should be understood rather than treated as standard boilerplate. A clause that appears routine may place considerably broader responsibility on one organization than its board intended.

Financial and Practical Issues That Can Be Overlooked

Generating rental income may be appealing, particularly when a charity is managing rising operating costs. Registered charities should consider, however, how rental activities fit within their charitable operations and their obligations under the Income Tax Act.

The Canada Revenue Agency distinguishes between charitable activities and business activities, and registered charities are subject to rules regarding related businesses. Whether a particular rental arrangement creates concerns will depend on the circumstances, including the nature and extent of the activity. A charity considering regular or significant rental operations should obtain appropriate accounting and legal advice rather than assuming all rental income can be treated the same way.

The charity’s designation matters here as well. Charitable organizations and public foundations are permitted to carry on a related business, but a registered charity that is designated as a private foundation may not carry on any business at all, whether related or unrelated, and risks losing its registered status if it does. A charity that is registered as a private foundation should confirm its designation and obtain legal advice before undertaking rental activity that could be characterized as a business.

Property tax exemptions deserve particular attention in British Columbia. Many charities and non-profit organizations hold their premises under a statutory or permissive municipal property tax exemption, and these exemptions generally depend on how the property is used. Renting space to another organization, especially a for-profit business or an organization whose own activities would not independently qualify for exemption, can cause the rented portion of the property to lose its exempt status and become taxable. A charity should confirm how a proposed rental may affect its property tax position, and may wish to consult the municipality or legal advisors before entering into an arrangement.

Practical issues can be just as consequential as tax considerations. Shared spaces can generate disagreements about parking, meeting rooms, storage, cleaning, security, utilities, signage, internet access, and after-hours use. If these details are not addressed at the beginning, relatively minor concerns can become ongoing sources of frustration.

Account ownership and access should also be considered carefully. Keys, security codes, alarm systems, confidential files, and computer networks should be managed thoughtfully when multiple organizations occupy the same property. This is particularly important for charities that maintain sensitive information about donors, employees, clients, or vulnerable individuals.

A commercial lease involving a charity in BC should clearly establish who is responsible for repairs and maintenance, what alterations are permitted, how rent and additional expenses are calculated, and how either party can end the arrangement. Even when the tenant is another charity with similar values and goals, putting these expectations in writing protects both organizations.

A Clear Agreement Helps Protect the Relationship

Some of the most difficult charity tenant legal issues arise from informal arrangements. Two organizations may have worked together for years and see little reason to formalize their agreement. Relationships can change over time, however. Staff members leave, boards turn over, programs expand, and financial circumstances shift.

A written agreement creates continuity when the people involved change. It can identify the space being rented, permitted activities, payment terms, insurance requirements, responsibility for damage, confidentiality concerns, renewal provisions, and the process for ending the arrangement if needed.

The type of agreement also matters. Depending on how the space will be used and the degree of control provided to the other organization, the arrangement may involve a lease, sublease, licence, or another form of agreement. Using the correct structure helps both parties understand their rights and responsibilities clearly.

Boards should also document their decision-making process. If a charity is renting property to an organization connected to a director or other related party, additional governance considerations may arise. The board should be able to demonstrate that it considered the arrangement carefully and acted in the charity’s best interests.

At L. Johnson Law Group, we assist charities and non-profit organizations with property arrangements, contracts, governance, and other legal issues that arise as their operations develop. If your organization is considering renting or sharing unused space, we can help review the proposed arrangement and prepare an agreement that reflects how the space will be used.

Ready to review a rental arrangement for your organization? Contact L. Johnson Law Group to discuss your property and governance questions.

Frequently Asked Questions

1. Can a BC charity rent unused space to another organization?

Yes, a charity may be able to rent unused property, but the arrangement should be reviewed carefully. The charity should consider its governing documents, existing lease obligations, zoning requirements, insurance coverage, and applicable CRA rules.

2. Does a charity need a written agreement to rent office space?

A written agreement is strongly recommended. It provides both organizations with a clear record of rent, permitted uses, insurance requirements, maintenance responsibilities, liability allocation, and how the arrangement can be terminated.

3. Can a charity sublease space that it currently rents?

Possibly, but the charity’s existing lease must be reviewed first. Many commercial leases require the landlord’s written consent before a tenant can sublease, licence, or otherwise allow another organization to occupy the premises.

4. Can rental income affect a charity’s registered status?

Rental arrangements can have tax and regulatory implications depending on their nature and extent. Registered charities should consider CRA requirements and obtain professional advice where rental activity becomes a significant or ongoing source of revenue.

5. Can renting out space affect a charity’s property tax exemption?

Possibly. In British Columbia, property tax exemptions for charities and non-profit organizations often depend on how the property is used. Renting part of the property to another organization, particularly one whose activities do not independently qualify for exemption, may cause that portion to become taxable. A charity should confirm the impact on its exemption before finalizing any arrangement.

6. Who is responsible if someone is injured in a shared charity space?

Responsibility depends on the circumstances and the terms of the agreement between the organizations. Appropriate liability insurance, indemnity provisions, and clearly assigned responsibilities can help manage this risk.

7. What should be included in a charity lease agreement in BC?

The agreement should reflect the arrangement, but commonly addresses the space being used, rent and expenses, permitted activities, insurance, repairs, damage, security, access, termination, and liability. Having the agreement reviewed before it is signed can help identify obligations that might otherwise be missed.

Non-Profit Social Media Mistakes That Can Create Legal Problems

Social media has become one of the most effective ways for charities and non-profit organizations to connect with donors, volunteers, members, and the communities they serve. Many organizations rely on Facebook, Instagram, LinkedIn, TikTok, or other platforms to promote events, share success stories, and advocate for important causes. In many cases, these accounts are managed by staff members or volunteers who are passionate about the organization’s mission but may not have formal training in communications or legal compliance.

While social media can strengthen community engagement, it also creates legal risks that are easy to overlook. A single post can raise issues involving defamation, copyright, privacy, or governance. Having a thoughtful social media policy can help non-profits in BC reduce these risks while continuing to communicate effectively with the public and meet their broader charity law obligations.

Understanding the Legal Risks of Social Media

Many non-profits use social media to advocate for causes that matter to their communities. Advocacy itself is not the problem, but organizations should be careful about making statements that could damage another person’s or organization’s reputation. The safest approach is to avoid making allegations about businesses, public officials, former employees, or competing organizations altogether. Well-intentioned posts can expose a charity to defamation claims if they contain false or misleading statements. It’s worth understanding that the truth is only a defence to a defamation claim, not a shield against being sued in the first place. Even a statement that is accurate can lead to a defamation claim which means time, legal cost, and reputational strain regardless of the outcome. Not only is there legal exposure, but this kind of posting tends to be negative in tone and may reflect poorly on a non-profit organization.

Defamation risk can also arise through comments made by volunteers or board members who appear to be speaking on behalf of the organization. Responding emotionally during a public disagreement or sharing unverified information may create legal exposure that extends beyond the individual who made the post.

Privacy is another area that deserves careful attention. Many charities work with children, seniors, vulnerable individuals, or people receiving confidential services. Sharing photographs, videos, personal stories, or identifying information without appropriate permission can create privacy concerns and damage the trust that donors and clients place in the organization.

Privacy law requires organizations to think carefully about what personal information is collected, shared, and retained. Before posting photographs from an event or highlighting a client’s story, charities should ensure they have obtained appropriate consent and understand any applicable privacy obligations. Even where consent has been obtained, organizations should consider whether sharing certain information is necessary and appropriate.

Copyright is another commonly overlooked issue. It is easy to find images, music, videos, and graphics online, but that does not mean they are free to use. Copyright issues can arise when volunteers download photographs from the internet, use music in promotional videos, or repost graphics without permission. Being a charitable organization does not provide an exemption from copyright laws.

Why Governance Matters on Social Media

Many legal issues involving social media are not caused by the platforms themselves but by a lack of internal governance. Organizations often discover that multiple volunteers know the passwords to their accounts, former board members still have administrator access, or no one knows who owns the organization’s social media profiles.

This creates unnecessary risk. Access should be limited to authorized individuals, and ownership of every account should remain with the organization rather than a personal email address belonging to a volunteer or employee. Clear governance procedures are also an important part of corporate law compliance for non-profit organizations.

Charities should also establish clear expectations around who may post on behalf of the organization and what approval process should be followed for sensitive content. Advocacy campaigns, public statements, fundraising appeals, and responses to controversial issues often benefit from additional review before they are published.

A nonprofit social media policy in BC should address acceptable content, privacy expectations, copyright compliance, account security, password management, comment moderation, and procedures for responding to complaints or media inquiries. Providing volunteers and staff with practical guidance helps create consistency and reduces the likelihood of avoidable mistakes.

Responding When Something Goes Wrong

Even organizations with strong policies occasionally make mistakes. A photo may be posted without proper permission, inaccurate information may be shared, or a volunteer may publish content that does not reflect the charity’s values or legal obligations. How the organization responds can significantly affect the outcome.

The priority is to assess the situation promptly. Depending on the circumstances, it may be appropriate to remove or correct the content, preserve records of what was posted, and determine whether anyone has been affected. If personal information has been disclosed or reputational harm may have occurred, the board should understand the full picture before deciding how to respond publicly.

Organizations should avoid reacting defensively or engaging in public arguments online. A measured, professional response often helps reduce further harm while allowing the charity to investigate the issue carefully. Internal documentation should record what occurred, how decisions were made, and any corrective steps taken.

After resolving the immediate issue, charities should review whether existing policies and training are sufficient. Many social media problems can be prevented by updating internal procedures, providing additional volunteer training, and regularly reviewing account access and approval processes.

At L. Johnson Law Group, we advise charities and non-profit organizations throughout British Columbia on governance, privacy, intellectual property, and risk management. If you need assistance, you can contact L. Johnson Law Group to discuss your organization’s legal concerns.

Frequently Asked Questions

1. Does every non-profit need a social media policy?

While not legally required, a written social media policy is a valuable governance tool. It helps establish expectations for staff, volunteers, and board members while reducing legal and reputational risks.

2. Can a charity be sued for a defamatory social media post?

Yes. If a post contains false statements that harm the reputation of an individual or organization, the charity could potentially face legal consequences, particularly if the content was published on the organization’s behalf.

3. Can our organization use photos found online in social media posts?

Generally, no. Most images, graphics, and videos found online are protected by copyright. Charities should use content they own, have licensed, or have explicit permission to use.

4. Do we need permission before posting photos of volunteers or event attendees?

In many situations, yes. Obtaining appropriate consent before sharing identifiable photographs or personal stories is good practice and may help your organization comply with applicable privacy obligations.

5. Who should own a charity’s social media accounts?

The organization itself should own its social media accounts. Administrative access should be tied to organizational email addresses wherever possible, and access should be reviewed whenever volunteers or staff leave.

6. What should we do if an inappropriate social media post is published?

Act promptly by assessing the situation, preserving relevant records, and determining whether the post should be removed or corrected. If the issue involves privacy, defamation, or other legal concerns, seeking legal advice early can help your organization respond appropriately.

What Happens When a Charity Receives a Restricted Donation It Cannot Use?

Understanding Charity Law is important for organizations that receive restricted donations, particularly when the original purpose of a gift can no longer be fulfilled. Restricted donations can help charities fund important programs, purchase equipment, or respond to specific community needs. They can also create difficult legal questions when circumstances change.

Restricted donations can help charities fund important programs, purchase equipment, or respond to specific community needs. They can also create difficult legal questions when circumstances change. A donor may contribute money for a particular program, only for that program to close, become impractical, or no longer fit the charity’s current activities.

The charity may still hold the money, but that does not necessarily mean the board can simply redirect it to another worthwhile purpose. In British Columbia, some restricted charitable gifts may be treated as property held for a specific charitable purpose. This obligation generally arises from the common law of charitable purpose trusts.

The central question is not whether the proposed alternative use is beneficial. The question is whether using the money differently would respect the terms on which the donation was originally accepted.

Understanding the Charity’s Obligations

A restricted donation is generally a gift that a donor directs toward a particular purpose. That restriction may appear in a gift agreement, fundraising appeal, donor letter, online donation form, grant document, will, or other communication. The wording matters. A general statement that a donor hopes the money will support youth programming may not carry the same legal weight as a clear direction that the funds must only be used to operate a named youth program.

Once a charity accepts a legally restricted gift, the organization may have an obligation to use it only for that purpose. Moving the funds into the general operating account does not remove the restriction. Board members should therefore refrain from treating restricted donations as available cash when preparing budgets or responding to a financial shortfall.

Reallocating the money without proper authority can create several problems. The donor or the donor’s estate may object, and the charity could face a nonprofit donation dispute. The decision may also raise concerns about directors’ governance duties, financial reporting, and the organization’s reputation. Registered charities must continue to operate within their charitable purposes and comply with the federal rules that apply to receiving and using charitable gifts.

The first practical step is to review the original donation documents and surrounding communications. The charity should determine exactly what was promised, whether the restriction was accepted, and whether the agreement already addresses what will happen if the intended program ends. Board minutes, campaign materials, receipts, correspondence, accounting records, and notes of conversations may all help clarify the donor’s intention.

Where the donor is living and can be contacted, a conversation may provide a reasonable path forward. The charity can explain why the original purpose is no longer practical and ask whether the donor is willing to approve a closely related use. Any agreement to change the restriction should be properly documented rather than handled through an informal conversation alone.

Communication should be open and respectful. Donors generally place restrictions on gifts because a particular cause matters to them. Approaching the discussion as a request for collaboration, rather than announcing that the funds will be redirected, can help preserve the relationship and reduce the risk of conflict.

Finding a Lawful and Practical Solution

Not every restricted donation can be resolved through donor consent. The donor may have died, the gift may have been made through an estate, or the restriction may affect a broader charitable trust. In other cases, the donor may not agree to a change even though the original purpose has become impossible or impractical.

A court application may be required in some circumstances. Under the cy-près doctrine, a court may permit charitable property to be applied to a purpose as close as reasonably possible to the donor’s original charitable intention when the original purpose can no longer be carried out. The doctrine is not automatic. The court will generally look for a broad, or “general”, charitable intention on the donor’s part; where the donor intended to benefit only the one specific purpose and nothing else, cy-près may be unavailable. The doctrine is not simply permission for a board to choose a more convenient use. It involves careful consideration of the gift, the donor’s intention, and the legal character of the restriction. In British Columbia, the Attorney General is ordinarily a necessary party to such an application, as guardian of the public interest in charitable property. These applications are not always successful.

Legal advice should be obtained before using restricted money for a different purpose or beginning a cy-près application. The appropriate response will depend on the wording of the restriction, how the donation was solicited, whether a charitable trust was created, and whether another use would remain consistent with the charity’s purposes.

Good records are especially important throughout this process. Charities should maintain copies of gift agreements, donor directions, campaign materials, board resolutions, correspondence, and accounting records that clearly identify restricted funds. Separate tracking helps the board understand how much money remains, what income has been earned, and whether expenditures comply with the restriction.

Future disputes can often be prevented through carefully drafted gift agreements and fundraising language that gives the charity more flexibility. A charity may wish to include terms explaining what will happen if a program is completed, discontinued, fully funded, or no longer practical. Depending on the circumstances, the agreement might allow the board to use remaining funds for a similar charitable purpose while still respecting the donor’s overall intention.

At L. Johnson Law Group, we help charities understand donor restrictions, charitable trust obligations in BC, and the options available when a restricted purpose can no longer be fulfilled. If your organization is holding funds it cannot use as originally intended, get early legal guidance can help the board respond carefully, preserve donor trust, and find a solution that supports the charity’s work while respecting its legal obligations.

Legal Steps to Incorporate a Non-Profit Organization in British Columbia

Starting a non-profit organization is an exciting step. Whether your goal is to support a local community, advance education, promote the arts, or provide charitable services, incorporating your organization creates a legal foundation that can help it grow and operate effectively. We often meet individuals who are passionate about a cause but are unsure where to begin or what legal requirements they need to meet before launching their organization.

Incorporating a non-profit in British Columbia involves more than filing paperwork. It requires thoughtful planning, a clear governance structure, and an understanding of the legal responsibilities that come with operating a society. Taking the right steps from the beginning can help avoid costly issues later and position your organization for long-term success.

Understanding the Incorporation Process

In British Columbia, most non-profit organizations are incorporated under the Societies Act. Incorporation creates a separate legal entity, meaning the society can own property, enter into contracts, and continue operating independently of its members or directors. This structure may also provide greater credibility when seeking grants, donations, or community partnerships.

One of the first steps is choosing an appropriate name for the organization. The proposed name must be approved before incorporation and should clearly distinguish the society from existing organizations. It is also worth considering whether the name reflects your mission and whether trademark protection may be appropriate.

The organization must also establish its purposes. These explain why the society exists and guide its activities. They should be carefully drafted because they influence how the organization operates and, if charitable status is being considered in the future, they will be reviewed by the Canada Revenue Agency.

Another important requirement is preparing the society’s bylaws. These establish how the organization will be governed, including how directors are elected, how meetings are conducted, how members vote, and how important decisions are made. While the Societies Act provides default rules, well-drafted bylaws help prevent misunderstandings and provide clear guidance as the organization evolves.

Incorporation also requires appointing the initial directors. Directors play an important governance role and have legal duties to act honestly, in good faith, and in the best interests of the society. Choosing individuals who understand these responsibilities helps create a strong foundation from the outset.

Common Mistakes New Non-Profits Can Avoid

Many new organizations focus primarily on their mission and assume the legal structure can be addressed later. While enthusiasm is important, overlooking governance at the beginning can create challenges that become more difficult to correct over time.

One common mistake is using generic incorporation documents or bylaws without considering the organization’s specific needs. Every non-profit operates differently, and governance documents should reflect how the organization intends to function. Provisions that work well for one society may not be appropriate for another.

Another issue arises when founders confuse incorporation with charitable registration. Incorporating a society in British Columbia does not automatically make it a registered charity. Charity law involves separate legal considerations, and charitable status is a separate application process administered by the Canada Revenue Agency, with its own eligibility requirements and ongoing reporting obligations. Organizations should understand this distinction clearly before they begin fundraising or try to issue donation receipts.

Governance responsibilities are another area that is often underestimated. Directors are responsible for overseeing the organization’s affairs, ensuring compliance with applicable law, maintaining proper records, exercising reasonable care, diligence and skill, and acting in the best interests of the society. Maintaining accurate corporate records and meeting annual filing obligations is an essential part of staying in good standing and avoiding dissolution.

We also encourage organizations to think ahead about contracts, privacy, volunteer management, and intellectual property. While these issues may not feel urgent during incorporation, addressing them early often prevents problems as programs expand and new partnerships are formed.

Building a Strong Foundation for the Future

Incorporating a non-profit is more than creating a legal entity. It is an opportunity to establish governance practices that support accountability, transparency, and sustainable growth. Understanding how corporate law applies to your organization can also help ensure that its legal and governance requirements are properly addressed. A well-structured organization is better positioned to attract qualified board members, secure funding, and earn the confidence of donors, volunteers, and community partners.

As your organization develops, your legal needs will continue to evolve. Board composition may change, bylaws may require updates, and new legal considerations may arise as programs expand or charitable status is pursued. Beginning with a solid legal framework makes it much easier to adapt to those changes over time.

We believe every organization deserves a strong start. Careful planning at the incorporation stage can help reduce future risks and allow your board to focus on advancing its mission rather than resolving avoidable governance issues.

At L. Johnson Law Group, we work with charities and non-profit organizations throughout British Columbia to guide them through the incorporation process and establish practical governance structures that support long-term success. If you are considering incorporating a non-profit or need guidance on the legal requirements involved, our team is here to help. Contact L. Johnson Law Group today to discuss your non-profit incorporation needs and take the first step toward building a strong legal foundation for your organization.

Can Our Charity Use AI? Legal Risks of ChatGPT and AI Tools for BC Non-Profits

Artificial intelligence tools are becoming part of everyday operations for many charities and non-profits in British Columbia. Staff and volunteers are using platforms like ChatGPT to draft emails, write grant applications, create social media content, summarize meeting notes, and organize ideas more efficiently. While these tools offer real benefits, they also raise important legal and operational concerns that many organizations have not yet fully considered.

We are increasingly hearing from charities that want to understand how AI fits within their existing Charity Law, governance, and privacy obligations. In many cases, these tools are already being used informally, without internal policies or safeguards in place. Before relying heavily on them, organizations need to understand the potential risks and take practical steps to protect sensitive information and maintain public trust.

Understanding Privacy and Confidentiality Risks

One of the most significant concerns surrounding AI use in the non-profit sector involves privacy and confidentiality. Many AI platforms process information entered by users in ways that are not always transparent or well understood. This creates real risks when staff or volunteers input donor information, client records, financial details, or confidential internal discussions into external AI systems.

Charity data privacy in BC is a serious responsibility. Non-profits often handle highly sensitive personal information, particularly when working with vulnerable individuals or delivering community support programs. Even well-intentioned staff members can unintentionally expose private information while simply trying to save time or work more efficiently.

Confidentiality obligations do not disappear because a task is being handled by technology. Information shared through AI platforms may be stored, processed, or used in ways that conflict with your organization’s privacy practices or legal obligations. Without clear internal guidance, there is a genuine risk that volunteers or employees could unknowingly undermine donor confidence or client trust.

Internal governance and communications carry risks as well. Board discussions, employment matters, funding concerns, and strategic planning documents may contain confidential information that should never be entered into public AI systems. During periods of organizational stress or transition, protecting that information becomes even more critical.

AI legal risks for charities extend beyond privacy. Organizations should also consider whether AI-generated content might unintentionally reproduce copyrighted material or present inaccurate information as fact. AI tools can produce polished content quickly, but that output still requires careful human review before it is used or published.

Why Non-Profits Need Clear AI Policies

As AI becomes more embedded in daily operations, charities should consider developing an internal AI policy that defines how these tools may and may not be used. Many organizations already have policies covering technology use, confidentiality, and records management. AI should be treated as part of that broader governance framework rather than something separate from it.

A clear nonprofit technology policy in BC helps set expectations for staff, volunteers, board members, and contractors. This might include guidance on what types of information should never be entered into AI systems, how AI-generated content should be reviewed before use, and who is authorized to use these tools on behalf of the organization.

Volunteers and contractors deserve particular attention in this conversation. Many charities depend heavily on external support, and individuals may use AI tools on their own initiative without fully appreciating the risks involved. Clear communication and accessible training can help ensure that everyone connected to the organization understands what is expected around confidentiality and responsible technology use.

Accuracy and accountability are equally important considerations. AI tools can generate incorrect or misleading information with apparent confidence, particularly when producing content related to legal, financial, or governance matters. Decisions should never be made based solely on AI-generated advice without review by a qualified person.

Having a policy in place is not about discouraging innovation. It is about creating structure and reducing uncertainty as these technologies continue to develop and evolve.

Creating Practical Safeguards for Your Organization

Most charities do not need to avoid AI entirely. Used thoughtfully, these tools can genuinely improve efficiency and support administrative work. The key is ensuring that appropriate safeguards exist before sensitive information or core organizational processes become too dependent on technology that is not yet fully understood.

Practical safeguards might include restricting AI use for confidential matters, providing staff training, reviewing the privacy policies of third-party platforms, and ensuring that all AI-generated materials are reviewed by a human before being published or acted upon. Organizations should also revisit existing confidentiality agreements and technology policies to confirm they remain current and relevant.

An AI policy for non-profits should reflect the specific work your organization does and the nature of the information it handles. A small arts organization faces different risks than a charity working with health data or vulnerable populations. Taking the time to assess those risks now is far easier than addressing the consequences of a problem later.

At L. Johnson Law Group, we assist charities and non-profits with governance, privacy, and technology-related legal matters, including developing practical nonprofit technology policies in BC. If your organization is beginning to use AI tools or would benefit from guidance on managing AI legal risks for charities, we are here to help. We welcome you to reach out and discuss how your organization can embrace emerging technology responsibly while continuing to protect the people and communities you serve.

Contact L. Johnson Law Group today to discuss practical AI policies and legal guidance tailored to your charity or non-profit organization.

Key Life Events That Surrey Residents Should Consider when Updating a Will

A will is not something most people think about often once it is completed. However, life rarely stays the same. As circumstances change, your will should reflect those changes to ensure your wishes are carried out properly. We regularly speak with individuals and families in Surrey who are surprised to learn that an outdated will can create confusion or unintended outcomes. Taking the time to review and update your will is an important part of responsible estate planning.

Updating your will does not have to be complicated, but it should be done thoughtfully. Wills and Estate Lawyers can help you identify important life events that may require you to revisit your plans and make the necessary changes.

Major Life Changes That May Affect Your Will

Some life events have a direct impact on how your estate should be structured. Marriage is one of the most significant. In British Columbia, getting married can affect an existing will, and in many cases, a new will should be prepared to reflect your current relationship and intentions. Similarly, separation or divorce often requires careful review to ensure that former spouses are no longer included where that is no longer appropriate.

The arrival of children or grandchildren is another important moment for life events estate planning. Many parents want to ensure that guardianship arrangements are clearly set out and that assets are protected for their children’s future. Without updating your will, these important considerations may be left unclear or governed by default legal rules.

Changes in financial circumstances can also prompt a review. Purchasing a home, starting or selling a business, or receiving an inheritance may all affect how your estate should be distributed. As your assets grow or change, your will should evolve alongside them to ensure everything is accounted for properly.

We also see situations where individuals wish to support charities or community organizations as part of their legacy. Including these intentions in your will requires careful drafting to ensure your wishes are carried out accurately.

Even changes in relationships, such as the loss of a loved one or a shift in family dynamics, can impact your estate plan. Updating your will in these situations helps ensure that it continues to reflect your current priorities and the people you want to provide for.

Why Keeping Your Will Current Matters

An outdated will can create unnecessary challenges for your family. When instructions no longer reflect your current circumstances, it can lead to confusion, delays, and, in some cases, disputes. Loved ones may be left trying to interpret your intentions without clear guidance.

Changing your will ensures that your estate is administered according to your wishes, not assumptions or outdated information. It also allows you to confirm that the people you have chosen to act as executor are still appropriate and willing to take on that responsibility.

We often remind clients that estate planning is not a one-time task. It is an ongoing process that should adapt as your life changes. Regular reviews can help identify small updates before they become larger issues. This is especially important for families with more complex circumstances, such as blended families or evolving financial arrangements.

There can also be practical implications. Financial institutions, legal processes, and tax considerations may be affected if your will does not align with your current situation. Keeping your documents up to date helps reduce administrative challenges and provides clarity during what can be a difficult time for your loved ones.

Taking a Proactive Approach to Will Updates

A good approach is to review your will every few years or after any significant life event. This does not always mean a full rewrite is required, but it does provide an opportunity to confirm that everything still reflects your intentions. Small updates, when done properly, can make a meaningful difference.

Working with an estate planning Lawyer can help ensure that any changes are made correctly and in accordance with British Columbia law. This is particularly important when dealing with more complex estates or when multiple factors need to be considered together. Proper guidance helps avoid errors that could affect the validity or effectiveness of your will.

Updating your will is ultimately about protecting the people who matter most to you. It provides clarity, reduces uncertainty, and ensures that your wishes are respected.

At L. Johnson Law Group, we assist individuals and families with updating your will and changing your will to reflect life’s changes. If it has been some time since you last reviewed your will, or if you have recently experienced a major life event, we are here to help. We invite you to reach out and have a conversation about keeping your estate plan current and aligned with your goals.

Ready to update your will? Contact L. Johnson Law Group today to speak with our experienced Wills and Estate Lawyers and ensure your estate plan continues to reflect your wishes and protect your loved ones.

Protecting Your Non-Profit Intellectual Property, Brand and Assets in BC

Legal guidance helps you understand the limits and possibilities within the laws that govern non-profits and charities in BC and across Canada.

The Importance of Confidentiality Agreements for Surrey Businesses

Legal guidance helps you understand the limits and possibilities within the laws that govern non-profits and charities in BC and across Canada.

What BC Charities and Non-Profits Need to Know about Fundraising

Fundraising is a lifeline for many charities and non-profits across British Columbia. Whether you’re hosting a gala or running an online donation campaign, understanding the legal landscape of fundraising is key to keeping your organization compliant and maintaining the respect of your community. British Columbia has clear rules in place to protect the public, maintain public trust, and ensure your fundraising activities are fair, transparent, and accountable.

If you’re part of a non-profit or charity located in Surrey, BC, or across the province, you need to understand the legal aspects of fundraising. Here is a breakdown of what you need to know to stay on the right side of the law while raising funds for a good cause.

Understanding Charity Fundraising Regulations in BC

All registered charities are regulated federally under the Income Tax Act by the Canada Revenue Agency (CRA). For those non-profits that are incorporated provincially as a society, the Societies Act and the Business Practices and Consumer Protection Act may also come into play.

If your organization is a registered charity, you must follow CRA rules on receipting donations, keeping books and records, and using funds for charitable purposes. The rules can get complex fast, especially when third-party fundraisers, raffles, or special events are involved.

For non-charitable non-profits, the landscape is slightly different. You may still need to comply with provincial consumer protection laws if you’re soliciting donations from the public.

Bottom line? Know your classification and the fundraising rules that go with it.

The Law Around Donation Receipts

Issuing tax receipts can help boost donations for a charity—but they come with responsibility. The CRA has strict donation receipt rules that charities must follow to remain in good standing.

Receipts must include specific details such as:
The name and address of the charity
The amount donated (or fair market value if non-cash)
The date the receipt was issued
A unique serial number
The charity’s registration number

Failing to issue proper receipts—or issuing them for ineligible gifts—can lead to penalties or even revocation of your charitable status.

If you’re unsure whether an event ticket, auction item, or gift-in-kind qualifies for a tax receipt, make sure to seek legal advice before offering one. It’s not worth risking your organization’s credibility over a technical slip.

Thinking About Hiring a Fundraiser? Know the Rules

When hiring a professional fundraiser or engaging volunteers to solicit donations, be mindful of the non-profit fundraising laws and guidelines in BC and set by CRA for charities.

Transparency with donors is a must. If someone is fundraising on your behalf, they must identify:

They are fundraising for your organization
What the funds will be used for
Whether a portion of the funds will be used to cover their costs

If you’re paying a third-party fundraiser, be extra cautious. The CRA scrutinizes relationships where a large portion of donations goes toward fundraising fees rather than the cause itself. Maintaining a clear contract with third-party fundraisers and full financial disclosure is a must.

Raffles, Lotteries, and Gaming Licences for Charities

If your charity runs raffles, bingos, or any other form of charitable gaming, you’ll need to apply for a license through the BC Gaming Policy and Enforcement Branch.

Rules vary depending on the type of gaming, but some things are certain: proceeds must go to approved charitable purposes, proper records and reporting must be maintained, and there are strict guidelines on prize values and advertising.

Don’t assume that small raffles are exempt—better safe than sorry. When in doubt, reach out for legal guidance.

Digital Fundraising: Staying Compliant Online

Online fundraising is here to stay, but digital platforms also bring new compliance challenges. If you’re using social media, crowdfunding, or email campaigns, make sure you’re being transparent with donors about how their funds will be used.

Ensure your website’s donation page includes your legal name, registration number (if applicable), and contact information. If you’re collecting donor data, make sure to comply with BC’s personal information legislation and Canada’s anti-spam and privacy laws.

Charities based in Surrey and across British Columbia should also keep tabs on their local bylaws that might apply to physical or public fundraising efforts.

Record-Keeping: It’s Not Just Paperwork

Keeping accurate records isn’t just good practice—it’s a legal obligation. Charities must keep books and records for a minimum length of time that can vary from 2 to 10 years. These include financial statements, donation receipts, meeting minutes, and contracts. The minimum requirement for holding onto records will depend on the type of record – when in doubt, seek legal guidance on these requirements.

If your non-profit is audited or investigated, your records will be the first thing regulators ask for. Stay organized, keep things backed up, and review your internal policies regularly.

Legal Support: Don’t Go It Alone

Let’s face it—navigating the legal aspects of fundraising in BC isn’t easy. Even well-meaning organizations can land in hot water without realizing they’ve stepped outside the lines.

Whether you’re starting a new campaign or revisiting your policies, consulting a lawyer who specializes in charity fundraising regulations in BC and Canada-wide is a smart move. This is especially true if you’re expanding into new forms of fundraising or partnering with outside organizations.

Need Help? Talk to the Charity Lawyers at L. Johnson Law Group

If your charity or non-profit organization local to Surrey, BC, or Canada-wide is unsure about donation rules, fundraising laws, or CRA compliance, L. Johnson Law Group can help. We specialize in helping organizations like yours navigate the legal side of fundraising—so you can stay focused on your mission, not red tape.

Get in touch today to schedule a consultation and ensure your fundraising efforts are legally sound, compliant, and stress-free.