Choosing the right nonprofit structure is one of the most important decisions founders must make when establishing a mission-driven organization. In Alberta, many people use the terms society and charity interchangeably, even though they represent two completely different legal models. An Alberta Society follows provincial rules under the Alberta Societies Act, while a charity is federally registered with the Canada Revenue Agency (CRA).
Understanding these distinctions matters because your structure determines what you can do, what taxes you must follow, what funding you’re eligible for, and how much flexibility your organization has. In this guide, we break down the legal definitions, registration requirements, bylaws, tax considerations, funding opportunities, and compliance rules for each. We also help you identify which structure is right for your mission and explain why Business Alberta Online is the most reliable platform to incorporate an Alberta Society quickly and correctly.
What Is an Alberta Society?
An Alberta Society is a nonprofit, member-driven organization formed under the Alberta Societies Act. Societies exist to serve a social, cultural, religious, recreational, educational, or community-benefit purpose. They are not allowed to operate for profit or distribute any surplus to members.
To incorporate a society in Alberta, you must meet the following requirements:
What is an Alberta Society? (Key Characteristics)
- It is a nonprofit organization governed provincially.
- It must serve a community-benefit purpose, not operate for profit.
- It requires at least five founding members.
- It must have bylaws governing operations, elections, meetings, finances, and discipline.
- It must have a board of directors.
- It must be registered with the Alberta Corporate Registry.
Societies are ideal for community organizations, cultural groups, volunteer associations, and nonprofits focused on group membership and community services.
What Is a Charity in Alberta?
A charity is not defined by Alberta—it is defined federally. A charity is an organization that has been granted Registered Charity Status by the Canada Revenue Agency (CRA). While many charities begin as Alberta Societies, they only become charities after receiving CRA approval.
According to the CRA, a charitable organization must fall under one of these four categories:
- Relief of poverty
- Advancement of education
- Advancement of religion
- Other purposes beneficial to the community
Key features of a registered charity:
- It is governed by the Canada Income Tax Act.
- It must apply for CRA charitable status and undergo a detailed review.
- It can issue official tax-deductible donation receipts.
- It must comply with strict rules about spending, political activity, governance, and financial reporting.
Important Legal Note
An Alberta Society is not a charity automatically.
To become a charity, the society must apply to the CRA and be approved under the federal charitable classifications.
Alberta Society vs. Charity: Key Differences
Below is a detailed breakdown of how the two structures differ legally, administratively, and operationally.
1. Legal Status & Governing Law
Alberta Society
- Governed by the Alberta Societies Act
- Registered provincially
- Overseen by the Alberta Corporate Registry society division
Charity
- Governed by the Income Tax Act (Canada)
- Registered federally with the Canada Revenue Agency
- Must meet strict charitable purposes
2. Registration Requirements
Alberta Society Requirements
- Minimum 5 founding members
- Alberta address
- Society name meeting provincial rules
- Bylaws
- Objectives (purposes)
- Filed with the Alberta Corporate Registry
Charity Requirements
- Must first be a nonprofit (society or corporation)
- Must meet CRA’s charitable purpose criteria
- Must create stricter bylaws and financial controls
- Must apply for CRA charitable registration
3. Purpose & Mission
Alberta Society
Broad purposes are acceptable, including:
- Cultural groups
- Recreational sports clubs
- Community associations
- Hobby groups
- Volunteer groups
- Social advocacy organizations
Charity
Purposes must be strictly charitable and fall into one of the CRA’s four categories.
4. Tax Benefits
Alberta Society
- Cannot issue charitable donation receipts
- May still accept donations, but donors cannot claim tax credits
- Basic nonprofit tax rules apply
Charity
- Can issue tax-deductible donation receipts
- Eligible for additional grants, funding, and rebates
- Must meet strict financial and operational reporting requirements
5. Funding Opportunities
Alberta Society
- Membership dues
- Fundraisers
- Sponsorships
- Events
- Local community grants
Charity
- Same as societies, PLUS:
- Tax-receipted donations
- Charitable foundations funding
- Federal and provincial grant programs specifically for charities
6. Operational Restrictions
Alberta Society
- High flexibility
- Can run community programs, events, classes, and membership activities
- Fewer restrictions on advocacy or community engagement
Charity
- Must meet strict CRA rules
- Limited political activity
- Must ensure all spending aligns with charitable purposes
- More complex reporting obligations
Comparison Table: Alberta Society vs Charity
| Feature | Alberta Society | Registered Charity |
|---|---|---|
| Governing Law | Alberta Societies Act | Canada Income Tax Act |
| Purpose | Broad community benefit | Strict charitable purposes |
| Registration | Alberta Corporate Registry | CRA Charitable Application |
| Fundraising | General fundraising | Tax-receipted donations |
| Minimum Members | 5 founding members | No minimum, but board required |
| Bylaws Needed | Yes | Yes (stricter requirements) |
| Flexibility | High | Medium (strict rules) |
When Should You Register an Alberta Society?
You should choose an Alberta Society if your group fits into any of the following:
- Community groups
- Cultural associations
- Recreational clubs
- Local advocacy groups
- Volunteer teams
- Faith communities (non-charitable)
- Sports organizations
- Nonprofits not needing tax-receipted donations
Societies are easy to manage, inexpensive to operate, and offer flexible governance structures.
When Should You Apply for Charity Status Instead?
You should register as a Charity if your organization’s mission fits one of CRA’s approved categories and you need access to:
- Tax-receipted donations
- Foundation funding
- Charitable grants
- Federal funding opportunities
- Revenue from major donors who require tax deductions
This includes:
- Poverty-relief programs
- Faith-based charities
- Educational programs
- Food banks
- Homeless support services
- Medical aid nonprofits
Can an Alberta Society Become a Charity?
Yes, but it is not automatic.
To become a charity:
- First, incorporate a society in Alberta through the Alberta Corporate Registry.
- Ensure your objects (purposes) meet CRA’s charitable purpose criteria.
- Strengthen your bylaws to meet CRA governance standards.
- Apply for CRA charitable status.
- CRA will review your:
- Objects
- Bylaws
- Financial controls
- Governance
- Activities
- Once approved, the society becomes a registered charity.
Many Alberta charities start as societies, then transition into charitable status later.
Step-by-Step: How to Incorporate an Alberta Society First
Step 1: Choose a Society Name
Your name must:
- Follow Alberta naming rules
- Not mislead or duplicate existing societies
- Optionally use a NUANS report (recommended)
Step 2: Prepare Society Objects (Purposes)
Your purpose must:
- Align with nonprofit rules
- Not be commercial or for personal gain
- Clearly state the social or community benefit
Step 3: Draft Alberta Society Bylaws
Bylaws must include:
- Membership rules
- Elections
- Meeting procedures
- Director roles
- Voting rules
- Conflict of interest
- Financial controls
- Dissolution process
Step 4: Identify Directors & Founding Members
- Minimum five founding members required
- Most directors must live in Alberta
- Ensure eligibility under the Alberta Societies Act
Step 5: Complete the Incorporation Application Package
Your filing package must include:
- Bylaws
- Objectives
- Name details
- Director information
- Registered office location
- Incorporation forms
Step 6: File With the Alberta Corporate Registry
- Submit your documents
- Pay the filing fee
- Receive your Certificate of Incorporation
- Typical processing: a few business days
Once incorporated, your society exists legally.
Alberta Society Bylaws Explained
Bylaws are your society’s internal rulebook. They must cover:
- Membership categories & rights
- How meetings are called
- Quorum rules
- Elections & terms
- Director responsibilities
- Financial oversight
- Conflict of interest rules
- How members can be removed
- How disputes are handled
- How to amend bylaws
- How society may dissolve
Clear bylaws prevent operational issues and ensure compliance with the Alberta Societies Act.
Common Mistakes When Choosing Between Society vs Charity
Many founders make the following errors:
- Assuming all societies are charities
- Choosing charity status without CRA-eligible purposes
- Registering a society with vague bylaws
- Operating as a for-profit entity (illegal for societies)
- Not understanding CRA restrictions on political activity
- Attempting to issue charitable receipts without approval
- Misunderstanding the difference between nonprofit and charity status
- Failing to follow annual return requirements
Avoiding these mistakes protects your organization and prevents penalties.
Which One Should You Register? (Expert Recommendation)
Choose an Alberta Society if:
- Your mission is community-based
- You need flexible operations
- You want simple provincial registration
- You don’t require charitable tax receipts
- You want to start quickly and affordably
Choose a Registered Charity if:
- Your mission fits CRA’s charitable purposes
- You want tax-deductible donor receipts
- You rely on grants from charitable foundations
- You need higher fundraising credibility
If you’re unsure:
Start as an Alberta Society first, then apply for charitable status once your programs and governance are established.
This is the most common pathway for Alberta nonprofits.
Why Business Alberta Online Is the Best Platform to Incorporate an Alberta Society
Business Alberta Online is the most efficient and reliable way to incorporate your society because it provides:
Fast, guided registration: Step-by-step assistance through each required stage.
Accurate preparation of bylaws and objects: Professionally drafted documents ensure your society meets Alberta legal requirements.
Expert support with the Alberta Corporate Registry: Avoid rejections, errors, and delays with expert-prepared filings.
Affordable pricing for nonprofits: Transparent fees designed for community groups and volunteer organizations.
Future charity readiness: Your society can be structured correctly from day one to help you qualify for CRA charity status later.
Convenience & reliability: Everything is done online—no long lines, no complicated forms, no guessing.
For founders seeking compliance, speed, and peace of mind, Business Alberta Online is the best choice.
Frequently Asked Questions
1. Can an Alberta Society issue tax receipts?
No, only CRA-approved registered charities can issue official tax-deductible donation receipts.
2. How long does it take to incorporate a society?
Most incorporations take a few business days once documents are filed correctly.
3. What are the minimum requirements to form a society?
You need five founding members, bylaws, objectives, a registered office, and completed incorporation forms.
4. Do Alberta societies need annual returns?
Yes, all societies must file annual returns with the Alberta Corporate Registry.
5. Can a society earn money?
Yes, societies can fundraise and generate revenue—but profits cannot be distributed to members.
6. What is the main difference between a society and a charity?
A society is provincially registered for nonprofit purposes. A charity has strict federal approval and can issue tax receipts.
Choose the Structure That Fits Your Mission
Understanding the difference between an Alberta Society and a charity is essential for nonprofit founders. Societies provide flexibility, community focus, and simple registration, while charities offer tax-receipted donations and advanced funding opportunities, but come with strict regulatory obligations.
If you are launching a community group, volunteer organization, cultural association, or any nonprofit not requiring tax receipts, forming an Alberta Society is the ideal choice. When you’re ready to take the next step, Business Alberta Online makes the process fast, accurate, and stress-free—helping you build a compliant, sustainable organization from day one.