Models of

Youth Work
C r e a t e d F o r A r t r e a c h T o r o n t o B y A N D RE A
Z A M M I T a n d A L A N A L O W E S p Ec i a l co n t r i but i o n s
by : G R A S S ROOT S Y O U TH CO L L A B OR A T I V E

G.O.A.L. Y O U T H W o r k s ho p S e r i e s w w w . a r t r e a c h t o r o n t o . c a / t ool k i t s
GOAL Youth
Workshop Series
The Grassroots Organizing and Leadership (GOAL) Youth Capacity Building Workshop Series was
developed in 2007 by youth-led organizations, funders and other partners to provide access to learning opportunities
that can enhance the work of young people, artists and youth-led groups. Through different strategies and in
different spaces, young people are working to make change and to have an impact on communities across the city
of Toronto. To take this passion and commitment and channel it into a project, individuals or organizations often
require training, tools and supports that are not always available to emerging, youth-led groups.

This workshop series provides facilitators (many of whom are young people, or those that have been involved in
grassroots organizing and project development) to share their insights and resources. Many groups have struggled
to find financial templates that works for them, decode grant guidelines or define what structure works for them as
an organization. Accordingly, past topics have included financial management for nonprofits, fundraising, grant-
writing, and models of youth work. These free sessions provide an accessible and safe learning space for young
people and groups to ask questions, receive support and demystify process.

The workshops are developed based on needs identified by young people in Toronto. Participants who attend 5
or more workshops in the series receive a certificate.

The GOAL Youth Workshop Series is implemented by ArtReach Toronto, in partnership with various organizations
and youth groups including; Grassroots Youth Collaborative, Laidlaw Foundation, City of Toronto, Schools without
Borders, For Youth Initiative and Toronto Community Foundation.

Special thanks go to the facilitators for sharing their knowledge and expertise, as well as the following partners that
have provided funding for the workshops, resource guides and online toolkit:

Canadian Heritage

City of Toronto Cultural Services

Laidlaw Foundation

The Lawson Foundation

Toronto Community Foundation

2 Models of Youth KIT

Table
Of Contents

Introduction: Models of Youth Work Pg. 5

Youth Engagement Continuum Pg. 5

Principles of Youth Engagement Pg. 7

Unincorporated Groups Pg. 8

Youth Organizing – 5 Steps to Pg. 10

Incorporated Nonprofit Organizations Pg. 11

Charities Pg. 17

Intermediary Organizations Pg. 23

Social Enterprises Pg. 27

3 Models of Youth KIT

Andrea Zammit
Andrea is the Coordinator of the Grassroots Youth Collaborative (GYC), which is a collective of youth-led/driven
organizations located across the Greater Toronto Area who have come together to network and support capacity-
building with one another and to advocate for young people in low-income/racialized communities. Andrea recently left a
position working for Yorktown Child and Family Services as a Youth Outreach Worker (funded by the Ministry of Children
and Youth Services) in the priority neighbouhood of Weston Mount-Dennis, and has been working with youth in this
community since 2002. 

Andrea is also currently a co-manager of Rated Inc. one of Toronto’s most well-known and successful youth-led arts
(dance), entertainment and promotion companies. Andrea started supporting Rated Inc. when she was an outreach
worker and was so impressed with their promotion that she joined the team. Since then Rated Inc. has managed groups
that have won several titles and awards. Rated “X” for eXcitement won Much Music’s Top Dance Crew (2008) and
recently pitched and won a contest to travel to Jamaica to study reggae dance hall. 

Andrea worked in many settings within this community including For Youth Initiative (FYI); a number of Toronto Community
Housing projects and schools; and even conducting street outreach. In the past she has held a number of paid and
un-paid positions with FYI including the role of Program Director/Manager.  She completed her Bachelor of Social
Work at Ryerson University in 2004 and then completed her Master’s of Social Work at York University in 2005. Andrea
completed her major research paper on using Hip Hop culture as a tool to educate and engage urban youth in schools
and community organizations. Andrea is currently on the Board of Directors for the Somali Youth Association of Toronto
(SOYAT), a youth-led organization in Rexdale.  Andrea has the ability connect groups, young people and community
members to resources to help them reach their full potential. 

Alana Lowe
Alana’s passion to address issues her peers are impacted by developed young. At 17, she entered the network as
a youth peer facilitator with East Metro Youth Services’ Violence Intervention Project and Leave Out ViolencE’s youth
programs.  Shortly after, Alana also become a peer facilitator and coordinator of METRAC’s Respect In Action (ReAct)
program where she trained her peers to deliver interactive workshops, trainings, and speaking engagements on violence
against women and youth.

Alana’s work at the by youth, for youth organization, For Youth Initiative, was an especially life changing and emotionally
impactful experience. During her time as a volunteer and youth program worker, Alana co-produced and co-directed a
short documentary called The Forgotten City... in the city that explores the lack of youth services in the Keele & Eglinton
community and the bad things that can happen when there’s little or no access to them.

Alana Lowe coordinates the Emerge program, a young leaders training  & mentorship program through Schools Without
Borders. In 2008, as a participant in the program’s international exchange component, Alana traveled to Kenya and
witnessed the vital and inspirational work of young leaders there. Her trip helped her realize how invaluable and precious
cross-cultural knowledge and learnings are and how relevant they are to her conceptions of self-worth. With her renewed
confidence and love for self, Alana wants to ensure that other young people, who rarely receive opportunities to travel
outside of their communities, yet to another continent, experience similar, powerful transformations that contribute to the
betterment of themselves and their communities.

A Special thanks to Gillian Witt, Tides Canada.

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Models of Youth Work
When young people are equipped with the skills and resources needed to create change
in their communities on their own terms, amazing things can happen. These emerging leaders
become powerful mentors and educators with a diverse range of skills and experiences. They
lead powerful programs and initiatives that empower and improve the lives of their peers and
members of their communities. They join grassroots networks of diverse youth-led projects
and initiatives and work together toward collective goals to advocate, raise awareness and
inspire transformative policy change. The outcome is a sustainable movement that grows,
expands, re-generates and makes an impact on the lives of other young people.

This toolkit outlines five models of youth work: unincorporated groups (youth organizers);
incorporated nonprofit organizations; charitable organizations; intermediary organizations;
and social enterprise. Each model of youth work is defined; followed by steps on how to
make it happen; the benefits and limitations; and where to find more information/resources
on the particular model. While these models are common, please note that there are many
others that fall outside of the above categories. This toolkit is a starting place for youth
organizers interested specifically in not-for-profit work.

Youth Engagement
Continuum
There are many different types of youth engagement models used to encourage young
people to participate in various projects and programs across the country. Whether it’s chilling
out at a drop-in program at a local community centre or participating on a youth council at city
hall, young people access resources and/or receive services from all types of organizations.

5 Models of Youth KIT

However, effective youth engagement models not only encourage youth participation in the
development and design of a program or initiative, but also support young people to gain
the skills and experience needed to coordinate and lead projects and programs on their own
with/for their peers.

The youth engagement continuum chart below, illustrates and outlines the range of various
types of youth engagement and the impact of their approaches.

Youth Engagement Continium

Intervention Development Collective Empowerment Systemic Change

Youth Services Approach Youth Development Civic Engagement Youth Organizing

Youth Services Approach

Defines Young People as Clients
Provides services to address individual problems and issues faced by young people
Programming defined around treatment and prevention

Youth Development
Provides services and support, access to caring adults and safe spaces
Provides opportunities for the growth and development of young people
Meets young people where they are
Builds young people’s skills
Provides youth-friendly support
Emphasizes positive self identity
Supports youth-adult partnerships

Youth Leadership (also supports youth development)

Builds in meaningful youth leadership opportunities within programming and organization
Helps young people deepen historical and cultural understanding of their experiences
and community issues
Builds skills of young people to be decision makers and problem solvers

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 Youth participate in community projects
Civic Engagement (supports youth development & leadership)
Engages young people in political education and awareness
Builds skills and critical thinking around issues young people identify
Begins to help young people build collective identity of youth as social change agents
Engages young people in advocacy and negotiation

Youth Organizing (supports youth development, leadership & civic engagement)

Builds a membership base
Involves youth as part of core staff and governing body
Engages in direct action* and political mobilizing
Engages in alliances and coalitions

Principles of
Youth Engagement
Reinvest in Youth
Reinvestment in the capacity of all youth, including the most highly alienated is seen as
being vital to the process of youth organizing. This principle is based on two principles;
first, that youth are leaders of today not just tomorrow; and second, that healthy com-
munities and youth can not exist in isolation from one another.

Constituency Building and Collective Action

Building a ‘core’ constituency of youth leaders supplemented by a membership base
that can be mobilized towards addressing issues faced by youth and their communities.

Respect for Youth Culture

Youth organizers meet young people where they are by respecting youth culture, life ex-
periences and community relations. An example of such ‘youth friendly’ programming is
the use of hip hop culture for organizing outreach strategies.

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Politics as Inspiration for Young People
Political education and movement history are known to be powerful tools for educating,
mobilizing and inspiring young people.

Youth – Adult Partnership

Youth organizers work with young people, not for them. Respecting youth leadership is a
precursor to providing young people with the skills to navigate their lives and engage in
collective action.

Unincorporated
Groups
What is an unincorporated group?
An unincorporated group is a collective of two or more people that come together to
work towards a common cause or issue without the intention of making a profit.
These people may volunteer or be paid for their work through grants or other revenue,
but funding is sometimes limited for unincorporated groups. Unincorporated groups are
not formally registered with the government and are not legally required to adhere to any
of its general rules and guidelines. Unincorporated organizations are usually grassroots
(community-led) and often operate outside of typical top-down structures.

Partnering with charities and incorporated groups

To be eligible to apply for funding from foundations and government programs, unincor-
porated nonprofits may need to partner with a charity or incorporated nonprofit. Both
groups must formally agree to work together to achieve a common goal with mutual
benefits. They are also usually required to submit a collaborative agreement with their
joint funding application. Depending on the type of agreement, the level of participation
from the partnering organization(s) can vary from simply managing and dispersing funds
to mentoring and working with the unincorporated group at every step of a project.

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 It is important to have a clear collaborative agreement that defines the roles and respon-
sibilities of each group before submitting funding applications. It is not a good idea to
draft formal agreements after funding has been granted. Miscommunication and/or con-
flicting work styles can disrupt project coordination, affect project timelines and prevent
organizers from meeting expected outcomes. If the unincorporated group is not able to
carry out the goals and objectives of the project, this could affect chances at obtaining
funding from the same foundation or government funder in the future.

Benefits
Unincorporated organizations do not have to adhere to government rules and guidelines
that regulate charities and incorporated nonprofits.
Unincorporated organizations have more flexibility and can change
their objectives and visions.
Because unincorporated groups are often grassroots and community-led, they are able
to effectively engage more residents and offer authentic solutions to real problems with-
out restrictions (i.e. – Unlike charitable organizations, unincorporated groups are not
limited in the amount of advocacy they are engaged in).

Limitations
Unincorporated organizations cannot receive tax exemptions
or issue charitable tax receipts.
Unincorporated organizations are usually ineligible to apply for funding from most formal
funding bodies (i.e. corporations, foundations, government programs) without collabora-
tion agreements with charities or incorporated organizations.
Unincorporated groups are not always recognized with the same level of credibility
as charities or incorporated organizations.

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Youth Organizing –
5 Steps to
Young people come together for different purposes. One of them is to organize around
issues that they see affecting them or their communities. Here are some practical steps
that address how to get started.

What & Why? / Identifying the Gaps

Brainstorm issues that have personal impact or impact your community.
What’s already being done? What needs to be done?

Find Out More

Ask questions: Why does this problem exist?
Review research from different perspectives.

Rally Support
Great minds think alike. Find diverse people that are passionate and want to support.
Also consider connecting with local community organizations & projects.

Organize Something
Move beyond brainstorms and meetings and consider planning an event;
a deputation at city hall; or a workshop to raise awareness.

Reflect & Evaluate

Did you achieve what you set out to change? What was effective?
What was a challenge? What would you change?

Resources

Grassroots Youth Collaborative (General information, reports & resources)

http://www.grassrootsyouth.ca/
Popular Education and Grassroots Organizing
HYPERLINK “http://www.educatingforjustice.org/popular_education.htm”
http://www.educatingforjustice.org/popular_education.htm

10 Models of Youth KIT

Incorporated
Nonprofit Organizations
What is an Incorporated Nonprofit/Not-for-profit organization?
Similar to an unincorporated nonprofit, an incorporated, nonprofit organization is a group of
people who work towards a specific cause or issue without the intention of making a profit.
However, an incorporated nonprofit is registered with either the provincial or federal govern-
ment, or both and must follow government guidelines.
How do you incorporate as a nonprofit organization?
Groups in Canada can incorporate their organization provincially (i.e. through the province of
Ontario) or federally with the Government of Canada. Both processes are very similar, but
for provincial specific information, it is important to check out the processes outlined by
your province.
Are you sure your organization is ready for incorporation?
Are you prepared to:

Set up a Board of Directors

You need 3 people minimum who are dedicated and willing to volunteer (one person will have
to be the Chair of the Board of Directors[the leader in charge who is responsible]. The board
of new organizations are often “hands-on”, which means that it can be a time consuming
volunteer position.
The directors are personally liable for what happens (legally/financially) with the nonprofit
organization.
Depending on the experience of the board members, you may want to have some resources
(manuals or trainings) for board development.

Open a bank account

Pretty straight forward once you have the nonprofit incorporation papers – you will need to
register the signatories of the bank account . Signatories are those who will have the authority
to make decisions on how funding is spent. Usually it is the Executive Director and Chair
of the Board that open the account and be signatories.

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Setup financial management systems
You may want to include funds in your budgets for a bookkeeper and pay a chartered accoun-
tant to complete an audited financial statement each year. This statement is an organization’s
financial records that has been prepared and certified by a Certified Public Accountant (CPA).
The CPA (the auditor) certifies that the financial statements meet the requirements of the
Generally Accepted Accounting Principles (GAAP), a common set of accounting concepts.

Purchase Insurance
Directors and Officers Insurance (for Board Members), and General Liability Insurance
(for participants/programs), which will cost in the thousands of dollars range .

Use release, consent forms, waivers

It is really important to have all of your bases covered to reduce risk to the of your organization,
you can do this by creating forms to ensure your program participants understand things
such as:

the organization may use the participants photo or video for promotions;
that a program participant may get injured by participating in a sporting event;
these forms may not fully protect the organization from legal action, the best way to protect
your organization is to consult a lawyer. This may be costly, but some organizations are able
to seek out board members who have legal backgrounds and you can sometimes access
free lawyer services.

Create and update policies and procedures –

governance, human resources, etc…
As you start building an organization you need to have clear and transparent policies and pro-
cedures, around safety, equity, employment, finances, organizational structure, how decisions
are made, etc. This can protect your organization from legal action and it may be required by
funders to have some of these policies in effect before requesting funding. However, this can
also reduce your ability to be “flexible” and “responsive” to changing circumstances, it is also
extremely time consuming and can mean that you may have to run things in a more structured
and less “flexible” way (see who else has done this and get model policies if you can).

12 Models of Youth KIT

Draft contracts, setup payroll, benefits
and workers compensation (WSIB)
Good to consult a bookkeeper or accountant when you are doing this.

Find funds to cover operating costs

Operating funds are not easy to find, especially for grassroots groups.You may want to be at
a point when you are comfortable with the grant writing process and have managed a few
successful grants – with a good track record.

Hire administrative staff

Make sure you have someone who knows how to do the administrative duties
(and possibly someone else who is in charge of program implementation)

Create new visions, short term, medium term & long term, for the
organization – that you share with other people in the organization.
It helps to tie the decision making process into a participatory strategic planning process –
look at how this fits into a shared vision for the organization, this is so that everyone involved
feels a sense of ownership – and that you spend some time on talking about and thinking
through the process.

Take on this responsibility?!?

You and your organization are accountable to the government, funders, your partner organi-
zations, your board, your staff, your volunteers and especially the community you intend to
serve through your organization. Just make sure you are ready to take on the responsibility.
Ask yourself – is it more beneficial to partner with an organization out there to do a short-term
project with some good results or are you in this for the long haul (and then incorporate)?

To incorporate in Canada:

Research & gather information and forms.

It’s important to ask yourself if incorporation is right for you. While there are advantages, they
are also limitations. Review application forms and create a timeline of when and how you will
gather necessary information. Some groups hire lawyers (or use lawyers willing to volunteer
their services) to support them through the process while others rely on online resources.
Local charities can also be good sources of information and guidance.

Set up a board of directors (at least 3 directors are needed).

Charities and incorporated nonprofits are legally required to have a board of directors that
govern the organization.

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Obtain a name search report.
If you don’t already have a name for your organization, you will have to create one. Once
you have a name for your group, you must obtain a name search report through a registered
search house, like NUANS (there’s a $20.00 fee). NUANS compares your organizational name
with that of incorporated nonprofit organizations.

Outline your organizational overview.

Before registering as a nonprofit organization, your overall mission, the group(s) you will serve
and how your group is or will be funded must be clearly outlined. The application form will
require this information along with the address of your head office and names and contact
information of the board of directors.

Fill out and submit application.

Double check that you’ve provided all the necessary information on your application form and
have attached all the requested documentation. You will also need to attach a cover letter
with the name and address of the person who will be responsible for correspondence.

Develop and submit bylaws.

Bylaws are the ruling documents of an organization or, in this case, the organization’s board
of directors. Bylaws are critical, because they tell the board how to conduct its business.
However, because bylaws are more or less set in stone, it is in the interest of the board to
keep them as brief as possible. Bylaws should set forth the basic structure and abilities of the
board. The bylaws include such things as the board or directors’: are volunteers; any eligibil-
ity criteria (a youth-led organization may want their boards to have a certain number of young
people represented on the board); the years of a term for each board member; how board
members are selected; and the number of meetings a board member can miss without being
dismissed. Other bylaws may include specific roles with a board (Chair, Secretary, Treasurer
and what their responsibilities are); describe committees of the board (special events,
fundraising, etc.); meeting frequency and structure; voting (decision-making-the number
of directors needed to make it happen); a conflict of interest; policies relating to money;
and amendments (the number of board members needed to change any of the bylaws).

14 Models of Youth KIT

Benefits Conflict of Interest
(Board of Directors):
Any member of the board who
Any debts that the agency has will be the responsibility
has a financial, personal, or official
of the organization, not the individuals.
interest in, or conflict (or appear-
The Board of Directors may be liable ance of a conflict) with any matter
(look into Directors & Officers liability insurance). pending before the Board, of such
nature that it prevents or may pre-
When you “incorporate”, your organization will
become a “separate legal entity” and will continue vent that member from acting on
to exist even if you are no longer part of the the matter in an subjective manner,
organization. will offer to the Board to voluntarily
excuse him/herself and will vacate
The agency will be able to own property, sign con-
his seat and refrain from discussion
tracts, borrow money and hire staff. It’s easier to set
and voting on said item.
up a bank account and sign a lease or contract.

You will be able to access more funding sources Board of Directors: need to be
(as most funders can only provide money to groups age 18 to legally participate on
that are incorporated or have charitable status). a Board of Directors in Canada.

You can apply for a “charitable number” from Revenue

Canada (but that is a difficult process). Incorporated
organizations are eligible for many tax exemptions.
Specific exemptions are usually different depending
on where you live, but can usually be found online.

Limitations
Government regulations: incorporated organizations are subject to some supervision by
provincial and/or federal government and have to run the agency within set parameters.

Increases bureaucracy and paperwork:

The organization is responsible for:
Establishing and following policies and by-laws.

15 Models of Youth KIT

 Creating a Board of Directors (unpaid volunteers that govern the organization)
and electing the directors annually.

Developing a membership and meeting with the members annually.

Holding an Annual General Meeting (AGM) once per year, this is to ensure accountability
(that money is being spent according to how the organization says its going to); succession
(to announce any changes in board or staff); to gain input from the organization’s member-
ship/community; and to celebrate successes of the organization.

Keeping proper financial records, minutes of all meetings, and hire an auditor to look at
your finance.

Filing annual tax returns with certain departments of the Government (If you don’t report,
the agency may face a penalty and could lose its status).

Secure and maintain organizational insurance (for directors and officers, as well as general
liability insurance). General Liability Insurance can cost anywhere from $2000 - $5000/year
depending on the nature and range of your programming. Directors and Officers Insurance
usually costs $1000+/year.

Incorporation costs money.

Resources
FAQ on nonprofit incorporation
HYPERLINK “http://www.corporationcentre.ca/docen/home/faq.asp?id=incnp”
http://www.corporationcentre.ca/docen/home/faq.asp?id=incnp

Starting a nonprofit
HYPERLINK “http://www.charityvillage.com/cv/guides/guide4.asp”
http://www.charityvillage.com/cv/guides/guide4.asp

Industry Canada, Incorporating a not-for-profit corporation

HYPERLINK “http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs03440.htm”
http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs03440.htm

How to incorporate as a nonprofit organization

HYPERLINK “http://www.rcvo.org/questions/docs_useful_info_/howto_IncorporateNonprofit.pdf”
http://www.rcvo.org/questions/docs_useful_info_/howto_IncorporateNonprofit.pdf

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The Nonprofit Management Manual is a guide to starting a nonprofit organization in Ontario. It is an
excellent manual that takes you through all the steps, including things to think about when deciding if
incorporating as a nonprofit is right for you. Overall, it is a single source toolkit for establishing, managing
and governing nonprofit organizations in Ontario.
http://www.wensnet.org/pdf/Non_profit_mgmnt_.pdf

The Ministry of The Attorney General details what is required to become incorporated as a nonprofit
organization in Ontario. Topics include the legal definition of a charity, examples of letters patent, applying
for incorporation and benefits of being a charity.
See:HYPERLINK “http://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/nfpinc/charities.asp”
http://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/nfpinc/charities.asp

The Charity Village website has a Quick Guide on Starting a Nonprofit that incorporates articles
and research from their library, on-line publications, books and web-links.
See:HYPERLINK “http://www.charityvillage.com/cv/guides/guide4.asp#Resources”
http://www.charityvillage.com/cv/guides/guide4.asp#Resources

The Free Management Library, hosted by the Management Assistance Program for Nonprofits in
St. Paul, MN, provides information relating to Starting an Organization.
See:http://www.managementhelp.org/strt_org/strt_org.htm

Charities
What is a charity?
According to the Canada Revenue Agency (CRA), a charity is an organization established and operated
for charitable purposes and devotes its resources to charitable activities. That means all of its operations,
programs, events and activities are non-for-profit (not used to make money) and all the income raised or
received through donations are committed to the programs, events and activities. In order to be and re-
main a charity, the organization has to consistently meet general requirements for nonprofit corporations
setout by the federal government.

Incorporated nonprofit vs. charitable organization

While a registered charity is exempt from most taxes and can issue tax-deductable receipts, a nonprofit
organization has tax-exempt status only. However, it is much easier (and cheaper) to incorporate as a
nonprofit organization than it is to receive charitable status because there are less requirements to
become incorporated as a nonprofit organization.

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How do you get charitable status?
Receiving charitable status is a difficult process. And despite how much money and resources the orga-
nization puts into trying to get it, there are never any guarantees. The process can take anywhere from 6
to 18 months to be approved and there are many requirements organizations must fulfill in order to even
be considered.

Before applying for charitable status, organizations must:

Be headquartered in Canada
Be either incorporated or managed by a legal document called a trust or a constitution. This docu-
ment has to explain the organization’s purposes and structure. – what is this? We never had one at
FYI Pass a “public benefit test.” According to the CRA, to qualify under this test, an organization
must show that: Its activities and purposes provide a tangible benefit to the public; those people who
are eligible for benefits are either the public as a whole, or a significant section of it, in that they are
not a restricted group or one where members share a private connection. For example, a social club
or professional association with restricted membership would not be eligible for charitable status
because they aren’t open to the public; andthe charity’s activities must be legal and must not go
against public policy.

The organization’s purposes must fall under one or more

of the following categories outlined by the courts:
the relief of poverty;
the advancement of education;
the advancement of religion, or certain other purposes that benefit the community
in a way the courts have said are charitable.

Is charitable status the best thing for your organization,

project or collective?
Organizations considering filing an application for charitable status should ask themselves whether it will
be easier to simply partner with an existing charity in Canada. There are over 80,000 registered charities
in Canada. Chances are that one of them is doing the same or similar work.

Are you sure your organization is ready for charitable status?

Before going through this checklist, please review the checklist for groups considering incorporation
on page ….. You must be incorporated or governed by a trust or constitution before you can apply for
charitable status.
Is a creating new charity the best way forward? Really ask why you’re seeking charitable status for you
organization. Aside from issuing a tax receipt, how will charitable status directly benefit your organiza-
tion? Does it outweigh the limitations?

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Are there existing charities with the same purposes and activities as yours? Are you seeking
charitable status for a particular fundraising project? If so, can you team up with a charity that will
support the cause?

Do you know how a charity must operate? Charities must follow more strict government guidelines that
incorporated nonprofits. There will be increased administrative duties.
Where will you get funding? Running a charity has huge operational costs. Do you have funding to cover
the increase? How long will that last? How will you secure funding for these costs?

Applying for Charitable Status

Organizations applying for charitable status have to fill out an application form and file it with the
Canada Revenue Agency. The CRA also provides a guide.

The application form and guide can be found on the CRA website
(HYPERLINK “http://www.cra-arc.gc.ca/tx/chrts/formspubs/menu-eng.html”
http://www.cra-arc.gc.ca/tx/chrts/formspubs/menu-eng.html).

Because the process can be very exhaustive, organizations often hire a lawyer
(or use lawyers willing to volunteer their services) to support them.

Benefits
There are many benefits organizations can receive once they obtain charitable status.

Registered charities are exempt from most taxes, and can issue tax deduction receipts.
Registered charities can access diverse funding sources. Many government funding
programs and foundations will only accept funding proposals from groups with
charitable status.
Groups with charitable status can be perceived as more creditable than unincorporated
groups because they are government-regulated.
Charities are eligible to receive gifts from other registered charities.

19 Models of Youth KIT

 Make sure you keep
good records and
follow all legal and
ethical procedures
relevant to Canada
(“not knowing” is
NOT a good excuse!
What you don’t
know could kill your
organization).

20 Models of Youth KIT

Limitations
Securing and maintaining charitable status is a resource intensive process. Managing charitable require-
ments call for both financial resources and expertise that can be difficult to maintain, especially as an
organization in its early stages.

Charities (nonprofits with charitable status) must:

Complete an organizational audit. This statement is an organization’s financial records that has been pre-
pared and certified by a Certified Public Accountant (CPA). The CPA (the auditor) certifies that the finan-
cial statements meet the requirements of the Generally Accepted Accounting Principles (GAAP),
a common set of accounting concepts. The annual audit costs anywhere from $2000 - $10000. Book-
keeping expenses for a year can cost anywhere from $1000 - $3000/year. You can learn it yourself, but
the job requires specific skills and diligence. The tighter your financial systems are, the cheaper it is to
have these services provided.
Secure and maintain organizational insurance (for both directors and officers and general liability insur-
ance). General Liability Insurance can cost anywhere from $2000 - $5000/year depending on the nature
and range of your programming. Directors and Officers Insurance usually costs $1000+/year.
Maintain a board of directors (at least three, not including the Executive Director)
File annual charity information returns Even though charities don’t have to file income tax returns they
have to file an information return, one of the most important responsibilities that a charity has.
Remain committed to your registered charitable objectives You are not flexible to shift organizational
objectives as they come up. The organization must stay committed to supporting the issues they
outlined in their organizational mission/vision.
Commit to a set of policies that govern the actions of your organization
Have committed and effective staff It is necessary to have staff that can maintain organizational systems
throughout your operations, to have a system that is easy to understand and interact with.
Limited advocacy capacity. Groups with charitable tax status can only use 10% of their budget for
advocacy.

Words of Advice

Before considering charitable status...

Make sure you can’t do equal (or better) work as a partnered program under the umbrella
of another registered charity who already supports your work.

21 Models of Youth KIT

 Make sure you either are formally educated on nonprofits and the laws surrounding them
or have a strong mentor who has some real experience and/or education in nonprofit
management, fund raising, programming, board development, etc.
Make sure you are able to afford administrative costs (or even want to incur these costs):
insurance, audits, lawyers, accountants, book keepers, admin people, fund raising staff/
events.
Make sure you keep good records and follow all legal and ethical procedures relevant
to Canada (“not knowing” is NOT a good excuse! What you don’t know could kill your
organization).

- Mike Prosserman UNITY Charity

Resources
Canadian Revenue Agency:
HYPERLINK “http://www.cra-arc.gc.ca/charities/”http://www.cra-arc.gc.ca/charities/
or 1 (800) 267-2384

CRA Form & Guide:

http://www.cra-arc.gc.ca/tx/chrts/formspubs/menu-eng.html Register today? HYPERLINK “http://
www.cra-arc.gc.ca/E/pbg/tf/t2050/README.html”http://www.cra-arc.gc.ca/E/pbg/tf/t2050/RE-
ADME.html

How the demographic of Youth relates to CRA practices?

HYPERLINK “http://www.cra-arc.gc.ca/tax/charities/policy/cps/cps-015-e.html”
http://www.cra-arc.gc.ca/tax/charities/policy/cps/cps-015-e.html

Is your mandate acceptable according to the CRA?

HYPERLINK “http://www.cra-arc.gc.ca/tax/charities/policy/ces/ces-003-e.html” http://www.cra-arc.
gc.ca/tax/charities/policy/ces/ces-003-e.html

Alternative Resources:
HYPERLINK “http://www.charityguide.ca/”http://www.charityguide.ca/ or HYPERLINK “http://www.
envision.ca/templates/resources.asp?ID=81”http://www.envision.ca/templates/resources.asp?ID=81

Organizational Management
http://www.charityvillage.com/cv/research/rorganization.asp

Volunteer Lawyers Service offers legal assistance at no charge to nonprofit and charitable organizations.
See their fact sheets on Becoming Incorporated and Applications to Become a Recognized Charity at:
HYPERLINK “http://www.volunteerlawyers.org/library.cfm?fa=summarize&appView=Topic&id=2097”
http://www.volunteerlawyers.org/library.cfm?fa=summarize&appView=Topic&id=2097

22 Models of Youth KIT

Intermediary
Organizations
What is an Intermediary Organization?

Intermediary organizations support youth-led groups that are usually grassroots (community-led) and
take “direct-action” through programming and mobilization. Intermediaries (a.k.a. infrastructure groups)
work with youth-led groups to build their knowledge and skills to improve effectiveness through research,
documentation, network building, curriculum development, and management assistance activities.
A funder can play the role of an intermediary, however some youth-led groups are uncomfortable with
a funder providing management support.

Functions of an Intermediary Organization:

Convening and Networking:
Creating forums for peer networking and professional exchange among youth workers,
policy makers, funders and community members.

Knowledge Development and Spreading the Word:

Helps to shape a vision and structure; develop training curricula, tools and models for organizing;
develops materials for resource booklets, research projects; increases access to resources including
funding, technical assistance and professional development.

Setting the Standards:

Works with youth organizations and organizers to identify best practices, staff trainings
and the impact it will have on the youth they work with.
Training:
Find and create training programs that build capacity and transferable skills
of youth workers/organizers.

Management Assistance:
Take care of administration like payroll, accounting, legal assistance; provide information on funding
and re-granting funds for capacity enhancement; provide organizational development support on
topics including board development, financial and facility/resource management; and information
technology.

Advocacy and Representation:

Represent the contributions from the field to government, private funders, and community
stakeholders on issues including funding, policy formation and legislation.

23 Models of Youth KIT

 Accountability:
Help to develop assessment guides and monitor processes - systems that evaluate, i.e. program
report forms, participate in program documentation; providing evaluation oversight and management.

Benefits
“…the middle place where the role is to provide support to organizations to build capacity…Interme-
diaries play a brokering or connecting role in linking the work of organizations, networking between
different funders and organizations. An intermediary needs to know the funders, agencies, institution-
al players, because it’s hard to break into this sector…the role of an intermediary is to open doors.”
 
They create learning environments where groups learn in a practical way, by actually doing,
with the security of having a mentor to guide the process.

Intermediaries are helpful in providing policy advice because often they are familiar with a range of
programs and services and can recommend how duplication can be reduced,
emerging needs met and suggest where groups can align.

Providing a space for adult allyship, to train, mentor and support youth-organizers. This is of critical
importance because without adult credibility, advocating for putting young people into decision-mak-
ing roles within organizations may be a struggle to overcome because society devalues youth. 

The Intermediary role is vital to ensure the youth organization/organizers are not set up to fail.
The intermediary role is intimate. There needs to be communication between all three groups
(funder, intermediary, and the actual grant recipient), but between the funder and the group being
funded there still needs to be a separation [for objectivity]. The intermediary can fill that gap and
communicate between the two. 

Promotes more efficient use of time and money, intermediaries help programs to be more efficient in
their own use of funds by creating a space for resource and asset sharing and other mechanisms to
reduce program expenses.

Intermediary organizations are helpful in providing policy advice about how programs can effectively
work together for the benefit of children, youth and families. For that reason intermediary organiza-
tions will almost always have an active hand in local policy and systems reform, which will lead to
more effective services and better results.  

Properly organized and operated intermediaries can strengthen and enhance the ability of programs
and agencies to achieve their desired outcomes.

24 Models of Youth KIT

Limitations
Two Types of Challenges

1. Programmatic Challenges:
Arise from tensions between the goals and actual practices intermediaries use to achieve them
and the way in which they monitor outcome achievement

A) Orientation Toward Assistance

The amount of importance given to the knowledge and priorities of the intermediary itself or of the
organizations with which it works.
A more grounded respect for field expertise and a capacity-building approach vs. a more externally
driven, didactic approach.

B) Accountability
The extent to which an intermediary is answerable to the interests and agenda of organizations
in the field, to its own funders, or to other stakeholders.

C) Roles and Responsibilities

Considering whether an intermediary can be involved both in grant-making and capacity building.
Avoiding competition with partners for funding.

D) Defining and Demonstrating Outcomes

Identify intermediary outcomes—the net value they add to youth organizations—
and developing ways to demonstrate these effects.

2. Organizational Challenges:
Include problems in the structure, staffing, funding, and leadership of intermediaries that are likely
to compromise their functioning and sustainability.

A) Funding
Obtaining a dependable source of ongoing funding instead of just “one-time”/project funding.
Securing core operating support.
Covering overhead costs.

25 Models of Youth KIT

B) Staffing
Finding staff who have a mix of knowledge, skills, and personal attributes to deliver programs
and support the capacity of youth-led groups.

C) Leadership
Recruiting and supporting effective leadership and in case leaders move on, steering intermediaries
through leadership transitions is an important process.

Resources:

Laidlaw Foundation:
HYPERLINK “http://www.laidlawfdn.org/”
http://www.laidlawfdn.org/

Schools Without Borders:

HYPERLINK “http://www.schoolswithoutborders.com/movement.html”
http://www.schoolswithoutborders.com/movement.html  

Grassroots Youth Collaborative:

HYPERLINK “http://www.grassrootsyouth.ca”
www.grassrootsyouth.ca

For Youth Initiative:

HYPERLINK “http://foryouth.ca/” http://foryouth.ca/

ArtReach Toronto:
HYPERLINK “http://www.artreachtoronto.ca”
www.artreachtoronto.ca

26 Models of Youth KIT

Social Enterprise
What is a Social Enterprise?

Broad Definition of Social Enterprise:

A business that produces and/or sells goods and services with dual purpose of making money
(income/profit), which can then be contributed to social and/or environmental aims.

Definition of Social Enterprise (as it relates to nonprofit groups):

Nonprofits that are producing and/or selling goods and services, for profit, on a regular, continuous
basis with social and/or environmental goals (e.g. Eva’s Pheonix operates a print shop business,
which doubles as an employment training program for youth with an in-house paid internship).

Social Entrepreneur:
“Any person, in any sector, who makes money (profit/income) to pursue social objectives.

Social entrepreneurs are different from traditional entrepreneurs in two ways:

Their strategies for making money are tied directly to their social mission.
They are driven by a “double bottom line” (making money and making social change).

More and more nonprofits are exploring income-generating enterprises as a way to:

Enhance their programs and services. Social enterprise is another approach to advancing an organiza-
tion’s mission. A social enterprise can meet the needs of programs participants and they can gain
access to a new set of skills. (E.g. charging a fee for attending a Basketball Camp that offers a coaching
certificate. While the organization may already be providing access to free basketball programs, many
youth need jobs and may be willing to pay for training that could lead to employment).

Easier to achieve their missions because they can rely on social funding and profits. More nonprofit
organizations are creating money making businesses that provide a social benefit in areas where the
market has not responded (e.g. employment and training to those who face significant barriers to getting
into the workforce. One example is an organization that works with young people who are reintegrating
into the community from having been incarcerated. The organization would now give these participants
an opportunity to work as a courier, thus generating profit for the organization and the young person,
who is benefiting from being employed, as well as gaining experience and transferable skills).

Generate new profits that help them to create new ways of making money (instead of only applying for
grants, which may be restrict you from doing certain activities). By generating revenue outside of grants,
you are able to have money that is unrestricted and spent on how it can best be used, of course with the

27 Models of Youth KIT

best interest of the community/population you are serving. More recently in Canada there has been
pressure for non-profits and charities to diversify or raise their own money & resources, due to the
governments ever changing role in providing programs, services.

The Different Types of Nonprofit Enterprises (three broad categories):

Employment development enterprises: provides training and/or employment to program partici-
pants. These enterprises may not end up making enough income to be self-sufficient (meaning they
generate some revenue and still also apply for grants).

Mission-based businesses: these enterprises work with the goal of making money from the sale
of products or services that are directly related to the organization’s goals or programs (e.g. Fee-for-
service programs, charges a small fee to program participants to cover operating costs, such as a
basketball tournament).

Ancillary (additional/extra) or asset-based businesses: business activities that are additional to

the organization’s goals or purpose. These enterprises are more likely to be based on the organiza-
tion’s programs/services rather than focusing on making money.

Benefits
Development of organizational capacity:
-Staff and board gained new skills and new ways of thinking/operating.
-Attracts new Board Members, staff, volunteers and diversify skill set and experience of
board and staff.
-Changes in operational and/or financial procedures and efficiency/effectiveness of the organization.

Increased visibility and awareness and enhances reputation of the organization:

The enterprise is a great public relations tool and will offer new ways for the organization
to reach participants.

Increased ability to attract and build relationships donors and investors

How do you set up a social enterprise?

Explore your organizations’ goals and objectives;
Coming up with ideas;
Conducting research to see if adding new goals to your organization is a good idea
(talking to community, staff, volunteers and funders to get feedback);

28 Models of Youth KIT

 Are there
employment
opportunities
for the participants
in the industry
in which they are
trained?

29 Models of Youth KIT

Considering if there is a market to buy whatever you are selling (Feasibility Study);
Business planning/capacity building/legal considerations;
Start-up;
Evaluation; and
Growth/reinvestment/adaptation/evolution.

Limitations
Non-profits that decide to take on a social enterprise now has to meet a ‘double bottom line’, which
means they have to reach two goals: making money and social change. Sometime the non-profit finds
it hard to meet both goals, which has resulted in customers and clients feeling frustration and failure,
this also draws attention and resources away from the organization’s core work.

Nonprofits are always looking for new ways to keep their initiatives funded and feel pressured to be
creative and develop something new to make money while also having to worry about if and when their
funding will run out or get cut. Trying to fulfill a social purpose and make money takes time and expertise.
Nonprofits may be overextending themselves.

Having one’s social goals linked directly to one’s financial success can force nonprofits to face decisions
that can affect the organization’s structure and goals, and even challenge their very nature. When organi-
zations are expected to meet for-profit goals while operating under nonprofit rules, the so-called double
bottom line can easily become an impossible double bind. Nonprofit Goals Tend to Multiply and Over-
whelm the Business Bottom Line – to make profits!

Social Enterprise (Nonprofits) is a relatively new field in Canada. Leaders from the field predict that laws
that govern Social Enterprise in Canada will likely change in the next 3-5 years, which means that social
enterprises will have to change to make sure possible new guidelines will be followed to ensure
accountability.

Words of Advice
Ask these questions, when starting up a social enterprise:
 
Is it a viable business model and do you have a solid business/marketing plan?
Are there employment opportunities for the participants in the industry in which they are trained?
What time frame do you need to report on for SROI (social return on investment)?
Can the business become financially self-sufficient and if so, how long after start-up?

30 Models of Youth KIT

Resources:

“Writing A Collaborative Agreement Tip Sheet.”

Ontario Trillium Foundation.

How to Write Non-Profit Bylaws

Suite101.com
http://non-profit-governance.suite101.com/article.cfm/how_to_write_bylaws_for_nonprofits

Canada Revenue Agency

Charities and Giving Section

http://cra-arc.gc.ca/chrts-gvng/menu-eng.html

What is a Charitable Corportaion? Ministry of the Attorney General

< http://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/nfpinc/charities.asp#charitable_corp>

What is the difference between a registered charity and a nonprofit organization? Accessed
March 5, 2010. http://www.charityvillage.com/cv/faq/faq_npo_02.html>

“The importance of filing a charity information return.”

January 25, 2010. Accessed March 5, 2010. < http://www.charityvillage.com/cv/research/
rlegalpod54.html>

1. Wynn, J. R. The Role of Local Intermediary Organizations in the Youth Development Field.
(2000). http://www.chapinhall.org/sites/default/files/Intermediary-disc-paper.pdf

2. Laidlaw Foundation: Foundations and Pipelines: Building Social Infrastructure to Foster

Youth Organizing. http://www.laidlawfdn.org

Local intermediary organizations: Connecting the Dots for Children, Youth and families.
http://www.aypf.org/publications/intermediaries.pdf

31 Models of Youth KIT

 “The Canadian Social Enterprise Guide”, Enterprising Non-Profits
http://www.enterprisingnonprofits.ca

Seedco Policy Centre, “The Limits of Social Enterprise: A Field Study (June 2007)
& Case Analysis”. http://www.seedco.org/documents/publications/social_enterprise.pdf

Toronto Enterprise Fund 

32 Models of Youth KIT

33 Models of Youth KIT
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