Social Enterprise: Are There Really Legislative or Regulatory Barriers?

Social Enterprise: Are There Really Legislative or Regulatory Barriers?

by Anne Jamieson, Elizabeth Lougheed-­Green, and David LePage

January 2011

"Accompanying the increasing social enterprise activity recently has been concerns about the legalities of non-profits and charities operating a business.  A combined 25 years of experience supporting hundreds of social enterprises develop and grow their businesses through the Enterprising Non-Profits Program (enp) and the Toronto Enterprise Fund (TEF) have affirmatively demonstrated that it has never been legal or regulatory barriers that have prevented a non-profit or charity from launching a legitimate social enterprise.

Some quick research outlined [in the article] below indicates that most provincial legislation clearly allows commercial activity, and the CRA allows charities to operate various types of businesses: social businesses, training businesses and businesses in economically challenged communities. ...

Some keys to planning a legitimate social enterprise are:

• Operate your business with the clear intention and focus of furthering your social mission.
• Do NOT have any intention to provide a means of private profit making, and
• Return any surpluses to your community purpose."

To see the full article, click here.