There is no single legal definition of a non-profit. But common
to all discussions of non-profit activity are two ideas: the
organization must not be organized for commercial purposes and
members must not benefit personally as investors.
Commercial purposes means trying to make money by selling
goods or services to the public. And the personal benefit idea
deals with receiving money as an investor. The ideas of profit-making
and receiving an investment return are the essence of a for-profit
business. In the words of the Income Tax Act, speaking about
what it means under that legislation to be a non-profit, "no
part of the income is payable to, or was otherwise available
for the personal benefit of, any proprietor, member or shareholder."
This does not mean that members cannot receive direct benefit.
Instead any benefit received must be the same services or advantages
that are made generally available by the non-profit, so for example,
if the purpose of the non-profit is to provide housing, a member
can use the housing service.
