Can a non-profit own a business or vice-versa? What should a non-profit and a for-profit organization do if they are considering amalgamation?
A non-profit cannot own a business, nor can a business own a non-profit. While non-profits and businesses can have business relations, a non-profit’s mandate must be wholly philanthropic. If you wanted to amalgamate a non-profit with a for-profit you would have to choose one of the two organizational models to adopt. A request for such an amalgamation in Ontario has to be approved by the Public Guardian and Trustee. For instructions, see Section 6.6.4 in the Not for Profit Incorporator’s Handbook available at: http://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/nfpinc/default.asp In the meanwhile, no two corporations can have an identical name. So, you would have to adopt a new name for the new corporation and not use that name with the old corporations while they are in existence.
