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Nonprofit Organizations

A “not-for-profit” is an independent organization (not a government agency) which is created to provide a public benefit. This category of sponsor may be organized as a company, society, association or foundation. A “not-for-profit” may also be a charity, but that is not always the case. 

Examples of “not-for-profit” sponsors  include:

• Universities, colleges, institutes
• Unions
• Advocacy groups (e.g. Canadian Manufacturers’ Association, Canadian Federation of Independent Business) 

Sponsors from the “not-for-profit” category often rely on the University to prepare an appropriate agreement. The terms required by the sponsor may qualify as “Research Contracts” (i.e. contain licenses to the funder for intellectual property emerging from the research and contain restrictions on publication) or may qualify as “Research Grants”. 

The standard overhead rates of 25% apply to “not-for-profit” organizations. 

Charities

A charity is an independent organization (not a government agency) that is created to provide a public benefit and has been granted a registration number by the Canada Revenue Agency.

Examples of charities include:

Charities often rely on the university to prepare an appropriate agreement. The terms required by the sponsor usually qualify as “Research Grants”. 

No overhead is taken on contributions towards research from a registered charity.