Options and Prospects for a 'Made in Canada' Solution

through conversion to new structure. ... innovative and responsive area. 2 Literature ...... materials, and a possible expectation from the sector for free supports. Lawyers .... Online: http://wellesleyinstitute.com/files/Canada‟s%20Non- ... psd.pwgsc.gc.ca/Collection/SO1-1-2004-1E.pdf .... See www.cfc-fcc.ca/programs/ri.html.
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Centre for Sustainable Community Development Simon Fraser University – Faculty of the Environment

Social Enterprise Legal Structure: Options and Prospects for a ‘Made in Canada’ Solution

June 2011

By Sean Markey1 Stacey Corriveau2 Michael Cody3 Brendan Bonfield4

Funded by the Institute for Nonprofit Studies, Mount Royal University

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Assistant Professor, Centre for Sustainable Community Development, Simon Fraser University Director, BC Centre for Social Enterprise 3 Ph.D. Student, Faculty of Law, University of British Columbia 4 Researcher, Centre for Sustainable Community Development, Simon Fraser University 2

1|Page Social Enterprise Legal Structure: Options and Prospects for a ‘Made in Canada’ Solution SFU Centre for Sustainable Community Development with the BC Centre for Social Enterprise | May 2011

Table of Contents: Executive Summary ........................................................................................................ 3 1 2

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Introduction ....................................................................................................... 6 Literature Review: Understanding the Social Economy .................................... 7 2.1 Defining social enterprise ............................................................................ 7 2.2 The law...................................................................................................... 10 2.3 Charities versus non-profits....................................................................... 11 2.4 Charities and social enterprise .................................................................. 12 2.5 Social businesses and training businesses – operated by charities .......... 14 2.6 Non-profits as „containers‟ for social enterprise ......................................... 16 2.7 What does an „unrelated business‟ look like?............................................ 17 2.8 Co-operatives ............................................................................................ 18 2.9 Business corporations ............................................................................... 19 Methodology ................................................................................................... 19 Findings .......................................................................................................... 22 4.1 Definition ................................................................................................... 22 4.1.1 Pro ................................................................................................... 23 4.1.2 Con .................................................................................................. 23 4.2 Innovation.................................................................................................. 23 4.2.1 Pro ................................................................................................... 23 4.2.2 Con .................................................................................................. 24 4.3 Finance ..................................................................................................... 24 4.3.1 Pro and Con ..................................................................................... 25 4.4 Government .............................................................................................. 26 4.4.1 Pro ................................................................................................... 27 4.4.2 Con .................................................................................................. 27 4.5 System Abuse ........................................................................................... 27 4.5.1 Pro ................................................................................................... 27 4.5.2 Con .................................................................................................. 27