Charities and not-for-profit entities are another category of borrowers requiring special attention, as each situation can be quite unique. As expected, due diligence is required in several areas.

In this video we discuss:

  • Not-for-profit vs. unincorporated
  • Charters and constating documents
  • Governance and signing authority


I am Matthijs van Gaalen and I'm a corporate / commercial lending lawyer at Gowling WLG.

You're watching our seventh video in our video series entitled different types of borrowing entities. In this video we're going to be reviewing Charities and other not-for-profit entities.

Charities and other not-for-profit entities are another group of borrowers requiring special attention as each charity is unique some due diligence will be required. In order to determine if the charity is first incorporated as a not-for-profit or second operating as an unincorporated association lenders will need to identify if there are any Charter documents or constating documents and if there's any legislation for this charity or not-for-profit that governs the operations and whether they can enter into certain transactions. These Source documents and legislation will also be key in determining the level of internal authorization required to approve the loan as well as to identify the boring entity and how the documents should be signed.

Once again the assistance of the legal counsel is recommended to work through the relevant documents and legislation to recap Charities and not-for-profits first these are unique entities formed through not-for-profit corporations or unincorporated associations and second our review of the legislation or Charter documents is needed to determine operations governance and signing authorizations.

This presentation was a high level overview of Charities and not-for-profits however if you find that you have more specific questions about any of the points discussed or their application to specific situations please reach out to any member of our lending team and you can also contact me.

Thanks for watching

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.