We’re talking two different animals here: a “regular” registered charity, and a foundation. A foundation can be a huge pain in the rear for regulatory compliance. VHS would be a normal registered charity, and that’s actually quite simple to maintain.
CRA only cares about the Information Return being filed on time (within six months of fiscal yearend), and correct charitable receipts.
Receipts for donations of money, no problem. Where charities have run into trouble, is inflated receipts for donations in kind. But, as long as you establish (and document!) a Fair Market Value (and err a bit in the cautious side), there should be no issues.
Simple financial statements, on a cash basis, are perfectly acceptable to CRA.
You do not need to be incorporated as a BC Society (prov.) to be a Charity (fed.). But it may be needed to access some funding sources.
The Grantors/Funding sources determine how detailed your accounting/reporting of these monies must be; and that can be a pain in the butt.
To sum it up, I really don’t see why VHS couldn’t be a registered charity; I’d be happy to discuss this further with the Board.
Miron