Ontario Not-for-Profit Corporations Act will bring changes to non-profits in Ontario
Scheduled to come into effect no earlier than January 2014, Ontario’s Not-for-Profit Corporations Act (ONCA) aims to make the process of incorporating smoother and ensures greater transparency and accountability in how not-for-profits in Ontario are run.
Existing not-for-profit corporations will have a three-year transition period once ONCA comes into effect to make any necessary changes to their incorporation and other documents to bring them into conformity with ONCA.
Key features of ONCA include:
• Streamlining the incorporation process
• Providing clearer rules for governing a corporation and increasing accountability
• Allowing corporations to use a review engagement in place of an audit in certain situations - an easier process for reviewing a corporation’s financial records
• Clarifying that not-for-profits can engage in commercial activities if the activities support the corporation’s not-for-profit purposes
• Enhancing the right of members, giving them actions they can take if they believe directors and officers are not acting in the best interests of the corporation
• Providing members greater access to financial records
With the upcoming changes to Ontario's Not-for-Profit Corporations Act, Essential Skills Ontario – along with many non-profit organizations across the province – is currently reviewing our organizational practices to ensure that all necessary changes are made to align with the Ontario Not-for-Profit Corporations Act once it comes into effect. We will keep our members up to date as any decisions are made.
For more information on Ontario’s Not-for-Profit Corporations Act, please visit the Ministry of Consumer Services' website at http://www.sse.gov.on.ca/mcs/en/Pages/onca1.aspx