ONCA

Membership dues are a crucial aspect of not-for-profit corporations. According to Ontario's Not-for-Profit Corporations Act (ONCA), Section 86 allows directors to establish and manage annual contributions or dues, subject to the company's articles and by-laws. It means that directors have the flexibility to determine the amount of contributions and how they are collected.

In addition, aligning membership dues with an organization's articles and by-laws is essential as it guides directors in establishing fair and reasonable dues. ONCA allows directors to decide the annual contribution amount and how it will be paid. This will enable organizations to tailor dues structures to their unique needs and members' preferences. Clear communication about the rationale behind the dues, the benefits members receive, and the impact on the organization's objectives fosters trust and understanding among members.

To stay in line with ONCA regulations, organizations should meticulously create and routinely assess their articles and by-laws, taking a proactive stance to avoid conflicts and guaranteeing that the legal structure oversees membership dues as outlined in ONCA's Section 86; these dues serve as a means for financial sustainability for not-for-profit corporations.

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