ONCA

When a not-for-profit corporation in Ontario is looking to dissolve under the Ontario Not-for-Profit Corporations Act (ONCA), it is essential to follow specific steps regarding the handling of assets. 

If your organization is a Public Benefit Organization (but not a charity), you are required to distribute your assets to one or more of the following:

1.       A public benefit organization that shares a similar purpose;

2.       Registered charity;

3.       Government agency or

4.       Municipality

Remember, you must adhere to this distribution process even if your articles or bylaws suggest otherwise. 

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The asset distribution process for charities is as follows: give your assets to a registered charity with a similar purpose. Alternatively, you can transfer them to a government agency or a municipality. Again, this applies regardless of any conflicting provisions in your articles or bylaws. 

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If your organization does not fall under the public benefit category, follow what your articles specify. If your articles are silent on the matter, distribute the assets to your members in a manner that reflects their rights and interests within the organization. 

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If your nonprofit was incorporated before the ONCA came into effect (October19, 2021), you must review, update, and file your governing documents with the Ontario government by October 18, 2024. This ensures compliance with the legal requirements during the transition period

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