The ONCA (Ontario Not-for-Profit Corporations Act) is new legislation which governs all Not-for-Profits incorporated in Ontario. The ONCA came into effect October 19, 2021 and makes significant changes to the previous legislation which governed Ontario Not-for-Profits.
5 ways the ONCA modernizes Not-for-Profit governance are:
The ONCA only applies if your Not-for-Profit or Charity is incorporated in Ontario.
If your Not-for-Profit or Charity is incorporated federally however, it is governed by the CNCA (Canada Not-for-Profit Corporations Act), and the ONCA is not relevant to your Non-profit/Charity. This is the case even if your Not-for-Profit’s head office address is in Ontario.
Changes introduced under ONCA include:
Your Ontario Not-for-Profit and Charity has three years from October 19, 2021 to update your Letters Patent and Bylaws to bring them into compliance with the ONCA.
Many Not-for-Profits and Charities currently governed by the ONCA are considering transitioning out of the provincial ONCA jurisdiction and “continuing” into the federal CNCA legislation. There are many benefits to the CNCA legislation, but you should speak with an lawyer with experience and expertise in charity and Not-for-Profit law before deciding on the best course of action for your Not-for-Profit.
What should We Do to Comply with the ONCA?
Your board of directors, ideally together with experienced legal guidance, should review your Letters Patent, bylaws, and minute book documents to ensure that they comply with the ONCA and reflect best governance practices.
What Charity Board General Meeting Minutes Should Include.
The benefit of limiting memberships in charities and not-for-profits and multiple membership classes for charity governance.