Pros & Cons of Membership Proxy Voting for Ontario Nonprofits

Alright. So we're diving into something pretty big for Ontario nonprofits today, something that could really change how folks get involved.

Yeah. For sure. It's all about this recent shift with ONCA, the Ontario Not for Profit Corporations Act.

Right. ONCA, the transition period ended last 10/18/2024. And there's this one change that's really at the heart of it all when it comes to how these organizations actually work.

Absolutely. And that's the fact that members don't automatically have the right to use proxies anymore.

Okay. Back up for a second. What exactly is a proxy when we're talking about nonprofits?

Basically, think of it like a stand in for voting. If you're a member and can't make it to a big meeting, you can pick someone to vote for you, like sending a friend with your ballot already filled out.

Makes sense. So you're still having your say even if you can't be there, but what's the big deal about this change? Are there upsides to allowing proxies in the first place?

Definitely the source material highlights that allowing proxies can really boost participation. You know, folks who can't make meetings because of schedules or distance can still have a voice.

Right. So it makes things more convenient and you're potentially getting more perspectives.

Exactly. And that broader representation is really key when it comes to making those big decisions for the organization.

Okay, so more voices potentially being heard, but there must be some reasons why an organization might not want to allow proxies, right? What are some of the drawbacks?

Yeah. There are some things to consider. The source mentions more administrative work, you know, managing and verifying all those proxy forms.

Uh-huh. So more paperwork for the folks running things?

And there's also the thought that it might actually lead to less direct engagement from members. If they know they can just send a proxy, they might be less likely to show up and participate in discussions themselves.

I guess it could make things a bit impersonal too, Exactly.

And then there's the possibility of power becoming concentrated. You know, what if a small group manages to get a whole bunch of proxies?

Oh, I see. So it could kind of skew the voting in a way that wasn't intended.

Right. And think about organizations that already struggle to get enough people at their meetings to make decisions, you know, to reach quorum. Taking away the automatic right to use proxies could make that even harder.

That's a really good point. So it seems like there's a lot to weigh for these organizations.

Yeah, for sure. Now speaking of weighing options, the source mentioned something called a digital alternative.

Oh, right. Technology's got to be playing a role here. Tell me more about that.

It's interesting with more and more virtual and hybrid meetings happening these days, some nonprofits are thinking, hey, maybe proxies aren't as necessary anymore. You know, members can just participate online from wherever they are.

So it's like proxies, but everyone's their own proxy in a way.

Exactly. And some organizations are even updating their rules to get rid of proxies altogether. But of course, with digital meetings, we've to make sure everyone can actually participate. You know, not everyone has great internet access or the same tech skills.

That's a really important consideration. So it's not a one size fits all solution.

Definitely. Now, if an organization decides to stick with proxies, there are some very specific ONCA regulations they need to follow.

Right. ONCA, the Ontario Not for Profit Corporations Act. So it's not just a matter of saying, yeah, we'll keep using proxies. There are rules.

Huge emphasis on follow the rules. The source makes that very clear and it all comes down to the proxy form itself. It has to be done right and comply with these specific ONCA regulations.

Okay. So what are we talking about here? Give me some examples.

Well, starters, the form has to clearly state which meeting the proxy applies to. Can't be any confusion there. And it has to say in plain language that members can choose someone other than the designated person to be their proxy.

So they have options. It's not just automatically going to one person.

Exactly. And of course you need the member's signature and the date on there too, basic stuff, but important.

Absolutely. And what about indicating how they want to vote?

Right. That's another key thing. The forum needs to lay out clear ways for members to say how they want their proxy to vote on each issue that's coming up at the meeting.

Makes sense. So it's not just a blanket vote for whatever kind of thing.

Nope. Very specific and getting these details right is so important. You know, affects whether the organization's decisions are actually legal and whether they really reflect what the members want.

So big implications for the organization as a whole.

For sure. And just to be crystal clear, these ONCA proxy rules only apply to members meetings, not meetings of the board of directors. Of

Good distinction to make. Alright, so if I'm hearing you right, the bottom line here is that every single Ontario nonprofit needs to take a good hard look at their articles and bylaws right now and make sure they're in line with these new ONCA proxy rules.

100%. Doesn't matter if they decide to keep using proxies or ditch them altogether. They gotta make sure their governing documents are up to date with ONCA.

Now I know some folks listening might be thinking, okay, this is all very legal and technical. What does it really mean for me? But this could actually change how you interact with the nonprofits you care about.

Absolutely. It could change how you participate in decisions, how much influence you have as a member. It's definitely worth paying attention to.

And if any organizations out there are feeling a little lost with all of this, the source mentions a resource, the BIG Charity Law Group.

Yeah. They can help folks navigate these changes. Their number is (416) 488-5888, and their email is ask@charitylawgroup.ca.

Perfect. So as you go about your day, think about the Ontario nonprofits you're involved with or interested in. How might this shift in proxy voting change the way things work there? Could it lead to more or less engagement from members? Will it change how decisions are made?

Are we gonna see a big move towards digital participation? It's a lot to consider, and it'll be interesting to see how it all plays out. Thanks for joining us for this deep dive into the world of ONCA and proxy voting.

Thanks for having me.

And we'll see you next time.

Bye.