Changes in Legislation
- Essential Charity and Not for Profit Organizations Law Update (Ontario and Federal legislation are similar and more or less in lock step)
- Update on the Ontario Not-for-Profit Corporations Act (ONCA) (probably delayed till late 2015, but preparation for transition is required)
- Navigating Canada's New Anti-Spam Laws (be very careful with your club email listings - use for commercial purposes could create your club difficulties)
- Directors' & Officers' Insurance - Know Your Coverage and Your Options (Do you have general liability insurance coverage sufficient to handle litigation)
By way of background, the Ontario Corporations Act (OCA) has not been substantively amended since 1953. The new ONCA received Royal Assent on October 25, 2010, but it is not yet in force. Once proclaimed into force, it will apply to all non-share capital corporations incorporated under Part III of the OCA. The ONCA was originally anticipated to be proclaimed on July 1, 2013. In March 2013, the Ministry of Consumer Services announced that proclamation will be delayed to January 2014 at the earliest. Following the announcement, new amendments to the ONCA were embodied in Bill 85, which received first reading on June 5, 2013. These proposed changes to the ONCA will have significant impact on the application of the ONCA. The Ministry announced that proclamation of the ONCA cannot proceed without these amendments. In September 2013, the Ministry announced that Bill 85 was anticipated to be debated in the Legislature in fall 2013. Once Bill 85 is enacted, the ONCA is anticipated to come into force no earlier than six months afterwards in order to ensure adequate time for the sector to prepare for transition. As of the adjournment of Ontario Legislature on December 12, 2013, Bill 85 had not progressed beyond first reading. The Ontario Legislature is scheduled to reconvene on February 18, 2014.
- 20 questions that Directors of Not-for-Profit organizations should ask
- Loans and Grants (NOTE: Does not include the OVCA's Devolopment Fund
- Grants Ontario
- CCA best practices, getting started for adults, growing the sport, etc.
- CCA's Curling Assistance Program
- Saveonenergy Ontario (check on tips, services and testimonials such as the Powerade Centre
- Curling Club insurance (package prepared by JSI/Dominion - 4 documents in zipped file
- OCA Membership Benefits
- JetIce ice logo (Stratford Example) - revenue opportunity
- Challenging your assessment (zipped file) OCA/Altus Group package
- The Ontario Government has released Bill 85 which is intended to amend the current unproclaimed legislation. The net result is that the the proclamation cannot go proceed without these legislative amendments. For more information, go to Carter's Charity Law Bulletin #315.
- The Canadian Revenue Agency's views regarding interest income. See page 9 of Carter's Charity Law Update.
The Federal Government's review may have been triggered by Not-For-Profit organizations operating outside the intent of the Federal legislation. One consequence is that the Canadian Revenue Agency has been in contact with a number of NFP organizations in their quest to clarify and update their existing regulations regarding just what NFP means. The current legislation, which was proclaimed October 17, 2011, affects 19,000 federally registered non-profit corporations incorporated under the new Canada Corporations Act (CCA). All existing federally incorporated not-for-profit corporations must take action to make the transition to the new Act. This 'continuance' must be completed by October 17, 2014 in order to remain in good standing with CRA. A copy of the current Canada Not-for-Profit Corporations Act (CNCA) (Charity Act) can be found here.
A rough comparison of the changes involved are summarized here.
In Ontario, Bill 65, the Ontario Not-for-Profit Corporation Act (ONCA) received royal assent on October 25, 2010 and was to be proclaimed in effect on July 1, 2013. However, the proclamation date has been moved to January 1, 2014, pending Ministerial review of the section relating to members (the Act only allows one class of members). A copy this Bill can be found here. This legislation governs non-share capital corporations and removes them from jurisdiction of the Ontario Corporations Act (OCA). It is estimated that it will affect 50,000 Ontario Corporations Act non-profit corporations. Compliance with new ONCA is required within 3 years of proclamation – probably in 2017. Ontario will be releasing draft default by-law, regulations, commentary and tools such as "The Plain Language Guide". ONCA implementation may require that NFP corporations develop fresh by-laws by using ONCA's default by-law template and adapting them to current provisions. Alternately, if very recently updated, simply changing them to track with the default set or with the specific differences in the new Act would seem possible.
A rough comparison of the changes involved are summarized here. As well, a couple of interesting analyses of Bill 65 and its implications can be found here and here. Readers might wish to note that these last two documents both suggest that the legislation allows NFP corporations to engage in commercial activities where the revenues are reinvested in the corporation's not-for-profit purposes.