Canada Not-For-Profit Corporations Act

Canadian Regulations for Nonprofits

In 2009, the Federal Government passed a new Canada Not-For-Profit Corporations Act aimed at eliminating unnecessary regulation and providing flexibility to the not-for-profit sector. Once the Act’s regulations are approved (anticipated in 2011), the Act will replace the current Canada Corporations Act. At this time, all not-for-profit organizations currently governed by Part II of the Canada Corporations Act will have three years to transition to the new Act. There will be no fees for this process.

The new Act stems from recommendations under the Voluntary Sector Task Force (1999) and the Blue Ribbon Panel report on Grants and Contributions reform (2006). Work began on the Act in 2000 with a white paper and consultation process.

Highlights of the Act Include:

  • Changes to financial reporting: organizations are defined as either soliciting or non-soliciting, and this category, combined with the organization’s size determines the type of financial reporting and who has to have access to the reports.
  • Sets out standards of care for Directors and Officers, similar to the Canada Business Corporations Act, and provides a "due diligence" defence against potential liabilities.
  • Enhances and protects members’ rights including access to financial information and membership lists (with restrictions).

Updates

July 2010 - The draft regulations have been released for comment by October 1, 2010. The regulations will detail topics including time periods, options for providing notice of members' meeting, absentee voting and user fees.