On May 12, 2010 the Ontario Ministry of Consumer Services introduced the Not-for-Profit Corporations Act, 2010. The new Act received Royal Assent on October 25, 2010. It is anticipated that it will be proclaimed into force in late 2012.
The Canada Not-for-Profit Corporations Act received Royal Assent in June, 2009 and is expected to be proclaimed into force this Spring.
These two Acts include definitions to categorize not-for-profit corporations.
In Ontario, certain not-for-profit corporations will be defined as Public Benefit Corporations.
Federally, there will be a distinction between Soliciting Corporations and Non-Soliciting Corporations.
ONTARIO – Public Benefit Corporations
The new Ontario Act defines a public benefit corporation as a charitable corporation or a non-charitable corporation that receives financial benefits from people who are not members, directors, officers or employees, including government grants or similar financial assistance, that exceed $10,000 in a financial year.
Public benefit corporations will be held to a higher standard than non-public benefit corporations in terms of being accountable for their financial activities because they receive funding from non-members.
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