In late May, Ontario Bill 65, the not-for-profit corporations act, received second reading in the provincial legislature. This is the culmination of several years of consultation with the not-for-profit sector, as discussed previously in Inside Internal Control.
Given that it’s been in the works for so long, there are few surprises in the Bill. Like the new Canada Not-for-profit Corporations Act, Ontario’s Bill aims to disentangle the rules for not-for-profits from for-profit corporations, and streamline the incorporation process. It also enhances corporate governance and accountability by providing a statutory duty of care for directors and allows not-for-profits to engage in commercial activities where the revenues are reinvested in the corporation’s not-for-profit purposes.
Jane Burke-Robertson and Terrance S. Carter of Carters Professional Corporation, a full-service law firm with a focus on charities and not-for-profit organizations, offer a good overview of the Bill (in PDF).
As Bill 65 moves through the legislation process, you can count on the quarterly update releases of Not-for-Profit PolicyPro (NPPP) to keep you on top of the latest changes.
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