Closer Look at ONCA Transition Compliance Rates

In the ever-evolving landscape of Ontario's non-profit sector, the implementation of the Ontario Not-for-Profit Corporations Act (ONCA) has been a pivotal moment. Two years into this transition, only 2% of ONCA-affiliated organizations have filed articles of amendment, leaving just one year before the three-year deadline expires.

Insights from Government Lawyers:
During a recent presentation, Ontario government lawyers shed light on the changes introduced by Bill 91. A key inquiry focused on the progress of the ONCA transition. According to one lawyer, Service Ontario reported approximately 992 articles of amendment filed under ONCA since its inception, a number that, at first glance, might appear significant.

Putting Numbers into Perspective:
To gain a deeper understanding, it's essential to consider the broader context. In 2013, Ontario was home to around 59,000 corporations. Fast forward to today, and the active ONCA corporations have surged to 61,000. This frames the 992 filings in a different light, revealing that only a small fraction of Ontario non-profit corporations have taken steps towards compliance, with two-thirds of the transition period already elapsed.

Deconstructing the Numbers:
Examining the 992 articles of amendment further uncovers a more nuanced narrative. Some may relate to new incorporations, exempt from ONCA compliance. Additionally, corporations may have transitioned to the Canada Not-for-profit Corporations Act (CNCA), bypassing the need for articles of amendment. Furthermore, it's important to note that filing these articles typically occurs towards the end of the compliance process, with some organizations still in various stages of transition.

The Countdown to Compliance:
For the majority of non-profit corporations under ONCA, the clock is ticking. A three-year transition period grants them time to align their constituting documents with ONCA. This window of opportunity closes on October 19, 2024, leaving Ontario non-profits with just one year to achieve full compliance.

Considering Alternatives:
In light of the approaching deadline, some organizations may contemplate transitioning to the Canada Not-for-profit Corporations Act (CNCA), which offers a modern framework preferred by certain entities.

Key Takeaways:

• ONCA Compliance Rates: A mere 2% of ONCA-affiliated non-profits have initiated the necessary steps towards compliance.
• Sector Significance: The Ontario non-profit and charity sector is a cornerstone of the community, with registered charities alone accounting for substantial expenditures, including significant allocations for salaries and compensation.
• Time is Ticking: A free webinar scheduled for October 18, 2023, will address ONCA changes, but for the approximately 50,000 Ontario non-profits requiring this critical transition, the clock is ticking.
• Swift Solutions: A course on ONCA is available for purchase, offering a comprehensive resource for Ontario not-for-profit corporations navigating the changes.
• Tight Timelines: Some groups may find themselves facing tight deadlines, emphasizing the importance of seeking assistance early.
• Juggling Responsibilities: Non-profits and charities manage a multitude of responsibilities, and procrastination may lead to difficulties in securing necessary support down the line.
• A Plea for Support: Volunteers within Ontario's non-profit sector often find themselves with limited resources. Many organizations, including larger ones, invest extensive time and effort into the transition, often without the necessary understanding of the requirements, resulting in wasted efforts. Seeking legal advice from a knowledgeable non-profit corporate and charity law attorney is highly recommended during this unique transition period.