Is Your Organization a Public Benefit Corporation under ONCA?

Being recognized as such can bring numerous benefits, including enhanced credibility, increased public trust, and potential tax advantages. There are two categories of Public Benefit Corporation:

1. Charitable Corporation: These corporations are automatically considered public benefit corporations as they are committed to philanthropic activities.

2. Non-Charitable Corporation: This category applies to corporations that make a substantial financial contribution to society, receiving over $10,000 through external donations, gifts, or grants in a financial year. This threshold underscores the importance of your organization's financial impact on the well-being of society, thereby qualifying you as a public benefit corporation.

Regarding recognition, the timelines are as follows:

1. Non-Charitable Corporation: The following year, recognition as a public benefit corporation is obtained after surpassing the specified amount. This acknowledges the corporation's continued dedication to public benefit activities.

2. Upon Dissolution: A non-profit assumes public benefit corporation status if it meets the Ontario Not-for-Profit Corporations Act (ONCA) criteria during the year of Dissolution or in any of the preceding three years. This recognition endorses the organization's lasting impact and commitment and ensures that its assets are used for a public benefit upon Dissolution, furthering its philanthropic mission.

Understanding the status of your non-profit is essential. If your organization does not meet the ONCA criteria, it may not be recognized as a Public Benefit Corporation, which could have implications for its ability to receive certain tax benefits or access certain funding opportunities. Therefore, it is crucial to check the financials, review the criteria, and ensure your organization meets the regulations.

For more information, refer to sections 1 and 167 of ONCA or seek legal advice for assistance.