Key Aspects and Steps You Need to Take to Ensure ONCA Compliance

The Ontario Not-for-Profit Corporations Act (ONCA) was enacted on October 19, 2021, to modernize and regulate nonprofits in Ontario. Nonprofits now have until October 19, 2024, to comply with the new requirements. This deadline is crucial, and it's important to understand how ONCA might impact your organization. This article will guide you through the key aspects and steps you need to take to ensure compliance.

Key Changes Under ONCA

1. Audit Requirements

One significant change under ONCA is the requirement for certain nonprofits to get an audit. This might affect your organization depending on its size and financial status. Audits can be essential for maintaining transparency and accountability, but they also require planning and resources.

2. Members' Rights

ONCA enhances the rights of members within nonprofits. Members now have more power to make proposals and call meetings. This shift aims to increase member engagement and ensure that their voices are heard in the decision-making process.

3. Number of Directors

The new act also affects the governance structure by stipulating the number of directors a nonprofit must have. This change ensures a balanced and diverse board, which can contribute to better governance and decision-making.

The Ontario Business Registry (OBR)

To facilitate these changes, the Ontario government has launched the Ontario Business Registry (OBR). This new online system promises to make it easier for nonprofits to manage their compliance requirements.

Features of the Ontario Business Registry

• Simplified Processes: The OBR offers over 90 services online, from registering and incorporating to filing annual returns. This modernization replaces the old paper-based system, making processes faster and more efficient.

How to Get Your Company Key

To use the OBR, your nonprofit will need a Company Key. Here's how to obtain and troubleshoot issues with your Company Key:

1. Ordering a Company Key: You can order a Company Key online. It will be mailed to your nonprofit’s registered address.
2. Address Verification:
   • Check the Address: Ensure that the government has the correct address for your organization. You can verify this by ordering a Corporate Profile, which comes with a fee.
   • Correcting the Address: If the address is incorrect, file a Notice of Change. This can be done through third parties without needing a Company Key.
3. Waiting Period: If your address is correct but you haven't received the Company Key, it might take 4-5 weeks. Do not reorder the Company Key during this time as it will invalidate the previous one.

Steps to Take Now

1. Learn About ONCA Requirements

Familiarize yourself with the changes under ONCA and how they affect your nonprofit. Understanding the new requirements will help you plan and implement necessary changes.

2. Use the Ontario Business Registry

Get comfortable with the OBR and its services. This new tool is designed to help you manage your nonprofit’s compliance more efficiently.

The transition to ONCA compliance is a significant step for Ontario nonprofits. By understanding the key changes, utilizing the Ontario Business Registry, and staying informed, your nonprofit can smoothly navigate this transition. Remember, the deadline is October 19, 2024, so start preparing now to ensure your organization meets all the requirements.

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