Post Not-for-Profit Incorporation Obligations

I have incorporated a Not-for-Profit. What are my obligations now?

1. First AGM: Once incorporated, the incorporators must call a first meeting of directors. At this meeting, the Directors should, at minimum, a. make by-laws, b. appoint officers, c. issue memberships, and d. make banking arrangements.

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2. Extra-Provincial Registration: This is an important requirement. If incorporated federally, the incorporators should file extra-provincial registration in the province(s) where the non-profit will operate. This ensures your Not-for-Profit is recognized and operates legally in those provinces.

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3. Annual Returns: This is a must-do. The Incorporators must ensure to file annual returns (if the NFP was incorporated federally) with Corporations Canada. If the annual return is not filed, the corporation risks being dissolved. Stay on top of this to maintain your non-profit status.

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4. When there is a change in directors or head office address, the corporation must file the requisite forms advising the government of such changes (if federally incorporated, a Form 4003 for changing the address and Form 4006 to change the Directors).

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5. Financial Statements: As a not-for-profit corporation, it is essential to maintain accurate financial statements. These statements should be prepared annually and made available to members upon request. Additionally, if the organization earns over a certain amount, it may be required to have its financial statements audited.

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6. Charitable Registration: If the not-for-profit corporation plans to operate as a charity and issue charitable receipts for donations, it must register with the Canada Revenue Agency (CRA) as a charity. This involves completing an application form and providing supporting documents demonstrating that the corporation meets the CRA’s requirements.

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7. Compliance with Laws: A not-for-profit corporation must comply with all applicable laws and regulations, including employment, taxation, and privacy. It is essential to stay up-to-date with any changes in laws or regulations that may affect the corporation and to ensure that all necessary filings and payments are made on time.

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A not-for-profit corporation can ensure that it operates legally and maintains its non-profit status by following these obligations. It is also essential to seek professional advice from a lawyer or accountant to ensure that all commitments are met and that the corporation complies with all applicable laws and regulations

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