Checklist of Annual Obligations under the Canada Not-for-Profit Corporations Act (NFP Act)

Checklist of Annual Obligations under the Canada Not-for-Profit Corporations Act (NFP Act)

Q. Thank you for your assistance with incorporating our Not-for-Profit. I still can’t believe you registered our NPO in just 5 hours! My question is, where do we go from here? Do you have some type of checklist for our yearly duties that we need to do to keep our non-profit in compliance with the law?

A. As a federally incorporated not-for-profit organization in Canada, you are required to fulfill several annual obligations to comply with the Canada Not-for-Profit Corporations Act (NFP Act). These include:

1. File an Annual Return
   • When: Within 60 days after your corporation’s anniversary date (the date it was incorporated).
   • How: Submit your return online through the Online Filing Centre.
2. File Tax Return
   • When: No later than six months after the end of your fiscal period. For example, if you fiscal year ends December 31, the deadline is June 30 the following year.
   • How: File the return as required by the Canada Revenue Agency. If your nonprofit is not registered as a charity, then you file a T2. If the nonprofit is registered as a charity or qualified donee, then you would file a Form T3010.
3. Update Registered Office Address
   • When: As soon as the address changes.
   • How: Report the change online through the Online Filing Centre.
4. Report Changes in Directors
   • When: Within 15 days of a new director being appointed, a director resigning, or a director’s address changing.
   • How: File the changes online through the Online Filing Centre.
5. Submit Financial Statements and Accountant’s Report (For Soliciting Corporations Only)
   • When: At least 21 days before your annual members’ meeting.
   • How: File the documents online through the Online Filing Centre.
6. Update Your Articles
   • When: As soon as any major changes (like your corporation’s name or number of directors) are approved by members.
   • How: Submit the amendments online through the Online Filing Centre.
7. Send Copies of By-laws
   • When: Within 12 months of members confirming any new by-laws or changes.
   • How: File them online through the Online Filing Centre.

Failure to meet these obligations could result in the dissolution of the corporation, leading to significant legal consequences, particularly for registered charities under the Income Tax Act.

Conclusion‍

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Frequently Asked Questions

Not-for-profit corporations in Canada have several specific reporting and filing duties each year.

These include submitting annual returns, updating records, holding meetings, and managing financial reports in line with federal rules.

What are the requirements for annual shareholder meetings in Canada?

Not-for-profit organizations must hold annual members’ meetings to review financial statements and approve important decisions.

Members must receive adequate notice before the meeting, and the agenda should include the financial report and any voting on major changes.

What are the requirements for soliciting corporations under the Canada Not-for-Profit Corporation Act?

Soliciting corporations must submit financial statements and an accountant’s report at least 21 days before their annual members’ meeting.

These documents must be filed online with Corporations Canada to show transparency when raising funds from the public.

What are the audit requirements for nonprofits in Canada?

Not all nonprofits are required to have a full audit.

Larger organizations or those that solicit funds may need their financial statements reviewed or audited by an independent accountant. The requirement depends on the corporation’s size and activities.

What are the requirements for audit in Canada?

Audits must be performed by qualified professionals and comply with generally accepted auditing standards.

The audit verifies the accuracy of financial statements and helps ensure the nonprofit’s financial information is reliable and transparent for members and regulatory bodies.

What consequences does a not-for-profit face for non-compliance with annual obligations?

Failure to file annual returns, tax returns, or update required information can lead to serious penalties. These penalties may include the dissolution of the corporation.

Dissolution stops the organization from operating legally. It may also cause loss of assets or revocation of charitable status if applicable.