Understanding Membership Structures under Ontario’s ONCA

The Ontario’s Not-for-Profit Corporations Act (ONCA) provides provisions for various types of membership structures, and we outline some of the frequently encountered ones as follows.

If your incorporation predates the proclamation of ONCA on October 19, 2021, there is a possibility that your bylaws or articles may not align with the regulations explained below. However, you have until October 18, 2024, to assess, revise, and submit your governing documents to the Ontario government. During this transitional period, the regulations outlined in your articles and bylaws remain in effect, provided they were valid prior to the implementation of ONCA.

Understanding ONCA Transition Requirements

If your incorporation predates the proclamation of ONCA on October 19, 2021, your organization should have transitioned its bylaws and articles by October 18, 2024. If your nonprofit has not yet completed its ONCA transition, you may face compliance issues and should consult with a charity lawyer immediately to bring your organization into compliance. Organizations that successfully transitioned before the deadline now operate under the modernized ONCA framework, which provides clearer governance rules and enhanced member protections.

Quick Comparison: ONCA Membership Structures at a Glance

Before diving into the details, here’s a quick overview of the six main membership structures available under ONCA:

Membership Type	Who Can Vote	Best For	Administrative Complexity	Accountability Level
Open Membership	Anyone who joins	Community organizations, advocacy groups	High	Very High
Semi-Open Membership	Qualified members only	Professional associations, trade groups	Medium-High	High
Self-Perpetuating	Directors only	Family foundations, private initiatives	Low	Low
Single Member	One founding member/entity	Corporate-sponsored nonprofits	Very Low	Medium
Hybrid Membership	Directors (voting) + stakeholders (non-voting)	Organizations seeking stakeholder engagement without full voting rights	Medium	Medium
Representative Membership	Directors + elected representative classes	Large organizations with diverse stakeholder groups	High	Very High

How to Choose the Right Membership Structure for Your Ontario Nonprofit

Selecting the appropriate membership structure is one of the most important governance decisions your nonprofit will make. The wrong choice can lead to conflicts, administrative burdens, and difficulty achieving your mission. Here are key questions to guide your decision:

Questions to Ask:

How important is community accountability? If broad community oversight is essential to your mission, consider open or semi-open membership.
What administrative capacity does your organization have? Larger membership bases require more resources for communication, meetings, and record-keeping.
How much stakeholder input do you want in governance decisions? Organizations seeking active stakeholder participation should avoid self-perpetuating structures.
Is your nonprofit founder-driven or community-driven? Founder-driven organizations often choose single-member or self-perpetuating structures, while community-driven organizations benefit from open or representative structures.
Do you anticipate conflicts between stakeholders and the board? If yes, consider structures that clearly delineate roles and voting powers.
What are your funding requirements? Some funders prefer to see democratic membership structures as evidence of community support.

Common Scenarios:

Start-up charities with limited resources: Self-perpetuating or single-member structures minimize administrative burden while establishing governance.
Community service organizations: Open or semi-open membership builds community trust and engagement.
Professional associations: Semi-open membership ensures only qualified individuals participate.
Multi-stakeholder organizations: Representative membership balances diverse interests fairly.
Corporate-sponsored nonprofits: Single-member structures maintain alignment with the founding organization’s mission.

Open Membership

Any individual who aligns with the vision, mission, and values of your nonprofit organization has the opportunity to become a voting member.

What Is Open Membership Under ONCA?

Open membership means that any person who supports your organization’s purpose can join and receive full voting rights. This democratic structure allows for maximum community participation in your nonprofit’s governance.

Advantages of Open Membership for Ontario Nonprofits

Enhanced accountability due to the representation of diverse viewpoints among members
Increased volunteer base, potentially attracting additional funding opportunities
Augmented revenue streams from donations and membership fees
Greater community buy-in and support for your organization’s initiatives
Demonstrates transparency and democratic values to funders and the public

Disadvantages of Open Membership Structure

Heightened privacy concerns arising from members’ access to the membership list
Increased potential for conflict as members are empowered to challenge the board
Risk of a majority of members altering the nonprofit’s direction and purpose without a fiduciary duty
Additional workload to manage member records and effectively communicate meetings and financial matters
Higher costs associated with organizing annual general meetings and member communications

Common Organizations Using Open Membership

Community centres, sports clubs, advocacy groups, neighbourhood associations, arts organizations, and environmental groups commonly use open membership structures. These organizations benefit from broad community participation and rely on member engagement to fulfill their missions.

Semi-Open Membership

Membership eligibility is not universal as it may be subject to specific conditions outlined in your bylaws. For instance, the bylaws may stipulate:

The qualifications and process for individuals to become members
The requirements for individuals to obtain and retain membership
The prescribed code of conduct that members must follow
Any limitations on the maximum number of members that the nonprofit can accommodate

Understanding Semi-Open Membership Requirements

Under ONCA, while you can set eligibility criteria for semi-open membership, these criteria must be clearly stated in your bylaws and applied consistently. You cannot arbitrarily deny membership to individuals who meet the stated qualifications.

Important Note About Member Rights

It is important to note that the rights granted to members under the ONCA, such as the right to vote, cannot be revoked or eliminated through your bylaws.

Advantages and Disadvantages

In terms of the membership structure, a semi-open membership approach may entail similar advantages and disadvantages as an open membership structure, depending on the specific conditions set in place. However, semi-open membership allows you to:

Maintain quality standards through qualification requirements
Ensure members have specific expertise or experience relevant to your mission
Limit membership to those who can meaningfully contribute
Reduce conflicts by setting clear expectations upfront

Common Organizations Using Semi-Open Membership

Professional associations, trade organizations, alumni groups, certification bodies, and industry-specific nonprofits commonly use semi-open membership. These organizations require members to meet specific qualifications such as professional credentials, educational background, or industry experience.

Self-Perpetuating Membership

Under the Ontario Not-for-Profit Corporations Act (ONCA), it is not mandatory for directors to be members. Nevertheless, your organization’s bylaws can specify that directors will be the sole members. This arrangement is referred to as a “self-perpetuating” structure, wherein the directors, while functioning as members, are responsible for electing new directors.

How Self-Perpetuating Structures Work Under ONCA

In this model, the board of directors holds all membership voting rights. When a director position becomes vacant, the remaining director-members vote to fill it. This creates a closed governance loop where the board maintains complete control over its own composition.

Advantages of Self-Perpetuating Membership

Reduced likelihood of conflicts arising, as stakeholders are unable to challenge board decisions
Directors are not legally bound to prioritize the interests of members, ensuring they can focus solely on the nonprofit’s best interests
Decreased administrative burden in terms of informing and managing members
Streamlined decision-making processes
Lower operational costs related to member communications and meetings

Disadvantages of Self-Perpetuating Membership

In the absence of legal mechanisms, stakeholders lack the means to hold directors accountable if they fail to prioritize the nonprofit’s best interests
This could lead to reduced stakeholder participation and input, posing challenges in effectively serving the community
Additionally, the perception of limited transparency may result in diminished trust towards the nonprofit, potentially leading to a decreased level of trust from the public
Some funders may view this structure as less democratic or accountable

Common Organizations Using Self-Perpetuating Membership

Family foundations, private charitable foundations, corporate-sponsored nonprofits, and small service-delivery organizations commonly use self-perpetuating structures. This model works well when the founding vision must be preserved or when the organization operates with limited community engagement requirements.

Single Member

If your nonprofit organization is established or initiated by an individual or entity, this particular structure may suit your needs. In this case, the founding individual or organization serves as the sole member.

Understanding Single Member Structures

A single-member structure means one person or corporation holds all membership rights and voting power. This member appoints the board of directors and retains ultimate authority over fundamental organizational changes.

Advantages of Single Member Structure

Enhanced accountability: With a single member overseeing the nonprofit, there is increased assurance that directors and stakeholders will act in the best interests of the organization
Reduced administrative burden: Having only one member alleviates the need for extensive communication and tracking of multiple members, streamlining the organizational processes
Clear decision-making authority and alignment with the founding member’s vision
Minimal costs for member-related compliance requirements

Disadvantages of Single Member Structure

Limited transparency: The lack of information rights for the majority of stakeholders can result in reduced transparency regarding the organization’s financial matters and decision-making processes
Decreased stakeholder participation: The limited involvement and input from stakeholders may pose challenges in effectively serving the community, as valuable perspectives and insights might be missed
Perception of closedness: There is a possibility that your organization could be perceived as closed and less transparent, potentially leading to a decrease in trust from external parties
Concentration of power in one individual or entity

Common Organizations Using Single Member Structure

Corporate foundations, university-affiliated nonprofits, religious organization subsidiaries, and organizations established by a single founding donor commonly use single-member structures. This model ensures alignment between the nonprofit’s activities and the member’s strategic objectives.

Hybrid Membership

The exclusive voting rights within your organization are reserved for your directors, while a non-voting category is available to individuals who endorse your nonprofit’s mission.

How Hybrid Membership Works

Hybrid membership creates two distinct classes: voting members (directors) who control governance decisions, and non-voting members who support the organization without formal decision-making power. Non-voting members may still receive information, attend meetings, and provide input, but cannot vote on organizational matters.

Advantages of Hybrid Membership

The inclusion of more stakeholders in comparison to self-perpetuating and single-member structures encourages increased participation
This inclusive approach can attract funders and contribute to the advancement of your mission
Allows for stakeholder engagement without relinquishing board control
Creates a community of supporters while maintaining governance efficiency
Can serve as a pipeline for future board members

Disadvantages of Hybrid Membership

There is reduced board accountability as non-director members lack voting rights and can only exert indirect influence by resorting to legal action
The increased number of individuals requires additional effort to manage and keep them informed about meetings and financial matters
Non-voting members may feel frustrated by their limited influence
Potential confusion about roles and expectations between voting and non-voting members

Common Organizations Using Hybrid Membership

Museums, cultural institutions, healthcare foundations, educational nonprofits, and organizations transitioning from closed to open structures commonly use hybrid membership. This model allows organizations to build community while maintaining focused governance.

Representative Membership

The voting members of your organization consist of a class comprised of directors. Additionally, there are one or more other voting classes composed of members who are elected by and represent various stakeholders, such as regional or youth stakeholders.

Understanding Representative Membership Under ONCA

Representative membership creates multiple voting classes, each representing different stakeholder groups. For example, your bylaws might establish classes for regional representatives, service user representatives, professional representatives, and director representatives. Each class elects its own members to participate in organizational governance.

Advantages of Representative Membership

Increased flexibility due to the ability to allocate voting powers in various ways
Enhanced transparency and accountability by effectively balancing voting powers
Reduced likelihood of conflicts between members and the board by limiting the overall number of members
Minimized risk of members altering the purpose or direction of your nonprofit, as stakeholders are fairly represented, preventing any one group from gaining undue influence
Ensures diverse perspectives are included in governance decisions
Creates clear pathways for stakeholder participation

Disadvantages of Representative Membership

Increased workload as it requires coordination of multiple elections and, in certain instances, separate voting processes
Complex governance structure that may be difficult for stakeholders to understand
Potential for inter-class conflicts or competition for influence
Higher administrative costs related to managing multiple member classes
More complicated bylaw drafting and ongoing compliance requirements

Common Organizations Using Representative Membership

Large national or provincial organizations, federated charities, multi-regional service providers, health networks, and umbrella organizations commonly use representative membership structures. This model works well when geographic representation or stakeholder diversity is essential to legitimacy and effectiveness.

Member Rights Under ONCA: What Every Ontario Nonprofit Should Know

Regardless of which membership structure your organization adopts, ONCA grants specific rights to members that cannot be removed or restricted by your bylaws. Understanding these rights is essential for compliance and good governance.

Fundamental Member Rights

1. Right to Vote on Special Resolutions

Members must approve certain fundamental changes to your organization, including:

Amendments to articles of incorporation
Bylaw changes (in most cases)
Sale, lease, or exchange of substantially all of the organization’s property
Amalgamation with another organization
Continuance under another jurisdiction
Voluntary dissolution

2. Access to Financial Statements

Members have the right to receive:

Annual financial statements at least 21 days before the annual meeting
Auditor’s report (if applicable)
Any additional financial information specified in your bylaws

3. Right to Attend and Participate in Meetings

Members can:

Attend annual and special meetings
Speak on any matter being considered
Vote on resolutions (unless they have a conflict of interest)
Participate virtually if your bylaws permit electronic meetings

4. Access to Membership List

Members can request a copy of the membership list, which must include:

Names and addresses of all members
Date each person became a member

5. Right to Requisition Meetings

Members holding at least 5% of voting rights can requisition a special meeting by submitting a written request to the directors.

6. Proposal Rights

Eligible members can submit proposals to be included in meeting materials and voted on at annual meetings, subject to ONCA requirements.

7. Right to Apply to Court

Members can seek court intervention if:

The organization is acting oppressively
Directors are not complying with ONCA, articles, or bylaws
There are serious governance issues affecting member rights

Restrictions on Member Rights

While member rights are protected, ONCA does permit some limitations:

Bylaws can set reasonable notice periods for submitting proposals
Different classes of members can have different rights (as long as this is stated in articles)
Voting rights can be suspended if membership fees are in arrears (if bylaws permit)

Understanding these rights helps your organization design appropriate membership structures and avoid governance disputes.

ONCA Membership Register Requirements

Every Ontario nonprofit must maintain an accurate and current membership register. Here’s what you need to know about compliance with ONCA’s record-keeping requirements.

What Information Must Be in Your Membership Register?

Your membership register must contain:

Full name of each member (first and last name)
Address of each member (residential or business address)
Date the person became a member
Date membership ceased (if applicable)
Class of membership (if your organization has multiple classes)

Additional Information You May Include

While not required by ONCA, many organizations also track:

Email addresses (for efficient communication)
Phone numbers
Membership fee payment status
Committee involvement
Special qualifications or designations

Who Can Access the Membership Register?

Members’ Access Rights:

Any member can request a copy of the membership list
The organization must provide it within 10 days
You can charge a reasonable fee to cover copying costs

Public Access:

The general public does not have automatic access to membership lists
The register is not filed with the Ontario government

Privacy Considerations Under ONCA

While ONCA requires membership lists to be available to members, you should still protect member privacy:

Inform members that their information will be included in the membership list
Establish a privacy policy governing how membership information is used
Include restrictions in bylaws on using membership lists for commercial purposes
Consider what address to collect – some organizations allow members to provide a business address for privacy

Record Retention Requirements

Under ONCA, you must:

Maintain the membership register at your registered office
Keep it available for inspection by members
Retain records for at least six years after a member’s membership ends

Consequences of Non-Compliance

Failing to maintain an accurate membership register can result in:

Inability to properly notice meetings (invalidating decisions made)
Disputes over who is entitled to vote
Challenges to the validity of special resolutions
Potential legal liability for the organization and directors

Best Practice: Designate a specific person (often the corporate secretary or executive director) to maintain and update the membership register regularly.

How to Change Your Membership Structure Under ONCA

If your current membership structure no longer serves your organization’s needs, ONCA provides a process for making changes. Here’s what you need to know.

When Can You Change Your Membership Structure?

You can change your membership structure at any time, but you’ll need to consider:

Impact on current members and their rights
Practical implications for governance
Potential conflicts with your charitable purposes (if registered as a charity)
Timing relative to your next annual meeting

The Process for Changing Membership Structure

Step 1: Determine What Needs to Change

Membership structure is typically governed by:

Articles of incorporation – define classes of members and their rights
Bylaws – detail membership qualifications, processes, and procedures

Identify which documents need amendment.

Step 2: Draft Amended Articles or Bylaws

Work with a charity lawyer to draft appropriate amendments. Changes might include:

Creating or eliminating member classes
Changing voting rights
Modifying membership qualifications
Adjusting the number of members required for quorum

Step 3: Obtain Required Approvals

For Bylaw Amendments:

Typically require approval by special resolution (at least 2/3 of votes cast)
Directors can propose amendments
Members holding 5% of votes can also propose amendments
Some bylaws may require higher voting thresholds

For Articles Amendments:

Always require member approval by special resolution
May require class votes if changes affect specific member classes
Directors must approve the amendment first

Step 4: Provide Proper Notice

Members must receive:

At least 21 days’ notice of the meeting
Copy of proposed amendments
Explanation of the purpose and effect of changes

Step 5: Hold the Vote

Amendments must be voted on at a properly called meeting
Meeting can be in-person, virtual, or hybrid (if bylaws permit)
Accurate minutes must be taken documenting the vote

Step 6: File Articles of Amendment (If Applicable)

If you amended your articles:

File Articles of Amendment with the Ontario government
Pay the required filing fee
Include the special resolution approving the change
Changes take effect when endorsed by the government

Step 7: Update Your Records

After approval:

Update all copies of bylaws/articles
Notify affected stakeholders
Update your membership register if necessary
Inform the CRA if you’re a registered charity

Special Considerations for Charities

If your organization is a registered charity:

Consult with the CRA before making significant changes
Ensure changes don’t affect your charitable status
Some changes may require CRA approval before implementation

When Member Approval Is NOT Required

In limited cases, directors can make changes without member approval:

Administrative updates that don’t affect member rights
Corrections of clerical errors
Changes specifically authorized by bylaws

Common Mistakes to Avoid

Insufficient notice: Ensure members receive full 21-day notice
Unclear amendments: Vague wording can lead to future disputes
Ignoring class rights: Some changes require approval from specific member classes
Forgetting to file: Articles amendments are not valid until filed and endorsed
Not consulting a lawyer: Membership structure changes have significant legal implications

Timeline: Plan for at least 2-3 months from decision to implementation to allow for drafting, notice, voting, and government filing.

Conclusion

Selecting the appropriate membership structure is one of the most consequential decisions your Ontario nonprofit will make. The right structure supports your mission, ensures accountability, and creates a sustainable governance framework for years to come.

How Northfield & Associates Can Help

At Northfield & Associates, we’ve helped thousands of Ontario nonprofits and charities design, implement, and refine their membership structures. Our services include:

Membership structure analysis and recommendations tailored to your organization’s unique needs
Drafting and reviewing bylaws and articles to ensure ONCA compliance
Guiding ONCA transitions for organizations incorporated under previous legislation
Facilitating membership structure changes when your current model no longer fits
Resolving membership disputes and governance conflicts
Ongoing compliance support to keep your organization in good standing

Whether you’re incorporating a new nonprofit, transitioning to ONCA, or addressing governance challenges in an established organization, our experienced charity lawyers provide practical, cost-effective solutions.

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Frequently Asked Questions

Can an ONCA corporation have no members?

No. Every corporation incorporated under ONCA must have at least one member. This member can be an individual or another corporation. Even organizations with self-perpetuating boards must designate members (typically the directors themselves serve as members).

What’s the minimum number of directors required under ONCA?

Ontario nonprofits must have at least three directors, unless the organization has only one or two members in which case the number of directors must at least equal the number of members. For example, a single-member corporation must have at least one director.

What is a membership structure under Ontario’s ONCA?

A membership structure defines who can be a member of your nonprofit, what rights they have, and how they participate in governance. It determines who votes on important decisions like bylaw changes, director elections, and fundamental organizational changes. Your structure is established through your articles of incorporation and bylaws.

Do all members have to be voting members under ONCA?

No. ONCA allows different classes of membership with different rights. You can have voting members, non-voting members, or different classes with different voting rights. However, any non-voting member classes must be clearly stated in your articles of incorporation.

Do existing nonprofits need to change their membership structure for ONCA?

Not necessarily. The transition deadline was October 18, 2024. If you already transitioned, your membership structure can stay the same if it complies with ONCA. If you haven’t transitioned yet, consult a charity lawyer immediately. You may only need to update your documentation to meet ONCA’s wording requirements, not change your entire membership model.

Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.

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