The Ontario PGT has recently put out some interesting information relating to the implementation of ONCA when it is a “charity” or “registered charity”. The most important takeaway relates to the extent that the PGT will be involved (or not involved) with reviewing corporate documents of charities.
Here is the updated information we received on October 8, 2021:
Public Guardian and Trustee (OPGT) Q&A regarding ONCA.
The Not-for-profit-Corporations Act, 2010 (ONCA) will be proclaimed on October 19, 2021.
Below are some questions the OPGT has received regarding the changes. Please note specific procedures may be amended as the new system roles out.
1. Will the OPGT be involved in corporate applications by charities after ONCA?
The OPGT will not be involved in any applications under ONCA except when:
- A charitable corporation under ONCA wishes to change its purposes but does not want to use the after-acquired clause;
- The applicant wishes to use the term ‘Foundation’, if the word suggests the corporation is a charity, or the word ‘Charity’ in the name of the corporation;
- If the OPGT has requested notification of any application for changes with respect to the corporation.
In that case, the charity should contact our office for further information (416-326-1963 or PGT-Charities@ontario.ca).
2. When will the After Acquired Clause be necessary?
In the case of a corporation which has registered as a charity and has applied for a change in articles, the inclusion of the after acquired clause is automatic under the electronic system. Any applicant wishing to omit it will contact the PGT separately and request a letter from the PGT allowing the charity to remove it.
3. Currently, when a federal corporation is registered as a charity, we notify the PGT. Will the PGT require notification for any of registrations or amendments of articles of charities under the ONCA?
Charities incorporating as a charity under ONCA will not need to notify us as Service Ontario will forward the information to the PGT.
4. Where the OPGT’s approval is required, would the communications with OPGT still be paper based? How would that correlate to the online filings with the Ministry?
The OPGT’s review of any request will be paper-based (via mail/courier or email to our address PGT-Charities@ontario.ca) Our understanding at this point is that we will provide a PDF copy of a letter and, upon inquiry from Service Ontario, confirm PGT approval.
5. Will the OPGT be able to provide any assistance or information about the Ontario Business Registry process?
The Ministry of Government and Consumers Services is responsible for the implementation and operation of the Ontario Business Registry. The OPGT will provide referrals to Service Ontario or the relevant guidance when asked. We are unable to answer questions about the process.
6. What will happen to applications submitted to the OPGT between now and October 19, 2021?
The PGT will continue to process applications as long as possible. If the PGT’s application process is not completed in time, the application will be returned to the applicant. Any applications that are returned by the OPGT will include a full refund.
You may wish to submit applications electronically to PGT-Charities@ontario.ca and then mail in the fees. This would allow us quicker access to the documents
Also here is a notice from the PGT in terms of reporting requirements.
At Blumbergs we are helping Ontario non-profit corporations deal with the changes brought on by the new Ontario Not-For-Profit Corporations Act (ONCA) and the launch of the Ontario Business Registry (OBR). Contact us if you want to retain our law firm to assist you with this matter.