The CNCA and its impact on Canadian registered charities

August 18, 2014 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: What's New from the Charities Directorate of CRA, Canadian Charity Law, New corporate non-profit acts

As I have noted before I am concerned that many thousands of Federal non-profit corporations have not continued to the new CNCA and at some point after October 17, 2014 they will be dissolved by Industry Canada.  That is a particular problem for registered charities in that CRA will eventually revoke the registered charities status of those charities. 

CRA has indicated to me that in September 2014 they will be sending a mailing to all registered charities and Registered Canadian Amateur Athletic Associations (RCAAAs) that are under the Canada Corporations Act reminding them of the need to continue to the CNCA.  My guess is that the information that CRA has for registered charities, including addresses, is far more up to date than the information that Industry Canada has on file.    I had previously guessed that there are approximately 5000 registered charities that could lose their charitable status, well apparently the number as of July is closer to 5400! 

I had requested from CRA an update as to the CNCA process.  Here is the note that I received from them. 

“Please note that the figures provided are approximate. As of July 2014, there have been 2,100 out of 7,500 registered charities and RCAAAs under CCA II that have either completed the transition or have submitted documentation indicating that they are in the process of continuance to the CNCA.

The CRA has taken multiple steps to assist with this transition, including:

  • engaging Industry Canada (IC) in ongoing discussions – information directed to charities has been included in a transition notice mailed by IC to all CCA II corporations this past Spring;
  • developing a series of webpages – Transition to the Canada Not-for-profit Corporations Act (NFP Act) – which have been available since October 2011;
  • distributing periodic notices via the Charities and giving webpage – What’s new and the electronic mailing list; and
  • publishing an article in issue 9  of the Charities Connection Newsletter.

In September, the CRA will be mailing a reminder letter to registered charities and RCAAAs incorporated under the CCA II  in another effort to provide further direction on how to apply for continuance and the information that is needed to complete the transition process.”  

For more information on the CNCA and the continuance process see: New corporate non-profit acts

Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

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