How to Create an Ontario Not-for-Profit Corporation

Note: this is not legal advice. You are always cautionedthe officers have, describes how director and member
to turn to an Ontario lawyer if you feel you need to. Imeetings are to happen, and deals with other
am only providing this information for educationalprocedural matters.
purposes only.3. Prepare the member registry and the director
Typically, interest groups will mobilize and need aregistry.
formal legal structure through which to organize4. Get a minute book and a corporate seal (this is
themselves and approach third parties. Having aoptional).
formally incorporated not-for-profit Association adds5. Have the first director meeting. At this meeting, the
credibility to your cause, but it also carries with it a lotinitial 3 directors of the Association will need to pass
of headache and paperwork.By-Law No. 1. This should be noted in the minutes of
A not-for-profit Association is a corporation that hasthe meeting of the directors. Next, the directors should
members instead of shareholders (hence, it's called aadmit new members and fill in the membership registry
corporation without share capital) and it cannotand make a note of this in the meeting minutes.
distribute any profits to its members (unlike a6. Next comes the membership meeting. Here, the
corporation with share capital). These types ofmembers will approve of By-Law No. 1, elect new
corporations are made for social, religious, charitable,directors, and appoint an Auditor. These things should
etc. purposes and must use their resources only forbe noted in the meeting minutes for the members.
those ends. At the end of the day, if the Association7. After the member meeting is complete, the new
has the resources it needs, things will run smoothly.directors will have another meeting. They will pass a
Otherwise, it can be a one-person show withresolution appointing officers (e.g. President, CEO, VP,
countless volunteer hours poured into an unsustainableTreasurer, etc.) and discuss the business and affairs of
cause.the Association.
What follows is a brief overview of how I have gone8. Keep in mind that you should fill in the director's
about incorporating a not-for-profit Association inregistry and file with the Ministry of Consumer and
Ontario.Business Services an Initial Return indicating who the
1. Write a cover letter to the Ministry of Consumer andnew directors of the Association are.
Business Services, indicating that you are filing an9. Finally, the officers of the Association can deal with
application to establish a not-for-profit corporation. You'llbanking and accounting matters, logos and business
need to include a completed Letters Patent applicationstationary, and determine whether the Association
(this is the name of the document that creates themust register with the Ontario and Federal
corporation, based on the Ontario Corporations Act), aGovernments for Income Tax Purposes.
NUANS name search report, and a cheque payable toPlease note that each of these steps will involve a
the Minister of Finance (either $155.00 or $255 fornumber of documents to be properly filled out (e.g.
expedited service). It usually takes 6-8 weeks tocover letter, Letters Patent Application, By-Law No. 1,
process a normal Letters Patent application or 7Membership Registry, Director Registry, Meeting
business days for expedited service.Minutes and Resolutions therein, etc.). You are advised,
2. Prepare for the first director meeting by drafting Byonce again, to consult a lawyer (e.g. by making a post
Law No. 1. A By-Law is a power-giving document thaton Dynamic Lawyers) if you wish to have these things
defines the powers which the board of directors anddone for you.