Source: https://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/nfpinc/Not_for_Profit_Incorporators_Handbook_EN.html
Timestamp: 2017-05-26 03:33:26
Document Index: 51394535

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has been prepared jointly by the Ministry of Government and Consumer	Services, ServiceOntario and the Office of the Public Guardian and Trustee for Ontario, Charitable Property Program of the Ministry of the Attorney General
For the purposes of this guide, the
Mailing Address of ServiceOntario is:
ServiceOntario 393 University Avenue, Suite 200
The Mailing Address of
The Public Guardian and Trustee is:
Office of the Public Guardian and
Trustee Charitable Property Program
ISBN 978-1-4435-7007-7 (PDF)
1.4 Types of
Incorporation Process and Corporate Maintenance
Self-help Remedies Available under the Corporations Act
PART 2 – CORPORATE NAME
2.1 Name not
to be Deceptively Similar
2.2 Name to
2.3 Types of
of A Corporate Name
2.5 Name not
to be too General
2.6 Name not
to Suggest Connection with the Crown
2.7 Name not
to Suggest Connection with Government
2.8 Use of
the Name of Another Province
Languages Permitted in the Corporate Name
2.10 Prohibited
Choosing the Corporate Name
- use of the Proposed Name
PART 3 – INCORPORATION
Completion of Application - General Comments
and Special Provisions – Key Points
3.10 Supporting
PART 4 – ORGANIZATION AND START UP
PART 5 – CORPORATE MAINTENANCE AND FILING
Penalties for Failure to Comply with Filing Requirements
5.8 Record
5.9 Use of
5.11 Use of
a Name Other than Corporate Name
Changing the Authorized Number of Directors
Changing the Location of the Head Office
5.14 Changing
the Objects and Special Provisions
5.16 Ontario
Corporations Tax Requirements
5.17 Dissolution
- Surrender of the Charter
6.2 What is
6.2.1 The name of the corporation
6.2.2 The objects or purposes of the corporation
6.2.3 Special provisions
6.2.4 Ancillary and Incidental Powers
Apply for Letters Patent
6.3.1 Applying
directly to ServiceOntario using only pre-approved
object and special provision clauses
for incorporation through the Public Guardian and Trustee
6.3.3 Grounds
for refusing applications for charitable
of being a charity
situations of religious organizations
applications reviewed by the Public Guardian and Trustee
Dissolution and surrender of charter
Revival of a charity's charter
6.7 The Public
6.7.1 Notification
and reporting requirements of the Public Guardian and
6.7.2 Additional
information which may be required by the Public Guardian
Registration with the Canada Revenue Agency
– Samples of Object Clauses for Non-Profit, Non-Charitable Corporations under Part III of the Corporations Act
– Reporting Requirements for the Office of the Public Guardian and Trustee
APPENDIX “C” – Pre-approved Object Clauses
For Use In Incorporating A Charity
APPENDIX “D” – Special Provisions Required
APPENDIX “E” – Optional Incidental and
APPENDIX “F” – Fees
as of the Date of Publication of this Handbook
APPENDIX “G” – Contacts
purpose of this handbook is to provide general information on the nature of a
not-for-profit corporation and guidelines on how to incorporate such a
corporation. This handbook also provides basic information on incorporating
charitable corporations, which are a special type of not-for-profit
corporation. Not-for-profit
corporations incorporated in Ontario are governed by the Corporations Act
and the Regulations made under it. Incorporation of not-for-profit
corporations under the Act is at the discretion of the Minister (or his
delegate). This is in contrast to ‘incorporation as of right’ for business
corporations incorporating under the Business Corporations Act.
Certain pertinent sections to the Act and the Regulations are included in this
handbook. The reader is, however, referred to the Corporations Act and
the Regulations to examine those sections not set out here. This handbook contains
general statements concerning the requirements of the Act and Regulations which
are intended to serve only as a general guide and not as a substitute for
statute when dealing with specific problems. Also, reference to this handbook
should not be a substitute for consultation with a lawyer on legal considerations
or an accountant on financial matters.
1.2 Nature of a Corporation
In law, a corporation is an artificial
person or a legal entity having an independent existence, separate and distinct
from that of its members. The corporation owns property in its own name,
acquires rights, obligations and liabilities, enters into contracts and
agreements and has the capacity to sue and be sued as would a natural person.
for example, a corporation may be insolvent while its individual members may be
wealthy. As a separate legal entity a corporation is not affected by changes
in its membership and its existence continues in perpetuity unless its members
or the government take steps to dissolve it.
corporation is managed or governed by a board of directors, which is elected by
the members. The board of directors, in turn, elects a president and appoints
other officers such as a secretary, treasurer etc. who are responsible for the
actual operation of the corporation.
directors, officers and members do not “own” the corporation, nor do they have
any right of ownership to any particular asset of the corporation and the
corporation may not be operated for pecuniary gain of its members, directors or
certain circumstances, a not-for-profit corporation may engage in activities
that are revenue producing and that produce a surplus, or “profit”. However,
such activities must be incidental to the principal objects of the corporation
and in furtherance of the principal objects. For example, a hockey club may
hold a dance to raise funds for new uniforms for the team. If, after paying
the expenses, the dance produces a “profit”, the monies belong to the club and
must be used for the benefit of the club (i.e. to purchase new uniforms for its
1.3 Should you Incorporate?
act of incorporation offers certain advantages to the incorporators and their
successors but at the same time it also places certain responsibilities upon
them. Accordingly, before proceeding with incorporation, the members of an
unincorporated organization should give the matter serious consideration. In
this regard you may wish to consult a lawyer who has experience in corporate
matters and who, given all the facts, can advise you whether it would be to
your advantage to incorporate.
If you need a lawyer, you may
wish to contact the Lawyer Referral Service of The Law Society of Upper Canada.
The Lawyer Referral Service will
provide you with the name of a lawyer who will provide a free consultation of
up to 30 minutes to help you determine your rights and options (see Contacts -
Appendix “G”). It is not mandatory for a not-for-profit
organization to incorporate. There are in existence hundreds, possibly even
thousands, of unincorporated organizations in Ontario that are carrying on
their activities without any hindrance. Unincorporated organizations do not
have a separate legal existence apart from their members.
the corporation is a separate legal entity distinct from its members and has
the capacity to own property, to sue and be sued, it affords limited liability
protection to its members. This means that individual members are not
personally liable in certain instances, for the corporation’s debts and
corporation is not affected by changes in its members, be it due to death or
any other reason. Therefore, it is easier to enter into a number of
transactions in the name of the corporation such as, banking, owning real
estate or signing a lease or contract.
majority of the members of the corporation have the power to bind the others by
the corporation is a creature of statute, it is subject to some supervision by
the Government of Ontario and it must conduct its affairs in accordance with
the applicable statutes. For example, the constitution or by-laws of the
corporation, the election of directors and the calling of meetings of members
are all governed by the Corporations Act. In addition, a
corporation is required to report certain information on a regular basis to
certain departments of the Government. Failure
to comply with reporting or disclosure requirements could render the
corporation and its directors and officers liable to certain penalties,
including the cancellation of the corporation.
1.4 Types of Corporations
corporations are organizations that carry on activities without pecuniary
gain. They are incorporated under Part III of the Corporations Act
as corporations without share capital. They are all subject to section 126,
to be carried on for gain -- section 126(1)
126. (1) A corporation, except a corporation to which Part V applies, shall be
carried on without the purpose of gain for its members and any profits or other
accretions to the corporation shall be used in promoting its objects and the
letters patent shall so provide, and, where a company is converted into a
corporation, the supplementary letters patent shall so provide.
will not be accepted where the objects indicate that it is being incorporated
for the purpose of profit. Below are
categories of the most common types of not-for-profit corporations:
General type - this would include such
corporations as ratepayers’ associations, professional associations, community
organizations, etc.;
Sporting and athletic organizations;
clubs - these are corporations with objects in whole or in part of a social
Service clubs such as Rotary, Lions, Kiwanis and
Charities - these would include religious
organizations and organizations that are engaged in carrying out certain good
works that are of benefit to society. (See Part 6 in this handbook)
of the main differences between a charity and another type of not-for-profit
corporation is that upon dissolution a charity is required to distribute its
remaining assets to other charities, not to its members, whereas another type
of not-for-profit corporation may (unless prohibited from so doing in its
charter or by-laws) on dissolution distribute its remaining assets among its
members. Also, a charitable corporation, because it usually solicits funds
from the public and enjoys certain legal and tax advantages (e.g. under the
federal Income Tax Act), is subject to more stringent reporting
requirements than a not-for-profit corporation of another type.
1.5 Incorporation Process and Corporate Maintenance
If a decision is made to incorporate,
Determine if objects of
the organization will be those of a charity. If so, see Part 6 of this
Select the proposed corporate
name (see Part 2 of this handbook).
Prepare and file the
application for incorporation (see Part 3 of this handbook).
Following the receipt of the
Letters Patent of incorporation, organize the corporation (see Part 4 of this
corporation is followed by an ongoing activity of “corporate maintenance”, that
is, ensuring that the corporation complies with the reporting requirements and
conducts its affairs in accordance with the applicable Acts and Regulations
(see Part 5 of this handbook).
1.6 Self-help Remedies Available under the Corporations
does not provide the Ministry with the authority to intervene and resolve
internal disputes between members and its Board of Directors. It does provide
members with various self-help remedies to ensure compliance with the Act.
You may wish to consult private
legal counsel in determining the appropriate remedies available to you. See
Appendix “G” for information about the Lawyer Referral Service of The Law
Society of Upper Canada. PART 2 – CORPORATE NAME
2.1 Name not to be Deceptively Similar
Act (section 13(1)(a)) provides that a corporation shall not be given a name
that is the same as or similar to the name of a known corporation, association,
partnership, individual or business if the use of the proposed name would be
likely to deceive, except where the existing corporation, association, etc.
gives a consent in writing. The existing entity may also be required to
dissolve or change its name. In other words, the Act permits the granting of a
similar corporate name so long as the proposed name is not CONFUSINGLY or
DECEPTIVELY SIMILAR to an existing name. No identical names are permitted,
regardless of whether consent is given or the existing entity changes its name
or dissolves. 2.2 Name to be Distinctive
Basically, to comply with the
provisions of the Act, new corporate names must be “distinctive” - and this
distinctiveness must survive certain media distortion as the corporation
identifies itself to the various sectors of the public with which it interacts
- including other corporations, its members, creditors, the general public and
government agencies. In other words, a new corporate name must be such that it
will not be confused with EXISTING names of corporations, trademarks or
unincorporated organizations and will not MISLEAD or CONFUSE the public as to
the undertaking or nature of the corporation or its relationship to other
2.3 Types of Distinctiveness
The name itself may be distinctive or
may acquire its distinctiveness through long use.
Usually the most distinctive or
unique names have a coined word as the distinctive element, for example:
Avinta Social Club
Zaltak Hockey Association
5-P Bowling Club
use or combination of generic words may produce a distinctive name, for
Sorcerers Hockey Club
Magic Eleven Soccer Club
that are coined using parts of other words, geographical location, numbers,
initials and dictionary words make a less distinctive name, for example: Sundance Social Club
Kenora Hockey Association
Guelph Dance Club
Northern Lights Skating
2.4 Elements of A Corporate Name
Most corporate names consist of three
element is the main identifier of the corporate name. It may be a coined word
or a dictionary word used in a fanciful sense quite different from its ordinary
meaning or a geographic term. Every corporate name must have a distinctive
element describes the nature of the main corporate undertaking. Care should be
taken not to use terms that may be deceiving or misleading.
element indicates the status of the organization as an incorporated body.
Either “Corporation” or “Incorporated” or “Incorporée” or their abbreviations
may be used. The use of a legal element is optional. Note: A corporation without share capital
cannot have “Limited”, “Limitée” or the corresponding abbreviations as part of
2.5 Name not to be too general
181(section 5) provides that a corporate name shall not be too general. The
reason for this prohibition is that corporate names that are too general tend
to infringe on a number of existing names, are likely to contribute to
confusion and unduly restrict or limit the possibility of using names in the
future that otherwise would be available to the public except for the existence
of the name that is too general.
A corporate name that is too
general may be defined as a name that usually lacks the distinctive or
descriptive element (see Item 2.4 Elements of a Corporate Name).
A: names that are
too general consist of only the descriptive and the legal elements, or only the
distinctive and legal elements:
Corporation (lacks the distinctive element)
Canvelo Inc.
(lacks the descriptive element)
Friendship Society (lacks the distinctive element)
B: a general name
can be rectified by adding the missing distinctive or descriptive element:
Mills Student Exchange Corporation (distinctive element added)
Cycling Club Inc. (descriptive element added)
Jazz Singers Friendship Society (distinctive element added)
2.6 Name not to Suggest Connection with the Crown
Act (clause 13(1)(b)) provides that a corporation shall not be given a name
that suggests or implies connection with the Crown or the Royal Family.
The consent of the Governor General
(see Contacts – Appendix “G”), on advice from the federal Department of
Canadian Heritage, has to be obtained by the applicant where the word “Royal”
is used as a prefix in a corporate name and where it suggests Royal Patronage.
The onus is on the applicant to obtain such consent. Example A: corporation
names that suggest Royal Patronage and need the consent of the
The Royal Canadian Yacht
The Prince Charles Youth
B: corporation names
where “Royal” is used as a descriptive adjective in the use of “majestic” or
“grand” and Royal Patronage is not suggested and therefore the consent
of the Governor General, is not required:
Royal Wave Surfing
Royal Mountain Ski Club
2.7 Name not to Suggest Connection with Government
Act (section 13(1)(b)) provides that a corporation shall not be given a name
that suggests or implies connection with any government or a government
department, agency or activity without the written consent of the appropriate
authority. In this connection particular attention should be given to the use
of the words “Canada” and “Ontario”. Federal Government departments are using
names such as “Canada Revenue Agency”, “Industry Canada” and care should be
taken with proposed corporate names using this style.
A: names that suggest
or imply government connection:
Multi-Culture Canada
Metro Toronto Sports and
B: names implying
government connection may be modified by rearranging and adding words thus
eliminating the suggested government connection:
Heritage Association of Kingston, Ontario
Canadian Multi-Cultural
Society of Timmins
Association of Metro Toronto
2.8 Use of the Name of Another Province
Certain other provinces restrict the
use of the name of their province in a corporate name. Accordingly, where it
is desired to use the name of another province in a proposed corporate name,
the incorporators should first contact the Director, Corporations Branch or
Registrar of Companies, as the case may be, of the province in question to
ensure the name will be acceptable. A name is not permitted that suggests or
implies a connection with the Crown or government or any department, branch,
bureau, service, agency or activity of any government without the consent in
writing of the appropriate authority. 2.9 Languages Permitted in the Corporate Name
Ontario the name for a not-for-profit corporation may be in any language,
provided that only letters from the Roman alphabet or Arabic numerals or a
combination thereof, together with such punctuation marks and other marks as
are permitted by Regulation (O.Reg. 181 - section 8) are used, and the name
complies with the requirements set out in the Corporations Act
and its Regulations. The English language is an example of a language which
uses letters from the Roman alphabet.
the above, the Corporations Act (section 22) provides that a
not-for-profit corporation may have a special provision in its Letters Patent
or Supplementary Letters Patent allowing for the use of the approved corporate
name in any form and any language. In other words, an exact translation of the
corporate name into another language may be used. This is permitted, provided
that such form and such language are clearly set out in the special provision.
2.10 Prohibited Words / Expressions
Regulation (O. Reg. 181) prohibits the use of some words and expressions and
restricts the use of others. Here is a summary of such prohibitions and
The following words and expressions
shall not be used in a corporate name:
“Amalgamated”,
unless the corporation is an amalgamated corporation resulting from the
amalgamation of two or more corporations.
“College”’
“institute” or “university” except with a consent in writing on behalf of the Ministry
of Training, Colleges and Universities (see Contacts – Appendix “G”) “Engineer” or
“engineering” or any variation thereof, except with the consent in writing of
the Association of Professional Engineers of Ontario (see Contacts – Appendix
“G”). “Royal” where used
as an adjective, unless the consent of the Crown has been obtained through the
Governor General (see part 2.6 for details).
indicating the year of incorporation, unless the proposed corporation is the
successor to a corporation the name of which is the same as or similar to the
proposed corporation, or the year is the year of amalgamation of the
Any word or
expression that would lead to an inference that the corporation is a business
Subsection 5 (b) and (c)
limited exceptions noted in this section, a corporate name cannot be:
- primarily or only
a given name or surname used alone of an individual who is living or has died
within the previous thirty years
a geographic name used alone.
corporate name shall not contain a word or expression, an element of which is
the family name of a particular individual who is living or who has died within
the previous thirty years, whether or not preceded by a given name or initials,
unless the individual, his heir, executor, administrator, assigns or guardian
consents in writing to the use of his name. Certain limited exceptions are set
out in subsections 6(2) and (3).
corporate name shall not contain any word or expression in any language that
describes in a misleading manner the activities or services in association with
which the corporate name is proposed to be used. Section 9
A corporate name shall not exceed 120 characters in length,
including punctuation marks and spaces.
Corporations Act and its Regulations are available on the
ServiceOntario e-laws Web Site at www.e-laws.gov.on.ca. 2.11 Choosing the Corporate Name
choosing the corporate name, consider the many and varied situations in which
the corporate name will be used. For example, the name may be used visually
(on stationery, signs, uniforms, cheques, correspondence, newsprint,
advertising, etc.) and auditorially (telephone, radio, television). In each of
these uses it would be to the advantage of the corporation to have a name that
is memorable. To this end, the name should be distinctive and short.
a coined word or a dictionary word used in a fanciful sense quite different
from its ordinary meaning can make a corporate name that is both distinctive
and memorable. For example, “Canvelo Cycle Club” (for a cycling club) and
“Magic Eleven Soccer Club” are likely to be memorable names that are easy to
use visually and auditorially. As a rule of thumb, avoid using long,
cumbersome names such as “Chirpsqueak Society of Friends of Non-Migratory Song
Birds of South-Western Ontario”.
your imagination in coining the distinctive element and carefully searching the
proposed corporate name will, in the long run, save you time and money.
Accordingly, when your group decides to incorporate, the following steps are
recommended for choosing a corporate name:
Get your group together for
a “brainstorming” session to come up with a word or words that would make the
proposed name unique. A coined word usually is very effective. Try to have a
least three choices.
Check section 13 of the Corporations
Act and its Regulations to ensure that the proposed name does not
conflict with the Act or the Regulations. The Regulations prohibit the use of
certain words and restrict the use of others. The Act and
the Regulations are available on the ServiceOntario e-laws Web site at www.e-laws.gov.on.ca and
should be available in the reference department of your local public library or
they may be purchased through the ServiceOntario Publications website at www.publications.serviceontario.ca/ecom.
initial choice has been made, check the proposed name against the names listed
in the telephone directories, municipal directories, hobby or sports magazines,
etc. Many of these publications should be available in your local public
library or on the Internet. If your proposed name is confusingly similar to
the name of an existing organization or corporation then abandon it and go to
your second choice, third choice and so on, and if necessary, back to some more
corporate name will require consent from an individual or an existing
organization, the applicants should obtain written consent before ordering a
name search. For example, where the proposed corporation is to
be affiliated with an existing corporation with a similar name the applicants
should contact the existing corporation to ensure the organization will
provide written consent. See part 2.10 for examples of when consent is
may save time and expense by checking the proposed name against this
check-list. Remember, Search Houses charge a fee for each search of a proposed
name. Accordingly, before requesting the required original Ontario-biased
NUANS name search report, use this check-list to satisfy yourself that the name
you have chosen does not conflict with the Act and Regulations.
Is the proposed name:
PROHIBITED BY THE ACT OR REGULATIONS?
Section 13 of the Act and sections 3, 4, 5, 6, 7, 8 and/or 9 of Regulation 181.
Section 5 of the Regulations items 2.4, 2.5 of this handbook
Only descriptive?
Item 2.4 of this handbook
Primarily only name or surname?
Sections 5 and 6 of the Regulations
Primarily or only geographic name>?
Section 5 of the Regulations
Section 7 of the Regulations
DECEPTIVE / CONFUSING?
local telephone directories and the Internet for identical or deceptively
similar names. Consider degree of similarity of: appearance
meaning 2.13 The Corporate Name Search Report
If the proposed name does not appear
to be deceptively/confusingly similar to the name of an existing organization
or corporation, and does not appear otherwise to contravene the Act or the
Regulations, then you should contact a Search House in order to obtain an
original Ontario-biased NUANS name search report for the proposed name of the
corporation (see Appendix “G”, Search Houses). 2.14 Warning - use of the Proposed Name
Do not complete the application for
incorporation until you receive the name search report. The completed
application must be submitted with the original Ontario-biased name search
report. The name search report cannot
be dated more than 90 days prior to the submission of the application. For
example, applications submitted on November 28th could be
accompanied by an original Ontario-biased name search report dated as early as
August 30th, but not dated earlier. Do not print any stationery, or order a corporate
seal or enter into any transactions using the corporate name until the Letters
Patent incorporating the corporation are issued.
3.1 Pre-incorporation Considerations
this point, you should consider whether the activities or undertaking of the
proposed corporation may come under the supervision or regulation of, or be of
interest to a Ministry or an Agency of the Government. In particular:
Will the corporation seek
financial assistance from the Government?
Are the proposed
activities of the corporation regulated by a Ministry or Agency of the
corporation engage in activities that would supplement services provided by a
Ministry or Agency of the Government?
the answer to any one of the above questions is “yes”, then it may be wise to
consult the appropriate Ministry or Agency prior to completing the
application. Some Ministries or Agencies may require that you contact them
prior to incorporation and some may also offer suggestions for drafting objects
for the proposed corporation.
consultation with the regulating bodies may, in the long run, save you time,
if the corporation is to
operate a nursery school, home for children or a day care service, you should
consult the Ministry of Children and Youth Services;
provide a home for the aged, you should consult both the Ministry of Community
and Social Services, and the Ministry of Municipal Affairs and Housing;
provide cultural or citizenship programs you should consult the Ministry of
Citizenship and Immigration or the Ministry of Culture;
provide education or training programs you should consult the Ministry of
Education and the Ministry of Training, Colleges and Universities;
be a charity, you should consult the Office of the Public Guardian and Trustee
(Ontario) and Canada Revenue Agency, Taxation; (see Part 6 of this handbook)
provide health care services or to engage in related activities or if the
corporation is to be an association of health care professionals, you should
consult the Ministry of Health and Long-Term Care;
provide prisoner rehabilitation services you should consult the Ministry of
Community Safety and Correctional Services.
Note: This is not an exhaustive list of
instances where other Ministries are to be consulted.
3.2 Completion of Application - General Comments
The Application for Incorporation of a
Corporation without Share Capital, (Form 2 approved by the Minister as provided
for in the Regulations to the Corporations Act), is
available on the ServiceOntario web site at www.ServiceOntario.ca or in person
from the Ministry of Government and Consumer Services (see Contacts - Appendix
“G”). Detailed
instructions for completion accompany each set of application forms and those instructions are not repeated in the
handbook. The information in this handbook is more general and is intended to
clarify and supplement the instructions that are supplied with the application
forms. 3.3 Head Office
corporation is required to have a head office in Ontario (section 277 of the
Act). This does not necessarily mean that a corporation must own or lease a
special building or a suite of offices. The intention of the Act is to have an
address formally designated as the head office of the corporation where certain
records are kept and where the corporation may be reached by an interested
party. Some incorporators use their home address for this purpose and
accordingly that address is set out in Item 2 of the application for
directors, not fewer than three (section 283 of the Act) individuals named as
directors in the Letters Patent, are the directors of the corporation until
replaced by other individuals duly elected in their stead (section 284 of the
Act). The first directors of the corporation have all the powers, duties and
liabilities of directors that are elected to the board.
The office of director places on that person
responsibilities and even liabilities. Accordingly, any person accepting a
directorship should be prepared to assume the responsibilities that go with the
no person is permitted to be a director of the corporation unless he or she is
a member of the corporation, and if the person ceases to be a member, he or she
automatically ceases to be a director (section 286). However, a person may be
a director of a corporation if he or she becomes a member of the corporation within
ten days after his or her election or appointment as a director. If the
person fails to become a member within the ten days, the person immediately
ceases to be a director, and cannot be re-elected or reappointed unless he or
she is a member of the corporation. The Act (subsection 286(3) also sets out a
limited exception for hospitals and stock exchanges.
3.5 Objects - General
Objects are concise statements of the ultimate
Content of Objects - See Part 6 for charitable standard objects
principal objects, that is, objects which describe the primary undertaking of
the corporation, should be the first statement, followed by secondary objects,
The objects should not be an enumeration of the
proposed activities and/or the aims of the corporation. It is advisable to
keep the objects statement short but broad in nature, (except for charities,
see Part 6 of this handbook), since a general object will include the
particulars normally included in that sort of undertaking. On the other hand,
the objects should be sufficiently specific so as to avoid ambiguity. Examples: the objects for a community youth
organization might be drafted as follows:
establishment and operation of a youth organization for the purpose of:
promoting the best interests of teenagers in the
Town of Kenora;
promoting interest in athletics, sports and
recreation and establishing and maintaining facilities and equipment for same.
other complementary purposes not inconsistent with these objectives.
The objects of a ratepayers’ association might be drafted as follows:
establishment and operation of a residents’ association for the purpose of
promoting the interests of the residents of the
community of Central Don Mills;
carrying on research into problems connected
with development of real property in the community.
The objects of a social
club, with premises, might be drafted as follows:
establishment and operation of a social club for the purpose of
promoting social and recreational activities
among the members of the corporation;
providing recreational facilities and a club
house for the accommodation of members of the corporation and their guests. SEE APPENDIX “A”
Draft Standard Clauses for non-profit, non-charitable, corporations under Part
III of the Corporations Act.
Note: Clause 4, on the Application for
Incorporation of a Corporation Without Share Capital under which the objects
are set out (i.e. “The objects for which the corporation is incorporated are:”)
must contain objects only and not powers or special provisions.
3.6 Objects - Charities
See Part 6. of
this handbook. 3.7 Ancillary Powers
corporations automatically acquire incidental and ancillary powers unless withheld
in the Letters Patent or Supplementary Letters Patent. These powers are set
out in clauses 23(1)(a) to (p) and (s), (u) and (v) of the Act. Any powers to
be withheld pursuant to subsection 23(2) should be specified in clause 5 of the
application under Special Provisions. All corporations also automatically
acquire the powers set out in section 275 of the Act.
3.8 Special Provisions
may ask to have embodied in the Letters Patent any provision that may be made
the subject of a by-law of the corporation except for provisions concerning the
term of office for the directors or providing for the election and retirement
of directors in rotation. The only provision that must appear in the Letters
Patent of a corporation that is not a charity is the “No Gain” clause, which is
pre-printed on the form. In most cases it is sufficient to set out the special
provisions in the by-laws rather than the Letters Patent as provisions included
in the Letters Patent cannot be changed without filing Supplementary Letters
Patent. Some
items that may be included in the special provisions section are:
(i) Borrowing
powers (see wording in section 59)
French or foreign version of name
3.9 Objects and Special Provisions – Key Points
The ‘objects’ in the Letters Patent set out
the purposes of the corporation, and the ‘special provisions’ deal with matters
of corporate governance. All such provisions must fall within the scope of the
Corporations Act. When an application for Letters Patent or
Supplementary Letters Patent contains provisions that are not acceptable, the
applicant is given an opportunity to revise the application. The Act (sections
4, 5 and 9) provides authority for the Ministry to exercise discretion in
reviewing applications and requiring revisions to proposed provisions. 3.10 Supporting Documents
circumstances an application for incorporation must be accompanied by
supporting documents. For example where the proposed name of the corporation is
similar to a corporation, association, partnership or individual, a consent of
that person would be required. 3.11 Checklist
you fully completed all items in the application and, if not applicable,
so stated?
Have you enclosed with the application
an original Ontario-biased NUANS Name Search Report for the proposed name of the corporation?
a cheque for the
appropriate amount made payable to the Minister of Finance?
the appropriate supporting
documents, if required?
a covering letter with the
name, phone number and address of a contact person.
for incorporation is usually processed within approximately 6 to 8 weeks of
receipt in the Branch. The Letters Patent will bear the effective date as of
the date of delivery unless the application is returned for revision, in which
case Letters Patent will bear an effective date as of the date of redelivery to
ServiceOntario, provided the application is correct.
an additional payment (see Fees – Appendix “F”) there is an expedited service
available on request with a processing time of 7 business days. The expedited
service fee is for the review of application by the end of the seventh business
day following the day of the request.
When documents are deficient, they will be returned to the client for amendment
and the expedite service time no longer applies.
4.1 Organization and Start Up
corporation has received its Letters Patent, a number of essential steps are
required to be initiated so that the directors may properly administer the
affairs of the corporation. Among these steps are:
establishing directors’
is advisable to retain the services of a lawyer who specializes in corporation
law to ensure the corporation is properly organized and the directors understand
their responsibilities. By having the corporation properly organized, you
should eliminate a number of potentially serious problems in the future.
should refer to the:
above Acts are available
on the ServiceOntario e-laws website at www.e-laws.gov.on.ca
or can be purchased through the ServiceOntario Publications website at www.publications.serviceontario.ca/ecom.
addition, detailed procedural information and precedents may be found in the:
Ontario Corporations Law
Secretary’s Guide.
are private publications and are usually available in the reference department
of most public libraries. PART 5 – CORPORATE MAINTENANCE AND FILING
meeting of the members of the corporation must be held not later than eighteen
months after incorporation and subsequently not more than fifteen months after
the holding of the last annual meeting. (section 293)
5.2 Election of Directors and Officers
directors are elected annually at the general meeting by the members of the corporation.
Directors in office at the time are retired and, if eligible, may seek
re-election to resume office for another year. (section 287(1)(2))
directors are elected by members, and officers are appointed by the board of
directors. There
are three exceptions:
by virtue of their office (ex-officio directors) (section 127)
of directors in rotation (section 287 (5))
of members into territorial or common interest groups (section 130)
5.3 Quorum for Meetings
The quorum for
meetings of directors is a majority, unless otherwise provided for in the
Letters Patent, Supplementary Letters Patent or in a special resolution of the
corporation, and in any event shall not be less than two-fifths of the board of
directors. (section 288)
date of incorporation, the corporation is required to file an Initial Return
(see section 2 of the Corporations Information Act) setting
out the prescribed corporate information (e.g. head office address, directors
and five most senior officers) with ServiceOntario.
if there is any change to the information filed with the Ministry, such as a
change in the Board of Directors or the corporation’s head office address, the
corporation must file a Notice of Change (section 4 of the Corporations
Information Act) within 15 days after the change takes place.
there is no fee for filing the Initial Return/Notice of Change, Form 1 with the
Central Production and Verification Services Branch. The appropriate form is
supplied to you at the time of incorporation. Additional forms may be obtained
in person from ServiceOntario and are also available on the ServiceOntario website at
www.ServiceOntario.ca. The
Initial Notice/Notice of Change can be filed in person or by mail
to ServiceOntario or electronically through one of the Service Providers under
contract with the Ontario government. For information about the Service
Providers visit the ServiceOntario website at www.ServiceOntario.ca (see
Contacts, Service Providers - Appendix “G”).
Corporations Information Act Annual Return Filings for Corporations
Currently, the Canada Revenue Agency collects
the Corporations Information Act Annual Return on behalf of the Ministry
of Government and Consumer Services. Ontario corporations also have the option
of filing electronically through the Service Providers under contract with the Ontario government. (see Contacts, Service Providers - Appendix “G”)
The Corporations Information Act Annual Return (CIA AR) Process Regulation 182 under the Ontario Corporations
Information Act (CIA) has been amended to prescribe new requirements for
filing the CIA AR that are effective as of January 01, 2009, when these
amendments came into force together with related amendments to the CIA.
The following outlines the CIA AR filing
requirement changes and options for tax years ending after December 31,
2008, when the Canada Revenue Agency began collecting the CIA AR together with
tax or charity returns instead of the Ontario Ministry of Finance. Ontario corporations continue to have the option of filing a stand-alone CIA AR electronically through the Service Providers under contract with the Ontario government
for any current or previous tax year-end: Non-profit corporations subject to the Ontario Corporations Act that ARE
Registered Charities under the federal Income Tax Act (ITA) are required
to file their Corporations
Information Act Annual Return using either:
Charities RC232WS - Director/Officer
Worksheet and Ontario Corporations Information Act Annual
Return, or Charities RC232 – Ontario Corporations Information
Act Annual Return Worksheet in combination with the
T1235, Director/Trustees and Like Officials Worksheet.
The appropriate worksheet(s) must be
submitted along with the T3010 Registered Charity Information Return.
corporations subject to the Ontario Corporations Act that are NOT Registered
Charities under the federal ITA are required to file a Schedule 546, Corporations Information Act
Annual Return for Ontario Corporations, together with their T2 return. Ontario
non-profit corporations will file their CIA AR to the Canada Revenue Agency
together with their tax or charity return within six months after the end of
their tax year. Previously, the CIA AR was filed within 60 days of the
anniversary of incorporation or amalgamation.
Non-profit corporations will continue
to have the option of filing a stand-alone CIA AR electronically with the
Service Providers under contract with the Ontario government. Non-profit corporations that are
charities registered under the federal Income Tax Act will receive a
‘turnaround’ Corporations Information Act worksheet from the Canada
Revenue Agency that must be filed together with their T3010 Registered Charity
Information Return with the Canada Revenue Agency. Other non-profit
corporations will no longer receive a ‘turnaround’ document.
The CIA AR must be filed with the
Canada Revenue Agency together with your T2 Corporation Income Tax Return or
your T3010 Registered Charity Information Return. The Canada Revenue Agency
will not accept a stand-alone Corporations Information Act Annual
Return. 5.5 Penalties for Failure to Comply with Filing
of submitting these filings cannot be over-emphasized. Failure to comply may
lead to cancellation of the Letters Patent and dissolution of the corporation.
Penalties are provided in the Corporations Information Act for
individuals (up to $2,000) and for corporations (up to $25,000) where reporting
requirements are not complied with. Also, a corporation that is in default of
the reporting requirements is not capable of maintaining an action in any court
in Ontario in respect of business carried on by the corporation except with
5.6 Additional Reporting Requirements
corporation is regulated or funded by a Ministry or Agency of the Government,
it may be required to comply with other reporting requirements in addition to
those contained in the handbook.
5.7 Audit Provisions
not-for-profit corporations whose annual income is greater than $100,000,
members of the corporation must appoint an auditor to hold office until the
first annual meeting and at each annual meeting, must appoint one or more
auditors to hold office until the next annual meeting. There is no waiving of
this statutory requirement (sections 96.1 and 133).
respect of a financial year of a corporation where the corporation’s annual
income is less than $100,000 and all the members consent in writing,
corporations are exempt from a financial audit.
5.8 Record Keeping Requirements
not-for-profit corporation is required, among other things, to meet certain
record keeping obligations such as:
books of account and accounting records (section 302)
of meetings of members and directors (section 299)
maintain copies of Letters
Patent, Supplementary Letters Patent, By-Laws and Special Resolutions (section
register of its members and directors (section 300)
5.9 Use of Corporate Name
corporation is set out in the instrument of incorporation (Letters Patent) or
if subsequently changed, in the instrument of amendment (Supplementary Letters
Patent) and that is the name that the corporation must use (for exception see
paragraph 5.11) in all transactions.
5.10 Changing Corporate Name
may apply for Supplementary Letters Patent to change its corporate name. (see
section 131 of the Act and section 19 of Regulation 181)
5.11 Use of a Name Other than Corporate Name
may use a name other than its corporate name. For example, a corporation
called Federation of Ontario Moose Callers may carry on its undertaking under
the assumed name “Ontario Moose Callers”.
NO corporation shall carry on business in Ontario or identify
itself to the Ontario public by a name other than its corporate name unless the
assumed name is first registered with ServiceOntario (section 2(1) of the
Business Names Act). The appropriate registration form, (Form 2, under
the Business Names Act) is available on the ServiceOntario
website or in person from ServiceOntario. Business names can be searched and
registered online through ServiceOntario’s website at www.ServiceOntario.ca, through
self-help workstations and electronically through Service Providers under
contract with the Ministry of Government and Consumer Services (see Contacts
Appendix “G”).
corporation, which has registered and uses a name other than its corporate name
is required to set out both its registered name and its corporate name on all
contracts, invoices, negotiable instruments and orders for goods and services
issued or made by the corporation (Section 2 (6) of the Business Names
5.12 Changing the Authorized Number of Directors
directors of a corporation is established at the time of incorporation, being
the number of first directors named in the Letters Patent.
board of directors of a corporation shall consist of a fixed number of
directors not fewer than three (subsection 283(2)).
corporation may by special resolution increase or decrease the number of its
directors (section 285). “Special
Resolution” (section 1) means a resolution passed by the directors and confirmed
with or without variation by at least two-thirds of the votes cast at a general
meeting of the members of the corporation duly called for that purpose, or in
lieu of such confirmation, by the consent in writing of all the members
entitled to vote at such a meeting.
Notice of Change under the Corporations Information Act must
be filed with ServiceOntario within 15 days of any change to the directors of
the corporation (see part 5.4).
5.13 Changing the Location of the Head Office
of the head office is established in the Letters Patent. However, a
corporation may by special resolution (see Part 5.12) change the location of
its head office to another place in Ontario (section 277).
be filed with ServiceOntario within 15 days of a change to the head office of
5.14 Changing the Objects and Special Provisions
may apply for Supplementary Letters Patent to change all or any of its objects
and/or special provisions set out in the Letters Patent (see section131 of the
Act and section 19 of the Regulations).
the corporation is, or after issuance of Supplementary Letters Patent, would be
funded, supervised, etc. by a Government Agency or Ministry, it is wise to
consult with the funding or supervising Agency or Ministry prior to completing
the application for Supplementary Letters Patent.
to change the objects or special provisions of Non-Profit Charitable
Corporations must be accompanied by evidence that the proposed change meets the
criteria for charitable corporations as set out by the Charitable Property
Program of the Office of the Public Guardian and Trustee (Ontario). (see part
Application for Supplementary Letters Patent (Form 3 approved by the Minister
as provided for in the Regulations to the Corporations Act),
is available on the ServiceOntario website or in person from the Ministry of
Government and Consumer Services (see Contacts - Appendix “G”). Detailed
forms. 5.15 Income Tax Act Considerations
A charity or
not-for-profit corporation may be exempt from federal income tax either as a
“non-profit organization” as described in paragraph 149(1)(l) of the federal Income
Tax Act, or if registered as a charity within the meaning of
section 149.1.
an organization may not qualify for charitable status, the
non-profit-non-charitable designation may still be advantageous from a federal
income tax point of view. For more information visit the Canada Revenue Agency
website at: www.cra-arc.gc.ca. 5.16 Ontario Corporations Tax Requirements
whether share or non-share, which are exempt from both income tax and capital
tax, are not required to file annual Ontario Corporations Tax Returns (CT-23)
with the Ontario Ministry of Finance.
corporations are defined for income tax purposes under section 57 of the Ontario Corporations Tax Act (the Act) and for capital tax purposes
under section 71 of the Act. The Corporations Tax Act is
available on the ServiceOntario e-laws website at www.e-laws.gov.on.ca and should be
available in the reference department of your local public library or they may
be purchased through the ServiceOntario Publications website at www.publications.serviceontario.ca/ecom.
5.17 Dissolution - Surrender of the Charter
corporation no longer serves the purpose for which it was incorporated or where
the members have lost interest in the corporation, it may be desirable for the
members to terminate the existence of the corporation. To voluntarily dissolve
a non-profit corporation pursuant to Section 319 of the Act an Application for
Surrender of Charter must be completed and submitted to ServiceOntario.
Charitable corporations must also obtain approval to the dissolution from the
Office of the Public Guardian and Trustee (see part 6.6.2). The
Application for Surrender of Charter/Termination of Corporate Existence, (Form
9 approved by the Minister as provided for in the Regulations to the Corporations
Act), is available by phone or in person from the Ministry of
forms. PART 6 – CHARITIES
guidelines are intended to provide some basic information on incorporating a
non-profit charitable corporation in Ontario. 6.1 Incorporating a Charity
majority of Ontario charitable corporations are incorporated by Letters Patent
issued under the provincial Corporations Act. The procedure for incorporating a charity under the Corporations Act is described in 6.2 and 6.3 below.
are two other ways to incorporate a charity. They are not discussed in
detail in the Not-For-Profit Incorporator’s Handbook. If you need further
information, you may contact the responsible organizations at the addresses set
private bill or special Act of the legislature
provincial legislature can pass a private bill or special Act establishing a
charity. This procedure is generally more time-consuming than the two
other methods. Today very few charities are created by private bill or special
Acts of the legislature. The
rules of procedure and the fees and costs related to applications for private
bills are set out in the Standing Orders of the Legislative Assembly. Copies of
the Standing Orders of the Legislative Assembly and the guide "Procedures
for Applying for Private Legislation" may be obtained from the
Legislative Assembly's Internet site or from the Clerk of the Standing
Committee on Regulations and Private Bills (see Contacts - Appendix “G”).
federal Letters Patent issued through Industry Canada
Patent can be issued under the Canada Not-for-Profit Corporations Act. For
particulars of application procedures, forms and fees applicants should contact
Industry Canada, Corporations Canada (see Contacts - Appendix “G”). Charities
that operate or have property or offices in Ontario must also comply with Ontario law concerning charities even if they are incorporated under federal law. 6.2 What is a
charitable corporation?
Charities are a special kind of
not-for-profit corporation. In order to be a charity, a corporation
must meet the general requirements for not-for-profit corporations and some
additional requirements. A summary of these additional requirements is
The name of a charitable
corporation must comply with the Corporations
Act (see
Part 2). The name should also describe the purpose of the charity. With
the exception of applications to incorporate a foundation, the name of a person
or family should not be included in a charity’s corporate name, as it is
perceived to promote a private interest. The name of a person or family may be
included in the name of a charitable corporation that is not a foundation if
the proposed corporate name has a connection with the objects of the
corporation and (a) has through use acquired a meaning that renders the name
distinctive; or (b) is of historic, patriotic or philanthropic significance.
application to incorporate a foundation may include a person’s name as part of
the corporate name for example, the "Smith Foundation". If
“Foundation” is part of the corporate name, then the objects of the corporation
must include the foundation object clause: To receive and maintain a fund or
funds and to apply all or part of the principal and income therefrom, from time
to time, to charitable organizations that are also registered charities under
Tax Act (Canada). A foundation
may have other object clauses in addition to the foundation object clause but
at the very least should carry out the function of a foundation.
If the name of a person or family
is included in the corporate or foundation name, then the provisions relating
to an individual’s given name and surname or family name in Regulation
181 of the Corporations
Act must be complied with.
The objects or purposes of the corporation
The objects, or purposes, of a
corporation are set out in one or more paragraphs, in the Letters Patent,
called the object clauses. The object clauses describe the nature of the
work the charitable corporation will undertake.
A corporation can carry out activities described in the object clauses. It can also carry out other activities provided they further the objects or are
minor in relation to the activities described in the object clauses. It
is not permissible to use the property of the corporation for purposes,
charitable or not, which are outside the scope of the objects set out in the
Letters Patent. Examples of object clauses are found in Appendix “C”.
For a corporation to be a charity, the objects must satisfy the following
objects of the corporation must be legally charitable:
If a corporation is to be a charity its objects must be charitable in
law. The legal meaning of charity is not the same as the popular meaning
of the word. A charity, in the legal sense, must be set up to carry out
activities that fall within one or all of the following headings: Relief of
poverty; Advancement
of education; Advancement
of religion; and Other
purposes beneficial to the community, as determined by the courts, but not
falling under any of the above headings.
important that the object clauses clearly describe the activities the
corporation will carry out. It is not acceptable simply to reproduce the
four principal headings of charity.
All of the objects of a charitable corporation must be charitable. A
corporation which has some charitable objects and some non-charitable objects
is not a charity. Objects must be stated precisely so that it is clear how the property of the
charity is supposed to be used. If it is not clear whether an object is
charitable, the courts have decided that it will not be considered charitable. The
objects must promote a public benefit:
A charity must benefit the community or a large part of the community -
not only a few people. For example, raising funds for one person who
suffers from a disease is not considered charitable because it provides a
benefit only to that person. Raising funds for disease research is considered
charitable because, while only the people who suffer from the disease benefit
directly from research, the community as a whole benefits from decreased health
care costs and decreased risk of contracting the disease.
special provisions set out some of the duties and obligations of the charity
and its directors. The Public Guardian and Trustee requires that the
special provisions found in Appendix “D” be included in the application for
incorporation. 6.2.4
Incidental and Ancillary Powers
The incidental and ancillary
powers are the means by which the charity will fulfill its objects. Examples of possible power clauses are found in Appendix “E”. The power clauses
are optional. If no power clauses are stated in the Letters Patent, the corporation
will have the powers set out in the Corporations Act,
subject to any restrictions found in charities law. 6.3 How to Apply for Letters Patent
To obtain Ontario Letters Patent
incorporating a charity you must complete a Form
2, Application For Incorporation of a Corporation Without Share Capital, in
accordance with Parts 1 to 5 of this Handbook. In addition, you must follow the
guidelines set out in this Part.
Form 2, Application For Incorporation of a Corporation Without Share Capital is
available by clicking http://www.forms.ssb.gov.on.ca/mbs/ssb/forms/ssbforms.nsf/GetAttachDocs/007-07109~6/$File/07109E.pdf,
or by visiting the ServiceOntario
website at www.ServiceOntario.ca or
by telephone or in person from ServiceOntario
(see Contacts - Appendix “G”).
for Incorporation of a Corporation without Share Capital, there are two
ways to apply for Letters Patent: Directly through ServiceOntario using only pre-approved object and special provision
clauses. The procedure for incorporation directly through ServiceOntario is set out in
6.3.1 below. Through the
Public Guardian and Trustee using object clauses drafted for your charity. The procedure for
incorporations requiring the approval of the Public Guardian and Trustee is set
out in 6.3.2 below. 6.3.1 Applying directly to ServiceOntario
using only pre-approved object and special provision clauses
has developed standard, pre-approved, object clauses for some of the most
common types of charitable corporations. The pre-approved object clauses
are set out in Appendix “C”. If you use only the pre-approved object clauses, you can apply directly to the ServiceOntario.
The pre-approved object clauses
cannot be used by all charities. A charity should only use the
pre-approved object clauses if one or more of the clauses describe the intended
purposes of that organization. It is important that the object clauses
accurately describe the charitable purposes the corporation will carry
out. Before
deciding to use the pre-approved object clauses you should think about the
activities your charity will carry out both on start-up and in the foreseeable
future. Engaging in activities beyond the scope of the objects set out in the
Letters Patent is not permissible. Directors of a corporation which uses
property for purposes not in the object clauses may be required by a court to
repay the money used for other purposes. If
the pre-approved object clauses do not accurately describe the purposes you
intend the corporation to carry out, or if you wish to add additional object
clauses, the pre-approved object clauses should not be used. Other object
clauses will have to be drafted and the application for incorporation must be
reviewed and approved by the Public Guardian and Trustee. (The procedure for
this is set out in 6.3.2 below)
you use the pre-approved object clauses to apply directly to the ServiceOntario you must also include
the special provisions set out in Appendix “D”. These must be included
in Section 5 on page 3 of your application for incorporation.
use the pre-approved object clauses you must:
directions in Parts 1 to 5 of the Not-For-Profit Incorporator’s Handbook. You may use
one or more of the pre-approved object clauses. Fill in any
blank spaces with the relevant information (such as the particular faith or religion
in the religious category).
Use the pre-approved object and
special provision clauses word-for-word. From
time to time, the Public Guardian and Trustee will approve additional
pre-approved object clauses. The list of pre-approved object clauses is
attached as Appendix “C”.
your completed application to ServiceOntario,
Ministry of Government and Consumer Services (see Contacts – – Appendix “G”). Canada Revenue Agency
you wish to issue tax receipts to donors, you must apply to Canada Revenue
Agency for a charitable registration number under the federal Income Tax Act.
Revenue Agency has developed a list of model objects most of which are
acceptable to the Public Guardian and Trustee. If an application for
incorporation includes a model object clause that has not been incorporated
into the Public Guardian and Trustee’s list of pre-approved object clauses, the
application must be sent to the Public Guardian and Trustee for approval as
described in 6.3.2.
you intend to apply to Canada Revenue Agency for charitable registration and
wish to use any of the pre-approved object clauses, it is your responsibility
to make sure that you have used the pre-approved clauses word-for-word. Even if ServiceOntario issues the
Letters Patent, Canada Revenue Agency may not approve the clauses if there is a
variation in wording.
Revenue Agency has approved the Public Guardian and Trustee’s pre-approved
object clauses to help simplify the application process for a charitable
registration number. However, your organization’s use of proper objects is only
part of Canada Revenue Agency’s requirements for charitable registration. Canada Revenue Agency must take other factors into consideration, including the
activities and programs your organization undertakes to achieve its
objects. For information on how to apply to Canada Revenue
Agency for charitable registration, you may wish to contact Canada Revenue
Agency, Charities Directorate
in Ottawa (see Contacts – Appendix “G”). 6.3.2 Applications for incorporation through the
All applicants who do not use the pre-approved
objects and special provision clauses must submit their applications for
incorporation to the Public Guardian and Trustee for approval. Applicants
should submit their applications to the Public Guardian and Trustee as if they
were applying to the ServiceOntario
(that is, you need to follow the directions outlined in Parts 1 to 5 of the
Not-For-Profit Incorporator’s Handbook).
Objects If
you submit your application to the Public Guardian and Trustee for approval,
you may draft object clauses tailored to fit the unique nature of the work your
corporation will undertake. The pre-approved object clauses in Appendix “C”
may help you in writing your own object clauses. The Public Guardian and
Trustee will review your objects to determine whether they are charitable.
Special Provisions The
special provisions in Appendix “D” must be included in section 5
on page 3 of the application for incorporation. Powers If
you intend to seek the approval of the Public Guardian and Trustee, you may
choose from the power clauses set out in Appendix “E”. These power
clauses are optional. If they are to be included as part of the Letters
Patent, they should be set out in section 5 of the application. If no powers
are stated, the corporation will have the powers provided in the Corporations
Act, subject to any restrictions found in
charities law.
What to send Two duplicate
original signed copies of the application to the attention of the Charitable
Property Program. A covering
letter setting out the name, address and telephone number of the person or firm
to whom the Letters Patent or any correspondence regarding the application
should be mailed. A cheque or
money order made payable to the Public Guardian and Trustee. This fee covers
the cost of the Public Guardian and Trustee’s review and the review and filing
fee of ServiceOntario. The fees as of the date of writing the Not-for-Profit
Incorporator’s Handbook are set out in Appendix “F”. An original
name search report (described in section 2.13 of the Not-For-Profit
Incorporator’s Handbook). Remember that a NUANS search is only valid for 90
days. You should make every effort to submit your application as soon as
possible after you obtain the NUANS report so that it does not expire before
the Public Guardian and Trustee and ServiceOntario
receive it. To obtain a NUANS Report, you may visit the NUANS Name Search
System at http://www.nuans.com/nuansinfo_en/home-accueil_en.cgi
, or check the yellow pages.
if the applicant provides any literature or documents showing the nature of the
organization’s activities. This is useful in deciding whether the objects
are within the legal definition of charity. If the
organization is already in operation and wishes to become an incorporated
charity, copies of its previous financial statements, governing documents and
the names of the members of the board of trustees should be included. Where to send it Send your completed application
to the Office of the Public Guardian and Trustee (see Contacts – Appendix “G”).
Public Guardian and Trustee will forward approved applications to ServiceOntario. Please note that the
Public Guardian and Trustee does not have a special expedited process available
on payment of an increased fee. If you include the expedite fee for ServiceOntario, your application will
receive expedited service only once it is received by ServiceOntario. For more
information about expedited service please contact ServiceOntario (see Contacts - Appendix
“G”). 6.3.3 Grounds for refusing applications for charitable organizations
The following are some of the reasons for which the
Public Guardian and Trustee may refuse to approve an application to incorporate
not wholly and exclusively charitable Objects are
too broad or are vague The power
clauses include a purpose which is not legally charitable There are
concerns that the proposed charity will not be properly administered,
considering a previous failure of the incorporators to comply with the law
relating to charities The
organization has been operating as an unincorporated association and its
financial documents show a disproportionate amount of charitable funds are
being used for non-charitable purposes or administrative expenses The name of
the organization does not reflect the purposes set out in the application The
organization is primarily promoting private members’ interests or benefits The
organization is pursuing political purposes The
organization’s liabilities exceed its assets If
your application does not meet the Public Guardian and Trustee’s requirements
you will be notified of the deficiencies and, in most cases, given an opportunity
to amend your application. 6.4 Benefits of being a charity
Charities enjoy certain tax
privileges. Charities have exemption from, and reduced liability for,
some municipal, provincial and federal taxes. Registered charities under
the federal Income Tax Act can issue income tax donation receipts
so that donors can obtain tax credits. Charities
enjoy legal protections intended to protect charitable property. When a
charitable purpose or object becomes impossible or impracticable to carry out,
the courts apply charitable property to new purposes which are as similar as
possible to the original purposes. The courts can also use this power
when charitable organizations dissolve without a clause in their Letters Patent
providing for the distribution of its remaining property.
charity reporting to the Public Guardian and Trustee derives the following
the public, charitable foundations and government agencies that provide funding
and donations often seek confirmation from the Public Guardian and Trustee that
the charity is complying with the Public Guardian and Trustee’s reporting
requirements. The Public
Guardian and Trustee maintains a database of Ontario charities that is
regularly used to find charities entitled to receive gifts under Ontario estates. The Public
Guardian and Trustee’s database may also be used to identify charities which
may be suitable to receive the property of dissolved charities or gifts from
estates to non-existent, defunct or unidentifiable charities. 6.5 Special
Governing Law If
a religious organization becomes incorporated, its ecclesiastical, canon or
church laws, rules or regulations may be subject to the Corporations
Act. This means that if any
ecclesiastical, canon or church law, rule or regulations conflicts with the Corporations
Act, the organization, once incorporated,
must comply with the Corporations
Act and will no longer
be able to use that law, rule or regulation in administering its affairs.
6.6.1 Supplementary Letters Patent
Supplementary Letters Patent are needed to change
the name, objects or powers of an incorporated charity. Supplementary
Letters Patent to change only the name of the corporation do not require the
approval of the Public Guardian and Trustee. You can send the application for
Supplementary Letters Patent to change the name of the corporation directly to ServiceOntario. However, all
other applications by charities for Supplementary Letters Patent do require the
approval of the Public Guardian and Trustee. The
Form 3, “Application for Supplementary Letters Patent” is available by clicking
at http://www.forms.ssb.gov.on.ca/mbs/ssb/forms/ssbforms.nsf/GetAttachDocs/007-07108~1/$File/07108E.pdf,
Supplementary Letters Patent to Change Objects A
charity’s property can be used only to promote its charitable objects. Changes may take place that make the objects obsolete, not useful, or
impossible to fulfill and, from time to time, it may be necessary to change the
objects so that the charity’s resources can be applied efficiently. Significant Changes The
Public Guardian and Trustee will be concerned if the proposed change to the
objects is so significant that the revised objects depart from the spirit and
intent of the original objects. In that case, applicants may be required
to include in the application for Supplementary Letters Patent a paragraph
funds and other property held by the corporation immediately before these
Supplementary Letters Patent become effective or at any time thereafter
received by the corporation pursuant to any Will, deed or other instrument made
before these Supplementary Letters Patent become effective, together with all
income thereon and accretions thereto, shall be applied only to the objects of
the corporation as they were immediately before these Supplementary Letters
Patent become effective.”
effect of this paragraph is:
acquired after the Supplementary Letters Patent become effective can only
be used for the objects as changed by the Supplementary Letters Patent. Property
acquired before the Supplementary Letters Patent become effective can only be
used for the objects in place before they were changed by the Supplementary
Letters Patent. This includes income received from a Will, deed or other
document made before the Supplementary Letters Patent became effective. This
paragraph is not usually required where the changes being made to the objects
of the corporation are not significant. Examples of changes not
considered significant are:
objects the corporation no longer intends to carry out or narrowing the scope
of the objects. Rewriting
the objects to reflect social changes in the use of certain terminology, for
example replacing words such as “crippled” with “disabled”. Expanding
or otherwise changing the power clauses. The
paragraph may also not be required if the applicants can show that it would not
be appropriate in the case of their charity. For example, if the
applicant is amending Letters Patent because it has become impossible to carry
out the original objects, and the new objects are similar to the original
objects, it would not be appropriate to require property to be used for the old
the applicant believes that the paragraph is not appropriate they should not
include the paragraph in the application for Supplementary Letters Patent
submitted to the Public Guardian and Trustee. Instead they must provide a
detailed explanation why the paragraph is not appropriate in the case of their
a charity submits an application for Supplementary Letters Patent, it should
also check to see if all of the special provisions mentioned in Appendix “D”
have been included in its incorporating documents. If any of the special
provisions are missing, the charity may be asked to amend its application for
Supplementary Letters Patent to include the missing special provisions.
to Send The following should be sent to
the Public Guardian and Trustee for review: Duplicate
original signed copies of an application for Supplementary Letters Patent. A covering
to whom the Supplementary Letters Patent, or any correspondence regarding the
application should be mailed and setting out all names, including acronyms used
by the charity. A cheque or
money order payable to the Public Guardian and Trustee. This fee covers
fee of ServiceOntario. The fees as of the date of the Not-For-Profit
Incorporator’s Handbook are set out in Appendix “F”. A copy of the
Letters Patent and any prior Supplementary Letters Patent, unless they have
already been filed with our Office. The current
names and addresses of the directors and officers. The annual
audited financial statements for the last three financial years. For the period
after August 1, 2007, unaudited financial statements may be accepted from
charities with gross annual income of less than $100,000. If the
Supplementary Letters Patent contains a change to the name of the corporation,
you must send an original Ontario-biased NUANS
name search report (described in section 2.13 of the
Not-For-Profit Incorporator’s Handbook) with your application but remember that
a NUANS
search is only valid for 90 days. You should make every effort to submit
your application as soon as possible after you obtain the NUANS report so that
it does not expire before the Public Guardian and Trustee and ServiceOntario receive it. To obtain a
NUANS Report, you may visit the NUANS Name Search System at http://www.nuans.com/nuansinfo_en/home-accueil_en.cgi
documentation in support of the proposed changes. Once an application for
Supplementary Letters Patent is approved, the Public Guardian and Trustee will
forward it to ServiceOntario. If the application for Supplementary Letters Patent meets the separate
requirements of ServiceOntario, it
will issue the Supplementary Letters Patent. 6.6.2 Dissolution and surrender of charter
Letters Patent generally set out
what will happen to the property of the corporation if the corporation ceases
to exist. Usually, the Letters Patent state that upon dissolution, and
after payment of all debts and liabilities, the charity’s remaining property
will be distributed or disposed of to charities registered under the Income Tax Act
(Canada), in Canada. This is referred to
as a “dissolution clause”.
the Letters Patent have a dissolution clause, the directors should pass a
resolution to name the charity they want to receive the charity’s remaining
assets upon dissolution. This resolution should be passed before the
charity is dissolved.
the Letters Patent do not have a dissolution clause, the directors will have to
pass a by-law to distribute the charity’s remaining assets to other charitable
organizations upon dissolution. This by-law should be passed before the
charity is dissolved. After the directors have passed the by-law they
should call a general meeting to confirm the by-law. The by-law must be
confirmed by two thirds of the votes cast at the meeting. If
the directors do not distribute the charity’s property, it will be forfeited to
the Crown under section
322 of the Corporations Act. The Public Guardian
and Trustee may apply for a court order or order-in-council to give the assets
to a charity that conducts charitable work similar to that of the dissolved
the course of dissolution, the charity should not pay any salary, remuneration,
or honorarium to its directors. Neither should a director purchase any
property of the charity, without prior approval of the court.
Special Purpose Funds If money or other property is
given to a charity for a special purpose, the charity must use the money for
the special purpose - it holds the money in trust for that purpose. Directors of a dissolving charity must be careful to point out to the charity
receiving the trust money that it is to be used only for the special purpose.
last directors of a charity have an obligation to ensure that any special trust
property is distributed when the corporation is dissolved. If money is
held by a charity for a special purpose and it is not possible to carry out
that special purpose, the charity will need a Court Order to dispose of the
property. An order can be obtained quickly and relatively inexpensively
using Section 13 of the Charities Accounting Act,
on the consent of the Public Guardian and Trustee. The Public Guardian
and Trustee will work with the last directors of the charity to obtain such an
order. You should contact the Charitable Property Program to see if this
is feasible in your particular circumstances. What
to send The following should be submitted
for the Public Guardian and Trustee’s review when submitting an Application for
Surrender of Charter/Termination of Corporate Existence:
original signed copies of the Application for Surrender of Charter/Termination
of corporate existence.
to whom any correspondence regarding the application should be mailed and
setting out all names, including acronyms used by the charity. A cheque or
money order payable to the Public Guardian and Trustee for its fees.
ServiceOntario does not charge a fee in this case. The fees of the Public
Guardian and Trustee as of the date of the Not-For-Profit Incorporator’s
Handbook are set out in Appendix “F”. A copy of the
Letters Patent and any Supplementary Letters Patent, unless they have already
been filed with our Office. The current
charities with gross annual income of less than $100,000. If charitable
property remains to be distributed, the proposed plan of distribution including
the names of the proposed charitable beneficiaries. Confirmation
either that the dissolving corporation does not hold any trust, special purpose
or restricted purpose funds, or if it does hold such funds, how it proposes to
transfer them to any successor charities. If
the Application for Surrender of Charter
is accepted, the Public Guardian and Trustee will forward it to
the ServiceOntario. ServiceOntario will by Order dissolve
the corporation if the application and supporting documents meet the branch’s
separate requirements. Further
information on dissolution or surrender of the charity’s charter may be
obtained from the Office of the Public Guardian and Trustee or from ServiceOntario.
Application for Surrender of Charter/Termination of Corporate Existence, Form
9, is available by telephone or in person from ServiceOntario (see Contacts - Appendix
“G”). 6.6.3 Revival of a charity's charter
If a charitable corporation is
dissolved, application can be made to the ServiceOntario for revival of its
charter. ServiceOntario may
require the consent of the Public Guardian and Trustee before reviving the
corporation. What to send
If ServiceOntario requires the Public
Guardian and Trustee’s consent to the revival of a dissolved charity the
applicant should submit the following documentation and information to the
Public Guardian and Trustee:
original signed copies of the Application for Revival of a Corporation. A covering
to whom any correspondence regarding the application should be mailed. A cheque or
Incorporator’s Handbook are set out in Appendix “F”. An original ONTARIO-BIASED NUANS
name search report (see Part 2.13) is required if the corporation is reviving
under a name other than the name at dissolution or if more than 10 years have
elapsed since the corporation was dissolved. Remember that a NUANS search is
only valid for 90 days. You should make every effort to submit your
application as soon as possible after you obtain the NUANS report so that it
does not expire before the Public Guardian and Trustee and ServiceOntario receive it. To
obtain a NUANS Report, you may visit the NUANS Name Search System at http://www.nuans.com/nuansinfo_en/home-accueil_en.cgi,
or check the yellow pages.
been filed with our Office. All
outstanding notices and returns required to be filed by the corporation under
the Corporations Information Act
and with the Canada Revenue Agency (See Part 5.4 of the Not-for-Profit
Incorporator’s Handbook).
names and addresses of the directors and officers. The
annual audited financial statements for the three financial years prior to the
Application for Revival of a Corporation. For the period after August 1, 2007,
unaudited financial statements may be accepted from charities with gross annual
income of less than $100,000. A statement
of the cause or the reasons for the dissolution. A declaration
that the organization will continue to pursue its objects as stated in the
Letters Patent it had before dissolution. If
the Application for Revival of a corporation is accepted, the Public Guardian
and Trustee will forward it to the ServiceOntario.
The Public Guardian and Trustee’s review portion of the fee is non-refundable
even if the applicant discontinues the application. The Application for Revival of a
Corporation, Form 10 is available by telephone or in person from the Ministry
of Government and Consumer Services (see Contacts - Appendix “G”). 6.6.4 Amalgamation
the Corporations Act allows
two or more corporations under that Act to amalgamate as one corporation. If one of the amalgamating corporations is charitable or if the amalgamated
corporation is to be charitable, the request to amalgamate must be submitted to
the Public Guardian and Trustee for its review and pre-approval.
to the Public Guardian and Trustee:
original signed copies of the application for Letters Patent of Amalgamation. A signed copy
of the Amalgamation Agreement. A covering
to whom the Letters Patent of Amalgamation and any correspondence regarding the
application should be mailed. A cheque or
money order payable to the Public Guardian and Trustee. The fees as of
the date of the Not-For-Profit Incorporator’s Handbook are set out in Appendix “F”.
of the amalgamated corporation will not be the same as the name of one of the
amalgamating corporations, an original Ontario-biased NUANS name search report
(see Part 2.13) is required with the application. Remember that a NUANS search
is only valid for 90 days. You should make every effort to submit your
does not expire before the Public Guardian and Trustee and ServiceOntario receive it. To obtain a
audited financial statements for each of the amalgamating corporations
for the last three years (or since incorporation, if incorporated less than
three years ago). For the period after August 1, 2007, unaudited
financial statements may be accepted from charities with gross annual income of
less than $100,000. Generally, a corporation (whether charitable or not) whose
liabilities exceed its assets will not be permitted to amalgamate with a
charitable corporation. A copy of the
Letters Patent and any Supplementary Letters Patent for each amalgamating
corporation unless they have already been filed with our Office. The current
names and addresses of the directors and officers. If
the objects of the amalgamated corporation will be significantly different from
those of one of the amalgamating corporations you may be required to amend the
amalgamation agreement to include a clause similar to the following:
funds and other property held by the amalgamating corporations immediately
before the Letters Patent of Amalgamation become effective or at any time
thereafter received by the amalgamated corporation pursuant to any Will, deed
or other instrument made before the Letters Patent of Amalgamation become
effective, together with all income thereon and accretions thereto shall be
applied only to the objects of the respective amalgamating corporations as they
are immediately before the Letters Patent of Amalgamation become effective.”
If the application for Letters
Patent of Amalgamation is accepted, the Public Guardian and Trustee will
forward it to ServiceOntario. The Public Guardian and Trustee’s review portion of the fee is non-refundable
even if the applicant discontinues the application.
Application for Letters Patent of Amalgamation, Form 11 is available by telephone
or in person from the Ministry of Government and Consumer Services (see
Contacts - Appendix “G”). 6.7 The
6.7.1 Reporting
Requirements of the Public Guardian and Trustee
The Reporting Requirements apply to charitable corporations incorporated in Ontario, charitable trusts, unincorporated charitable organizations and to federally incorporated charities if they operate or have assets in Ontario. The information is required to be provided under sections 1 and 2 of the Charities Accounting Act. This requirement is in addition to other reporting obligations, for example, to
Canada Revenue Agency under the federal Income Tax Act.
Reporting Requirements If the charity is incorporated in Ontario, ServiceOntario will provide the Public Guardian and Trustee with the first two items listed and the charity does not need to submit them. Ontario incorporated charities are required to provide only the third item.
Charities other than those incorporated in Ontario, must provide to the Public Guardian and Trustee the following documents and information:
A copy of the incorporating document or other governing document (Letters Patent, articles of incorporation, trust deed, constitution, etc.); The street and mailing addresses of the organization, and the names and street and mailing addresses of its directors, trustees and officers;
Notification of any changes to numbers 1 and 2 above as they occur.
This information does not have to be submitted on a particular form and can be provided by way of a letter to the Public Guardian and Trustee.
The Reporting Requirements of the Office of the Public Guardian and Trustee are also found at Appendix “B”, a copy of which should be retained as a reference for future reporting.
Please mail or fax the required information to:
6.7.2 Additional information which may be required
by the Public Guardian and Trustee
can request information and documentation about the administration or
management of the corporation. When the information is requested under
section 2 of the Charities Accounting Act the
directors of the charity are required to provide it. The
Public Guardian and Trustee can require that the accounts of the administration
and management of a charity’s property be passed in the Superior Court of
Justice. The passing of accounts is a legal process in which a charity submits
a detailed record of its expenses and revenues. The Public Guardian and
Trustee could ask for records for a period of many years. 6.8 Registration
with the Canada Revenue Agency
To issue tax receipts to donors,
you must apply to Canada Revenue
The application forms and an explanatory brochure
can be obtained by calling the Canada Revenue Agency, Charities Directorate or
by visiting the Charities
Directorate Website (see Contacts – Appendix “G”). APPENDIX “A” – Samples of Object Clauses for Non-Profit, Non-Charitable
Corporations under Part III of the Corporations Act Athletics and Sports
Athletics Clubs: The establishment and operation of
an athletics club for the purposes of
promoting organized athletics
sports, games and recreation, and in particular,______________________;
arranging games, matches
and competitions, and establishing and granting prizes, awards and
fostering goodwill and
Curling: The establishment and operation of
a curling club for the purposes of
providing facilities for
Fishing and Hunting (Rod
and Reel) Club: The
establishment and operation of a hunting and fishing (rod and reel) club for
encouraging organized
sport fishing and gunmanship in accordance with all relevant legislation;
promoting better knowledge
of safe handling and proper care of firearms;
the study of local fish and game potential and their conservation;
the principles of good sportsmanship;
Flying: The establishment and operation of
a flying club for the purposes of
promoting interest in
flying and aviation;
teaching and training of
persons in the art and science of aviation and the operation of aircraft in
accordance with all relevant legislation;
Golf: The establishment and operation of
a golf, country, sporting and social club for the purposes of
promoting interest and
participation in the sport of golfing;
arranging tournaments and
competitions, and establishing and granting prizes, awards and distinctions;
providing dining, meeting,
changing, and equipment rooms and other facilities for members and their
Hockey: The establishment and operation of
a hockey club for the purposes of
amateur hockey;
arranging matches and
such other complementary purposes not inconsistent with these objects. Riding:
The establishment and operation of a riding club for the purposes of
fostering interest in
encouraging breeding and
showing of horses (and, particularly, the sponsorship of an annual exhibition
and horse show;
encouraging matches and
competitions between various breeds of horses;
qualities and merits of various breeds of horses;
Snowmobiling: The establishment and operation of
a snowmobile club for the purposes of
arranging for instruction,
displays and exhibits of snowmobiling skills;
competitions and establishing and granting prizes, awards and distinctions;
Dance: The establishment and operation of
dance festivals for the purposes of promoting dancing and the allied arts, and
public appreciation and interest therein, and such other complementary purposes
not inconsistent with these objects.
Literary: The establishment and operation of
a literary society for the purposes of
creative writing in all forms;
establishing and granting
prizes, awards and distinctions;
Music: The establishment and operation of
a music society for the purposes of
promoting interest in and
the study and practice of the musical arts;
promoting lectures,
concerts, classes and seminars in music and music-related activities;
arranging competitions and
exhibitions, and establishing and granting prizes, awards and distinctions;
Photography: The establishment and operation of
a photography club for the purposes of studying and promoting the art and
science of photography, and such other complementary purposes not inconsistent
Theatre: The establishment and operation of
dramatic theatre for the purposes of
the practice of drama and the related arts;
establishing and operating
a theatre and repertory group;
education and instruction in the th
appreciation of dramatic culture and tradition by theatrical performances;
conducting annual
theatrical festivals;
complementary purposes not inconsistent with these objects.
Business / Professional Groups
Employees: The establishment and operation of
an employees’ association for the purposes of
and well-being of the employees of _____________________;
organizing cultural,
educational and recreational events for the benefit of the members;
discussion of issues of importance or of interest to the members;
Merchants’ Association: The establishment and operation of
a merchants’ association for the purposes of
promoting the area of (define
locale, e.g. downtown Toronto) as a desirable shopping district;
fair and courteous dealings with customers;
Association: The establishment and operation of a (specify)
professional association for the purposes of
uniting members of the (specify)
profession and promoting the character and status of the profession,
supporting ethical business practices, considering questions of professional
usage and courtesy among members of the profession;
the maintenance and improvement of the qualifications and standards of the
the mutual benefit of the members;
to represent the members
and present their views to other associations and government and regulatory
to work with government
agencies to develop quality assurance procedures that can be endorsed by
Trade Association: The establishment and operation of
a (type of trade, e.g. manufacturers) association for the purposes of
and the rights of those engaged in the (trade) and incidental
promoting uniformity in
usage, custom and trade conditions;
information and statistics of interest to business persons in the (trade);
promoting the maintenance
and improvement of the qualifications and standards of the (trade);
relationships and the exchange of expertise between Canadian and foreign
Community Association: The establishment
and maintenance of a community
organization for the purposes of
developing and fostering
promoting organized
athletics, arts, recreation, education, civic emergency, social service and
other community endeavours;
establishing educational,
recreational and athletic programs for benefit to the community;
establishment of adult educational programs and the attainment of athletic
facilities and equipment for the benefit of the community;
Community Centre: The establishment and operation of
a community centre for the purposes of
interests of the community generally;
athletics, sports and recreation in the community and establishing and
maintaining physical facilities and equipment for same;
Conservation: The establishment and operation of
a conservation association for the purposes of uniting all persons
interested in the conservation of flora and fauna, the natural beauties of (locale)
and the beautification, preservation and extension of parks and green belts;
ideas, data and statistical, scientific, horticultural and botanical
to promote the protection
and appreciation of the environment;
Ethnic: The establishment and operation of
a club for the purposes of
uniting the residents of Ontario who are of _________ origin;
perpetuating the traditions of ________;
sponsoring literary,
musical and other educational and cultural events, festivals, pageants and
conventions for the promotion of people of ___________ descent;
promoting interests of
members and mutual aid and assistance whenever necessary;
maintaining a centre for cultural activities for Canadians of ___________descent
in the Province of Ontario;
Home and School Association: The establishment and operation of
a home and school association for the purposes of uniting the students,
parents and teachers of (specify school) and promoting a high standard
of education and development; to organize and perform
fundraising activities to subsidise the cost of school outings and/or the
attainment of sports and educational equipment; co-operating with
government agencies, school boards and other home and school associations and
to represent the interests of the students of (specify school); and
Lobbying: The establishment and operation of
a public lobbying organization for the purposes of securing public support in
Canada for the enactment/repeal of legislation by the government dealing with
making representations to
the government for the enactment/repeal of such legislation;
the government by supplying information collected as a result of research
carried on under the auspices of the corporation;
of the corporation with those of similar organizations, societies and
individuals in Canada;
Research / Scientific: The establishment and operation of
a non-profit research/scientific association for the purposes of
undertaking technical,
statistical and scientific research in commercial, industrial, cultural and
scientific fields;
investigation and development of products, methods of manufacturing and
the science of __________ and the knowledge and practice thereof;
holding conferences,
meetings and exhibitions for the discussion of __________ problems and exchange
of views thereon;
establishing scientific
maintaining a website and/or
publishing information in connection with ___________;
Residents: The establishment and operation of
a residents’ association for the purposes of
advancing the cultural and
social interests of the seasonal and permanent owners and residents of
properties in and around ____________ in the province of Ontario;
carrying on research and
investigation into problems connected with the ownership and development of
property in ______________;
promoting aquatic,
athletic, physical and other social and cultural activities among the residents
of the said area;
maintaining private
roadways and common areas on property owned by the corporation or in which the
corporation has an interest. and
Service Club: The establishment and operation of
a service club for the purposes of
pursuing interests in the
civic, commercial, social and moral welfare of the community;
providing a forum for the
discussion of all matters of public interest;
interests in the welfare of the World and international relationships;
of good government and good citizenship;
uniting persons interested
in the bonds of friendship, good fellowship and mutual understanding;
encouraging and carrying
on social and welfare work;
and promoting good business and professional ethics;
Social Club: The establishment and operation of
a social club for the purposes of
the pleasure and accommodation of members and guests;
organizing social and
on Canada Corporation Manual, “Capacity-Powers” (Form IV.5), Kingston and Grover (eds.), Richard De Boo, Toronto.
Encyclopaedia of Forms,
“Corporations” (Vol. 5), Weinberg (ed.), Part IV, Ch 24, Canada Law Book, 10th
edition, Toronto. 1975.
APPENDIX “B” – Reporting Requirements for the
Charities and others
receiving or holding property for charitable purposes are required to provide
information to the Public Guardian and Trustee under sections 1 and 2 of the Charities
Accounting Act, R.S.O. 1990, c. C.10 as
amended. This
requirement is distinct from other reporting obligations, for example to Canada
Revenue Agency under the federal Income Tax Act.
This information is used to monitor
compliance with charities law and to identify charities that may be candidates
to receive funds and property of defunct charities, charitable gifts to named
charities that cannot be identified, and charitable gifts not designated to be
given to any named charity.
The reporting requirements apply to charitable corporations incorporated in Ontario, charitable trusts, unincorporated charitable organizations and to federally incorporated charities if they operate or have assets or offices in Ontario.
If the charity is incorporated in Ontario, ServiceOntario will provide the Public Guardian and Trustee with the first two items listed and the charity does not need to submit them. Ontario incorporated charities are required to provide only the third item.
Please mail or fax required information to:
Office of the Public Guardian and Trustee Charitable Property Division 595 Bay Street, Suite 800 Toronto ON M5G 2M6 Fax: (416) 326-1969 APPENDIX “C” – Pre-approved Object Clauses For Use
In Incorporating A Charity
teach the religious tenets, doctrines, observances and culture associated with
the (specify faith or religion) faith.
To preach and advance the
teachings of the (specify faith or religion) faith and the religious tenets,
doctrines, observances and culture associated with that faith.
maintain and support a house of worship with services conducted in accordance
with the tenets and doctrines of the (specify faith or religion) faith.
maintain missions and missionaries in order to propagate the (specify faith or
religion) faith.
maintain a religious school of instruction for children, youths and adults.
maintain a religious day school.
and maintain a fund or funds and to apply all or part of the principal and
income therefrom, from time to time, to charitable organizations that are also
registered charities under the Income Tax Act (Canada).
and isolation of the aged or to improve their mobility and fitness by
establishing, operating and maintaining a senior citizens’ centre to provide
recreation, education, cultural activities and other programs for senior
To provide respite to
persons caring for aged persons by providing temporary care to aged persons and
by providing such services as housekeeping, meal preparation, nursing and
provide support services for aged persons including personal care,
housekeeping, meals, nursing and shopping assistance.
To relieve poverty in
developing nations by providing food and other basic supplies to persons in
need. Health
To develop or promote
public health in developing nations by educating and instructing the public on
prevention of, and curative measures for, health problems and by researching
and documenting changes in the health of the community.
drinking water in developing nations by constructing wells and water treatment,
irrigation and sewage treatment systems.
To improve skills in
forestry, agriculture and horticulture and to assist in the preservation of the
environment in developing nations.
provide necessities of life to victims of disasters.
for the Sexually/Physically Abused
and professionals about prevention of, and responses to, child sexual abuse by
offering courses, seminars, conferences and meetings and by collecting and
disseminating information on that topic.
affected by child sexual abuse through counselling and treatment programs.
and professionals about prevention of, and responses to, spousal abuse by
offering courses, seminars, conferences, and meetings and by collecting and
affected by spousal abuse through counselling and treatment programs.
provide affordable and secure housing for women who have been emotionally,
physically or sexually abused or traumatized and for their children.
poverty by providing food and other basic supplies to persons of low income, by
establishing, operating and maintaining shelters for the homeless, and by
providing counselling and other similar programs to relieve poverty.
Programs for Physically or
To provide residential housing and a stable
living environment to persons with disabilities.
To provide life
management counselling and other support services to assist persons with
disabilities to become more independent in the community.
for, and to assist in, the placement of persons with disabilities in
encouragement to persons with disabilities by offering programs in individual
development and integration into the community.
To provide relief to
persons with disabilities by developing and implementing recreation, education
and social integration programs for the disabled.
educate the public on debilitating conditions and the needs of persons with
disabilities by providing seminars and by collecting and disseminating
persons caring for aged, ill or disabled persons by providing temporary care to
aged, ill or disabled persons and by providing such services as housekeeping,
meal preparation, nursing and shopping assistance.
services for aged, ill or disabled persons including personal care,
To operate a community
health care centre by providing medical, health and support services for the
care and social services for people with debilitating diseases, illnesses and
To provide social
services to persons with debilitating diseases, illnesses and conditions.
into the causes, controls and cure of debilitating diseases, illnesses and
those affected by debilitating diseases, illnesses and conditions by offering
education and counselling and by establishing mutual support groups.
about the causes and effects of, and treatments for, substance abuse by
for the benefit of the public into the causes of, and treatments for, substance
care and social support services for persons affected by substance abuse.
To assist persons in
coping with the effects of substance abuse by offering education and
counselling and by establishing mutual support groups.
provide a treatment and recovery facility for substance abuse clients and to
provide medical and social support services at the facility.
To organize or
participate in environmental projects designed to:
protect flora and fauna;
and restore rivers; or
improve the urban
increase the public’s understanding of the environment and its importance by
To develop and provide
programs promoting the protection and preservation of the environment through re-use,
reduction, recycling and recovery of waste and to educate institutions,
industries, businesses and individuals about efficient waste management
conduct research relating to the environment and to disseminate the results of
increase the public’s understanding and appreciation of the arts by providing
performances of an artistic nature in public places, senior citizens’ homes,
churches, community centres and educational institutions and by providing
seminars on topics relating to such performances.
provide instructional seminars on topics related to the performing and visual
produce performing arts festivals for the purposes of educating and advancing
the public’s understanding and appreciation of performing arts and to educate
artists through participation in such festivals and related workshops.
Community Centres, Immigrant
Services, Literacy and Employment Training
operate a community centre to be used for workshops, programs, athletics,
drama, art, music, handicrafts, hobbies and recreation for the benefit of the
counselling and other support services for immigrants and refugees in need,
including language instruction, employment training, job search programs,
translation services and information programs on Canadian culture and life.
preparation, training and counselling
To establish, maintain and
operate an employment training centre for needy unemployed and low skilled
to needy persons in drafting resumes, searching for employment and preparing
to needy persons experiencing long-term unemployment.
training and education programs for needy persons.
To provide literacy
programs and classes to members of the public.
develop and provide education and training programs to persons who will conduct
provide and operate non-profit residential accommodation and incidental
facilities exclusively for:
citizens primarily of low or modest income; or
persons primarily of low or modest income.
APPENDIX “D” – Special Provisions Required for
The corporation shall be carried
on without the purpose of gain for its members and any profits or other
accretions to the corporation shall be used in promoting its objects.
The corporation shall be subject
to the Charities
The directors shall serve as such
without remuneration and no director shall directly or indirectly receive any
profit from their positions as such, provided that directors may be paid
reasonable expenses incurred by them in the performance of their duties.
The borrowing power of the
corporation pursuant to any by-law passed and confirmed in accordance with
section 59 of the Corporations Act shall
be limited to borrowing money for current operating expenses, provided that the
borrowing power of the corporation shall not be so limited if it borrows on the
security of real or personal property.
If it is made to appear to the
satisfaction of the Minister, upon report of the Public Guardian and Trustee,
that the corporation has failed to comply with any of the provisions of the Charities
the Minister may authorize an inquiry for the purpose of determining whether or
not there is sufficient cause for the Lieutenant Governor to make an order
under subsection 317(1) of the Corporations Act to cancel the letters patent of the
corporation and declare them to be dissolved.
Upon the dissolution of the
corporation and after payment of all debts and liabilities, its remaining
property shall be distributed or disposed of to charities registered under the Income Tax Act (Canada), in Canada.
To invest the funds of the
corporation pursuant to the Trustee
For the above objects, and as
incidental and ancillary thereto, to exercise any of the powers as prescribed
by the Corporations Act, or by any other statutes or laws
from time to time applicable, except where such power is limited by these
letters patent or the statute or common law relating to charities.
APPENDIX “E – Optional Incidental and
Ancillary Powers Please note: Applications
containing power clauses must be submitted to the Public Guardian and Trustee
for approval see Part 6.3.2. If power clauses are to be included as part of the
Letters Patent they should be set out in section 5 on the application for
incorporation. Power to Accumulate
accumulate from time to time part of the fund or funds of the corporation and
income therefrom subject to any statutes or laws from time to time applicable; Power to Solicit Donations and
solicit and receive donations, bequests, legacies and grants, and to enter into
agreements, contracts and undertakings incidental thereto; Power to Receive Personal Property
acquire by purchase, contract, donation, legacy, gift, grant, bequest or
otherwise, any personal property and to enter into and carry out any
agreements, contracts or undertakings incidental thereto, and to sell, dispose
of and convey the same, or any part thereof, as may be considered advisable; Power to Hold and Dispose of Real
acquire by purchase, lease, devise, gift or otherwise, real property, and to
hold such real property or interest therein necessary for the actual use and
occupation of the corporation or for carrying on its charitable undertaking,
and, when no longer so necessary, to sell, dispose of and convey the same or
any part thereof; Power to Hire
Either: To employ and pay such assistants,
clerks, agents, representatives and employees, and to procure, equip and
maintain such offices and other facilities and to incur such reasonable expenses,
as may be necessary, provided that the corporation shall not pay any
remuneration to a Director in any capacity whatsoever; Or: To employ and pay such assistants,
maintain such offices and other facilities and to incur such reasonable
expenses, as may be necessary, provided that the corporation shall not pay any
remuneration to a Director in any capacity whatsoever; and provided that all of
the foregoing is subject to sections 23 and 61 of the Trustee
Act and any order of the court; Power to Cooperate with any Other
cooperate, liaise, and contract with other charitable organizations,
institutions or agencies which carry on similar objects to that of the
corporation; Power to Participate in the
take up proportions of any increased capital of a company or corporation in which
the corporation may at any time hold shares or obligations; to purchase any
additional shares or obligations in such company or corporation; to join in any
plan for the reconstruction or reorganization or for the sale of assets of any
company or corporation, or part thereof; to enter into any pooling or other
agreement in connection with the shares or obligations of a company or
corporation held by the corporation; and to give consent to the creation of any
mortgage, lien or indebtedness of any company or corporation whose shares or
obligations are held by the corporation.
Power to Sue and Compromise Claims
demand and compel payment of all sums of money and claims to any real or
personal property in which the corporation may have an interest and to
compromise any such claims, and generally to sue and be sued in its corporate
name; Power to Issue Cheques
draw, make, accept, endorse, execute and issue cheques and other negotiable or
transferable instruments; Power to Pay Costs of Incorporation
pay all costs and expenses of, or incidental to, the incorporation. Restriction on Powers
that it shall not be lawful for the corporation directly or indirectly to
transact or undertake any business within the meaning of the Loan
and Trust Corporations Act. APPENDIX “F” – Fees
as of the date of publication of this handbook The fees
payable to ServiceOntario and the Public Guardian and Trustee for review of
documents are listed below. When
submitting charitable applications directly to ServiceOntario the cheque or
money order should be payable to the Minister of Finance. When submitting
charitable applications to the Public Guardian and Trustee the cheque or money
order should be payable to the Public Guardian and Trustee. Please note on the
face of the cheque or money order Public Guardian and Trustee account 999-999,
GL 515-05. Applications for non-charitable
Letters Patent or Letters Patent Containing Only the Pre-approved Objects and
$155 or $255 (for expedited service) - payable to the Minister of Finance.
$155 represents the ServiceOntario fee (service time 6 to 8 weeks). The
expedited service fee of $255 ($155 + $100) is for the review of the
application within 7 working days from the date ServiceOntario receives the
application. When documents are deficient, they will be returned to the client
for amendment and the expedite service time no longer applies. Applications for charitable Letters
Patent not Containing Pre-approved Objects and Provisions:
$305 or $405
(for expedited service) - payable to the Public Guardian and Trustee
$305 represents both the Public Guardian and Trustee fee for reviewing the
application ($150) and ServiceOntario fee for reviewing the application and
issuing Letters Patent ($155) and is payable to the Public Guardian and
Trustee. Please note the Public Guardian and Trustee does not have a special
expedited process. If you include the expedite fee ($100) the expedited service
will only apply once the application is received by ServiceOntario. The
application should be submitted to the Public Guardian and Trustee. Applications for Supplementary Letters
Patent: for
non-charitable corporations or to change only the name of a charitable
corporation. $130 - payable to the
Minister of Finance (submit
application to ServiceOntario)
charitable corporations (except for a name change only):
payable to the Public Guardian and Trustee
This represents both the Public
Guardian and Trustee fee for reviewing the application ($150) and the
ServiceOntario fee ($130) for reviewing the application and issuing
Supplementary Letters Patent. The application should be submitted to the Public
Guardian and Trustee. Applications
for Surrender of Charter/Termination of Corporate Existence for
non-charitable corporations:
no fee is charged by ServiceOntario
charitable corporations:
$150 - payable to the Public Guardian and Trustee This is the Public Guardian and Trustee fee for
reviewing the application. No fee is charged by ServiceOntario. The application should be submitted to the Public Guardian and
Trustee. Applications for Revival of a
non-charitable and charitable corporations:
$100 - payable to the Minister of Finance
(submit the application to
ServiceOntario)
ServiceOntario requests consent of the Public Guardian and Trustee to revive a charitable
$250 - payable to the Public Guardian and Trustee
Guardian and Trustee fee for reviewing the application ($150) and the Service
Ontario fee ($100) for reviewing the application and granting an Order for
Revival and is payable to the Public Guardian and Trustee. Submit the
application to the Public Guardian and Trustee.
Application for Letters Patent of
$155 - payable to the Minister of Finance
the application to ServiceOntario)
$150 for each amalgamating corporation plus $155 - payable to the Public
This represents the Public Guardian
and Trustee fee for reviewing the application ($150 for each amalgamating
corporation) and the ServiceOntario fee for reviewing the application and
issuing Letters Patent of Amalgamation ($155). Submit the application to the
PLEASE NOTE: The above are the fees at the time of printing of this handbook. To
verify a particular fee contact ServiceOntario or the Office of the Public
Guardian and Trustee (see Contacts – Appendix “G”).
APPENDIX “G” – Contacts:
and Registration Branch
Sheppard Avenue East, Suite 200
(416) 326-8700 or
free in Ontario: 1-800-522-2876
www.agco.on.ca/en/home/in..dex.aspx
of Professional Engineers of Ontario
request consent to the use of the word “Engineer” or “engineering” or any
variation thereof contact the Association of Professional Engineers of Ontario:
25 Sheppard A venue West, Suite 1000
Toronto ON M2N 6S9
(416) 224-1100
Free: 1-800-339-3716 Website:
www.peo.on.ca Canada
Directorate In
writing: Charities Directorate
(English) or 613-954-6215 (bilingual)
free elsewhere in Canada:
(English) or 1-888-892-5667 (bilingual)
www.cra-arc.gc.ca/charities Clerk of
the Standing Committee on Regulations and Private Bills
Committees Branch
Room 1405, Whitney
Tel: 416-325-7352
416-325-3505
www.ontla.on.ca/web/home.do Ministry
of Government and Consumer Services, ServiceOntario
University Avenue, Suite 200
(416) 314-8880 or
free 1-800-361-3223
forms are available in person or by mail from ServiceOntario. The forms, Application for
Incorporation of a Corporation Without Share Capital and Application for
Supplementary Letters Patent, are also available on the ServiceOntario website at www.ServiceOntario.ca.
TTY Toll Free : 1-800-268-7095
consent of the Governor General, on advice from the federal Department of
The onus is on the applicant to obtain such consent. The address is: Office
of the Governor General 1
may wish to visit the federal Department of Canadian Heritage website: www.canadianheritage.gc.ca Industry
Edmonds Tower South
Laurier Avenue West,
(613) 941-9042 - National Capital Region or
free: 1-866-333-5556
www.strategis.ic.gc.ca The Law
Society of Upper Canada – Lawyer Referral Service If you need a lawyer, you may
provide the name of a lawyer who will provide a free consultation of up to 30
minutes to help you determine your rights and options. The number is 1-800-268-8326 or
416.947.3330 (within the GTA)
Website: www.lsuc.on.ca Corporations
Information Act – Annual Return Enquiry Telephone Numbers
The CRA handles general enquiries about the CIA AR, including
those related to tax years ending on or before December 31, 2008. Following are the CIA AR enquiry telephone numbers:
Enquiries for T2/CIA AR, including prior year CIA AR filings
1-800-665-0354 (TTY)
Charities enquiries including the CIA AR
1-800-665-0354 (TTY) The Canada Revenue Agency, the
Ontario Ministry of Finance, and ServiceOntario are committed to keeping you
informed on a timely basis. More information about the Single
Administration initiative is available at:
Canada Revenue Agency -- http://www.cra-arc.gc.ca/ctao/
Ministry of Finance -- http://www.ontario.ca/revenue
request consent to use the word “College”, “institute” or “university” in the
name of a corporation contact
the Private Institutions Unit, Ministry of Training, Colleges and Universities.
Ministry that you are applying to incorporate under the Corporations Act.
of Training, Colleges and Universities Private
Institutions Unit, Telephone:
(416) 212-6586
www.edu.gov.on.ca Office
of the Public Guardian and Trustee
Property Program 595
Bay Street, Suite 800
(416) 326-1963 or toll
free 1-800-366-0335
www.attorneygeneral.jus.gov.on.ca/english/family/pgt/charities
original Ontario-biased NUANS name search report must be obtained for the
proposed name of the corporation. NUANS is a computerized search system that
compares a proposed corporate name or trade-mark with databases of existing
corporate bodies and trade-marks. ServiceOntario
does not provide this search. Suppliers are listed in the Yellow Pages under
the heading “Searchers of Records” or visit Industry Canada’s NUANS website at,
www.nuans.com for a list of registered
search houses that can assist you with obtaining a NUANS search report and
filing your corporate documents with the Ministry of Government and Consumer
Corporations Information Act Annual Return for non-profit corporations
and the Form 1, Initial Return/Notice of Change can be filed electronically via
the Internet through one of the private sector Service Providers (SPs) under
contract with the Ministry of Government and Consumer Services.
may also order an electronic data extraction report (data extract) to facilitate the electronic
filing process. The data extract allows clients to review existing corporate
information on the Public Record, temporarily store and edit this information,
prior to filing the changes electronically. The SPs charge a fee for the immediate online service
they provide. For more information about the
SPs visit the ServiceOntario website at www.ServiceOntario.ca.