What does it mean to be a member of an NFP in Ontario?
Q: What does it mean to be a member of a not-for-profit organization in Ontario?
A: If you support or are involved with a not-for-profit organization in Ontario, you may have been called a “member.” However, being a member of a not-for-profit organization (NFP) comes with specific rights and responsibilities that are protected by Ontario law.
Under the new Ontario Not-for-Profit Corporations Act (ONCA), all NFPs in Ontario must now clearly define what it means to be a member. This means that each organization must outline in its bylaws who qualifies for membership and the conditions of membership.
Membership rights and responsibilities
Membership in an NFP is more than just a title; it’s a key role in the organization’s structure. Members are similar to shareholders in a for-profit company and play an essential role in overseeing the organization. For example, members can attend annual general meetings (AGMs), where they have the right to:
- Review the organization’s financial statements
- Vote on candidates for the Board of Directors
- Exercise other rights that help ensure the organization operates in its members’ best interests
These rights are protected by the ONCA, giving members the right to steer the organization where they feel the board has waivered on its direction and management
Flexible membership structures
The ONCA allows flexibility in setting up membership structures. NFPs can have different classes of membership, though at least one class must have voting rights. In smaller NFPs, it’s common for directors to also be members to help ensure enough people are available for required votes and meetings.
Keeping an updated membership register
The ONCA also requires that NFPs keep an up-to-date record of members, which should distinguish between active and inactive members. This helps organizations keep track of who can participate in governance activities.
If you are a board member or a member of an NFP and are unsure about your membership structure or your rights under the ONCA, the lawyers in the charity and not-for-profit department at Ross & McBride can help you understand your rights and responsibilities.
If you are part of a board of directors of an NFP and are unsure of your membership structure, or you are a member who is unsure of what rights and responsibilities you may have under the Act, the lawyers in the charity and not-for-profit department at Ross & McBride can assist you with finding the answers.
This article was originally published by The Hamilton Spectator.
