{"id":36816,"date":"2023-06-15T12:25:07","date_gmt":"2023-06-15T16:25:07","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=36816"},"modified":"2023-07-06T13:55:57","modified_gmt":"2023-07-06T17:55:57","slug":"corporations-canada-to-administratively-dissolve-not-for-profits","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/legal\/2023\/06\/15\/corporations-canada-to-administratively-dissolve-not-for-profits\/","title":{"rendered":"Corporations Canada to Administratively Dissolve Not-for-Profits"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">In July, Corporations Canada (CC) will begin to <a href=\"https:\/\/ised-isde.canada.ca\/site\/corporations-canada\/en\/administrative-dissolution-program-not-profit-corporations-will-be-launched-july\" target=\"_blank\" rel=\"noreferrer noopener\">administratively dissolve not-for-profit corporations<\/a> that have not filed an annual return for 3 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CC could dissolve a not-for-profit after only 1 year of non-filing (see <a rel=\"noreferrer noopener\" href=\"https:\/\/www.canlii.org\/en\/ca\/laws\/stat\/sc-2009-c-23\/latest\/sc-2009-c-23.html#sec222subsec1\" target=\"_blank\">s 222(1) of the <em>Canada Not-for-Profit Corporations Act<\/em><\/a>), but its policy is to only dissolve those not-for-profits that haven\u2019t filed an annual return for 3 years .<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Federally Incorporated Charities Only<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This applies to charities incorporated under the <em>Canada Not-for-profit Corporations Act<\/em>. It does <span style=\"text-decoration: underline;\">not<\/span> apply to charities that are incorporated under provincial legislation or operating as a charitable trust.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Annual Return is NOT the same as T3010<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/ised-isde.canada.ca\/site\/corporations-canada\/en\/not-profit-corporations\/information-annual-return-filings-not-profit-corporations\" target=\"_blank\" rel=\"noreferrer noopener\">annual return is a corporate law filing<\/a> and is separate from any Canada Revenue Agency filings. It is not the same as a T3010 Charity Information Return, nor is it a tax return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An annual return must be filed every year, within 60 days following the corporation\u2019s anniversary date. It costs $12 and is filed through <a rel=\"noreferrer noopener\" href=\"https:\/\/ised-isde.canada.ca\/cc\/lgcy\/hm.html\" target=\"_blank\">CC\u2019s Online Filing Centre<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The return includes the following information:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Corporate name and number<\/li>\n\n\n\n<li>Date of last annual meeting<\/li>\n\n\n\n<li>Corporation type \u2013 soliciting or non-soliciting<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It is filed by a director, officer or authorized individual who has been authorized by the directors and have relevant knowledge of the corporation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">CC Dissolution Process<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If a charity has not filed its annual return in 3 years, CC will send a Notice of Intent to Dissolve to those in default. The charity has 120 days from the date of the Notice to file its required annual returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a charity does not file its required annual returns before the deadline, CC will issue a Certificate of Dissolution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dissolution Consequences<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As <a href=\"https:\/\/ised-isde.canada.ca\/site\/corporations-canada\/en\/not-profit-corporations\/your-reporting-obligations-under-canada-not-profit-corporations-act-nfp-act#tc01\" target=\"_blank\" rel=\"noreferrer noopener\">CC explains<\/a>, there can be \u201cserious repercussions\u201d of dissolution, \u201cincluding not having the legal capacity to conduct activities,\u201d and for a charity, it \u201ccould lead to the revocation of its [charitable] registration.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What to do?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">First, if your charity is incorporated, check to see whether it is provincially or federally incorporated. If provincial, this does not apply to you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Second, if your charity is federally incorporated, check to see whether you have filled your annual return. Remember, it is separate from your T3010 and your tax return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Third, if you\u2019ve filed \u2013 great! If you have not filed, file!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fourth, if you\u2019ve neglected to file and you do receive a notice, be sure to file as soon as possible to avoid dissolution.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In July, Corporations Canada (CC) will begin to administratively dissolve not-for-profit corporations that have not filed an annual return for 3 years. CC could dissolve a not-for-profit after only 1 year of non-filing (see s 222(1) of the Canada Not-for-Profit Corporations Act), but its policy is to only dissolve those&#8230; <a href=\"https:\/\/cccc.org\/news_blogs\/legal\/2023\/06\/15\/corporations-canada-to-administratively-dissolve-not-for-profits\/\" class=\"linkbutton\">More<\/a><\/p>\n","protected":false},"author":10,"featured_media":36817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ts_fic_featured_image_caption":"Cropped close-up image of a brown envelope layered over a white paper both of which are atop a wooden surface. Photo by <a href=\"https:\/\/unsplash.com\/it\/@mediamodifier?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText\">Mediamodifier<\/a> on <a href=\"https:\/\/unsplash.com\/photos\/uxCpNxVQIGI?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText\">Unsplash<\/a>   ","footnotes":""},"categories":[137],"tags":[525,204,701,497,446],"series":[],"class_list":["post-36816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-canada-not-for-profit-corporations-act","tag-charity","tag-dissolution","tag-federal","tag-return"],"_links":{"self":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/36816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/comments?post=36816"}],"version-history":[{"count":0,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/36816\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/media\/36817"}],"wp:attachment":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/media?parent=36816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/categories?post=36816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/tags?post=36816"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/series?post=36816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}