CNCA1. Our organization is a federally incorporated registered charity.We’ve heard that not-for-profits currently incorporated under Part II of the Canada Corporations Act (CCA).

CNCA1. Our organization is a federally incorporated registered charity. We’ve heard that not-for-profits currently incorporated under Part II of the Canada Corporations Act (CCA) are required to transition to the new Not-for-Profit Corporations Act (CNCA). Is this correct?

Yes.

Registered charities must undertake two actions to complete the transitioning process.

First, federal not-for-profit corporations are required to transition to the CNCA. Until they have made the transition, the provisions of the “old legislation”, the Canada Corporations Act, Part II (CCA, Part II) will continue to apply. Not-for-Profit corporations currently incorporated under Part II of the Canada Corporations Act will have three years to transition to the CNCA to avoid dissolution. All corporations incorporated under the old legislation must transition to the Canada Not-for-profit Corporations Act by October 17, 2014.

For more information on transitioning see:

Corporations Canada – Create / Maintain a Not-for-Profit Organization
Canada Corporations - Transition Guide

See also:
Five Steps to Transition: The Canada Not-for-Profit Corporations Act (LawNow, Jan/Feb 2012, Vol 36:3)
The New Canada Not-For-Profit Corporations Act – questions for directors to ask (CICA, Linda J. Godel)
Canada Not-for-profit Corporations Act (CNCA) Suitcase (Mark Blumberg - July 3, 2012)

Second, the Canada Revenue Agency requires each federally registered charity in Canada to file a Certificate of Continuance to show that it has complied with the transition process in the new Act.

For information about how to apply for this Certificate, go here.