Governance of Canadian not for profit corporation  

Governance of a Canadian not-for-profit corporation (NFP) refers to the management and direction of the organization by its board of directors. The board is responsible for the overall direction and control of the NFP, including its mission, strategic plan, and policies.  

In Canada, NFPs are incorporated under federal or provincial legislation, with the Canada Not-for-profit Corporations Act (NFP Act) being the most common. The NFP Act sets out the rules and regulations that NFPs must follow, including the structure and operation of the board of directors.  

The board of directors of a Canadian NFP is typically made up of volunteer members who are elected by the organization’s members. The board is responsible for ensuring that the NFP is operating in accordance with its mission and objectives, as well as in compliance with all legal and regulatory requirements. The board also oversees the management of the NFP’s finances and resources, and makes important decisions such as approving the budget and hiring staff.  

One of the key responsibilities of the board of directors is to ensure that the NFP is accountable to its members and other stakeholders. This includes holding regular meetings, providing regular reports on the organization’s activities and financial performance, and involving members in key decision-making processes.  

Another important aspect of governance for Canadian NFPs is risk management. The board of directors is responsible for identifying and assessing potential risks to the organization and implementing measures to mitigate those risks. This may include developing and implementing policies and procedures to ensure the NFP is compliant with relevant laws and regulations, as well as insuring against potential liabilities.  

In summary, the governance of a Canadian not-for-profit corporation is the management and direction of the organization by its board of directors which is responsible for the overall direction and control of the NFP, including its mission, strategic plan, and policies. The board is also responsible for ensuring that the NFP is operating in accordance with its mission and objectives, as well as in compliance with all legal and regulatory requirements, and for involving members in key decision-making processes.