On May 16, NLD RJ clarified guidelines for non-profit organizations.
NLD RJ consulted on statement 2024-9: clarification of the scope of the guidelines and other regulations for various non-profit organizations, and fundraising organizations.
Annual Reporting
NLD RJ noted an inconsistency between Ch 640 and 650, respectively between Ch C1 and C2, regarding applicability of other chapters of Guidelines for Annual Reporting.
Texts now being standardized, with inclusion that when ch 640 and ch 650 are applied, the other chapters of the Guidelines for Annual Reporting must also be applied.
The provisions regarding legal reserves are not formally applicable.
However, the formation of such reserves may be necessary in certain cases.
Proposed that the clarifications should apply for reporting years starting on or after Jan. 1, 2025; partly in view of nature of changes, earlier application is recommended.
Effectiveness
Comments must be submitted to NLD RJ secretariat by Jun. 14, 2024.
Sep. 2024 Final Wording Published
On Sep. 2, 2024, NLD RJ published Statement 2024-19 you can read which changes to these chapters the RJ has made final, after previous consultation process feedback.
These changes to the wording of various paragraphs affect Chapter 640 Non-profit organizations, Chapter 650 Fundraising Organizations, and Chapter C1 Small non-profit organizations, as well as some changes to Chapter C2 Small fundraising organisations.
The effective date for the application of the amended paragraphs is now Jan. 1, 2025.
