The Ministry of Finance released a discussion paper in December 2011 regarding proposed amendments to the BC Society Act. The proposed amendments are drafted to “recognize the unique nature of societies and aim to balance societies” need for flexibility with broader concerns of accountability and integrity.
The Government Non Profit Initiative website notes that the paper “does not reflect government policy at this stage, but rather is intended to stimulate discussion on a possible direction for reform.”
The proposed amendments could have significant impacts on all of the 26,000 non profit organizations operating in BC. The adoption of a new corporate law framework would potentially provide harmonization and consistency between corporate types (business and corporate entities and non profit organizations) and jurisdictions, and minimize unnecessary or over burdensome government regulations.
At face value a move towards legal and administrative ‘sameness’ potentially lessens confusion for some stakeholder groups and strengthens the ease with which non profit organizations can form, operate, and report to government, members, and boards. The benefits seem obvious and bountiful.
A question to ponder is does legal and administrative ‘sameness’ contribute additional or unintentional challenges or risks to the non profit sector? It seems clear that the proposed amendments will make is easier for non profits to operate as corporate entities, but what if the changes also result in corporate entities that look and behave like non-profits? Does the blurring of the lines really matter?
Start a conversation and share your thoughts – It is a discussion paper after all! Contributors are requested to provide feedback electronically or via mail to the Ministry of Finance before the submission deadline of April 30, 2012.
