What financial statement and audit requirements apply to an Ontario not-for-profit corporation?

ONCA requires every not-for-profit corporation to prepare annual financial statements and present them to members at the annual meeting. The level of external scrutiny those statements need — a full audit, a lower-cost review engagement, or in some cases an exemption from either — depends on a combination of factors: whether the corporation is soliciting or non-soliciting, and the size of its revenue.

Broadly, soliciting corporations face a higher baseline level of review because they handle money raised from the public, while non-soliciting corporations have more room to reduce or waive external review, sometimes with member consent. Because the exact revenue thresholds that determine which level applies can be adjusted, a corporation should confirm its current obligation against ONCA's current requirements or with its accountant rather than assuming last year's level still applies, especially after a change in funding or membership approval.

Members can also generally pass a resolution to require a higher level of scrutiny than the statutory minimum, even if the corporation would otherwise qualify for a lighter touch — a useful option where members want more assurance than the bare legal floor provides. Getting the financial statement and audit level wrong is a common, easily avoidable compliance gap.