"This new Act will bring the legislative framework governing not-for-profit organizations into the 21st century. It will promote modern standards of accountability, transparency and good corporate governance that will benefit the voluntary sector as it works to build a stronger Canada," said Minister Ablonczy. "The new statute will allow organizations to spend less time on paper burden and more time on what they do best which is delivering important services to Canadians."

The new act will replace provisions of the Canada Corporations Act (CCA) that had remained largely unchanged since its passage in 1917. Corporations currently incorporated under the Canada Corporations Act will have three years to apply for corporate status. There will be no fees for this process.

"The flexibility and regulatory reductions in the new Act have been anticipated by the not-for-profit sector for several years," said Minister of State Ablonczy. "It will allow not-for-profit organizations to be more efficient and effective in the modern Canadian economy."

Bill C-4, the Canada Not-for-Profit Corporations Act, passed Third Reading in the Senate and received Royal Assent Tuesday.

The Canada Not-for-Profit Corporations Act will enable organizations to incorporate faster and improve their financial accountability, clarify the roles and responsibilities of directors and officers, and enhance the protection of members' rights.

There are approximately 161,000 not-for-profit organizations in Canada, of which some 19,000 are incorporated federally. These organizations include charities, community associations, family centres, shelters and religious organizations.