Author: Peter Cantelon, Executive Director
Throughout my professional career I have had the opportunity to work for and connect with many non-profit organizations and I can tell you this – those with an active and robust membership are often the healthiest.
Conversely those with little to almost no membership are very often unhealthy, stagnant and insular, drifting away from their foundational vision and mission.
In Canada, the non-profit corporation first came into being in 1917 with the introduction of the Companies Act Amending Act. Prior to this the type of work that is typically done by non-profits was still being done but there was no formal, legal definition of what we now know as the non-profit.
As a corporate entity, the non-profit follows the structure of the more traditional for-profit corporations in many ways with a few key differences – one of those key differences is the position of member, rather than shareholder.
Members and shareholders both have the same responsibilities to act as the foundational leadership of the organization electing a board of directors to act on their behalf executing the vision and mission of the organization as they have approved it. From there directors are often given authority to hire operational staff to assist in the execution of the members’ vision and mission and staff will often enlist volunteers (some of whom are members) to help out.
Another key difference is that shareholders in a for-profit corporation own the organization and have a right to its assets and profits whereas members, while still essentially owning the non-profit, do not have that right according to law. All assets and excess revenues are re-invested into the corporation to ensure ongoing execution of vision and mission.
Typically, when the non-profit closes for one reason or another its assets are distributed to other like-minded non-profits to ensure something of the vision and mission carry on through the work of others. In a for-profit corporation those assets are liquidated, bills are paid, and the remaining assets converted to capital to be distributed amongst the shareholders.
The point to all of this is that members are the most important and foundational element of a non-profit. Without members the non-profit is like a body without a head. It can stumble around, lose its sense of purpose and, in the worst case, it can become self-serving rather than outwardly focused.
This is why Jubilee Fund focuses so much of its effort on growing membership, particularly around the time of our annual general meeting when key decisions are made.
Members ensure a non-profit’s accountability through the exercise of their vote at an annual general meeting or special meeting where directors are chosen, bylaws are established or amended, finances are reviewed etc.
Jubilee Fund’s members are passionate about reducing poverty through the use of traditional financial tools such as lending and investment. They see the value of assisting other non-profits, social enterprises, organizations, and people in their efforts to work in this sector and help grow financial literacy and experience so that they do not become overly reliant on grants and donations, which are often unreliable and unpredictable.
If you are passionate about these things, you may already be a member of Jubilee Fund and for that we are grateful and thank you. We encourage you to spread the news of what we’re doing to your colleagues, friends and family who may share this same passion and want to also become a member.
You may not be a member yet but share these passions with us. If so, we encourage you to reach out and investigate becoming a member.
In either case we invite you to come to our next annual general meeting, visit our website, call, or email us for more info as you consider membership – the most important role at a non-profit like Jubilee Fund.