Information Returns for Charities & NPOs

Though many registered charities and not-for-profit organizations are tax-exempt, they still need to file annual reports to the Canada Revenue Agency. These reports will also be valuable to the organization when they are reporting their financial status for grants and other financial benefits. Not-for-profit organizations will generally need to file a T1044 while registered charities will need to file a T3010.

T1044: Non-Profit Organization Information Returns

An NPO will need to file an information return (T1044) if they meet either of the following requirements: they have interest, dividend, or investment income of over $10,000 in a year, or they had  total assets of $200,000 in the prior year. The T1044 is meant as a comprehensive return including the charity’s assets and income and is intended to be filed by the end of June in the next year. Late filing can come with a penalty of up to $2,500, which amounts to $25 per day. The T1044 is not filed alone; it is filed alongside the Corporate Income Tax Return, though the Corporate Income Tax return will generally not result in a tax payment. The T4117 Income Tax Guide to the Not-for-Profit Organization Information Return can help in creating an accurate  reporting. 

T3010: Registered Charity Information Returns

All registered charities in Canada must file the T3010 Registered Charity Information Return.The T3010 is generally accompanied with the Directors/Trustees Worksheet and the Qualified Donees Worksheet. It can be filed either on paper or online. Even charities that do not make over $10,000 a year or do not have assets totaling $200,000 in a prior year will need to file the T3010. Consequently, a not-for-profit filing a T1044 will still need to file a T3010, but the opposite is not always true. The T3010  reports its donations and general income information to the Canada Revenue Agency for the purposes of accountability.

Though payments may not need to be made, information returns for registered charities and NPOs can still be a complex and important process. Hogg, Shain & Scheck can help organize a charity’s or not-for-profit’s financial documents so that it is easier to file the required reports and ensure their accuracy and compliance.