We can help with your accounting needs.
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.
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.
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.
We're social, let's connect. Sign up for our newsletter.
We are thrilled to welcome Eric Bunn, CPA, CA as a Principal to the firm. Eric has a strong background as a tax and assurance professional with over 10 years experience specializing in working with privately-owned businesses and not-for-profit organizations. In his previous roles, Eric provided tax planning and advisory, to organizations ranging from start-up entrepreneurs
Read More
Canadian taxpayers have faced great uncertainty in the wake of the Government of Canada’s proposed changes to the capital gains inclusion rate in the 2024 budget. The change was to take effect June 25, 2024, was then delayed until 2025 and delayed again until 2026. While incoming Prime Minister Mark Carney has vowed to scrap
Read More
Are Your Trusts Lined Up In A Row? In 2018, the Federal government proposed new tax legislation (the “New Rules”) for trusts, which was passed into law on December 15, 2022. The New Rules take effect for trusts with taxation years ending on or after December 31, 2023 and impact both trust filing and disclosure
Read More
Under the new trust reporting rules introduced in late 2022, certain charities and non-profit organizations (NPOs) will be required to file an annual T3 Trust Income Tax and Information Returns (T3 returns) for their “express trusts”. The T3 filing will be required for any express trusts held after December 30, 2023, and is due by
Read More