Canadian Legal FAQS- Non-Profit Organizations and Taxes 1
 
 

Non-Profit Organizations and Taxes 1

 


 
 
   
 
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Non-Profit Organizations and Taxes

Do non-profit organizations and charities have to file income tax returns to Revenue Canada?

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Yes . Even though most non-profit organizations are exempt from income tax, the organization must still complete an income tax return each year to report to Revenue Canada. The form that is completed will differ according to whether the organization is a registered charity or whether it is a non-profit that is not also a registered charity.

Registered charities must file a Form T3010 and financial statements within six months from the end of each fiscal period. For more information, see the Charities Directorate on the Canada Revenue Agency (CRA) website.

Other non-profits must file a T2 Corporation Income Tax Return. Many non-profits that are not registered charities will be able to complete the short version of the T2 annual return form if they have a permanent residence in only one province or territory. If they have a presence in more than one province or territory, the organization will have to complete a regular T2 Corporation Income Tax Return. These Forms are available on the CRA website.

Your non-profit organization may have to complete Form T1044, Non-Profit Organization (NPO) Information Return, if it meets one of the following conditions:

  • the organization received or is entitled to receive taxable dividends, interest, rentals, or royalties totalling more than $10,000 in the fiscal period;
  • the total assets of the organization were more than $200,000 at the end of the immediately preceding fiscal period; or
  • an NPO return had to be filed for a previous fiscal period.

Some non-profit organizations are required to pay tax on income from property. This situation will arise when the main purpose of the organization is the provision of dining, recreational or sports facilities for its members. For more information, see Non-profit organizations - Taxation of income from property on the CRA site.


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This page was last updated in November, 2004.

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Content last reviewed 22:32, 9 February 2012.
 
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These FAQs cover the law at the time these questions were prepared. Every effort has been taken to ensure the accuracy of these FAQs. However, laws change and every situation is different, so do not take action using this information without consulting a lawyer.