RC11. Do non-profit organizations and charities have to file income tax returns to Revenue Canada?
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 Revenue Canada website at https://www.canada.ca/en/revenue-agency/services/charities-giving/charities.html
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 Revenue Canada website at https://www.canada.ca/en/revenue-agency/services/forms-publications.html/. This form serves as a federal, provincial, and territorial corporation income tax return, unless the corporation is located in Quebec or Alberta. If the corporation is located in one of these provinces, you have to file a separate provincial corporation return. Click here for more information.
Your non-profit organization may have to complete the Form T1044, Non-Profit Organization (NPO) Information Return, if it is not a registered charity and 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
- the organization had to file an NPO return for the 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 the Revenue Canada site at www.cra-arc.gc.ca/E/pub/tp/it83r3/it83r3-e.html
For more information on non-profit organizations and taxes, see the Revenue Canada website at www.cra-arc.gc.ca/tx/nnprft/menu-eng.html