For example, registered charities which fail to meet their reporting requirements or are acting outside the CRA’s regula¬tions and guidelines may have fines imposed and could have their charity status suspended or revoked. The consequences of failing to meet the organization’s reporting requirements can be serious. Boards must outline their expectations and be clear on who is responsible for preparing returns and when these documents must be filed. Although directors may rely on staff or volunteers to provide information or prepare returns, delegating tasks or administration does not relieve the board of directors from their responsibilities under the law. However, the board is ultimately responsible for every aspect of the organization. The board of directors may delegate much of the day-to-day administration and financial management to employees or volunteers. While the staff may be asked to prepare these types of returns, the board of directors must sign the documents and certify that the information is complete and accurate before it is submitted to the CRA.Ĭan a board of directors delegate CRA reporting and other legal requirements to employees or volunteers? The information helps the CRA determine how the organization raised money to support its activities and the types of expenses incurred. This is not an income tax form the information collected is not used to assess taxes. The CRA requires an Annual Information Return (Form T3010) six months after the organization’s fiscal year ends. To ensure organizations receiving tax exemptions or rebate on taxes are complying with the regulations and guidelines, the CRA requires additional information returns for non-profit organizations and registered charities.įor charities, filing an annual return is critical to keeping registered charity status. These obligations may include filing remittances such as Employment Insurance and Canada Pension Plan deductions, income tax returns or applying for tax rebates. The obligations of a non-profit or charity organization typically become more complicated when the organization begins fundraising, hiring staff, accumulating assets or collecting money from investments or property. What are some of the CRA reporting obligations for charities and non-profit organizations? may issue official tax receipts for donations.are tax-exempt and may apply for a rebate on taxes paid.must keep activities within the scope of its charitable mandate.have been granted charity status by the CRA under the Income Tax Act.
must be incorporated non-profit organizations.cannot issue tax receipts for donations or membership fees.can apply for tax-exempt status under the Income Tax Act.The terms non-profit and charity are often used interchangeably but there are significant differences in the administration of these organizations and their reporting requirements to the Canada Revenue Agency (CRA) under the Income Tax Act. This pamphlet is intended to provide an overview of these responsibilities.Īre there differences between non-profit organizations and registered charities? It is important that everyone involved in the administration of a non-profit or registered charity understand the reporting requirements and their role in providing the required information to the Canada Revenue Agency. The overall administration of these organizations is the responsibility of the volunteer board of directors, however, when the administration of the organization becomes too time-consuming or requires specialized skills, a board may choose to delegate specific responsibilities or tasks to a manager or staff person. Registered charities and non-profit organizations have a number of reporting requirements and obligations under the Income Tax Act.