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 http://www.cra-arc.gc.ca/tax/charities/.
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 http://www.cra-arc.gc.ca/formspubs/.
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 the Revenue Canada site at http://www.cra-arc.gc.ca/E/pub/tp/it83r3/it83r3-e.html.
