How Does the Canada Revenue Agency Safeguard Charitable Compliance and Address Potential Disputes in the Audit Process?
The audit process for Charities in Canada aims to ensure they comply with the regulations set forth by the Canada Revenue Agency (CRA).
The CRA use various tools to encourage compliance, including outreach initiatives, client services, reminder letters, audit programs, and the Charities Education Program.
Charities can be selected for audit based on several factors, such as 1. random selection, 2. public complaints,3. information from media articles or other public sources, and 4.insights derived from their annual return or past instances of non-compliance.
The audit process thoroughly reviews the charity’s finances and programs to ensure they align with regulations and charitable purposes. The nature of the audit varies based on the size and complexity of the charity. The CRA works closely with charities and allows them to submit additional information throughout the audit.
There are two types of audits conducted:
Field Audits occur at the charity’s premises and scrutinize files, publicly available information, and all books and records.
Office audits are carried out at CRA offices, examining the charity files, some publicly available information, books, and documents.
More than 90% of audited charities can continue their charitable activities after an audit.
Depending on the findings, different actions are taken:
if there are no concerns, then no action is taken
minor concerns result in an educational letter
Moderate concerns lead to a compliance agreement
While serious problems may result in sanctions, registration revocation, or registration annulment.
Charities who disagree with the CRA’s conclusions can respond, and the CRA will review the rebuttal and determine the appropriate course of action.
If the CRA proposes sanctions or registration revocation, the charity has a 90-day window to file an objection with the CRA’s Appeals Branch.
In case of disagreement with the objection’s outcome, the charity can appeal to the Federal Court of Appeal or the Tax Court of Canada.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your free consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Can School Tuition Fees Paid to a Registered Charity Be Considered Charitable Donations?
Many parents wonder if the tuition fees they pay to a registered charity, such as a private or religious school, can be treated as charitable donations.
In most cases, tuition fees paid to a school, even if it is a registered charity, are not considered charitable donations because the fees are payment for services received.
This means that official donation receipts typically cannot be issued for standard tuition payments.
A portion of the tuition related strictly to religious education may qualify as a charitable donation.
Schools must carefully separate the costs of secular and religious education to issue receipts for that specific part.
Understanding how these rules apply can help families know when they might claim a tax credit for part of their tuition fees.
This approach ensures that only eligible donations related to religious training qualify under current Canadian tax laws.
Overview of Tuition Fees, Charities, and Tax Law
Payments made to schools can have different tax implications depending on whether they are considered tuition fees or charitable donations.
The distinction matters because the Income Tax Act treats these payments differently, especially when the school is a registered Canadian charitable organization.
The Canada Revenue Agency sets guidelines that help determine how these payments should be reported for tax purposes.
Defining Tuition Fees and Charitable Donations
Tuition fees are payments made in exchange for academic training.
These fees are typically fixed and cover the costs of providing education.
Because the student receives a direct benefit—the education—tuition fees are generally not classified as charitable donations.
A charitable donation is a voluntary transfer of money or property without expecting a direct benefit in return.
If a payment is made purely to support religious activities or a charitable cause, it may qualify as a donation eligible for a tax receipt.
Payments for standard academic tuition do not count as charitable donations under the Income Tax Act.
Only specific types of schools or circumstances may allow fees to be partially or fully treated as donations.
Role of Registered Canadian Charitable Organizations
A registered Canadian charitable organization must exist for charitable purposes and devote most of its resources to charitable activities.
Some religious schools operate solely for religious advancement.
If such a school is a registered charity, payments to it may be considered donations because they support its religious mission rather than academic training.
Schools providing both secular and religious education may issue donation receipts for the portion of fees that exceed the cost of academic tuition.
They must carefully track and separate their costs for secular and religious programs to do this.
Relevant Provisions in the Income Tax Act and Canada Revenue Agency Policies
The Income Tax Act outlines conditions under which tuition fees can be deducted or considered donations.
Section 60(f) allows deductions for tuition paid to designated educational institutions, but these deductions are not the same as charitable donation credits.
The Canada Revenue Agency’s Information Circular 75-23 clarifies that tuition fees paid to post-secondary or designated institutions are not charitable donations.
For private schools, donation receipts can be issued only when the school teaches exclusively religion or when fees exceed the cost of academic education in schools providing both religious and secular programs.
Schools must base donation calculations on their accounting records, excluding capital expenses and depreciation.
This ensures that only genuine support beyond academic costs qualifies for a charitable donation receipt.
General Rule on Tuition Fees as Charitable Donations
Payments made to schools are treated differently depending on whether they are considered tuition fees or voluntary contributions.
The presence of a direct benefit or service in return plays a key role in this assessment.
Tuition Payments Versus Voluntary Contributions
Tuition fees are amounts paid for academic instruction or services provided by a school.
These payments are generally not considered charitable donations.
Tuition represents compensation for education received, which is a clear benefit to the payer or their child.
Voluntary contributions differ in that they are given without expecting any specific service or benefit.
Only voluntary contributions may qualify as charitable donations if there is no direct exchange of goods or services.
If a school operates solely by donations and offers no formal tuition, those payments are more likely considered gifts.
The Income Tax Act specifically excludes tuition fees from donation eligibility.
It recognizes tuition as a form of payment for education, not a gift.
Criteria for Qualifying as a Charitable Donation
A payment must be a voluntary transfer of property made without consideration to qualify as a charitable donation.
The term “consideration” means that the donor does not receive anything of equivalent value in return.
For schools, a key criterion is whether the payment represents a donation or fee.
If the payment is for academic tuition, it is usually disqualified.
Donations are recognised when funds are given to support the school’s operation without receiving direct benefits, or for religious education provided by certain registered charities.
Only schools registered as Canadian charitable organizations may issue official donation receipts that support a tax credit claim.
Consideration and Benefit Assessment
Consideration refers to the benefit a payer receives in exchange for their payment.
If the payment provides tangible academic training or other services, it counts as consideration and the amount cannot be a charitable donation.
Payments to schools for religious instruction alone may avoid this consideration since religious education is not seen as a tangible service in the same way academic tuition is.
If a school combines secular and religious education, receipts may be issued only for the portion of payment that exceeds the calculated cost related to secular instruction.
This requires detailed accounting by the school to separate operating costs.
When a payment benefits the payer or their child directly, it usually disqualifies that payment from being a charitable donation for income tax purposes.
Exceptions: Religious and Dual-Capacity Schools
Certain tuition payments to registered charities may qualify as charitable donations, mainly when related to religious education.
The rules differ depending on whether the school provides exclusively religious instruction or a mix of religious and secular teaching.
Specific methods exist to determine the exact portion eligible for a donation receipt.
Exclusively Religious Schools
Tuition fees paid to schools that offer only religious education can partly be considered charitable donations.
These schools focus solely on religious training, such as teaching beliefs, practices, and history of a faith.
The Canada Revenue Agency (CRA) treats religious instruction as not involving a direct exchange of services, unlike standard tuition fees.
This means part of the tuition can be seen as a voluntary gift to the charitable work of the religious organisation running the school.
Only fees related to religious education qualify.
Payments for secular subjects, room, board, or other services do not count.
Parents or guardians paying tuition to such schools may claim a tax credit for the charitable donation portion.
Secular and Religious (Dual-Capacity) Schools
Schools teaching both secular and religious subjects are known as dual-capacity schools.
They provide regular academic subjects like math or science alongside religious education.
Only the portion of tuition related to religious instruction may be treated as a charitable donation.
The secular education part is seen as a service and is not eligible.
To qualify, the school must be a registered Canadian charitable organisation and clearly separate the costs of religious and secular education.
This separation ensures only the religious portion receives tax credit treatment.
Calculating the Charitable Donation Portion
There are two main ways to determine the charitable donation amount from tuition fees in religious or dual-capacity schools:
Segregated Costs Method: The school tracks and separates expenses related to religious education, such as specific teacher salaries and supplies.
Only these costs count towards the donation portion.
Cost Per Pupil Method: Used when costs aren’t separated.
The school issues a receipt for the amount of tuition paid beyond the net operating cost per pupil for the whole school.
This excess represents the charitable portion.
Capital expenditures, like building repairs, are excluded from these calculations.
If a family has more than one child attending, each child’s tuition donation portion is considered separately.
Accounting for School Fees, Operating Costs, and Tax Receipts
School fees contribute to the overall finances of educational institutions.
Understanding how operating costs and other income affect tax receipts is essential.
Accurate calculations ensure proper allocation of fees and clear eligibility for charitable donation claims.
Determining Net Operating Costs and Cost per Pupil
Net operating costs are the expenses directly related to running the school, excluding any capital expenditures or unrelated costs.
These include salaries, utilities, instructional materials, and maintenance.
Calculating the cost per pupil involves dividing the net operating costs by the total number of students enrolled.
This figure reflects the average expense to educate each student, which is critical for determining the non-donatable portion of fees.
Parents might receive receipts for the portion of tuition fees that exceed this cost per pupil, under certain charitable donation rules.
This requires precise and transparent financial records to support the amounts claimed.
Segregating Secular and Religious Education Costs
Schools offering both religious and secular education must separate these expenses clearly.
Religious instruction costs typically include wages for religious teachers, curriculum materials, and administrative costs tied solely to religious activities.
This segregation allows the school to identify which portion of fees qualifies for charitable donation receipts.
If costs are mixed, donations cannot be accurately calculated nor issued.
Records must include separate payroll accounts and detailed expense tracking for religious programming.
This ensures compliance with tax authority guidelines.
Exclusion of Capital Expenditures from Calculations
Capital expenditures cover long-term investments such as buildings, renovations, and major equipment purchases.
These costs do not count towards operating expenses when calculating the donation-eligible portion of tuition fees.
Only ongoing costs directly involved in delivering education are included in net operating costs.
Including capital costs would inflate operating expenses, reducing the donation-eligible amount and causing accounting inaccuracies.
Schools should record capital expenditures separately to maintain clear and accurate financial statements.
This ensures compliance with tax rules.
Role of Grants and Miscellaneous Income
Grants and miscellaneous income, such as government funding or fundraising proceeds, reduce the net operating costs the school must cover with tuition fees.
These funds lower the actual expenses borne by families, which affects the calculation of the cost per pupil.
Schools must accurately report any grants or other income to reflect the true financial picture.
Failure to account for these income sources can lead to overstated costs and incorrect tax receipts.
Transparent bookkeeping captures all income sources, contributing to fair and lawful issuance of donation receipts.
Tax Receipting Requirements and Compliance
Registered charities must follow strict rules when issuing official donation receipts for school tuition fees.
These rules ensure receipts are valid for taxation purposes and prevent misuse.
Understanding fair market value and how to handle split receipting is essential.
Non-compliance carries significant risks and penalties.
Official Donation Receipts: Required Information
An official donation receipt must include key information to be valid for tax purposes.
It should show the charity’s name, registration number, and the donor’s full name and address.
The receipt must specify the date of the donation and the amount given.
Receipts for tuition fees must clearly state the eligible amount considered a donation, excluding any part covering tuition or goods.
The receipt should be signed by an authorized representative of the charity.
Without all required details, the receipt cannot be used for claiming tax credits.
Fair Market Value and Split Receipting
Fair market value (FMV) is the price of any benefit a donor receives in return for their payment.
If a donor receives a benefit, like tuition services, the charity must subtract this FMV from the total payment before issuing a tax receipt.
Split receipting means separating the donation portion from the payment.
If a tuition fee includes a voluntary donation, the charity must issue a receipt only for that gift portion.
This system prevents donors from claiming tax credits on full tuition payments, which are not charitable donations.
Risks and Penalties for Non-Compliance
Charities that fail to follow donation receipting rules risk losing their privilege to issue official donation receipts.
They may face audits, fines, or legal challenges from tax authorities.
Directors of charities can be held personally liable if they allow improper receipting.
Incorrect receipting can lead to donors being denied tax credits, causing complaints and damage to the charity’s reputation.
Maintaining compliance protects both the charity and its donors from financial and legal consequences.
Additional Considerations for Educational Institutions in Canada
Educational institutions in Canada must navigate specific rules when it comes to tuition fees and charitable donations.
These include distinctions based on the type of institution, compliance with provincial education laws, and federal regulations influencing eligibility and reporting.
Eligibility of Post-Secondary and Designated Educational Institutions
Post-secondary institutions, such as universities and colleges, hold a distinct status. To qualify for tuition fee deductions, these institutions must be recognized as designated educational institutions under the Income Tax Act.
This includes those certified by provincial authorities or designated under the Canada Student Loans Act. Students attending these institutions receive official tax forms, like the T2202, that document eligible tuition fees.
Fees paid to designated institutions are deductible for tax purposes as educational expenses. These fees are not considered charitable donations.
Taxpayers should note that fees paid to post-secondary institutions cannot be treated as charitable donations, even if the institution is a registered charity.
Interaction with Provincial Educational Authorities and Legislation
Provincial educational authorities oversee private and public schools, including those that operate in both secular and religious capacities. These bodies ensure compliance with the School Act and related provincial legislation.
Schools must follow provincial guidelines for curriculum and operational standards. These standards affect how fees can be classified.
In some cases, a school needs provincial inspection or certification for its fees to qualify for special tax treatment. Schools that do not separate religious from secular education must carefully account for fees.
This accounting helps determine what portion may qualify as charitable donations under federal tax rules.
Canada Student Loans Act and Related Regulations
The Canada Student Loans Act defines designated educational institutions eligible for federal student aid programs. Institutions recognized under this Act include universities, colleges, and certain career programs.
Designation under the Act can impact an institution’s eligibility to issue official tax documentation for tuition fees. It may also influence student loan eligibility.
Only institutions meeting these federal standards can confirm their students’ fees as eligible for tuition tax credits. This maintains consistent rules across provinces.
Recognition under the Act also supports clarity in tax matters. This ensures educational payments align with federal program requirements.
Conclusion
Tuition fees paid to a registered charity are generally not considered charitable donations because a service or benefit is received in exchange. Exceptions exist for parochial schools offering religious instruction, where a portion of the tuition may qualify as a donation if costs are properly separated or calculated.
At Northfield & Associates, we can provide expert advice tailored to your specific situation involving tuition fees and charitable donations.
Our expert guidance ensures compliance with the Income Tax Act and helps families maximize eligible benefits.
Frequently Asked Questions
Payments for tuition fees to private schools are generally not eligible for charitable donation tax credits because they involve a direct exchange of services. However, specific rules apply to schools offering religious education and registered charities, which can affect how payments are classified and claimed.
Are tuition payments to private schools eligible for a charitable donation tax credit?
Tuition fees paid to private schools are usually not eligible for a charitable donation tax credit. Tuition is considered a payment for education services, not a voluntary gift.
How does the Canada Revenue Agency classify tuition fees for donation purposes?
The Canada Revenue Agency (CRA) does not consider tuition fees as charitable donations since there is an expected service in return. An exception exists for parochial or religious schools where part of the tuition may be seen as a gift.
What qualifies as a charitable donation?
A charitable donation is a voluntary transfer of money or property without expecting any goods or services in exchange. Payments that involve receiving a service, like tuition, do not qualify as donations.
Can a portion of tuition fees be claimed as a charitable donation if a school is a registered non-profit?
Yes, if the school provides religious instruction and is a registered charity, a portion of the tuition fees related to that religious education may be claimed as a charitable donation. Fees for non-religious education or extra services do not qualify.
What documentation is required to substantiate a charitable donation for tuition fees in Canada?
Official donation receipts issued by the registered charity are needed to claim a charitable donation. These receipts must clearly show the portion of the tuition that qualifies as a gift.
Are there exceptions that allow educational fees to qualify as charitable donations under the Income Tax Act?
Yes, the Income Tax Act allows exceptions for schools that offer only religious education.
In these cases, tuition payments for religious instruction may qualify as charitable donations.
Proper cost calculation methods and documentation are required.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your free consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
What is a Governing Document, and Why Does Your Organization Need One?
In the intricate landscape of organizational management, a governing document emerges as a pivotal player, shaping the legal and operational contours of an entity. This blog post delves into the fundamental aspects of a governing document, unraveling the significance it holds in defining an organization’s identity, purpose, structure, and internal procedures.
Understanding the Essence of a Governing Document
At its core, a governing document acts as the legal bedrock of an organization, providing it with a tangible and recognized existence. Let’s break down the key elements that make up the essence of a governing document:
Name Identification: The document explicitly states the organization’s name, eliminating any potential ambiguity and establishing a clear identity.
Purpose Statement: Articulating the purpose or purposes for which the organization exists, this section provides not only legal recognition but also a guiding light for the entity’s mission.
Structural Blueprint: By outlining the organization’s structure, the governing document sets the stage for a clear hierarchy and facilitates smooth internal operations.
Internal Procedures: Procedures governing the organization’s internal workings find their place in the document, ensuring uniformity and coherence in day-to-day operations.
Types of Governing Documents
For registered charities, the choice of a governing document is a crucial decision. Legal requirements mandate specific documents for the establishment of registered charities, including Letters Patent, Articles of Incorporation, Constitution, and Trust Document. Internal divisions of registered charities, although operating under the governing document of their head body, must still provide a letter of good standing for charity registration.
Understanding the nuances of governing documents is not just a legal requirement; it’s a strategic move towards ensuring the cohesive and purpose-driven functioning of your organization.
In summary, a governing document serves as an organization’s legal foundation, defining its identity, purpose, structure, and internal procedures. The document explicitly identifies the organization’s name, states its purpose, outlines its structure, and sets procedures for internal workings.
Specific documents such as Letters of Patent, Articles of Incorporation, Constitution, and Trust Documents are legally required for registered charities. Understanding the nuances of governing documents is crucial for ensuring the cohesive and purpose-driven functioning of your organization.
Defining Governing Documents in Canada
In Canada, governing documents create an organization’s legal existence and operational framework.
Organizations must meet requirements set by the Canada Revenue Agency and provincial authorities to gain legal recognition and charitable status.
The Purpose of a Governing Document
Governing documents give organizations legal existence in Canada and identify the official name and charitable purposes.
They describe the internal structure and outline how decisions are made and who has authority.
Key functions include:
Establishing legal identity
Defining charitable purposes
Setting operational guidelines
Creating accountability structures
The Canada Revenue Agency requires all registered charities to have proper governing documents.
Without these documents, organizations cannot operate legally as charities or receive tax benefits.
Governing documents protect the organization and its members by providing clear rules about using funds and operating the organization.
Key Features of Canadian Governance Documentation
Canadian governing documents must include specific information to meet legal requirements.
The organization’s name must match what is registered with government authorities.
Essential elements include:
Component
Purpose
Organization name
Official legal identification
Charitable purposes
Defines mission and activities
Governance structure
Board composition and roles
Asset management
Financial oversight requirements
The documents describe how the organization runs its charitable purposes, including details about programs, services, and activities.
Governing bodies and their responsibilities must be clear, covering board composition, election procedures, and decision-making processes.
Rules for asset administration appear in all governing documents to ensure proper and transparent use of charitable funds.
Legal Status and Recognition
The Canada Revenue Agency recognizes several types of governing documents for charitable organizations.
Charitable organizations must incorporate or establish by constitution or trust document.
Public and private foundations must incorporate or establish by trust document only.
Organizations provide complete, certified copies of their governing documents when applying for registration.
Draft documents are not acceptable and will result in rejection.
Legal requirements include:
Certified documentation
Complete amendment history
Compliance with provincial incorporation laws
Meeting CRA charitable purposes test
The type of governing document affects how organizations hold property and conduct business.
We recommend incorporation for organizations planning to own land or buildings, as this allows direct ownership rather than holding title through trustees.
Core Elements Found in a Governing Document
A governing document contains key components that define how your organization operates day-to-day.
These elements establish the legal framework for ownership rights, leadership roles, meeting procedures, and what happens if the organization closes.
Organizational Structure and Governance
The organizational structure section defines who has authority within your organization.
It outlines the roles and responsibilities of different leadership positions.
Governing documents create legal foundations for organizations in Canada and define their structure and operations.
These documents contain specific information about names, purposes, bylaws, and internal procedures.
What is a governing document?
A governing document is the legal foundation that gives an organization recognized legal existence in Canada. It establishes the organization’s identity and defines how it operates.
What is the purpose of a governance document?
Governance documents set clear rules for decision-making and provide the framework for corporate governance. They outline structure, roles, responsibilities, and procedures to ensure consistent operations and accountability.
What are the three governing documents?
The main governing documents in Canada are Articles of Incorporation, Letters Patent, and Constitutions. Trust Documents and documents created by acts of Parliament can also serve as governing documents.
What is an example of a governance document?
Articles of Incorporation establish the legal existence of a corporation. Bylaws govern organizational affairs beyond daily operations. A Constitution outlines the fundamental principles and structure of the organization.
What do governing documents contain?
Governing documents contain the organization’s official name, purpose statements, organizational structure, operational procedures, membership requirements, voting procedures, and roles of directors and officers.
What is a governing document for a charity?
Registered charities must have Letters Patent, Articles of Incorporation, Constitutions, or Trust Documents to get and keep charity status. These documents must clearly state the charity’s purposes and activities.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your free consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR Secretary press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
How to Avoid Common Mistakes When Filing T3010 Return
We know how stressful it gets when our charity’s T3010 return gets delayed or rejected because of simple mistakes we could have avoided.
We can prevent most T3010 filing errors by using the correct form version, including complete financial statements with matching fiscal year-ends, and ensuring all required signatures and attachments are in place. Common mistakes include filing incomplete returns, missing financial statements, and incorrect calculations that cause processing delays.
In this guide, we’ll walk through the most frequent T3010 mistakes we see Canadian charities make and show you exactly how to avoid them.
Understanding the T3010 Return and Its Importance
The T3010 Registered Charity Information Return serves as our charity’s annual accountability report to the Canada Revenue Agency. Understanding this form and its requirements helps us avoid costly mistakes and maintain our charitable status.
Filing errors or delays can result in significant penalties and jeopardize our organization’s future.
What is the T3010 Registered Charity Information Return?
The T3010 is a comprehensive annual form that documents how we used our charitable funds and conducted our activities during the fiscal year. Every registered charity in Canada must complete this return, regardless of our organization’s size or activity level.
The return includes detailed financial information about our revenue, expenses, assets, and liabilities. We must attach audited financial statements and complete specific schedules based on our charity’s circumstances.
The form requires us to report on:
Charitable programs and activities we conducted
Fundraising costs and administrative expenses
Directors and trustees information and compensation
Transactions with non-arm’s length parties
Property holdings not used for charitable activities
We use the same T3010 form whether our charity raised $1,000 or $10 million during the fiscal year. However, larger charities face additional reporting requirements through Schedule 6.
Why Charities Must File the T3010
Filing our T3010 maintains our legal standing as a registered charity and preserves our tax-exempt status. The CRA uses this information to monitor our compliance with charitable regulations and ensure we’re operating within our stated purposes.
We must file the T3010 to keep our charitable registration active and maintain our ability to issue official donation receipts. This annual filing demonstrates that we’re using donations for legitimate charitable purposes and meeting our spending requirements.
The CRA monitors our compliance through several key requirements:
Disbursement quota: Spend at least 3.5% of total assets on charitable activities
Charitable purposes: Operate within our registered purposes and objects
Fund accumulation: Follow rules for holding funds beyond one year
Political activities: Stay within permitted limits for political activities
Our filing also shows transparency to donors and the public. The CRA publishes summary information from our T3010 on their website, allowing donors to research our organization before contributing.
Consequences of Filing Errors or Late Submission
Filing mistakes or missing deadlines can trigger serious consequences that threaten our charity’s operations and reputation. The CRA imposes automatic penalties and may take enforcement action against non-compliant organizations.
Late filing results in penalties of $500 per month until we submit our return. The CRA can revoke our charitable status if we fail to file for one full year, permanently ending our tax-exempt status and receipting privileges.
Common consequences of filing errors include:
Compliance letters: Requests for explanations or corrections
Audit requests: Detailed reviews of our operations and finances
Processing delays: Hold-ups that affect our annual filing schedule
Penalty assessments: Financial costs for late or incorrect submissions
Increased scrutiny: Enhanced monitoring of future returns
Repeated filing problems can result in increased scrutiny of future returns and potential restrictions on our operations. In severe cases, the CRA may suspend our receipting privileges or impose other sanctions before considering revocation.
Key Filing Requirements and Common Mistakes
Understanding the specific requirements and deadlines for T3010 filing helps us avoid the most frequent errors that charities make. Many of these mistakes stem from misunderstanding basic filing rules or overlooking critical documentation requirements.
Proper preparation and attention to detail can prevent most compliance issues and processing delays.
Critical T3010 Filing Deadlines
We must file our complete T3010 return no later than six months after the end of our fiscal period. Missing this deadline triggers automatic penalties and puts our charitable status at risk.
The filing deadline depends entirely on our charity’s fiscal year-end date. For example, charities with a December 31 fiscal year-end must file by June 30, while those with a March 31 year-end must file by September 30.
Key filing deadlines include:
January 31 year-end: File by July 31
March 31 year-end: File by September 30
June 30 year-end: File by December 31
September 30 year-end: File by March 31
December 31 year-end: File by June 30
Charities with fiscal years ending on or after December 31, 2023 must use T3010 version 24, which includes updated disbursement quota requirements and new reporting sections.
We cannot request extensions for T3010 filing deadlines. The CRA may revoke our charitable status for failure to file, which means we can no longer issue official donation receipts or remain tax-exempt.
Major Oversights That Lead to Non-Compliance
Many charities lose their registration due to preventable oversights that seem minor but have serious legal consequences. These compliance failures often result from misunderstanding basic charity law requirements or poor internal processes.
The most serious oversight is failing to meet the disbursement quota. We must spend at least 3.5% of our total assets from the previous year on charitable activities. Many charities miscalculate this requirement or fail to track their spending properly.
Common major oversights include:
Using wrong T3010 version: Filing with outdated forms that don’t reflect current requirements
Missing financial statement attachments: Submitting returns without required audited statements
Incorrect disbursement quota calculations: Misunderstanding what counts toward the 3.5% requirement
Unreported related party transactions: Failing to disclose payments to directors or connected organizations
Incomplete signatures: Missing required director or trustee signatures in Section E
Operating outside our charitable purposes represents another critical oversight. We must ensure all our activities align with the objects stated in our governing documents and CRA registration.
Accumulating funds without permission also creates compliance problems. We can only hold funds beyond one year if we receive specific CRA approval or meet certain exemption criteria.
Mistakes with Incomplete or Missing Information
Incomplete T3010 returns cause processing delays and often trigger CRA compliance reviews. These information gaps force us to file amended returns and may result in penalties or increased scrutiny.
Missing director and trustee information represents one of the most common filing errors. We must provide complete details for all board members, including full names, addresses, dates of birth, and arm’s length status.
Critical information that charities frequently omit includes:
Form T1235: Complete director, trustee, and official information with postal codes and birth dates
Form T1236: Registration numbers for all qualified donees that received our gifts
Detailed program descriptions: Specific explanations of charitable activities (not fundraising) in Section C2
Property reporting: Details about assets not used directly in charitable activities
Incorrect financial calculations create serious problems when our T3010 totals don’t balance. Lines 4500 to 4650 must equal line 4700 in Section D, and lines 4860 to 4920 must equal line 4950.
We must choose between completing Section D or Schedule 6 based on our charity’s size and circumstances. Using both sections or selecting the wrong one creates filing errors that require amendments.
Preparing Your Financial Statements and Supporting Documents
Accurate financial statements form the foundation of our T3010 filing and demonstrate our accountability to donors and regulators. Many T3010 rejections stem from incomplete, inconsistent, or improperly prepared financial documentation.
Proper preparation of financial statements and attachments prevents processing delays and compliance issues with the CRA.
How to Prepare Audited and Unaudited Financial Statements
We must include complete financial statements with every T3010 filing, regardless of our charity’s size or revenue level. The CRA recommends professional audits for charities with income over $250,000, while smaller organizations can have their treasurer sign unaudited statements.
Financial statements should include at least a statement of assets and liabilities (balance sheet) and a statement of revenue and expenditures (income statement), along with any prepared notes about accounting policies, investment details, revenue sources, and transactions with non-arm’s length parties.
Our financial statements must include these essential components:
Statement of assets and liabilities (balance sheet) showing our financial position
Statement of revenue and expenditures (income statement) detailing our fiscal year activity
Notes to financial statements explaining accounting policies and significant transactions
Details of investments including maturity dates and interest rates
Sources of revenue such as government grants or donation categories
Non-arm’s length transactions with related parties or organizations
We must choose either the cash basis method or the accrual basis method for financial reporting and use that same method consistently throughout our entire T3010 return. However, we must always use the cash method to report gifts we received, regardless of our chosen accounting method.
Professional audited statements provide additional credibility and may be required by funders or provincial regulations. Audited statements must follow Canadian accounting standards and include the auditor’s opinion letter.
Avoiding Errors in Statement of Financial Position and Operations
Financial statement errors create cascading problems throughout our T3010 filing when numbers don’t reconcile between our statements and the return. These discrepancies trigger CRA inquiries and often require amended filings.
The most critical requirement is ensuring our T3010 financial figures match our attached financial statements exactly. Any variance between these documents will cause processing delays and compliance questions.
Common financial statement errors include:
Misclassification of expenses between charitable programs, fundraising, and administration
Incorrect asset valuation for investments, property, or equipment
Missing restricted fund reporting for donor-designated or endowment funds
Incomplete related party disclosures for transactions with directors or connected organizations
Wrong fiscal period dates that don’t match our T3010 filing period
Inconsistent accounting methods mixing cash and accrual reporting within the same statement
Revenue classification errors frequently occur when we incorrectly categorize government grants, donations, or program fees. We must properly distinguish between charitable donations, government funding, and earned revenue from programs or services.
Our statement of operations must clearly show the true cost of our charitable programs versus fundraising and administrative expenses. The CRA uses this breakdown to assess our operational efficiency and compliance with spending requirements.
Asset reporting mistakes often involve failing to properly classify restricted assets, investments held for charitable purposes, or property not used in our charitable activities.
Providing the Right Attachments with Your T3010
Missing or incorrect attachments represent one of the most frequent causes of T3010 processing delays. We must include all required supporting documents with specific information that matches our return data.
Form T1235 provides complete information about our directors, trustees, and like officials. This form requires full names, complete addresses including postal codes, dates of birth, and arm’s length status for every board member.
Essential T3010 attachments include:
Complete financial statements with all required components and notes
Form T1235: Director, trustee, and official information with all required details
Form T1236: Registration numbers for all qualified donees that received our gifts
Auditor’s report if we’re filing audited financial statements
Detailed program descriptions explaining our charitable activities and their impact
Related party transaction details for any non-arm’s length dealings
Form T1236 documents all gifts we made to qualified donees during our fiscal year. We must provide the complete registered name and registration number for each recipient organization, along with the exact amount of our gift.
Missing signatures in Section E frequently cause return rejections. We must have a director, trustee, or like official sign and date this section to certify the accuracy of our filing.
Provincial registration certificates may be required in some jurisdictions where we operate, especially if we conduct fundraising activities or operate across provincial boundaries.
Completing Major Sections and Schedules of the T3010
The T3010 form contains several critical sections that require careful attention to detail and proper understanding of when to use each section. Mistakes in these major sections often trigger CRA compliance reviews and processing delays.
Version 24 of the T3010 makes updates to disbursement quota requirements with an entirely new schedule, asks foundations additional questions, and makes adjustments to Schedule 6 for detailed financial information.
Navigating Section D and Schedule 6 Accurately
We must choose between completing Section D or Schedule 6 for our financial reporting, but never both. This decision depends on our charity’s size, revenue, and specific circumstances outlined in the CRA guidelines.
We cannot fill out both Section D and Schedule 6, or parts of both. Making the wrong choice creates filing errors that require amended returns and often triggers compliance inquiries.
We must complete Schedule 6 instead of Section D if any of the following apply to our charity:
Gross revenue exceeds $100,000 during the fiscal year
Property not used in charitable activities exceeds $25,000 in value
Permission to accumulate funds has been granted by the CRA for the fiscal year
Complex financial structure requires detailed reporting beyond Section D capabilities
Section D serves smaller charities with straightforward operations and limited assets. If we use Section D, lines 4500 to 4650 (excluding line 4505) must equal line 4700, and lines 4860 to 4920 must equal line 4950.
Schedule 6 provides detailed financial information for larger charities and those with complex operations. When completing Schedule 6, lines 4500, 4510 to 4580, and 4600 to 4650 must equal line 4700, while lines 4800 to 4920 must equal line 4950.
We can only enter amounts on lines 5500 and 5510 in Schedule 6 if we have received specific permission to accumulate funds. Lines 5900 and 5910 are for reporting property that we own but don’t use for charitable activities.
Common Section D and Schedule 6 errors include using the wrong form for our charity’s circumstances, failing to balance required line totals, and incorrectly reporting accumulated funds without proper authorization.
Reporting Charitable Activities and Programs Clearly
Section C2 requires us to describe our charitable activities, not our fundraising efforts. This distinction causes frequent filing errors when charities focus on how they raise money rather than what they accomplish with those funds.
We must provide specific, detailed descriptions of our actual charitable programs and their impact on beneficiaries. Generic statements like “helping people” or “community support” don’t meet CRA requirements for program reporting.
Our charitable activity descriptions should include:
Specific programs we delivered during the fiscal year
Target beneficiaries who received our services or support
Geographic areas where we conducted our charitable work
Measurable outcomes and impact on the communities we serve
Partner organizations we worked with to deliver programs
Resources committed to each major charitable activity
Avoid fundraising descriptions in Section C2. We shouldn’t describe our charity drives, events, or donation campaigns as charitable activities. These are fundraising methods, not charitable programs.
Program impact reporting helps demonstrate our effectiveness and accountability. We should explain how our charitable activities address specific community needs and create positive change for our beneficiaries.
Multi-program charities need to describe each significant charitable activity separately. We can’t lump all our programs together under one generic description.
Inactive periods still require reporting. If we didn’t conduct charitable activities during a fiscal year, we must explain why and what steps we’re taking to resume operations.
Mistakes When Reporting Fundraising Activities
Fundraising cost reporting frequently contains errors that can trigger CRA audits and compliance questions. We must accurately distinguish between fundraising expenses, charitable program costs, and administrative expenses throughout our T3010 filing.
Misclassifying fundraising costs as charitable expenses inflates our reported charitable spending and can make us appear to meet disbursement quota requirements when we actually don’t. This creates serious compliance issues.
Common fundraising reporting mistakes include:
Classifying event expenses incorrectly when events combine fundraising with charitable activities
Allocating staff time improperly between fundraising, programs, and administration
Reporting fundraising revenue without corresponding expense allocation
Missing gift-in-kind valuations for donated goods or services used in fundraising
Incorrect professional fundraiser reporting and commission structures
Omitting fundraising licenses required in various provinces
Professional fundraiser relationships require detailed reporting including their names, addresses, and amounts paid for services. We must report both commissions and flat-fee arrangements with external fundraising organizations.
Special event reporting creates particular challenges when events serve both fundraising and charitable purposes. We need to carefully allocate costs and revenues between these different functions.
Direct mail and online fundraising costs must include all associated expenses such as printing, postage, payment processing fees, and staff time devoted to campaign development and management.
Gift processing costs should be allocated to fundraising rather than charitable activities, including receipt preparation, donor database management, and acknowledgment communications.
Correctly Disclosing Directors, Trustees, and Donations
Accurate reporting of our governance structure and charitable giving requires careful attention to specific forms and detailed information requirements. Missing or incorrect information about directors, trustees, and donations frequently triggers CRA compliance reviews and processing delays.
The T3010 includes mandatory reporting schedules that must be completed with precise details about our board members and all charitable gifts we made during the fiscal year.
Filling Out Form T1235 and Arm’s Length Status
Form T1235 identifies our board of directors, trustees, and like officials and must be submitted with every annual T3010 return. This form requires complete information for every person who served on our board during any part of the fiscal year.
We must provide comprehensive details for each board member including full legal names, complete home addresses with postal codes, dates of birth, and their arm’s length status with respect to our charity.
Form T1235 requires us to report:
Full legal names of all directors, trustees, and like officials
Complete home addresses including street address, city, province, and postal code
Dates of birth for each board member (month, day, and year)
Arm’s length status indicating their relationship to the charity
Positions held such as president, secretary, treasurer, or director
Compensation received including salaries, fees, or other payments
Arm’s length status determines whether board members have special relationships with our charity that could create conflicts of interest. Non-arm’s length relationships include family members of other directors, major donors, or individuals with significant business relationships with our organization.
Common Form T1235 errors include missing postal codes, incomplete addresses, wrong birth dates, and incorrect arm’s length designations. We must update this form whenever board membership changes during our fiscal year.
Privacy considerations require us to obtain consent from board members before including their personal information on Form T1235, since this information becomes part of our public filing with the CRA.
Compensation reporting must include all payments made to directors, including meeting fees, travel reimbursements, and any other financial benefits they received from our charity during the fiscal year.
Completing Form T1236 for Qualified Donees
Form T1236 identifies all gifts we made to qualified donees and other organizations during our fiscal year and must be submitted along with our annual T3010 return. This form requires specific information about each recipient organization and the exact amounts we provided.
We must complete Form T1236 for every gift made to qualified donees, regardless of the amount. Missing this form or providing incomplete information can delay processing and trigger compliance questions.
Form T1236 requires us to provide:
Complete registered names of all qualified donee recipients
Registration numbers for each qualified donee organization
Exact gift amounts provided during our fiscal year
Types of gifts such as cash, property, or other assets
Purpose restrictions if gifts were designated for specific programs
Geographic locations where recipient organizations operate
Qualified donee verification requires us to confirm that recipient organizations maintain their registered charity status at the time we made our gifts. We can verify this information through the CRA’s online charity listings.
Gift timing matters for T3010 reporting. We report gifts based on when we made them during our fiscal year, not when recipients received or used the funds.
Property gifts require fair market value assessments and detailed descriptions of the assets we transferred to qualified donees. We must obtain proper valuations for significant property gifts.
International qualified donees have specific reporting requirements when we make gifts to foreign charitable organizations that maintain qualified donee status in Canada.
New Rules for Grants to Non-Qualified Donees with Form T1441
Form T1441 is required when we make grants totaling more than $5,000 to non-qualified donees (grantees) during our fiscal year. This new form implements the qualifying disbursement regime that allows registered charities to work with non-qualified organizations under specific conditions.
Form T1441 requires detailed information about grants made to non-qualified donees, including information about the grant recipients (grantees). We must demonstrate that these grants qualify as charitable disbursements under the Income Tax Act.
Form T1441 reporting requirements include:
Complete grantee information including names, addresses, and organizational details
Grant amounts and purposes with specific descriptions of charitable activities funded
Monitoring and oversight procedures we use to ensure proper use of grant funds
Documentation requirements including grant agreements and reporting schedules
Due diligence processes we followed before making grants to non-qualified donees
Compliance verification showing grantees operate exclusively for charitable purposes
Qualifying disbursement criteria require that grants to non-qualified donees fund activities that would be charitable if carried out directly by our organization. We must maintain oversight and control over how these funds are used.
Documentation standards for Form T1441 require comprehensive grant agreements that specify charitable purposes, reporting requirements, and our right to monitor grantee activities and recover unused funds.
Due diligence obligations include verifying that grantees operate exclusively for charitable purposes and have the capacity to carry out the funded charitable activities effectively.
Reporting thresholds mean we must file Form T1441 when our total grants to all non-qualified donees exceed $5,000 during the fiscal year, regardless of individual grant sizes.
Filing Best Practices and CRA Compliance
Proper filing procedures and compliance practices help ensure our T3010 submission processes smoothly and meets all CRA requirements. The transition to digital-first filing methods offers significant advantages in accuracy, speed, and compliance verification.
To avoid delays, we should sign up to file our returns online using My Business Account (MyBA) or Represent a Client. Understanding the available filing options and establishing proper review procedures protects our charity from costly mistakes and processing delays.
Choosing Between Online and Paper Filing
We should file our T3010 information return online through our CRA account using the interactive form or CRA-certified software. Filing online ensures we identify all necessary forms, sections, schedules and appendices, and receive reminders to attach required documentation.
The CRA strongly encourages online filing as part of their digital-by-default approach. Online services help us avoid delays, possibilities of errors, and the risk of the information return getting lost.
Online filing advantages include:
Built-in validation that catches common errors before submission
Automatic form selection based on our charity’s circumstances and revenue
Required attachment reminders ensuring we don’t miss supporting documents
Immediate confirmation of successful filing and processing
Faster processing times typically within days rather than weeks
Next-day updates to the public List of Charities database
CRA-certified software options provide professional-grade filing capabilities for larger charities or those using accounting firms. We can upload and submit our software-generated return directly through our CRA account in My Business Account or Represent a Client.
Paper filing limitations mean we must print and mail our completed return to the Charities Directorate in Summerside, PEI. Paper returns take longer to process and lack the validation features of online filing.
Mailing address for paper returns: Charities Directorate Canada Revenue Agency 105-275 Pope Road Summerside PE C1N 6E8
Using My Business Account or Represent a Client
Filing our T3010 through My Business Account is easy. It helps us identify all necessary forms, sections, schedules and appendices. It also reminds us to attach required documentation.
My Business Account (MyBA) serves charities that handle their own T3010 filing internally. This account provides direct access to our charity’s information and filing history with the CRA.
Represent a Client accounts allow authorized representatives like accountants, lawyers, or consultants to file returns on our behalf. Professional representatives often use this system to manage multiple charity accounts.
Setting up online filing requires:
Valid CRA login credentials linked to our charity’s business number
Authorized signing authority for the person accessing the account
Current contact information including address, phone, and email details
Security verification through multi-factor authentication
Representative authorization if using professional services
Account management responsibilities include keeping our contact information current, updating authorized users when board membership changes, and maintaining proper security protocols.
Access levels can be customized to allow different staff members appropriate permissions for viewing information, preparing returns, or authorizing final submissions.
Technical requirements include compatible web browsers, reliable internet connections, and ability to upload PDF attachments for financial statements and supporting documents.
Review and Sign-Off Procedures for Charity Administrators
Establishing proper review and approval processes helps prevent filing errors and ensures our T3010 accurately reflects our charity’s operations and financial position.
Multi-level review should involve our treasurer or finance committee reviewing financial information, program staff verifying activity descriptions, and board leadership providing final authorization.
Essential review procedures include:
Financial reconciliation ensuring T3010 figures match our audited financial statements
Program description accuracy verifying that Section C2 describes actual charitable activities
Director information verification confirming Form T1235 contains current, complete details
Supporting document checklist ensuring all required attachments are included
Calculation verification checking that required line totals balance properly
Deadline compliance confirming filing will occur before the six-month deadline
Board authorization typically requires formal approval from our board of directors before final submission. Many charities pass board resolutions authorizing specific officers to sign and file the T3010.
Documentation retention means keeping copies of our filed T3010, all supporting documents, and board authorization records for at least six years as required by CRA regulations.
Amendment procedures should be established in case we discover errors after filing. We must file amended returns promptly when significant errors are identified.
Professional oversight through qualified accountants or charity law specialists can provide additional validation and reduce compliance risks, especially for complex returns or first-time filings.
Long-Term Strategies to Prevent Future Mistakes
Building robust internal systems and maintaining proper oversight helps us avoid T3010 filing errors year after year. Proactive compliance management protects our charitable status and reduces the stress of annual filing deadlines.
Establishing consistent procedures and maintaining accurate records throughout the year makes T3010 preparation much easier and more reliable.
Institute Internal Controls and Annual Reviews
Strong internal controls help us maintain accurate financial records and ensure compliance with charity regulations throughout the year. Regular review processes catch potential problems before they become serious filing errors.
We should establish clear procedures for financial management, program reporting, and board governance that support accurate T3010 preparation. These systems work best when multiple people understand our processes and can provide oversight.
Essential internal controls include:
Monthly financial reconciliation comparing bank statements to accounting records
Quarterly disbursement quota tracking ensuring we meet annual spending requirements
Board meeting documentation with detailed minutes of all governance decisions
Expense approval procedures requiring proper authorization for all expenditures
Donation receipt systems ensuring accurate and timely receipt issuance
Program activity tracking documenting charitable activities and their outcomes
Annual review procedures should include comprehensive assessment of our financial controls, program effectiveness, and compliance with charity law requirements. We should schedule this review well before our T3010 filing deadline.
Segregation of duties prevents errors and fraud by ensuring different people handle financial transactions, record-keeping, and approval processes. No single person should control all aspects of our financial management.
Documentation standards require written policies for expense reimbursement, purchasing procedures, donation processing, and financial reporting. Clear written procedures help maintain consistency when staff or board members change.
Regular training for board members and staff ensures everyone understands their compliance responsibilities and knows how to implement our internal control procedures properly.
Maintain Records and Track Disbursement Quota
Proper record-keeping supports accurate T3010 filing and protects us during CRA audits or compliance reviews. We must maintain comprehensive documentation for all our financial transactions and charitable activities.
A registered charity must keep adequate books and records that allow the CRA to verify revenues, including all charitable donations received, verify that resources are spent on charitable programs, and verify that the charity’s purposes and activities continue to be charitable.
Our record-keeping requirements include:
Governing documents including incorporating documents, constitution, bylaws
Financial statements and supporting documentation for all fiscal years
Official donation receipts and copies of all receipts issued
Annual information returns including all filed T3010 forms and attachments
Meeting minutes for board, committee, and member meetings
Source documents such as invoices, contracts, bank statements, and expense accounts
Records must be kept at the Canadian address that the charity has on file with the CRA, including all books and records related to any activity carried on outside Canada.
Disbursement quota tracking requires ongoing monitoring of our charitable spending throughout the fiscal year. We must spend at least 3.5% of our total assets from the previous year on charitable activities and qualifying disbursements.
Retention periods vary by document type:
Donation receipts: Minimum 2 years from the end of the calendar year donations were made
Financial statements and T3010 forms: 6 years from the end of the last tax year they relate to
Governing documents and meeting minutes: For the life of the charity plus 2 years after revocation
10-year gift records: For the life of the charity plus 2 years after revocation
Electronic record-keeping is acceptable but must follow specific requirements. Electronic records must be kept in an electronically readable format and be accessible from Canada, even if backup copies are stored elsewhere.
Know When to Consult a Charity Lawyer or Expert
Professional guidance helps us navigate complex charity law requirements and avoid costly compliance mistakes. Knowing when to seek expert advice can save our organization significant time, money, and regulatory problems.
We should consult charity law specialists when facing significant organizational changes, complex transactions, or regulatory uncertainties. Professional advice is especially important for new charities or organizations with limited compliance experience.
Situations requiring professional consultation include:
Establishing new charities and navigating the registration process
Major program changes that might affect our charitable purposes
Complex financial transactions involving property transfers or investments
Related party dealings with directors, major donors, or connected organizations
Compliance issues arising from CRA audits or enforcement actions
Merger or dissolution procedures requiring legal documentation
Qualified charity lawyers specialize in the Income Tax Act provisions governing registered charities and understand both federal and provincial regulatory requirements.
Charity accounting specialists provide expertise in financial statement preparation, T3010 completion, and ongoing compliance management systems.
Professional associations like the Canadian Association of Gift Planners and Association of Fundraising Professionals offer continuing education and networking opportunities for charity professionals.
Cost-benefit analysis should consider the potential consequences of compliance mistakes versus the cost of professional advice. CRA penalties, audit costs, and potential loss of charitable status often far exceed professional consultation fees.
Ongoing relationships with qualified professionals provide continuity and familiarity with our organization’s specific circumstances and compliance history.
Conclusion
Filing our T3010 correctly protects our charity’s future and demonstrates our commitment to transparency and accountability. The strategies we’ve outlined help us avoid the most common mistakes that lead to processing delays, penalties, and compliance issues with the CRA.
Building strong internal controls and maintaining proper records throughout the year makes T3010 preparation much easier and more reliable. When we establish consistent procedures and seek professional guidance when needed, we can focus on our charitable mission instead of worrying about regulatory compliance.
For complex T3010 situations or ongoing charity law support, the experienced team at Northfield & Associates provides specialized guidance to help Canadian charities navigate regulatory requirements successfully. Visit us to learn how we can support your organization’s compliance and governance needs.
Navigating director compensation rules can be complex.
Contact Northfield & Associates for expert guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
These frequently asked questions address the most common concerns we encounter when helping charities navigate T3010 filing requirements and compliance issues.
What are the common errors to avoid when completing the T3010 Registered Charity Information Return?
The most frequent errors include using outdated T3010 forms, missing required attachments like Forms T1235 and T1236, incomplete director information without postal codes or birth dates, and financial calculations that don’t balance properly.
What is the penalty for late filing T3010?
Late filing results in automatic penalties of $500 per month until we submit our return. The CRA can revoke our charitable status if we fail to file for one full year.
What are the essential documents that need to be attached to the T3010 return?
Essential attachments include complete financial statements, Form T1235 with director information, Form T1236 for qualified donee gifts, and Form T1441 if grants to non-qualified donees exceed $5,000.
Is there a penalty for filing an amended return?
No, the CRA does not impose specific penalties for voluntarily filing amended T3010 returns to correct errors.
How do I correct an error for filing the T3010 form, and what are the implications of mistakes?
We can request changes online through My Business Account or by mail to the Charities Directorate. Mistakes can cause processing delays and may trigger compliance reviews.
What happens if I don’t amend my return?
Failing to amend known errors can escalate into serious compliance issues, including penalties, sanctions, or potential loss of charitable registration.
Ready for better nonprofit reporting?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping Service covers? People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR PR Secretary press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Income Tax Act S. 149(4.3) The Minister may, in the manner described in section 168, revoke the registration of a qualified donee referred to in paragraph (a) of the definition qualified doneein subsection (1) for any reason described in subsection 168(1).
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your free consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
FREE ASSESSMENT FORM
How can we assist you today?
Unlocking the Potential of Those Who Advance the World
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Letters Patent vs Articles of Incorporation in Canada
If you’re thinking about starting a charity or nonprofit in Canada, especially in Ontario, you may have come across terms like Articles of Incorporation and Letters Patent. They might sound the same, but they’re not and understanding the difference between letters patent and articles of incorporation is crucial for your organization’s legal compliance and governance.
Whether you’re incorporating a new nonprofit, transitioning an existing organization under ONCA, or applying for CRA charity registration, knowing which governing document applies to your organization affects everything from board structure to amendment procedures. In this guide, we’ll break down what these terms mean, how they differ, and what you need to know about federal vs provincial nonprofit incorporation in Canada.
What Are Letters Patent?
Letters patent are an old-fashioned way of officially and legally starting a nonprofit. Before 2010, this was the legal document you received from the government when your nonprofit was approved in Ontario. Think of it like a birth certificate it gave your group legal life.
The word patent comes from a Latin phrase meaning “open letter.” It’s called that because it’s a public document. The government uses it to show that they’ve allowed a group or company to exist.
What Is the Purpose of Letters Patent?
The purpose of a letter patent was to create a legal entity. It told the world:
Who started the organization
What its goals are (like helping the community, raising awareness, or providing services)
Who’s running it (called directors)
What rules will it follow
Rules for amending the organization’s structure
Restrictions on dissolving the organization
For charities, the letters patent also included charitable objects, which are specific goals your organization must stick to in order to stay registered as a charity with the CRA.
Are Articles of Incorporation the Same as Letters Patent?
Not exactly. Articles of Incorporation replaced letters patent when newer laws came into effect.
For Ontario nonprofits, theNot-for-Profit Corporations Act (ONCA) came into force in October 2021. Since then, new nonprofits apply using Articles of Incorporation instead of letters patent. Organizations that didn’t transition by the ONCA deadline (October 19, 2024) faced administrative dissolution, though some extensions were granted.
For federal nonprofits, the Canada Not-for-profit Corporations Act replaced the old system in 2011. That means federally incorporated charities and nonprofits now also use Articles of Incorporation.
So if you’re starting a nonprofit or charity today, you won’t use letters patent anymore. But if your organization was created before these new laws, you might still have letters patent on file. That’s why you’ll hear both terms, even though only one is still used for new applications.
What Are Articles of Incorporation?
Articles of Incorporation are the modern version of letters patent. They’re a form you submit to either:
Corporations Canada, if you want to register your nonprofit at the federal level, or
This document includes similar information to letters patent:
The legal name of your organization
The purpose or mission of the nonprofit or charity
The structure (who the directors are, where the office is, etc.)
Any special rules or restrictions
Once approved, you officially exist as a legal nonprofit or charity. You can then open bank accounts, hire staff, apply for grants, and register as a charity if eligible.
How Letters Patent and Articles of Incorporation Affect CRA Charity Registration
Whether your organization operates under letters patent or articles of incorporation has direct implications for your CRA charity registration. Here’s what you need to know:
Charitable Objects Must Be Clearly Stated
Both documents must contain your organization’s charitable objects—the specific purposes that qualify your organization as a charity under Canadian law. The CRA requires these objects to fall into one or more of the four recognized charitable categories:
Relief of poverty
Advancement of education
Advancement of religion
Other purposes beneficial to the community
CRA Requirements for Charitable Purposes
When drafting either letters patent or articles of incorporation for a charity, the charitable objects must be:
Exclusively charitable: Your organization cannot have non-charitable purposes mixed in
Specific and clear: Vague language like “doing good works” won’t meet CRA standards
Legally compliant: Objects must align with current charity law definitions
Common Mistakes in Drafting Charitable Objects
Many organizations run into problems when their governing documents contain:
Purposes that are too broad or vague
Non-charitable activities listed as objects (like political activities)
Objects that could benefit private individuals rather than the public
Language that doesn’t match CRA’s interpretation of charitable purposes
Transitioning Your Governing Documents
If you’re transitioning from letters patent to articles of incorporation, you generally do not need to reapply to the CRA for charity registration. However, you must:
Ensure your charitable objects remain substantially the same
Notify the CRA of any changes to your governing documents
Submit updated articles to the CRA within required timelines
Maintain consistency between your articles and your T3010 annual return
If you’re making significant changes to your charitable objects during the transition, consult with a charity lawyer first material changes may require CRA approval to maintain your registered status.
Key Differences: Letters Patent vs Articles of Incorporation
Understanding the practical differences between these two types of governing documents helps you appreciate why transitioning from letters patent to articles of incorporation offers significant advantages:
Governance Flexibility
Letters Patent:
Often specify exact number of directors (e.g., “seven directors”)
Rigid board structure requirements
Limited flexibility for organizational growth
Articles of Incorporation:
Allow for variable board sizes (e.g., “minimum 3, maximum 15 directors”)
More adaptable governance structures
Easier to adjust as organization evolves
Amendment Process
Letters Patent:
Require supplementary letters patent for most changes
More complex and costly amendment procedures
Government approval needed for structural changes
Articles of Incorporation:
Can be amended through special resolution in most cases
Simpler, faster amendment process
More cost-effective to update
Modern Governance Features
Letters Patent:
Limited provisions for electronic meetings
Older proxy and voting procedures
May not address current governance best practices
Articles of Incorporation:
Specifically allow electronic meetings and voting
Modern member rights and notification requirements
Built-in provisions for current governance standards
Director Liability Protections
Letters Patent:
Often lack specific indemnification clauses
May have outdated liability provisions
Articles of Incorporation:
Include modern indemnification protections for directors
Clear provisions regarding director duties and liabilities
Better alignment with current corporate law protections
Reporting Requirements
Letters Patent:
May be subject to older reporting regimes
Less standardized disclosure requirements
Articles of Incorporation:
Clear, standardized annual filing requirements
Consistent reporting across all organizations under same Act
Better compliance tracking systems
Do I Need to Worry About Letters Patent?
If you’restarting a new nonprofit, probably not. You’ll be using Articles of Incorporation instead.
But if you’re already part of a charity that was formed before 2011 (federal) or before 2021 (Ontario), your organization may still be governed by letters patent. That means:
You should review your letters patent and bylaws
You may need to update your documents to meet current laws
You might need to switch over to the new rules (called “transitioning under ONCA” in Ontario or “continuance” federally)
How to Transition from Letters Patent to Articles of Incorporation
If your organization still operates under letters patent, transitioning to articles of incorporation—known as continuance—is an important step for compliance and modernizing your governance structure.
Why Transition?
Transitioning from letters patent to articles of incorporation provides several benefits:
Legal compliance: Meet current provincial or federal requirements
Governance flexibility: Adopt modern governance practices like electronic meetings
Simplified amendments: Make future changes more easily and cost-effectively
Better indemnification: Protect your directors with updated liability provisions
Clearer structure: Benefit from standardized, contemporary corporate language
ONCA Transition Requirements (Ontario)
For Ontario nonprofits, the ONCA transition deadline was October 19, 2024. Organizations that missed this deadline risked administrative dissolution, though some received extensions. If your organization hasn’t transitioned yet:
Contact ServiceOntario or a charity lawyer immediately
File your articles of amendment or continuance
Update your bylaws to comply with ONCA
Ensure your charitable objects remain compliant with CRA requirements
Federal Continuance Process
For federal nonprofits operating under letters patent, the continuance process involves:
Filing articles of continuance with Corporations Canada
Adopting new bylaws that comply with the Canada Not-for-profit Corporations Act
Passing special resolutions at a members’ meeting
Updating your charitable objects if necessary
What Documents Need Updating
When transitioning, you’ll typically need to update:
Articles of Continuance or Amendment: Your new governing document
Bylaws: Must comply with current Act (ONCA or federal NFP Act)
Charitable objects: Reviewed and confirmed to meet CRA standards
Member register: Updated to reflect new requirements
Director register: Ensuring compliance with new standards
Costs and Timeline
The continuance process typically involves:
Government filing fees: $155-$330 depending on jurisdiction
Legal fees: $2,000-$5,000+ depending on complexity
Timeline: 2-6 months from start to completion, depending on organization’s readiness
Organizations with complex structures, multiple classes of members, or unique charitable objects may require more time and legal support.
Working with Legal Counsel
Transitioning from letters patent to articles of incorporation is a legal process that affects your organization’s fundamental structure. It’s recommended to work with a charity lawyer who can:
Review your current letters patent and bylaws
Draft compliant articles of continuance
Ensure charitable objects meet CRA requirements
Guide your board through required resolutions and meetings
File all necessary documents with government authorities
Common Mistakes to Avoid
When dealing with letters patent and articles of incorporation, organizations frequently make these mistakes:
Not Transitioning by Required Deadlines
Many Ontario nonprofits missed the ONCA transition deadline, resulting in administrative dissolution or scrambling for last-minute compliance. Always monitor regulatory deadlines and plan your transition well in advance.
Changing Charitable Objects Without CRA Approval
If you’re a registered charity transitioning to articles of incorporation, don’t make substantial changes to your charitable objects without consulting the CRA. Material changes could jeopardize your registered status.
Assuming Letters Patent Automatically Convert
Letters patent do not automatically become articles of incorporation. You must file the proper continuance or amendment documents with the government to complete the transition.
Not Updating Bylaws
Transitioning your governing document without updating your bylaws creates inconsistencies. Your bylaws must align with your new articles of incorporation and comply with the current Act.
Failing to Involve Legal Counsel
Corporate transitions are complex legal processes. Organizations that attempt DIY transitions often end up with non-compliant documents, miss required filings, or create governance problems that are costly to fix later.
Ignoring Member Approval Requirements
Continuance typically requires a special resolution passed by members. Failing to properly notify members, hold required meetings, or achieve the necessary voting threshold can invalidate your transition.
Final Thoughts
To keep it simple: Letters patent are the old version, and articles of incorporation are the new version of the same idea legally forming your nonprofit or charity.
If you’re unsure what your organization has, or if you’re starting fresh, let us help. Getting it right at the beginning or transitioning correctly is key to running a successful charity that meets both government and CRA requirements.
Contact Northfield & Associates for a Complimentary 15 Minute Strategy Session
820+ 5-star Google reviews
Flat fees | No nickle and diming for every legal question or email | 100% money-back guarantee if charity status is denied
Whether you’re updating for ONCA or starting a new nonprofit, we’ll guide you every step of the way.
Frequently Asked Questions
Letters patent served as the old legal document for forming nonprofits before 2010 in Ontario. Articles of incorporation replaced them under modern federal and provincial laws.
Understanding these documents helps clarify how Canadian nonprofits are legally established today.
What are letters patent in Canada?
Letters patent were the original documents used to form nonprofits and corporations in Canada, granting them legal existence. They were public documents containing key information like the organization’s name, purpose, and rules. In Ontario, they were used until 2010; federally, until 2011. Organizations with older structures may still operate under letters patent but may need to update their documents to comply with modern laws.
What are Articles of Incorporation in Canada?
Articles of incorporation are now the standard legal documents for creating nonprofits and corporations in Canada. They are filed with either Corporations Canada or ServiceOntario, depending on whether the organization is federal or provincial. Articles include important details about the organization’s name, purpose, structure, and rules. Once approved, the organization becomes a legal entity and can operate officially.
What is a certificate of Incorporation in Canada?
A certificate of incorporation is the official document issued by the government after your articles of incorporation are approved. It confirms your organization’s legal status and includes details like the incorporation date and number. This certificate is often required to open bank accounts or conduct business in Canada.
What are articles of association in Canada?
Articles of association are not commonly used in Canadian law. Instead, Canada uses articles of incorporation, which serve the same purpose of outlining the structure and rules of a corporation. Some older organizations might still have articles of association, but most use articles of incorporation along with bylaws for governance.
What are the forms of articles of association?
Canada does not use articles of association as standard. The typical documents are articles of incorporation, bylaws, and sometimes policies and procedures. These documents together set out how a corporation is structured and governed, with specific forms varying by federal or provincial incorporation.
What implications do Letters Patent and Articles of Incorporation have on the governance and structure of a Canadian corporation?
Both letters patent and articles of incorporation create the legal framework for a corporation, setting its purpose and rules. Letters patent often mean an older governance structure, which may need updating to comply with current laws. Articles of incorporation offer more flexibility, such as variable board sizes and electronic voting. Transitioning to articles can modernize governance and ensure compliance with today’s legal requirements.
Do I need to convert my letters patent to articles of incorporation?
If your organization is incorporated in Ontario and was formed before October 2021, you were required to transition to articles of incorporation under ONCA by October 19, 2024. Organizations that missed this deadline may face administrative dissolution. For federal nonprofits formed before 2011, continuance under the Canada Not-for-profit Corporations Act is strongly recommended but may not have a hard deadline. Transitioning provides governance flexibility and ensures compliance with current corporate law.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your free consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR Secretary press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Bookkeeping and Record Keeping for Registered Charities
Bookkeeping and record keeping are essential for registered charities to stay compliant with legal rules and maintain trust with donors.
You need to keep accurate financial records, track donations, expenses, and important documents to meet regulatory requirements and show transparency. This helps you manage your charity’s funds properly and avoid problems with tax authorities.
Your records should include details like donations received, how money is spent, board meeting minutes, and proof of your charity’s activities.
Good bookkeeping supports reporting to the government and helps you communicate your impact clearly to supporters.
Without careful record keeping, it becomes difficult to prove your charity’s work and financial health.
Core Bookkeeping and Record Keeping Requirements
Your registered charity must maintain clear and organized financial records to comply with legal rules.
These records include detailed documentation of income, expenses, and key organizational activities.
Keeping accurate books and records supports transparency and helps with audits or financial reviews.
Definition of Books and Records
Books and records are detailed documents that show all financial and administrative activities of your charity.
This includes your general ledger, which tracks all financial transactions like donations, grants, and expenses.
You must keep bank statements, receipts, invoices, and payroll records.
Meeting minutes and official organizational records are also part of your recordkeeping.
These documents prove how your charity manages funds and carries out its purpose.
The IRS or CRA can impose fines, penalties, or revoke registration, meaning your organization would owe taxes and lose credibility.
Non-compliance can also hurt donor trust and affect your ability to raise funds.
You might face audits requiring you to produce detailed books and records, which can be time-consuming and costly.
To avoid these consequences, stay organized with your financial records, file all required forms on time, and ensure your charity follows its governing documents and tax regulations at all times.
Nonprofit Bookkeeping Principles and Standards
You need to follow specific rules and guidelines to keep your nonprofit’s financial records clear and accurate.
These rules help you track income and expenses properly and report them in ways that meet legal and tax requirements.
Overview of GAAP and FASB Guidelines
Your nonprofit’s bookkeeping must follow Generally Accepted Accounting Principles (GAAP).
GAAP sets the foundation for how you record, report, and disclose financial information.
These guidelines ensure transparency and consistency in your financial statements.
The Financial Accounting Standards Board (FASB) creates detailed rules that build on GAAP specifically for nonprofits.
These rules guide how you should handle donations, grants, and fundraising income.
For example, you must distinguish between restricted and unrestricted funds and report them separately.
Using GAAP and FASB standards correctly helps you avoid mistakes that could lead to legal issues or lost tax-exempt status.
It also builds trust with donors and stakeholders by showing that you manage funds responsibly.
Differences Between Nonprofit and For-Profit Accounting
Your nonprofit’s accounting is different from a for-profit business in important ways.
Unlike for-profits, where the goal is profit maximization, nonprofits focus on how funds support your mission.
One key difference is in how you report income.
You must track donations and grants separately and show how these funds are used for programs or operations.
Profit-driven businesses focus mainly on sales and profits.
Also, your nonprofit must clearly report restrictions placed by donors.
For-profits don’t usually have these kinds of restrictions.
Your bookkeeping should reflect this by separating funds into categories like temporarily restricted or permanently restricted.
These differences mean you need to use bookkeeping methods designed for nonprofits to stay in compliance and maintain your tax-exempt status.
Fund Accounting and Financial Management
Understanding how to organize and manage your charity’s funds is essential for clear financial oversight and legal compliance.
You need to track money based on its purpose and ensure donors’ wishes are followed.
Good financial management protects your charity’s assets and supports informed decisions by your board.
Fund Accounting Structure
Fund accounting divides your charity’s money into separate “funds” to keep transactions clear.
Each fund represents a set of resources with a specific purpose or restriction.
You will typically work with:
Restricted funds: Money given for a particular project or use.
Unrestricted funds: Money available for general operations and expenses.
This system helps you show how every dollar is spent and keeps accounting transparent.
It aligns with your fiduciary duties by ensuring funds are used properly and reported accurately to your board and regulators.
Fund accounting also separates net assets based on restrictions, which is critical for audits and financial reports.
Managing Restricted and Unrestricted Funds
You must carefully track restricted funds to avoid misusing donations.
These funds require spending only as donors or grant agreements specify.
Mishandling them can harm trust and lead to compliance issues.
Unrestricted funds give you flexibility to cover your charity’s daily needs and unexpected costs.
Managing both types requires up-to-date records and regular reconciliation.
Your financial management should include:
Coding transactions by fund type.
Reporting separately on restricted and unrestricted funds.
Communicating fund status clearly to your board of directors.
This level of detail helps your board fulfill their oversight role and protects your charity’s reputation.
It also ensures your financial statements truthfully reflect the state of your net assets.
Donation and Income Tracking
You need to keep detailed and accurate records of all donations and other income your charity receives.
This includes tracking cash gifts as well as non-cash contributions, and making sure donors receive proper acknowledgments for their support.
Tracking and Recording Donations
You must record every donation promptly and clearly.
For cash donations, note the amount, date, donor’s name, and payment method.
If donors give $5,000 or more, you must keep extra details to meet IRS requirements.
Organize donation data so you can easily report it on your annual tax forms.
This helps with transparency and donor trust.
Use a consistent system, whether a software tool or manual ledger, to track donations.
Keep your records updated and accurate to avoid issues during audits or financial reviews.
In-Kind Donations and Contribution Records
In-kind donations are gifts of goods or services rather than money.
You must value these fairly and record them with details like donor name, description of the gift, and estimated value.
Tracking in-kind donations is essential because you report this information on tax forms and use it when demonstrating your charity’s impact.
Make sure to get written confirmation from donors about their in-kind gifts.
This can protect your organization and provide proof during financial audits or government checks.
Donation Receipts and Acknowledgements
For every donation, you must provide a receipt or acknowledgement letter.
This should include the donor’s name, the donation amount or description of the gift, and the date received.
Receipts are important for donors to claim tax deductions.
They also show your charity is transparent and organized.
Make acknowledgements timely.
For cash gifts, send receipts soon after receiving the donation.
For in-kind gifts, include an estimated value or note that the donor is responsible for determining value for tax purposes.
Financial Reporting and Essential Statements
You need clear, accurate financial statements to track your charity’s money and show how well you manage resources.
These reports detail your assets, income, expenses, and cash movement.
They help you meet legal rules and build trust with donors and regulators.
Statement of Financial Position
The Statement of Financial Position shows what your charity owns and owes at a specific date.
It lists assets, liabilities, and net assets (or fund balance).
Assets include cash, donations receivable, and equipment.
Liabilities cover debts like unpaid bills or loans.
This statement helps you check your charity’s financial health.
You can see if your assets are enough to cover your liabilities.
Accurate records here are vital because this report is part of your annual filings to regulators and key for board decisions.
Statement of Activities
This is also called the income statement.
It tracks your charity’s revenues and expenses over a set time, like a year.
You report donations, grants, program income, and other earnings as revenues.
Expenses include program costs, salaries, fundraising, and management.
This statement shows if your charity runs at a surplus or a deficit.
It’s important to detail program expenses separately to prove that money is spent on your mission.
Clear reporting helps donors see how funds are used.
Statement of Cash Flows
This report details the flow of cash into and out of your charity.
It breaks down cash from operating activities, investing, and financing.
You use it to track if your charity generates enough cash to pay bills and continue programs.
Unlike the income statement, it focuses on actual money moving, not just accounting entries.
Maintaining a cash flow statement supports budgeting and planning.
It also reassures donors and regulators that your charity handles cash responsibly.
Preparation of Monthly and Annual Reports
You should prepare monthly reports to monitor ongoing finances.
These include summaries of income, expenses, and cash position.
Monthly reports help spot issues early.
Annual reports combine all financial statements and provide a full view of your charity’s year.
They usually include notes explaining key accounting methods and unusual entries.
Accurate, timely reports ensure compliance and improve transparency.
You may need them to file tax forms and funding applications.
Consider using accounting software or hiring experts to keep reports reliable.
Implementing Internal Controls and Best Practices
Setting up clear steps helps protect your charity’s money and keeps your records accurate.
You need strong checks, regular reviews of your bank statements, and the right tools to manage your finances efficiently.
Internal Controls and Fraud Prevention
Internal controls are rules and processes you put in place to stop mistakes and fraud.
You should divide financial tasks among different people.
For example, one person approves expenses while another handles payments.
This limits the chance any one person can misuse funds.
Always require dual approvals for large purchases.
Keep detailed records of all transactions to make it easy to track money.
Training your staff regularly on these rules makes sure everyone knows their role.
Bank Reconciliation Procedures
Bank reconciliations are important to compare your records with the bank’s records.
This ensures your books are accurate.
Perform these reconciliations monthly or quarterly.
Check every deposit, withdrawal, and fee listed by the bank against your records.
If you find differences, investigate right away.
Common issues could be outstanding checks or bank errors.
Choosing and Using Accounting Software
The right accounting software can make your bookkeeping easier and more secure.
Look for software designed for nonprofits.
It should offer features like tracking donations, managing budgets, and generating financial reports.
Cloud-based options give you real-time access and automatic backups.
Use software that supports bank reconciliations and has built-in controls for handling expenses and approvals.
Make sure your staff knows how to use the software properly to avoid data mistakes.
Regular updates and technical support are also important.
Conclusion
If you need expert help with your charity’s bookkeeping and record-keeping requirements, reach out to the specialists at Northfield & Associates. They understand all the CRA rules about what records to keep, how long to store them, and the best ways to organize your financial documents. Their team can help you set up proper systems from the start so you can focus on your charity’s mission instead of worrying about compliance issues.
Good bookkeeping isn’t just about following rules it protects your charitable status and keeps your organization running smoothly. The experts at Northfield & Associates work with charities across Canada to make financial management simple and stress-free. Whether you’re just starting a new charity or need help fixing existing record-keeping problems, they have the experience to guide you through every step.
You need to keep detailed records, use appropriate bookkeeping tools, and follow the right accounting methods to manage your charity’s finances.
Understanding the legal standards and proper reporting will help you maintain compliance and transparency.
What are the record keeping requirements for charities?
You must keep minutes of all board and member meetings.
These should be stored as long as your charity exists and for two years after its status ends.
Donation receipts need to be kept for at least two years after the end of the year they were issued.
For gifts lasting ten years, keep receipts for two years after your charity loses its status.
Financial statements, ledgers, tax returns, and source documents must be kept for six years.
If your charitable status is revoked, keep these for two years after the revocation date.
What is the bookkeeping software for charities?
You should use software designed for nonprofit needs.
Many options track donations, grants, and expenses clearly.
Choose software that helps maintain compliance and generates reports for audits.
Cloud-based options offer easy access and data backup.
What is the best accounting method for nonprofit organizations?
Most charities use accrual accounting.
This method records income and expenses when they occur, not when money changes hands.
Accrual accounting provides a clearer picture of your charity’s financial health.
Some small nonprofits may use cash basis accounting if simpler tracking fits their work.
What is the accounting standard for charity?
Charities follow Generally Accepted Accounting Principles (GAAP) or similar nonprofit accounting standards in their country.
These standards ensure your financial records are accurate and comparable.
They require clear tracking of restricted and unrestricted funds.
What is the journal entry for charity?
When your charity receives a donation, debit the cash or bank account and credit donation income.
If a donation has restrictions, credit a separate restricted fund account.
When you spend from this fund, reverse these entries to track use properly.
What are the reporting requirements for charities?
You must prepare annual financial statements showing income, expenses, assets, and liabilities.
Submit tax returns and reports to government bodies.
Keep these documents accessible in case of audits.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your free consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Sports is one of the greatest means of social bonding across Canada. Canada’s sporting culture is represented through both amateur and professional sports, varying in ages from children to adults. Participation in sports promotes both a healthy and active lifestyle while encouraging social interaction. Foreign athletes and coaches have a large involvement in Canadian sports, and in Canada, 1 in every 5 coaching positions is conducted by an immigrant.
The Canadian Government continues to recognize the economic benefits and opportunities associated with the popularity of the sporting industry across Canada. At both an amateur and professional scale, local economies continue to benefit from the sporting industry.
Foreign athletes interested in playing sports in Canada fall under two main categories:
a foreign athlete represented by a foreign national team that will come to Canada to compete against a Canadian sports team, and
an athlete that wants to immigrate to Canada and work for a Canadian sports representative.
A foreign worker generally will require a Labour Market Impact Assessment (LMIA) to obtain a work permit, as the application process is designed to ensure that a temporary foreign worker is not taking away a job from a Canadian citizen or permanent resident. This is not the case for foreign athletes, coaches and referees looking to work and live in Canada.
In support of the sporting industry across Canada, the government has established an LMIA exempt work permit program for athletes, coaches and referees that fall under the first category. In this case, as their employment is temporary, and the foreign worker is represented under a foreign team and/or country, an LMIA is not required.
Under the second category, foreign athletes, coaches, and referees wishing to live and work in Canada can apply to immigrate through the Self-Employed Persons Program. Under this program, you can immigrate to Canada as a permanent resident as a self-employed applicant if you can demonstrate you have the required background to pursue activities in sport, you have the financial ability to remain self-employed, and that you can contribute to the athletic culture of sport in Canada.
Demonstrating these three requirements under the Self-Employed Persons Program is a heavy feat and you will require a minimum of 35 points to be a considered applicant. You will also need to prove a minimum of a two-year relationship as a self-employed individual working in the sporting industry or as a world-class competitor. The more background proof you can provide, the more likely it is to gain additional points when applying.
Before you set off on the journey to apply for immigration under this program, we recommend you book a consultation with Northfield & Associates and their team of immigration lawyers. Northfield & Associates team can work with you to ensure you are applying under the correct program, and that your application is complete with all required documents.
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Legal Guidelines for Fundraising Events for Canadian Charities
If you organize a charity fundraising event, you are not authorized to provide receipts for donations made on behalf of the charity. Only the charity has the authority to issue such receipts. Furthermore, providing its registration number for receipting purposes may cause a charity to lose its registration.
To provide receipts for a fundraising event or activity, it is essential to evaluate the worth of the advantages offered to all people involved. These advantages must be deducted from the gift total prior to being able to provide a receipt for the eligible sum. The process of establishing the eligible amount of a gift is known as split receipting.
“Intention to make a gift” threshold?
If the worth of the advantage gained exceeds 80% of the gift’s value, it is typically deemed that the intention to contribute the gift is not genuine, and a receipt may not be issued.
Understanding Charity Tax Receipt Authority
Who Can Issue Tax Receipts?
Only registered charities have the legal authority to issue official tax receipts for donations. As an event organizer, you cannot provide these receipts yourself, even when organizing events on behalf of a charity.
Critical Warning: Never share a charity’s registration number for receipting purposes. This serious mistake can cause the charity to lose its official registration status with the Canada Revenue Agency (CRA).
Split receipting determines how much of each contribution qualifies for a tax receipt. You must evaluate and subtract all benefit values from the total donation amount before issuing receipts.
The 80% Gift Intention Rule
Canadian tax law requires genuine gift intention for all charitable donations. If benefits exceed 80% of the total donation value, the CRA considers the intention to make a gift as not genuine, and no tax receipt can be issued.
This threshold protects the integrity of charitable giving by ensuring donors make genuine contributions rather than purchasing goods or services.
Benefits That Must Be Deducted From Donations
Primary Event Benefits
These advantages form the main purpose of your fundraising event and must be subtracted from donation amounts:
Fundraising Dinners:
Meal costs
Entertainment value
Venue access fees
Golf Tournaments:
Green fees and course access
Cart rental charges
Meal and refreshment costs
General Events:
Ticket value equivalent to similar commercial events
Activity participation fees
Additional Benefits to Calculate
Unless the De Minimis rule applies, deduct these benefit values from gift amounts:
Celebrity Appearances: The presence of celebrities at charity events typically doesn’t count as a taxable benefit. However, if you charge extra fees for exclusive access or activities with specific individuals, those amounts cannot qualify for tax receipts.
Minimal Odds Prizes: Golf tournament closest-to-the-pin prizes can be excluded since the CRA considers winning odds nominal.
Charity Auction Receipt Rules
Receipts for Donated Auction Items
Contributors who donate items for charity auctions can receive tax receipts based on fair market value at the time of donation. However:
Fair market value must be clearly determinable
Items may be subject to deemed fair market value rules
No receipt can be issued if value cannot be established
Receipts for Auction Purchases
Auction buyers can receive tax receipts only when specific conditions are met:
Fair market value must be calculated and disclosed to all bidders before the auction
Winning bids must stay under 80% of the posted item value
The purchase must meet genuine gift intention requirements
Pro Tip: Set minimum bids at 125% of fair market value to ensure receipt eligibility for winning bidders.
In order to calculate the eligible amount of a gift, it is necessary to deduct the value of any benefits provided from the total gift amount. Some examples of these advantages include:
The cost of a meal provided at a fundraising dinner
The price of green charges, cart rentals, and meals provided at a golf tournament
A ticket price similar to that of a fundraising event.
Other advantages
To determine the eligible amount of a gift, the worth of any advantages must be deducted from the gift amount, unless theDe Minimis rule is applicable. Some examples include:
Door prizes
Complimentary gifts such as pens and key chains
Accomplishment prizes such as the closest-to-the-pin reward.
Note: The presence of celebrities at charity events is generally not deemed an advantage. However, if an extra fee is charged to participate in an activity (such as dinner or golf) with a specific individual, it cannot be regarded as a gift. Therefore, a receipt cannot be issued for the additional amount paid.
A receipt may be given to the contributor for the item’s fair market value as of the moment it is contributed to the organization.
The contributed item could potentially be subjected to the rule of deemed fair market value.
In the event that the donated item’s fair market value is unable to be determined, a receipt may not be issued.
Providing receipts for auction acquisitions:
The fair market value of the item must be calculated and disclosed to all individuals ahead of the auction for a receipt to be issued.
The winning bid must not surpass 80% of the posted value of the item, as this would not meet the threshold for a genuine gift.
Tip: To fulfill the threshold for intending to make a gift, the organization can determine the minimum bid by multiplying the item’s fair market value by 125%.
Fundraising dinners
Here are some general guidelines and examples for valuing various items at fundraising events:
Meals should be valued at the price that a comparable facility would charge for a similar meal. This can be based on the restaurant’s regular price, group or banquet rates, or similar factors.
Complimentary items should be valued at their typical retail price.
Door and achievement prizes should be valued based on their retail value, and the total value should be prorated per ticket sold.
Entertainment should be valued at the typical and up-to-date ticket price.
If raffle tickets are accounted for in the admission cost, the prizes will be considered as door prizes, and the value of the prizes must be included when calculating the amount of the advantage. However, if the raffle is performedseparately, it will be deemed a lottery, and the cost of the raffle tickets will not be treated as a gift. The value of the different prizes that can be won should not be factored in when calculating the amount of the advantage.
Generally, auctions at fundraising events are not considered an advantage.
Golf tournaments
Below are some general instructions and instances to assess the value of different items at golf events:
The value of green fees for golf events is determined based on the standard cost charged to non-members using the course at the time of the event, whether it is an individual fee or a group fee. Members are not allocated an amount if they are not typically required to pay green fees.
Cart rentals should be valued using their usual price.
Meals are valued at the standard price charged for separate meal purchases at the course, either at the group or individual rate.
Giveaways are valued at their typical retail cost.
Door and accomplishment prizes are valued by their retail worth, totaled, and prorated per ticket sold.
Closest-to-the-pin prizes can be excluded since the odds of winning are considered nominal by the CRA.
Raffle tickets – If accounted for in the participation fee, the prizes are considered door prizes and are factored in to determine the sum of the advantage. Though, if the raffle is performed separately, it is deemed a lottery, and the price of the raffle tickets should not be treated as a gift. When calculating the amount of the advantage, you should not consider the value of the different prizes that could be won.
Note: According to the CRA, purchasing a lottery ticket is not considered a gift, and a receipt cannot be issued for the ticket’s cost.
How to Organize a Successful Charity Fundraising Event
Pre-Event Planning and Legal Compliance
Partner with Registered Charities Early: Establish clear agreements about receipt processing, registration number protection, and benefit calculation responsibilities.
Document Everything: Maintain detailed records of all costs, benefits, fair market values, and pricing decisions for CRA compliance.
Understand Your Limitations: Remember that you cannot issue tax receipts or share charity registration numbers under any circumstances.
Event Structure for Maximum Donations
Keep Benefit Costs Low: Design events where benefits represent less than 80% of ticket prices to ensure receipt eligibility.
Separate Premium Experiences: Offer high-value experiences as separate paid add-ons rather than including them in base ticket prices.
Strategic Auction Planning:
Get professional appraisals for high-value donated items
Display fair market values prominently before bidding begins
Set minimum bids at 125% of fair market value
Handle Raffles Properly: Separate raffle sales from main event admission to avoid benefit calculation complications.
Working Successfully with Charities
Before Event Planning:
Understand their specific receipt policies
Confirm their compliance procedures
Align event goals with their mission
During Event Planning:
Provide clear benefit calculations for their review
Respect their authority over tax receipt decisions
Keep them informed of all cost and pricing changes
After the Event:
Supply detailed financial records promptly
Let them handle all receipt processing
Support their follow-up donor communications
Common Compliance Mistakes to Avoid
Never issue receipts yourself – only charities have this legal authority
Never share charity registration numbers with vendors, venues, or participants
Don’t ignore benefit values when calculating eligible donation amounts
Don’t treat lottery tickets as donations – they cannot receive tax receipts
Don’t exceed the 80% benefit threshold when setting ticket prices
Set ticket prices where benefits stay well under 80% of total cost
Offer multiple giving levels with different benefit packages
Provide “donation only” options with minimal or no benefits
Create VIP experiences as separate premium purchases
Donor Communication:
Clearly explain what portions of payments qualify for receipts
Provide benefit breakdowns in advance
Help donors understand the 80% rule implications
Facilitate direct donation opportunities beyond event participation
Long-term Relationship Building:
Create annual events that build donor loyalty
Develop corporate sponsorship packages with clear benefit structures
Establish donor recognition programs that comply with benefit rules
Build databases that respect privacy while enabling future fundraising
Conclusion
Successful charity fundraising events balance generous giving opportunities with strict compliance requirements. Focus on creating meaningful experiences while keeping benefit costs reasonable, and always work closely with registered charities to ensure proper receipt handling.
By understanding split receipting rules, the 80% gift intention threshold, and proper benefit valuation methods, you can organize events that maximize charitable contributions while maintaining full CRA compliance.
Remember: your role is event organization and donor engagement – leave tax receipt processing to the registered charities who have the legal authority and expertise to handle these critical responsibilities properly.
Need Expert Guidance on Charity Fundraising Compliance?
Navigating charity law and fundraising regulations can be complex. If you’re planning a fundraising event or need clarity on tax receipt requirements, the experienced team at Northfield & Associates is here to help. We specialize in Canadian charity law and can guide you through every aspect of compliant fundraising.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
Get professional support today by email at info@northfield.biz, by phone at (416) 317-6806, or visit us or Schedule your free consultation to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
Frequently Asked Questions
Here are quick answers to the most common questions about organizing charity fundraising events and understanding Canadian compliance requirements.
How do you organize a fundraising event for charity?
Partner with a registered charity and keep benefit costs under 80% of ticket prices for tax receipt eligibility. Calculate all benefit values (meals, entertainment, prizes), set appropriate ticket prices, and document everything carefully. Only the charity can issue tax receipts – never provide these yourself or share their registration number.
What are the rules of fundraising?
Follow the 80% gift intention rule – if benefits exceed 80% of donation value, no tax receipt is allowed. Calculate and subtract all benefits through split receipting. Only registered charities issue tax receipts, organizers cannot share registration numbers, and fair market values must be disclosed for auction items before bidding.
What is the difference between fundraising and donations?
Donations are direct gifts with no benefits, allowing full tax receipts. Fundraising provides benefits, so only the amount above benefit value qualifies for receipts. A $100 dinner with $30 meal value creates a $70 tax-deductible donation. Fundraising requires benefit calculations while direct donations don’t.
How does charity fundraising work?
Events generate revenue while providing benefits to participants. Calculate fair market values of all benefits and subtract from participant payments. The remaining amount qualifies as tax-deductible if it exceeds 20% of total payment. The charity issues receipts and handles compliance while organizers manage event planning.
Ready for better nonprofit reporting?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping Service covers? People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Six Fundraising Approaches New Charities Should Avoid
Starting and running a new charities organization can be both challenging and expensive. Convincing people to support an organization that is just getting off the ground or doesn’t yet exist can be an uphill battle. While there are various fundraising strategies to consider, it’s essential to be aware of what not to do. In this article, we’ll explore six common fundraising methods that, when used alone or excessively, can pose challenges for new charities organizations.
Introduction
Funding a new charity organization can be a daunting task. People don’t typically rush to donate to every charities they come across, especially those that are new or just starting out. Fundraising ideas and strategies may come from various sources, but not all of them are advisable, particularly if you rely solely on one method.
Here are six fundraising approaches that, if overemphasized or used exclusively, can present challenges for new charities.
Grants can be a valuable means of generating revenue, but they may not be the most suitable option for new charities. Many foundations that offer grants prefer organizations with at least three years of operational experience, allowing them to demonstrate the effectiveness of their programs. Even with three years of program data, relying solely on grants to sustain your entire organization is often ill-advised.
Foundations vary in their focus areas, which may be limited to specific program types, demographics, or geographic regions. Additionally, the process of applying for grants can be time-consuming and challenging. While there are numerous foundations that provide funding, not all of them will align with your charity’s mission. Diversifying your funding sources is crucial.
2. Events and Fundraisers
Fundraising events, statistically speaking, tend to offer the lowest return on investment compared to other fundraising methods. Organizing and hosting events require substantial time and effort, which could potentially be channeled into more productive activities. Events also come with associated costs that can add up significantly, regardless of the event’s nature.
Moreover, the COVID-19 pandemic has severely impacted many events, forcing them to cancel or go virtual. Reliance on events as a primary source of revenue can pose substantial risks to a charities, particularly in the current environment.
While well-executed signature fundraising events can generate publicity and much-needed funds, they should not be the sole means of funding a new charities.
3. Corporate Donations
Corporate donations are often tied to fundraising events and may not be as readily attainable as one might assume. Corporations typically donate with an expectation of receiving something in return, such as exposure to their target audience, publicity, or enhanced corporate image. Acquiring corporate donations can be challenging, and success often hinges on personal connections within the company.
Board members and volunteers can play a pivotal role in establishing these connections and advocating for your charities’s cause. However, even with a connection, there may be stringent rules and specific timeframes for requesting corporate donations. Furthermore, corporate donations are not guaranteed to be renewed annually, and securing them can be competitive.
4. Appeals to the Wealthy
Targeting wealthy individuals solely based on their income may prove to be a challenging approach. People with substantial wealth often have specific charitable interests and preferred causes. Not everyone with financial resources is inclined to donate to charitable organizations, making it unwise to target individuals based solely on their household income.
Instead of focusing on income levels, it’s more effective to target potential donors based on their values and interests. Donors are more likely to contribute to your charities if they are passionate about the work you do. Prioritizing individuals who resonate with your cause, rather than their net worth, is a more strategic approach.
5. Crowdfunding
Crowdfunding has gained popularity, thanks in part to the growth of social networking sites and numerous online platforms. However, crowdfunding may not yield significant results if your charities lack an existing online following. Successful crowdfunding campaigns typically require a substantial online presence.
Crowdfunding should not be viewed as a “build it, and they will come” model. People do not typically wake up with an impulse to donate to random causes they find online. To make crowdfunding effective, you must actively promote and publicize your campaign. Additionally, some individuals may have reservations about donating through crowdfunding websites, particularly if your charities lacks an established track record.
6. Self-Funding
While you may have initially funded your charities organization with your personal resources, relying solely on self-funding is inadvisable unless you are independently wealthy. This approach can limit the organization’s growth and impact. Some individuals choose this path because they are reluctant to seek external funding, but it can hinder the organization’s development.
Self-funding effectively conceals the organization’s financial needs from potential donors. To outsiders, it appears that the organization is self-sufficient, which can deter potential supporters. Furthermore, attempting to fund the organization entirely on your own can become overwhelming and financially unsustainable in the long run.
Conclusion
Securing donations for your new charities organization requires a targeted approach. It begins with identifying the right donors and crafting the right message. None of the fundraising methods mentioned above are inherently bad; in fact, they can all be valuable tools. However, relying solely on any single method can be risky. The key is to diversify your fundraising efforts.
The important thing is to diversify your approach and consider multiple fundraising strategies. While grants, events, corporate donations, appeals to the wealthy, crowdfunding, and self-funding all have their place, a balanced approach is key to success.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
Get professional support today to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your free consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
BOOK A CONSULTATION TODAY
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates is a Canadian consulting firm based in Toronto, Canada. Northfield & Associates specializes in all types of immigration matters, from spousal sponsorships to refugee board appeals. With over eight (8) years of experience and an excellent success rate, Northfield & Associates is recognized as one of Canada’s premier immigration consulting firm.
The purpose of the Free Assessment is to assess whether you are qualified to apply for permanent residence in Canada under the Family Sponsorship, Skilled Worker, or Business Class categories. Please choose which category you would like to be assessed under and complete all fields in the form. We will endeavor to complete your assessment and provide you with a reply within one business day. There is no charge for this service. All information provided will be kept strictly confidential. If our assessment indicates that you are qualified for immigration to Canada, we will contact you to provide further information about our services and fees. Start Your Immigration Application!
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
NORTHFIELD & ASSOCIATES in Canada
As a global consulting firm, Northfield & Associates helps clients with total transformation, driving complex change, enabling organizations to grow, and driving bottom-line impact.
Learn about our offices in Canada, read our latest thought leadership, and connect with our team.
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
NorthfieldAssistant
Northfield
Welcome to Our Chat!
Let's get started. Enter your email to begin chatting with us.
