Northfield & Associate International Corporation Announces Intent to Establish Canada–Cambodia Venture Capital and Private Equity Collaboration Involving 50 Canadian Firms
Phnom Penh / Toronto — December 19, 2025 — Mr. Andy Lim, the President of Northfield & Associate International Corporation are pleased to announce on December 19, 2025, the company’s intent to initiate a business collaboration with fifty (50) Canadian venture capital and private equity firms to facilitate bilateral trade and investment opportunities for Cambodian investors.
The proposed collaboration is designed to create an institutional-grade platform enabling compliant capital participation, co-investment, and strategic market access between Canada and Cambodia. The initiative prioritizes governance rigor, risk-adjusted returns, and sector-focused deployment aligned with both jurisdictions’ regulatory frameworks and investment mandates.
Under the contemplated framework, Northfield & Associate International Corporation will coordinate market origination, investor engagement, and cross-border structuring, while the Canadian partner is expected to contribute fund management expertise, due diligence protocols, portfolio construction, and post-investment value creation. Target sectors include advanced manufacturing, agri-business, infrastructure-adjacent services, clean technology, and digital economy enablers, subject to regulatory approvals and final agreements.
“This initiative reflects a disciplined approach to cross-border capital formation grounded in transparency, regulatory compliance, and long-term value creation,” commented by Mr. Andy Lim.
“By aligning Cambodian investor appetite with Canadian private capital expertise, we aim to establish a credible conduit for bilateral trade expansion and sustainable investment.”
The collaboration intends to adhere to applicable securities laws, anti-money laundering and counter-terrorist financing requirements, foreign investment review processes, and tax governance standards in both jurisdictions. Engagement with legal counsel, compliance specialists, and independent advisors will underpin transaction structuring and execution. Next steps include partner selection, definitive documentation, regulatory consultations, and the establishment of an operational governance model. No binding commitments have been executed at this stage.
Phnom Penh / Toronto — 19 décembre 2025 — M. Andy Lim, président de Northfield & Associate International Corporation sont heureux d’annoncer le 19 décembre 2025, l’intention de la société d’entamer une collaboration avec cinquante (50) sociétés canadiennes de capital-risque et de capital-investissement afin de faciliter les échanges commerciaux bilatéraux et les occasions d’investissement pour les investisseurs cambodgiens.
Cette collaboration vise à créer une plateforme institutionnelle permettant une participation au capital conforme à la réglementation, des co-investissements et un accès stratégique aux marchés canadien et cambodgien. L’initiative favorise une gouvernance rigoureuse, des rendements ajustés au risque et un déploiement sectoriel ciblé, conformément aux cadres réglementaires et aux mandats d’investissement des deux juridictions.
Dans le cadre de cette collaboration, Northfield & Associate International Corporation coordonnera les études de marché, la mobilisation des investisseurs et la structuration transfrontalière, tandis que le partenaire canadien apportera son expertise en matière de gestion de fonds, de procédures de vérification préalable, de construction de portefeuille et de création de valeur post-investissement. Les secteurs ciblés comprennent la fabrication de pointe, l’agroalimentaire, les services d’infrastructure, les technologies propres et les catalyseurs de l’économie numérique, sous réserve des approbations réglementaires et des accords définitifs. « Cette initiative témoigne d’une approche rigoureuse en matière de levée de capitaux transfrontalière, fondée sur la transparence, la conformité réglementaire et la création de valeur à long terme », a commenté Andy Lim.
En associant les intérêts des investisseurs cambodgiens à l’expertise canadienne en capital-investissement, nous visons à établir un cadre crédible pour le développement du commerce bilatéral et l’investissement durable.
Cette collaboration vise à se conformer aux lois sur les valeurs mobilières applicables, aux exigences en matière de lutte contre le blanchiment d’argent et le financement du terrorisme, aux processus d’examen des investissements étrangers et aux normes de gouvernance fiscale dans les deux juridictions. Des conseillers juridiques, des spécialistes de la conformité et des conseillers indépendants seront mandatés pour guider et exécuter la transaction. Les prochaines étapes comprennent la sélection du partenaire, la finalisation de la documentation, les consultations réglementaires et la mise en place d’un modèle de gouvernance opérationnelle. Aucun engagement ferme n’a été pris à ce stade.
About Northfield
Northfield & Associates is a consulting firm and a trusted advisor on business strategy in Cambodia. We specialize in the key global sectors, including
agribusiness , aviation and automotive, energy, natural resources, financial services, healthcare, infrastructure, real estate and information technology. Industry Solutions, Service Line and Global & Regional Services.
clients get access to in-depth knowledge in key sectors.
legal, financial management, risk assessment, real estate, IT and enablement of organizations strategies. We partners with array of clients to reach new frontiers and cross uncharted organizations territories. We would work across various sectors in both the private and public, including government domain and focus on strategic, operations, organization and change.
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.
3 Steps to Ensure Your Not-for-Profit’s Compliance to ONCA
Navigating the transition to the new Ontario Not-for-Profit Corporations Act (ONCA) regulations can seem overwhelming for not-for-profit organizations. However, breaking it down into manageable steps can streamline the entire process and help ensure your organization complies with the new regulations.
This post will outline three key steps your not-for-profit organization can take to ensure compliance with ONCA.
Step 1: Understand the Changes
The first crucial step in ensuring compliance with ONCA is to thoroughly understand the critical aspects of the new regulations and how they differ from the current laws. ONCA introduces new rules for membership, governance, and financial reporting. This understanding is not just important, it’s essential as these changes will directly impact your organization’s bylaws, Letters Patent, and other governing documents. To start, delve into the ONCA requirements, consult legal experts, and gather information on how the changes will affect your organization.
Step 2: Review and Update Documents
The next proactive step is to meticulously examine your organization’s bylaws, Letters, Patents, and other governing documents to ensure they align with ONCA requirements. This includes ensuring that your organization’s purpose, membership, governance structure, and decision-making processes comply with ONCA regulations. Review your organization’s governing documents to ensure compliance and identify any areas that require updating. This could include updating your organization’s bylaws to include provisions for electronic voting or updating your Letters Patent to reflect changes in your organization’s name or structure.
Step 3: Educate Your Team
Lastly, it’s of utmost importance to ensure that everyone in your organization, from the board members to the staff, is fully aware of the changes and how they will impact their roles and responsibilities. This includes comprehensive training on the new regulations, updating job descriptions, and communicating any changes to your organization’s policies and procedures. To educate your team, organize training sessions or workshops to ensure everyone is up to date on the new regulations. You can also provide resources such as guides or FAQ documents to help your team navigate the changes.
Following these three steps, your not-for-profit organization can smoothly transition to the new regulations under ONCA, ensuring legal compliance and operational efficiency. It is crucial to begin the process as soon as possible to allow ample time to make necessary changes before the new regulations occur.
Remember, compliance with ONCA is essential for your organization’s success, and taking the necessary steps now can save you time and money in the long run.
Overview of ONCA Compliance for Ontario Not-for-Profit Corporations
Transitioning to the Ontario Not-for-Profit Corporations Act (ONCA) requires careful attention to several core areas of our organization’s governance and operations.
The updated legislation changes how we manage bylaws, membership, and reporting. Our governing documents such as Articles of Incorporation and by-laws may need substantial revision.
Key areas to focus on include:
Membership and Voting Rights: ONCA introduces new rules about membership classes and members’ rights.
These updates include provisions for absentee voting and clearer processes for member participation in meetings and proposals.
Governance and Director Roles: The act clarifies directors’ duties and outlines options for indemnification.
Our leadership must understand these changes to maintain proper oversight.
Financial Accountability: ONCA sets new requirements for financial reporting.
It extends transparency expectations to all not-for-profit corporations, not just public charities under the Canada Revenue Agency.
Document Review and Updates: We must review and update our governing documents—including Letters of Patent and articles of amendment.
Legal advice can help ensure accuracy.
Incorporation and Registry Compliance: The Ontario Business Registry manages filings related to ONCA.
We need to keep up with incorporation documents and ongoing compliance requirements.
Education and Transition Planning: We must educate our team about the new regulations.
Resources like the Not-for-Profit Incorporator’s Handbook and support from groups such as Community Legal Education Ontario can help.
Important deadlines: Ontario not-for-profit corporations had until October 18, 2024, to update their structures under ONCA.
Although the transition deadline has passed, many organizations continue to refine their policies to meet ONCA standards.
ONCA Compliance Areas
What to Review or Update
Key Points
Membership Structure
Membership classes, voting rights
Absentee voting, members’ meeting rules
Governance
Directors’ duties, indemnification
Clear responsibilities, board training
Governing Documents
By-laws, Letters of Patent, articles of amendment
Legal review, alignment with ONCA
Financial Reporting
Audit requirements, transparency standards
Compliance with CRA and ONCA
Incorporation and Filing
Ontario Business Registry submissions
Timely updates and filings
Team Education & Training
Workshops, guides, policy updates
Communication across board and staff
By focusing on these points, we help our organization operate effectively under ONCA’s modernized framework.
Careful planning and active participation from everyone are vital to maintain compliance and support our mandate as a public benefit corporation in Ontario.
Conclusion
Navigating ONCA compliance doesn’t have to be overwhelming when you have the right legal guidance. The transition to Ontario’s modernized not-for-profit framework requires careful attention to governance structures, membership rights, financial reporting, and document updates. While the October 2024 deadline has passed, many organizations are still working to fully align their operations with ONCA standards, making expert legal support more crucial than ever.
At B.I.G. Charity Law Group, we specialize in helping Ontario not-for-profit corporations achieve and maintain ONCA compliance. Our experienced team understands the complexities of transitioning governance documents, updating bylaws, and ensuring your organization meets both provincial and federal requirements. Whether you need assistance with membership structure revisions, director duty clarification, or financial reporting compliance, we provide practical solutions tailored to your organization’s unique needs.
Ready to ensure your not-for-profit is fully ONCA compliant?
Contact us at Northfield & Associates today to take the first step toward confident ONCA compliance and effective governance for your organization.
How Can We Make Sure Our Business Meets Both Local and Federal Rules?
To stay compliant, we must:
Know which rules apply at both local and federal levels.
Keep all registrations and licenses current.
Review changes in laws that affect us.
Train our team on compliance requirements.
Document our compliance efforts for future reference.
What Is Ontario’s Not-for-Profit Corporations Act, 2010 (ONCA)?
ONCA is a law that sets out how non-profit groups in Ontario should form and operate.
It replaced older rules to help non-profits run more smoothly. The Act covers governance, member rights, and reporting duties.
Organizations must update their rules to match ONCA to stay legally compliant.
What Rules Govern Not-for-Profit Organisations?
Not-for-profits must follow rules about:
How they are formed and managed.
How meetings and votes take place.
Keeping financial records and reporting.
Protecting members’ rights.
Filing documents with the government.
Following these rules helps groups stay transparent and accountable.
How Do We Confirm We Are Following All Applicable Laws?
We confirm compliance by:
Checking that our policies align with laws.
Reviewing and updating governing documents.
Conducting internal audits or reviews.
Seeking legal advice when unsure.
Keeping clear records of decisions and actions.
How Do We Stay Compliant with Financial Rules?
To comply with financial regulations, we:
Keep accurate and up-to-date financial records.
Follow proper budgeting and spending procedures.
Prepare and file required financial reports.
Have controls in place to prevent misuse of funds.
Conduct regular financial audits or reviews.
How Do We Ensure We Follow Our Own Policies and Procedures?
To follow our policies, we:
Communicate policies clearly to everyone.
Provide training and resources so everyone understands expectations.
Monitor activities to quickly spot issues.
Address breaches promptly and fairly.
Review and update policies regularly.
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 Register a Church in Canada: Step-by-Step Guide
Starting a church in Canada involves more than gathering a congregation and holding services. To operate legally and access benefits such as tax exemptions and issuing tax receipts to donors, your church needs proper registration. But how do you register a church in Canada, and is it considered a charity? This guide will walk you through the steps to establish and register a church in compliance with Canadian laws.
Church Registration in Canada: Quick Overview
Before diving into the details, here’s what you need to know at a glance:
Timeline: 3-12 months total (2-4 weeks for provincial incorporation, 4-6 weeks for federal incorporation, 6-12 months for CRA charitable status approval)
Total Costs: $200-$2,500
Provincial incorporation: $200-$350
Federal incorporation: $200-$250
CRA charitable registration: Free
Legal fees (optional): $1,500-$5,000
Basic Requirements:
Minimum 3 directors
Governing documents (articles and bylaws)
Religious purposes that benefit the public
Proper organizational structure
Key Benefits:
Legal entity status and limited liability protection
Tax-exempt status
Ability to issue donation receipts
Enhanced credibility and public trust
What Is Church Registration in Canada?
Churches in Canada generally fall under the category of nonprofit organizations. Many churches also apply for charitable status with the Canada Revenue Agency (CRA) to receive tax-exempt benefits and issue donation receipts. However, registering a church requires meeting specific legal requirements.
A church can be incorporated as a nonprofit religious corporation under the Ontario Not-for-Profit Corporations Act (ONCA) for those in Ontario or the Canada Not-for-Profit Corporations Act (CNCA) for those operating across multiple provinces. This incorporation provides the church with legal recognition, limited liability protection, and a formal governance structure.
Step 1: Define the Purpose and Structure of the Church
Before registering, it’s essential to determine:
The church’s mission, beliefs, and statement of faith
Leadership structure (e.g., pastors, elders, board of directors)
If your church primarily operates in Ontario, you can incorporate under ONCA by filing:
Articles of Incorporation (Form 2)
A NUANS name search report (if applicable)
A cover letter and government fee
For other provinces, similar processes exist under respective provincial nonprofit legislation.
Option 2: Federal Incorporation
If your church will operate across multiple provinces, federal incorporation under CNCA may be better. You’ll need to file:
Articles of Incorporation
A NUANS name search report
Bylaws and governance structure
Once incorporated, your church exists as a legal entity.
Other Provincial Options
British Columbia: Incorporate under the BC Societies Act through BC Registry Services. Cost: approximately $100-$150. Processing time: 1-2 weeks.
Alberta: Use the Alberta Societies Act through Alberta Corporate Registry. Cost: approximately $100. Processing time: 1-2 weeks.
Saskatchewan: Register under the Saskatchewan Non-profit Corporations Act. Cost: approximately $125-$200. Processing time: 2-3 weeks.
Manitoba: Incorporate under The Corporations Act through Companies Office. Cost: approximately $330. Processing time: 2-4 weeks.
Quebec: Quebec has unique requirements under Part III of the Companies Act. Churches may incorporate as legal persons or register under the Civil Code. It’s highly recommended to consult a Quebec charity lawyer due to the province’s distinct legal system. Cost: approximately $200-$400. Processing time: 4-6 weeks.
Maritime Provinces: Each has its own societies or nonprofit corporations legislation with similar processes to other provinces.
Note: Processing times are approximate and can vary based on government workload and application completeness.
Step 4: Apply for a Business Number (BN) and CRA Registration
After incorporation, your church needs a Business Number (BN) from the CRA for tax-related matters. You can apply online through the CRA’s Business Registration system.
Step 5: Apply for Charitable Status (Optional but Recommended)
Not all churches automatically qualify as charities. However, obtaining charitable status allows the church to issue donation receipts and receive tax-exempt status. To apply:
Submit governing documents (e.g., articles of incorporation, bylaws)
Demonstrate the church’s charitable purposes (e.g., advancing religion, providing community services)
The CRA reviews applications to ensure the organization meets the requirements for religious charities.
What Qualifies as “Advancement of Religion” for the CRA?
To receive charitable registration, your church must demonstrate that it advances religion in a way that benefits the public. Here’s what the CRA looks for:
Activities That Qualify:
Regular Worship Services:
Scheduled religious services open to the community
Prayer meetings and religious observances
Celebration of religious holidays and sacraments
Religious Education:
Sunday school or religious education programs
Bible studies and scripture classes
Training programs for religious leaders
Youth programs with religious instruction
Community Outreach:
Missionary work aligned with religious beliefs
Community support programs rooted in religious doctrine
Pastoral care and counselling
Religious publications and media
Maintenance of Places of Worship:
Operating churches, temples, or houses of worship
Providing space for religious ceremonies
Maintaining religious artifacts and symbols
What the CRA Examines:
Public Benefit:
Activities must be available to a significant segment of the public
Cannot be limited to a private group or family
Must demonstrate community benefit
Religious Doctrine:
Clear statement of faith and beliefs
Recognized religious practices
Genuine religious purpose (not primarily social or recreational)
Operational Structure:
Regular religious services and activities
Trained or ordained religious leaders
Formal membership or congregation
Financial Accountability:
At least 80% of resources directed to charitable activities
Proper donation receipting procedures
Transparent financial reporting
Red Flags the CRA Watches For:
Private benefit to founders or directors
Primarily social or cultural activities without religious component
Unclear or constantly changing religious doctrine
Limited public access to activities
Mixing political advocacy with religious activities
Excessive fundraising with minimal religious programming
Pro Tip: When completing Application to Register a Charity, provide specific examples of your religious activities, worship schedules, and how you’ll benefit the public. Vague descriptions like “spreading faith” are insufficient – the CRA wants concrete details about what your church will actually do.
Step 6: Register for Tax Exemptions and Other Benefits
Once approved as a charity, your church can apply for:
Property tax exemptions (varies by municipality)
HST/GST rebates
Payroll deductions for clergy housing allowances
Maintaining tax-exempt status requires compliance with CRA regulations, such as annual reporting and proper financial management.
Annual Compliance Requirements for Registered Churches
After receiving charitable registration, your church has ongoing obligations to maintain its status. Failing to meet these requirements can result in penalties, loss of charitable status, or even legal consequences.
Annual Filing Requirements:
T3010 Registered Charity Information Return:
Must be filed within 6 months of your fiscal year-end
Reports all revenue, expenses, and activities
Publicly available on CRA website
Filing fee: $0
Deadline is strict – late filing results in $500 penalty and possible revocation
Provincial/Federal Annual Returns:
Ontario corporations: Annual return required (currently no fee under ONCA)
Federal corporations: Annual return required ($0-$40 fee)
Update any changes to directors, registered office address
Due dates vary by incorporation jurisdiction
Financial Requirements:
Minimum Spending on Charitable Activities:
Must spend at least 80% of donated funds on religious/charitable activities
Maximum 10% on administration
Maximum 10% on fundraising
These are guidelines; actual spending must be reasonable
Record Keeping (Minimum 7 Years):
All donation receipts and donor records
Financial statements and bank records
Minutes of board meetings
Contracts and agreements
Correspondence with CRA
Property and asset records
Donation Receipts:
Must follow CRA guidelines exactly
Include mandatory information: charity name, registration number, date, amount, donor name
Only issue receipts for eligible donations
Keep copies of all issued receipts
Governance Requirements:
Board Meetings:
Hold regular board meetings (at least annually, ideally quarterly)
Keep detailed minutes
Ensure quorum requirements are met
Document all major decisions
Member Meetings:
Hold annual general meetings if you have members
Provide financial reports to members
Hold director elections as per bylaws
Director Obligations:
Maintain minimum number of directors (usually 3)
Ensure directors are not disqualified (not bankrupt, not convicted of fraud)
Directors must act in the church’s best interests
Update CRA within 30 days of director changes
Operational Requirements:
Stay Within Charitable Purposes:
Activities must align with registered purposes
Cannot change purposes without CRA approval
Cannot engage in prohibited political activities
Limited business activities (must be related to religious purposes)
Avoid Private Benefit:
No distribution of income to members or directors
Compensation must be reasonable for services rendered
Arms-length transactions required
No personal use of church assets
Political Activities (Limited):
Can devote up to 10% of resources to political activities
Must be non-partisan
Must relate to your charitable purposes
Cannot support or oppose political parties or candidates directly
Public Transparency:
Information Available on CRA Website:
T3010 returns (publicly searchable)
Charity registration details
Contact information
Financial summaries
Your Responsibilities:
Keep public informed about activities
Respond to reasonable information requests
Maintain up-to-date contact information with CRA
Consequences of Non-Compliance:
Minor Issues:
Written warnings from CRA
Education letters
Compliance agreements
Serious Issues:
$500-$5,000 penalties
Suspension of donation receipting privileges
Compliance audits
Severe Issues:
Revocation of charitable status
Public disclosure of non-compliance
Legal action for misuse of charitable funds
Pro Tip: Many churches hire a bookkeeper or accountant familiar with charity requirements to ensure compliance. The small cost prevents major problems down the road.
Are Churches Considered Nonprofits or Charities in Canada?
Churches in Canada are generallynonprofits, but not all qualify as registered charities. A nonprofit church can operate legally but won’t receive charitable tax benefits unless it registers with the CRA. To be recognized as a charity, a church must prove its activities advance religion and benefit the public.
How Much Does It Cost to Register a Church in Canada?
The costs vary depending on the registration process:
NUANS name search: $15–$35
Provincial incorporation: $155 (Ontario government fee, other provinces may vary)
Federal incorporation: $200 (Corporations Canada fee)
While DIY registration is possible, hiring an experienced charity lawyer ensures compliance, provides for ideal membership structure, and increases approval chances.
How Long Does It Take to Register a Church in Canada?
Federal incorporation: 1–3 days
Charity registration: 5–12 months (depending on CRA review and how well the application is drafted)
Planning ahead helps avoid delays and ensures smooth registration.
Common Mistakes When Registering a Church in Canada (And How to Avoid Them)
Learning from others’ mistakes can save you time, money, and frustration. Here are the most common errors churches make during registration:
1. Not Having Proper Bylaws Before Incorporating
The Mistake: Rushing to incorporate with generic or incomplete bylaws copied from the internet.
Why It’s a Problem:
CRA will scrutinize your bylaws during charitable registration
Poorly drafted bylaws cause delays or rejection
Bylaws are hard to change once incorporated
How to Avoid It: Have a lawyer draft or review your bylaws before incorporation. Ensure they include mandatory dissolution clauses and comply with CRA requirements.
2. Insufficient Board Members
The Mistake: Starting with only 1-2 directors to keep things simple.
Why It’s a Problem:
Most provinces require minimum 3 directors
CRA looks unfavorably on very small boards
Creates succession problems if a director leaves
How to Avoid It: Start with at least 3-5 qualified directors who understand their fiduciary duties and are committed to the church’s mission.
3. Mixing Personal and Church Finances
The Mistake: Using personal bank accounts for church income and expenses, especially in the early stages.
Why It’s a Problem:
Violates nonprofit and charity rules
Creates personal tax liability
CRA will deny or revoke charitable status
Exposes personal assets to church liabilities
How to Avoid It: Open a dedicated church bank account immediately after incorporation. Never deposit church funds into personal accounts.
4. Not Keeping Proper Donation Records
The Mistake: Informal tracking of donations, issuing receipts before charitable registration, or missing mandatory receipt information.
Why It’s a Problem:
Cannot prove financial accountability to CRA
Donors lose tax credits if receipts are improper
Penalty of 5% of receipted amount for each incorrect receipt
Can lead to loss of charitable status
How to Avoid It:
Only issue official donation receipts after receiving charitable registration
Use CRA-approved receipt formats
Keep detailed donor records for 7 years
Consider donor management software
5. Failing to File Annual Returns on Time
The Mistake: Missing the T3010 filing deadline or forgetting provincial annual returns.
Why It’s a Problem:
Automatic $500 penalty for late T3010
Can lead to revocation of charitable status after 1 year
Provincial penalties for late corporate returns
Creates compliance record with CRA
How to Avoid It:
Mark filing deadlines on calendar (6 months after fiscal year-end)
Consider hiring an accountant for T3010 preparation
File even if you had no activity
Set up CRA online account for reminders
6. Not Understanding the 80/10/10 Rule
The Mistake: Spending too much on administration or fundraising relative to actual charitable activities.
Why It’s a Problem:
CRA expects approximately 80% of resources on religious/charitable activities
Excessive overhead raises red flags
Can lead to CRA investigation or status loss
How to Avoid It:
Budget carefully to prioritize religious programming
Track expenses by category (charitable activities, administration, fundraising)
Keep administration and fundraising each under 20% of total spending
Document that spending is reasonable for your church’s size and activities
7. Copying Another Church’s Documents Without Customization
The Mistake: Using another church’s articles, bylaws, or Application to Register a Charity as a template without proper adaptation.
Why It’s a Problem:
Each church has unique circumstances and needs
Generic documents often contain errors or irrelevant clauses
CRA notices boilerplate applications and scrutinizes them more carefully
May not comply with your specific provincial requirements
How to Avoid It: Use templates as a starting point only. Customize all documents to reflect your church’s actual structure, beliefs, and plans. Have a lawyer review before filing.
8. Unclear or Overly Broad Purpose Statements
The Mistake: Writing vague purposes like “to help people” or overly broad purposes that include non-charitable activities.
Why It’s a Problem:
CRA requires specific charitable purposes
Vague purposes invite CRA questions and delays
Broad purposes may include non-charitable elements that disqualify you
How to Avoid It: Be specific about your religious purposes. Use language like “to advance the Christian faith through worship, religious education, and community ministry” rather than “to help the community.”
9. Starting Operations Before Proper Registration
The Mistake: Holding services, collecting donations, and issuing receipts before completing incorporation and charitable registration.
Why It’s a Problem:
Operating without incorporation removes liability protection
Cannot legally issue donation receipts without charitable registration
Donors cannot claim tax credits
May create personal tax liability
How to Avoid It:
Complete incorporation before commencing formal operations
Wait for charitable registration before issuing donation receipts
You can hold informal gatherings, but don’t collect significant funds until properly registered
10. Ignoring Provincial Requirements When Federally Incorporated
The Mistake: Thinking federal incorporation means you don’t need to register in provinces where you operate.
Why It’s a Problem:
May still need to register for provincial sales tax
Need to register for provincial payroll accounts if hiring staff
May need extra-provincial registration for certain activities
How to Avoid It: Research specific requirements in each province where you’ll operate, even with federal incorporation.
What If My Church’s Charitable Application Is Denied?
Not all church applications for charitable status are approved on the first try. Here’s what you need to know if you receive a denial:
Common Reasons for CRA Denial:
Insufficient Public Benefit:
Activities appear to benefit a private group rather than the broader public
Limited access to services or membership
Family-run organization with insufficient community involvement
Insufficient demonstration of financial accountability
No clear plan for sustainability
Governance Concerns:
Inadequate bylaws or articles
Board members who don’t meet CRA requirements
Conflicts of interest not properly addressed
Documentation Issues:
Incomplete Application to Register a Charity
Missing required supporting documents
Inconsistencies between different documents
What Happens After a Denial?
CRA Notification:
You’ll receive a detailed letter explaining the reasons for denial
Letter will specify what requirements weren’t met
You have 90 days to respond or appeal
Your Options:
Option 1: Provide Additional Information (Within 90 Days)
Submit clarifying documents
Explain misunderstandings
Provide evidence you meet requirements
CRA will reconsider based on new information
Option 2: Revise and Reapply (After Addressing Issues)
Fix the problems identified in the denial letter
Revise governing documents if needed
Submit a new application
No waiting period required if you address the issues properly
Option 3: File an Objection (Within 90 Days)
Formal appeal process if you believe the denial was incorrect
Must provide detailed reasons why you disagree
CRA Appeals Division will review
Can take 6-12 months for resolution
Option 4: Operate as Nonprofit Without Charitable Status
Continue operating as an incorporated nonprofit
Cannot issue donation receipts
No tax-exempt status
Can reapply for charitable status in the future
Tips for Successful Reapplication:
Address Every Issue:
Carefully read the denial letter
Fix each specific problem mentioned
Don’t just resubmit the same application
Strengthen Your Application:
Provide more detailed activity descriptions
Include concrete examples of how you’ll benefit the public
Show evidence of community need
Demonstrate financial viability
Seek Professional Help:
Consider hiring a charity lawyer for reapplication
Lawyers familiar with CRA requirements can significantly improve approval chances
Investment in legal help often saves time and future problems
Document Everything:
Keep copies of all correspondence with CRA
Maintain records of how you addressed each concern
Show progress on implementing required changes
How Long Until You Can Reapply?
Good news: There’s no mandatory waiting period. You can reapply as soon as you’ve addressed the issues that caused the denial. However:
Take time to properly fix the problems
Don’t rush a reapplication with the same flaws
Most successful reapplications happen 2-6 months after denial
Operating Without Charitable Status:
If you decide not to reapply or need time to build your church before trying again:
You Can:
Operate legally as an incorporated nonprofit
Hold religious services and activities
Accept donations (but cannot issue tax receipts)
Build a track record of activities
Reapply for charitable status later when better positioned
Benefits of Waiting:
Demonstrate established operations and community benefit
Build financial history and stability
Refine governance structure
Develop clear track record for CRA
Many churches successfully operate for 1-2 years as nonprofits before applying for charitable status, which can actually strengthen their applications.
Final Thoughts: Should You Register Your Church as a Charity?
Registering a church as a nonprofit provides legal protection and structure, while obtaining charitable status offers tax benefits and donation advantages. If your church relies on donations, charitable registration is highly recommended.
Have more questions about registering your Canadian temple or church?
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.
How long does it take to register a church in Canada?
The complete process takes 3-12 months total. Incorporation takes 2-6 weeks, while CRA charitable registration takes 6-12 months. You can operate as a nonprofit immediately after incorporation, but must wait for charitable registration before issuing donation receipts.
Can I start a church without incorporation?
Yes, but it’s not recommended. Without incorporation, you have no liability protection, cannot apply for charitable status, cannot own property in the church’s name, and have less credibility with donors. Most churches incorporate immediately for legal protection.
Do I need a physical location to register a church in Canada?
No, you don’t need a church building. Many churches start by meeting in homes or renting community spaces. You only need a registered office address (can be a home address) and evidence of regular religious activities.
How many members do I need to start a church in Canada?
There’s no minimum number of members, but you need at least 3 directors for your board. For charitable registration, most churches have at least 15-25 regular participants to demonstrate public benefit rather than being a private family group.
What’s the difference between registered and unregistered churches in Canada?
An unregistered church has no legal status or liability protection and cannot issue donation receipts. A registered nonprofit church has legal protection but still cannot issue receipts. A registered charity church can issue donation receipts, receives tax-exempt status, but must meet CRA compliance requirements.
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.
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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.
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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.
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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.
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How Do You Register Your Federal Nonprofit or Charity as an Extra-Provincial Corporation in Ontario?
Are you planning to operate your federally incorporated nonprofit or charity in Ontario? If so, you’ll need to register it as an extra-provincial corporation with the Ontario Business Registry. This step ensures that your organization follows provincial laws, avoids penalties, and can operate, fundraise, and grow within Ontario legally.
This guide explains what extra-provincial registration means, how to do it, and also answers common questions like:
How much does it cost to register a nonprofit in Ontario?
What’s the difference between a nonprofit and a charity?
Can you start a nonprofit by yourself in Canada?
Is there a difference between “nonprofit” and “not-for-profit” in Ontario?
Let’s break it down.
Understanding Federal Versus Provincial Incorporation
When deciding between federal and provincial incorporation for a nonprofit or charity, it’s important to understand the legal frameworks and operational realities involved.
Each option offers distinct benefits and responsibilities that affect how we manage and expand our organization in Ontario and across Canada.
Key Differences Between CNCA and ONCA
The Canada Not-for-profit Corporations Act (CNCA) governs federal incorporation and provides a national standard.
It allows us to operate across all provinces without needing to re-incorporate. In contrast, the Ontario Not-for-profit Corporations Act (ONCA) applies only to Ontario-based nonprofits.
Under CNCA, our organization’s name is protected nationwide after approval. With ONCA, name protection applies only within Ontario.
Federal corporations must still register as extra-provincial when working in another province. Provincial corporations generally don’t have this national reach without extra registration.
These two acts also differ in meeting and reporting requirements. CNCA has detailed rules for member rights and annual filings.
ONCA has more flexibility but applies only within Ontario’s jurisdiction.
Wondering how federal nonprofits and charities can operate in Ontario? Learn more about CNCA vs. ONCA and explore our guide to extra-provincial registration.
It grants name protection across all provinces and territories, reducing the risk of similar names in other jurisdictions.
Federal incorporation makes it easier to open branches or conduct fundraising activities nationwide without forming new corporations.
It also enhances recognition; federally incorporated nonprofits are often seen as more credible by funders and partners outside Ontario.
Additionally, Corporations Canada provides online services to file documents and pay fees. This streamlines administrative work for organizations managing activities in multiple provinces.
Implications of Provincial Registration
Even federally incorporated nonprofits operating in Ontario must register as extra-provincial corporations under Ontario law.
This means filing documents with the Ontario government to obtain permission to carry out activities here.
Without this extra-provincial registration, we risk penalties or legal issues. The process includes submitting forms, paying fees, and keeping up with Ontario’s reporting rules.
Provincial incorporation under ONCA avoids the extra-provincial step if we work only in Ontario.
However, expanding outside Ontario requires registration in every other province where we operate. This can add complexity and costs.
Balancing extra-provincial requirements with our operational goals helps us choose the best path for managing our nonprofit or charity.
What is Extra-Provincial Registration in Ontario?
If your nonprofit or charity is incorporated federally or in another province, and you want to carry out activities in Ontario (like fundraising or hosting events), you must register as an extra-provincial corporation.
This registration tells the Ontario government that you’re doing business in the province and agree to follow its rules for nonprofits and charities.
Why You Need to Register
Registering your organization as an extra-provincial corporation allows you to:
Legally operate and fundraise in Ontario
Build trust with donors, volunteers, and grant providers
Avoid fines or penalties for non-compliance
If you skip registration, your nonprofit may not be allowed to open a bank account, apply for grants, or sign contracts in Ontario.
Step-by-Step: How to Register Your Federal Nonprofit or Charity in Ontario
Here’s a simple guide to help you through the process:
1. Confirm Federal Incorporation
Your organization must already be incorporated federally through Corporations Canada. This allows you to operate in any province, but each province including Ontario has extra steps to complete.
2. Gather Your Documents
You’ll need the following:
Certificate of Incorporation from Corporations Canada
Articles of Incorporation showing your purpose and structure
Certificate of Good Standing (proof that your nonprofit is following federal rules), when applicable
3. Complete the Ontario Application
Go to the Ontario Business Registry and fill out the Extra-Provincial Corporation application. Make sure the name and information match exactly what’s on your federal documents.
4. Appoint an Agent for Service in Ontario
You must list someone who lives in Ontario and can receive legal documents on your behalf. This can be:
A board member
A lawyer
A trusted person with a physical address in Ontario
5. Submit Your Application
Once you complete the form and upload your documents, submit everything online through the Ontario Business Registry.
6. Get Your Registration Details
After approval, you’ll receive:
An Ontario Corporation Number (OCN)
Your entity’s registered name
A transaction number
These will be needed for banking, grant applications, and other official uses.
How Much Does It Cost to Register a Nonprofit in Ontario?
The cost to register as an extra-provincial nonprofit in Ontario is currently free (as of 2025), when done through the Ontario Business Registry and where the nonprofit is incorporated federally. However, you may also have small additional costs for legal help or document preparation, or where the nonprofit is incorporated in a different province.
You should also factor in yearly maintenance costs, such as annual filings or professional assistance to keep your organization in good standing.
What’s the Difference Between a Nonprofit and a Charity in Canada?
Understanding the difference between a nonprofit and a charity in Canada is crucial before registering your organization as an extra-provincial corporation in Ontario, as each type has distinct registration requirements and procedures.
Many people use these terms interchangeably, but they’re not the same.
Nonprofit Organization
Registered Charity
Can operate for social, recreational, or advocacy purposes
Must have charitable purposes (e.g., relieving poverty, advancing education)
Cannot issue tax receipts for donations
Can issue official tax receipts for donations
Registered only under federal or provincial nonprofit laws
Must be approved and registered by the Canada Revenue Agency (CRA)
Less strct reporting rules
Must file an annual T3010 return and follow CRA rules
So, all charities are nonprofits, but not all nonprofits are charities.
What’s the Difference Between “Nonprofit” and “Not-for-Profit” in Ontario?
In Ontario, the terms nonprofit and not-for-profit mean the same thing. Both refer to organizations that do not operate to make a profit for owners or shareholders. Instead, they use their income to support their mission.
Can I Start a Nonprofit by Myself in Canada?
Yes, you can! Many people start nonprofits on their own, especially at the federal level. However, to legally incorporate your nonprofit in Ontario and most provinces, you’ll need to list at least three directors who are over 18 years old and not bankrupt. On the federal level, you can incorporate a nonprofit with just 1 director.
You can be one of the directors and bring in trusted friends, family members, or colleagues who share your vision.
Tips for a Smooth Registration
Double-Check Everything: Make sure all names, dates, and addresses match exactly with your federal records.
Stay Compliant: After registration, you must file annual returns in both Ontario and with Corporations Canada to keep your nonprofit active.
Get Help If Needed: A lawyer or nonprofit consultant can help you avoid mistakes and delays.
Benefits of Extra-Provincial Registration
Registering your federally incorporated nonprofit or charity in Ontario gives you:
Access to Ontario grants and provincial partnership programs
Room to grow your programs across Canada’s largest province
Compliance and Ongoing Obligations After Registration
Registering as an extra-provincial corporation in Ontario is just the beginning.
We must stay up to date with ongoing reporting, keep our corporate information current, and maintain any necessary permits or tax accounts.
These steps help us comply with provincial rules and keep our nonprofit in good standing with the Ontario Business Registry.
Annual Return and Reporting
We have to file an annual return with the Ontario Business Registry to maintain our registration as an extra-provincial corporation.
This return confirms our organization’s details and shows we are active in Ontario.
Typically, the annual return includes updates on the corporation’s directors, address, and contact information.
Failing to file the annual return on time can result in penalties or even the cancellation of our registration.
We must also continue filing any required reports federally with Corporations Canada.
Together, these filings keep us compliant with both provincial and federal regulations.
Updating Corporate Information
When any key changes happen—like amendments to our articles of incorporation, changes in directors, or a new registered agent in Ontario—we need to update the Ontario Business Registry.
Keeping our corporate information accurate is essential for legal notices and official communications.
We should submit updates promptly to avoid non-compliance.
The Registry requires updated forms and may charge fees for some changes.
Designating a reliable agent for service in Ontario ensures someone is always available to receive legal documents on our behalf.
Permits, Licences, and Tax Accounts
Operating legally in Ontario may require permits or licences depending on our activities.
We need to check municipal and provincial requirements to hold any necessary permissions, especially if we fundraise or hold events.
We also must keep any tax accounts in good standing, including those related to the Canada Revenue Agency and the Ontario Ministry of Finance.
This includes registering for charitable tax exemptions if applicable and remitting any required filings.
Staying on top of these ensures we avoid fines and protect our organization’s reputation.
Professional Support and Resources for Nonprofits
Navigating the registration of a federal nonprofit as an extra-provincial corporation in Ontario can involve complex legal and procedural requirements.
Expert advice, reliable service providers, and trustworthy resources can make this process smoother and help maintain ongoing compliance with Ontario’s laws.
Legal and Compliance Advisory
We recommend consulting knowledgeable legal advisors who specialize in nonprofit and charity law.
They ensure your application meets all Ontario requirements and help avoid costly errors.
Legal experts can explain the differences between nonprofit and charity statuses, guide you on appointing directors, and review your governing documents.
Organizations like B.I.G. Charity Law Group offer tailored services to handle registration paperwork correctly.
They also provide ongoing compliance advice, such as annual filing requirements and how to manage legal obligations after registration.
Though legal help is not mandatory, it significantly reduces the risk of delays or rejection of your application.
Using Intermediaries and Service Providers
We often use intermediaries or service providers that specialize in nonprofit registrations.
These services can handle your Ontario Business Registry filings, collect necessary documents, and liaise with provincial authorities on your behalf.
Using trusted intermediaries saves time and reduces stress.
They ensure your federal incorporation details match exactly in the Ontario application.
Some providers also offer packages that include guidance for future annual reports or changes to your corporation’s structure.
Choosing well-reviewed firms or groups with experience in Ontario’s nonprofit sector adds confidence.
This is especially useful if your team lacks familiarity with extra-provincial registration procedures.
Where to Find Additional Guidance
Official government sites and nonprofit-focused organizations provide up-to-date information. The Ontario Business Registry website serves as the main portal for submitting extra-provincial registration applications.
It offers guides and FAQs to explain steps and document requirements. The Canada Revenue Agency and Corporations Canada websites give details on federal incorporation and charity status.
Ontario nonprofits often consult professional groups like B.I.G. Charity Law Group for legal insights. These groups support charities and nonprofits across Canada.
Joining local nonprofit associations or networks connects you with peers and experts. You can receive informal advice and learn from shared experiences.
Final Thoughts
Registering your federal nonprofit or charity as an extra-provincial corporation in Ontario may seem like just another task, but it’s a key step toward growth, compliance, and success.
Whether you’re starting small or expanding into new regions, this registration will help your organization reach more people, access new resources, and make a greater impact across Ontario.
Need Help?
If you’re unsure about how to register your federal nonprofit or charity as an extra-provincial corporation in Ontario, we’re here to help. We’ve helped hundreds of organizations expand legally and confidently into Ontario
We’ve received more than 835+ 5-star Google reviews from charities and nonprofits across Canada who trust us to get it right.
Let us take care of the paperwork so you can focus on your mission.
Frequently Asked Questions
We answer common questions about incorporating nonprofits in Ontario and how extra-provincial registration works. We also explain when you need to register and the steps involved.
Costs linked to extra-provincial registration for nonprofits are also covered.
Should I incorporate federally or provincially in Ontario?
Federal incorporation allows your nonprofit to operate across Canada. Provincial incorporation limits your activities to Ontario.
If you want to work outside Ontario, federal incorporation gives you more flexibility. Provincial incorporation may be simpler if you only plan to work within Ontario.
What is extra-provincial registration in Canada?
Extra-provincial registration means you register a corporation from one jurisdiction to operate in another. For nonprofits, this involves registering your federally or out-of-province incorporated organization in Ontario to meet provincial requirements.
When is extra-provincial registration required for a nonprofit or charity in Ontario?
If your federally incorporated nonprofit or charity plans to operate in Ontario, such as fundraising or hosting events, you must register as extra-provincial. This registration tells Ontario your organization is active there and ensures you follow provincial laws.
Without registration, you may face penalties or restrictions on banking and contracts.
What does it mean to register as an extra-provincial corporation in Ontario?
Registering as an extra-provincial corporation means your nonprofit agrees to follow Ontario’s legal rules while operating in the province. This status lets you fundraise, open bank accounts, apply for grants, and enter contracts in Ontario.
What steps must be taken to register as an extra-provincial corporation in Ontario?
First, confirm your federal incorporation status. Next, gather your federal documents, such as your Certificate of Incorporation and Articles of Incorporation.
Then, fill out the application online through the Ontario Business Registry. You must also appoint an agent for service in Ontario, who has a physical Ontario address to receive legal documents.
Finally, submit your application with all required documents and wait for approval.
Is there a cost associated with extra-provincial registration for nonprofits in Ontario?
As of 2025, you can register federally incorporated nonprofits as extra-provincial corporations in Ontario for free through the Ontario Business Registry.
If you hire legal help or your nonprofit is incorporated in another province, you may have extra expenses.
Yearly filing fees and maintenance costs may also apply.
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.
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Charity organizations in Canada are not fully exempt from sales tax. The rules can be confusing.
While registered charities do not pay income tax, they must still deal with GST/HST on many goods and services they buy and sell. The federal government provides some tax breaks and rebates.
Charities need to understand when they must charge tax, when they can claim refunds, and when certain activities qualify for exemptions. The relationship between charities and sales tax involves multiple factors.
Registration requirements depend on the organization’s revenue and activities. Some supplies that charities make are exempt from GST/HST, while others are taxable.
Charities may also qualify for rebates that recover part of the tax they pay on purchases. Understanding these rules helps charity organizations stay compliant and avoid unexpected tax bills.
This article breaks down how GST/HST applies to charities, what exemptions exist, and how to handle registration and reporting. It also covers common situations like fundraising events, donations, and property transactions.
Charity Organizations and Sales Tax Exemption in Canada
Registered charities in Canada face specific rules regarding GST and HST. Some activities qualify for exemption while others remain taxable.
The Canada Revenue Agency administers these tax requirements. These rules differ from income tax exemptions.
Overview of GST and HST for Charities
The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) apply to most transactions in Canada, including those involving registered charities. The Canada Revenue Agency does not provide blanket sales tax exemptions to charities just because they are registered.
Charities must pay GST/HST on most purchases they make, though they can claim rebates on eligible expenses. Registered charities may need to register for GST/HST if their taxable supplies exceed specific thresholds.
The small supplier limit for charities uses a gross revenue test with a threshold of $250,000 per fiscal year. Charities that remain below this limit in either of their two previous fiscal years do not need to register.
When charities do register, they must collect and remit GST/HST on taxable supplies they provide. They can claim input tax credits on business-related purchases and access a public service bodies’ rebate of 50% on eligible non-creditable GST/HST paid.
Criteria for Sales Tax Exemption
Registered charities receive tax-exempt status for specific types of supplies, not a complete exemption from all sales tax. The exemptions apply to particular activities and revenue sources defined by the Excise Tax Act.
Donations and gifts to charities are not subject to GST/HST because they are not considered supplies under tax law. The donor receives nothing of value in exchange for the donation.
Grants and subsidies received by charities also fall outside the scope of GST/HST. Government funding to charities typically does not attract GST/HST.
Sponsorship arrangements may involve taxable supplies if the sponsor receives advertising or promotional benefits in return. These require careful analysis.
Definition of Taxable and Exempt Supplies
Charities deal with three types of supplies under GST/HST law: exempt supplies, taxable supplies, and zero-rated supplies. Understanding the differences helps organizations manage their tax obligations and maximize savings.
Exempt supplies are goods and services that charities provide without charging GST/HST. Common exempt supplies for charities include:
Most charitable programme services delivered directly to beneficiaries
Certain educational services
Healthcare services provided by qualifying organizations
Supplies of used donated goods
Taxable supplies require charities to collect and remit GST/HST at applicable rates. These include:
Commercial activities such as retail sales of new merchandise
Rental income from commercial properties
Admission fees to certain events
Sales of goods or services in competition with commercial businesses
Zero-rated supplies are a special category that many charities overlook. Zero-rated supplies are technically taxable, but the tax rate is 0%. This distinction creates a significant financial advantage.
Zero-rated supplies include:
Basic groceries
Prescription drugs and certain medical devices
Exports of goods and services
Certain agricultural and fishing products
Why zero-rated supplies matter for charities: When a charity makes exempt supplies, it cannot claim input tax credits on related purchases. The charity pays GST/HST on those expenses without recovery, though the public service bodies’ rebate may provide 50% relief.
However, when a charity makes zero-rated supplies, it charges 0% tax AND can claim full input tax credits on all related purchases. This means the charity recovers 100% of the GST/HST it paid on expenses tied to zero-rated activities.
Example: A charity runs a food bank that distributes basic groceries (zero-rated supplies). The charity can claim full input tax credits on the GST/HST it pays for warehouse rent, delivery vehicles, and other operating costs. This creates substantial savings compared to exempt activities.
Many charity treasurers miss this opportunity because zero-rated and exempt supplies seem similar—neither requires charging tax to customers. The key difference lies in the ability to recover input tax credits.
Charities cannot claim input tax credits on purchases related to exempt supplies. They pay GST/HST on these expenses without recovery, though the public service bodies’ rebate may provide partial relief.
GST/HST Rules for Charities and Non-Profit Organizations
Charities and non-profit organizations in Canada face specific GST/HST obligations. These differ from regular businesses and include special exemptions, rebates, and registration thresholds based on revenue and activities.
The CRA treats registered charities and qualifying NPOs differently under tax law. Relief is offered through PSB rebates and small supplier provisions.
GST/HST Obligations for Registered Charities
Registered charities must charge GST/HST on taxable supplies they make, even though they are exempt from income tax. They collect tax on goods and services sold in commercial activities.
Many charity activities qualify as exempt supplies, meaning no GST/HST applies to these transactions. Charities cannot claim input tax credits on purchases related to exempt supplies.
When they buy goods or services to support exempt activities, the GST/HST paid becomes a cost to the organization. The CRA defines commercial activity as business operations that generate taxable revenue, excluding exempt supplies and activities without a reasonable expectation of profit.
Registered charities must register for GST/HST if they exceed the small supplier threshold. Once registered, they charge 5% GST in most provinces or the HST rate in participating provinces.
The HST rate varies from 13% to 15% depending on the province.
GST/HST Rules for NPOs Versus Charities
The CRA applies different rules to NPOs compared to registered charities. NPOs that are not registered charities face stricter exemption rules and may qualify for fewer tax benefits.
Both groups can access exempt supply provisions, but the scope differs based on their activities and registration status. Qualifying NPOs receive certain exemptions on supplies like membership fees, meal services to members, and fundraising activities.
These exemptions reduce their GST/HST burden. NPOs must still charge GST/HST on taxable supplies outside these exemptions.
Registered charities benefit from broader exemptions than non-registered NPOs. They can issue official donation receipts for income tax purposes, which NPOs cannot do unless they hold charity status.
This distinction affects how each organization handles donations and gifts under GST/HST rules.
PSB Rebates and Tax Credits
The public service bodies (PSB) rebate allows charities to recover a portion of GST/HST paid on eligible purchases. Registered charities can claim a 50% rebate on GST/HST paid for goods and services used in non-commercial activities.
This rebate helps offset costs when organizations cannot claim full input tax credits. Charities that are GST/HST registrants can claim input tax credits for purchases related to commercial activities.
They use the PSB rebate for expenses tied to exempt activities. Organizations cannot claim both an input tax credit and a PSB rebate on the same expense.
The rebate calculation requires charities to track expenses carefully. They must separate costs between commercial and non-commercial activities.
The CRA provides specific forms and reporting requirements for claiming PSB rebates. Charities file these based on their reporting period.
Small Supplier Threshold and GST/HST Registration
Charities qualify as small suppliers if their gross revenue from taxable supplies does not exceed $50,000 over four consecutive calendar quarters. A separate test applies based on total gross revenue of $250,000 or less in either of the two previous fiscal years.
Understanding whether your charity needs to register requires a two-step evaluation:
Step 1: Taxable Supplies Test
Calculate your taxable supplies (excluding exempt and zero-rated supplies) over the past four calendar quarters
If this amount is $50,000 or less, you pass this test
If it exceeds $50,000, you must register within 29 days
Step 2: Gross Revenue Test
Calculate your total gross revenue (all revenue from any source, including donations, grants, investment income, and property income) for each of your two previous fiscal years
If both years are $250,000 or less, you pass this test
If either year exceeds $250,000, you must register within 29 days
Your charity qualifies as a small supplier only if it passes BOTH tests. If you exceed either threshold, registration becomes mandatory.
Small Supplier Threshold Decision Process
START: Does Your Charity Need to Register for GST/HST?
↓
STEP 1: Taxable Supplies Test Calculate your taxable supplies over the past 4 consecutive calendar quarters
↓
Is it $50,000 or less?
NO (Exceeds $50,000)
⚠️ Must Register Within 29 Days
───────────────────
YES ($50,000 or less)
↓
STEP 2: Gross Revenue Test Calculate your total gross revenue for each of the 2 previous fiscal years (Include all revenue: donations, grants, business income, investments, property income)
↓
Are BOTH years $250,000 or less?
YES
NO
↓
↓
✓ Small Supplier No Registration Required (Voluntary registration available)
⚠️ Must Register Within 29 Days
Important: Your charity qualifies as a small supplier only if it passes BOTH tests. If you exceed either threshold, GST/HST registration becomes mandatory within 29 days.
Small suppliers do not have to register for GST/HST, though they can register voluntarily. The gross revenue test includes business income, donations, grants, gifts, property income, and investment income.
Charities in their first fiscal year do not need to register. In the second fiscal year, they calculate revenue from the first year to determine small supplier status.
Once a charity exceeds these thresholds, it must register for GST/HST within 29 days. Registration requires the organisation to start charging and remitting GST/HST on taxable supplies.
The CRA assigns a GST/HST account number that appears on all tax documents and invoices.
Registration, Reporting, and Compliance Requirements
Charitable organizations and non-profits in Canada must meet specific registration standards with the Canada Revenue Agency. They must also fulfill ongoing reporting obligations.
These requirements include tax filing, financial reporting, and detailed record-keeping to maintain tax-exempt status.
Registering as a Charity or NPO with the CRA
Organizations seeking tax-exempt status must register with the Canada Revenue Agency. Registered charities apply through the CRA’s Charities Directorate.
They must show they operate exclusively for charitable purposes such as relieving poverty, advancing education, or benefiting the community. The application process requires detailed documentation about the organization’s activities, governance structure, and financial plans.
Organizations must show they will devote their resources to charitable activities and meet specific legal requirements under the Income Tax Act.
Key registration requirements include:
Written governing documents outlining charitable purposes
Details about directors and organizational structure
Description of planned activities and programs
Financial information and funding sources
Non-profit organizations that do not register as charities can still qualify for income tax exemptions. They must operate exclusively for non-profit purposes without distributing income to members.
The CRA evaluates each organization based on its structure and activities.
Tax Filing and Information Returns
Registered charities must file a T3010 Registered Charity Information Return annually within six months of their fiscal year-end. This form requires detailed financial information, program descriptions, and information about directors and key personnel.
Missing the filing deadline triggers automatic penalties and can lead to revocation of charitable status. Non-profit organizations file a T1044 Non-Profit Organization Information Return within six months of their fiscal year-end.
This applies even when the organization qualifies for income tax exemption. The information return includes total revenues and expenses, assets and liabilities, and details about activities and programs.
Organizations registered for GST/HST must file separate tax returns based on their annual taxable revenue. Those with revenue under $500,000 typically file annually, while larger organizations file quarterly or monthly.
Charities use Form GST34-2 or Form GST62 for these filings.
Financial Reporting Obligations
The Canada Revenue Agency requires charities and non-profits to maintain accurate financial records that reflect their operations. Organizations must report all revenues by source, including donations, grants, membership fees, and program income.
They must also detail expenditures on charitable activities, administration, and fundraising. Registered charities must meet specific disbursement requirements by spending a minimum amount on charitable activities each year.
They report these expenditures on the T3010 return along with explanations of programs and services provided. Organizations with both exempt and taxable activities must track these separately for proper GST/HST reporting.
This separation helps calculate partial rebates and input tax credits accurately. Provincial reporting requirements may also apply depending on where the organization operates or solicits donations.
Some provinces require separate registration and annual filings for organizations conducting fundraising activities.
Record-Keeping and CRA Compliance
Organizations must keep detailed records for all transactions, including receipts, invoices, bank statements, and donation records. The Canada Revenue Agency requires records to be retained for at least six years from the end of the tax year they relate to.
Proper documentation supports tax filings and demonstrates compliance with CRA regulations. Essential records include:
Official donation receipts and donor information
Financial statements and accounting records
Minutes of board meetings and governance documents
Contracts, agreements, and supporting documentation
The CRA conducts audits and reviews to verify compliance with tax rules and charitable activities. Organizations must provide requested documentation promptly during these reviews.
Non-compliance can result in penalties, loss of tax-exempt status, or revocation of charitable registration for serious violations. Charities must also maintain books of account showing GST/HST collected and paid, along with calculations for rebate claims.
These records support the 50% rebate on eligible purchases and help determine net tax obligations.
Fundraising, Donations, and Tax Implications
Charitable organizations handle different types of revenue that receive varying tax treatment under Canadian law. Fundraising activities, donation receipts, and commercial operations each follow specific GST/HST rules.
These rules affect how charities manage their finances and issue tax documentation.
GST/HST Treatment of Fundraising Activities
Most fundraising activities conducted by registered charities are exempt from GST/HST. This exemption covers typical fundraising events like charity dinners, auctions, and donation campaigns where the main purpose is to raise funds for charitable work.
Certain fundraising activities may be taxable. When a charity sells goods or services at fair market value without a clear donative intent, these transactions become taxable supplies.
The distinction depends on whether the transaction is primarily a sale or a donation. Government funding and grants received by charities are not subject to GST/HST.
These funds are considered outside the scope of GST/HST legislation because they do not constitute consideration for a taxable supply. Charities should track their fundraising activities separately from commercial operations.
This separation helps determine which revenues qualify for tax exemptions and which require GST/HST collection and remittance.
Donation Receipts and Sales Tax
Registered charities can issue official donation receipts for eligible gifts. These receipts relate to income tax, not sales tax.
The receipt allows donors to claim income tax deductions. It does not affect GST/HST obligations.
Split receipting applies when donors receive benefits in exchange for their contributions. The charity must calculate the value of the benefit and deduct it from the donation amount.
Only the eligible portion appears on the official receipt.
Sponsorships require careful evaluation. When a business receives advertising or promotional benefits in exchange for payment, the transaction may be a taxable supply instead of a donation.
The charity cannot issue a donation receipt for the portion that represents payment for advertising services.
Charities must distinguish between donations and payments for goods or services. This distinction determines both the ability to issue tax receipts and the GST/HST treatment of the transaction.
Commercial Activities and Taxable Revenue
Charities that engage in commercial activities may generate taxable income subject to GST/HST. These activities include operating retail stores or selling products that compete with commercial businesses.
Related business activities receive different treatment than unrelated businesses. A related business directly supports the charity’s purposes or relies on volunteer labour.
These activities may qualify for preferential tax treatment.
Taxable commercial activities require:
GST/HST registration if annual taxable revenue exceeds $50,000
Collection of appropriate GST/HST on taxable supplies
Regular filing of GST/HST returns
Proper documentation of all commercial transactions
Charities can claim Input Tax Credits (ITCs) on expenses related to commercial activities. They cannot claim ITCs for expenses used only in exempt activities.
Mixed-use expenses require allocation between taxable and exempt activities to determine the eligible ITC amount.
Payroll, Investments, and Other Revenue Sources
Charities must handle payroll obligations, investment earnings, and asset-based revenue according to specific tax rules. These income sources face different tax treatments than donation revenue.
Payroll Deductions and Employment Compliance
Charities must make payroll deductions for all employees. This includes Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums from employee wages.
The charity acts as an employer and must remit both the employee and employer portions to the Canada Revenue Agency.
Charities cannot avoid payroll taxes even when they qualify for income tax exemptions. They must register for a payroll account if they pay salaries or wages.
This requirement applies whether the charity is registered or operates as a non-profit organization.
Employment compliance includes issuing T4 slips to employees and filing information returns. Charities face the same payroll deadlines and penalties as for-profit businesses.
Religious organizations and faith-based charities follow identical payroll rules.
Investment Income, Dividends, Interest, and Rentals
Investment income earned by charities is generally tax-exempt when the funds support the organization’s charitable purpose. This includes dividends, interest, and capital gains from selling investments.
The charity must use these earnings to advance its mission, not distribute them to members or directors.
Rental income from property owned by a charity usually qualifies as exempt income. The property must support the charitable purpose or generate funds for charitable activities.
Charities cannot use rental properties mainly for private benefit.
The tax exemption on investment income applies only to registered charities. Non-profit organizations that are not registered charities may face tax on some investment earnings.
Charities must track all investment revenue and include it in their gross revenue calculations for GST/HST small supplier status.
Royalties, Assets, and Financial Management
Charities can earn royalties from intellectual property, publications, or other assets without losing tax-exempt status. These revenues must support the organization’s charitable work.
The charity should manage royalty agreements to ensure they align with its mission and comply with Canada Revenue Agency requirements.
Asset management is important for maintaining tax exemptions. Charities must use their assets to further charitable purposes rather than generate excessive commercial income.
Unrelated business activities may create taxable income even for registered charities.
Financial management requires charities to keep detailed records of all revenue sources. Organizations must distinguish between different types of income for reporting purposes.
Proper asset tracking helps charities demonstrate compliance during Canada Revenue Agency audits and maintain their registered status.
Tax Planning, Best Practices, and Avoiding Common Pitfalls
Charity organizations must balance tax exemptions with GST/HST obligations while maintaining accurate records. Strong financial management protects tax-exempt status and ensures resources serve charitable purposes instead of covering penalties or compliance costs.
Strategies for Effective Tax Planning
Effective tax planning starts with understanding which activities generate taxable or exempt supplies. Charities should document each revenue stream and classify it correctly to calculate net tax obligations accurately.
Organizations need to track GST/HST paid on all purchases throughout the year. This documentation supports input tax credit claims and the 50% rebate available to registered charities.
Without proper records, charities lose money they could recover.
Key planning strategies include:
Reviewing supply classifications annually as programs change
Timing major purchases to align with filing periods
Separating accounts for taxable and exempt activities
Consulting with tax professionals before launching commercial ventures
Many charities benefit from voluntary GST/HST registration even below the $50,000 threshold. This allows them to claim input tax credits on purchases when exempt supplies dominate their revenue mix.
Organizations making substantial taxable purchases should calculate whether registration reduces their overall tax burden.
The net tax calculation becomes simpler when organizations maintain separate accounting for different activity types. Clear financial management systems prevent confusion during filing periods and support accurate rebate claims.
Common Tax Mistakes and How to Avoid Them
The most frequent mistake is misclassifying supplies as exempt when they are actually taxable. Fundraising event tickets, facility rentals, and merchandise sales often require GST/HST collection.
Charities that treat these as exempt may face penalties and back taxes.
Poor record-keeping creates serious tax challenges. Organizations must keep receipts, invoices, and documentation for at least six years.
Missing records prevent rebate claims and make audits difficult.
Common errors to avoid:
Missing registration deadlines after exceeding the $50,000 threshold
Claiming rebates on ineligible expenses like meals and entertainment
Mixing personal and organizational expenses
Failing to file returns on time even when no tax is owing
Not updating CRA when contact information or signing authorities change
Many charities incorrectly assume all their activities qualify for tax exemptions. Commercial activities and unrelated business income remain taxable even for registered charities.
Organizations need to assess each revenue source separately.
Late filing creates unnecessary costs. The CRA charges penalties starting at $25 monthly for small organizations, with higher amounts for larger groups.
Setting calendar reminders prevents these avoidable expenses.
Ensuring Long-Term Financial Sustainability
Long-term sustainability requires charities to build tax compliance into their operational planning. Organizations should budget for professional accounting services when internal expertise is limited.
The cost of proper guidance is far less than penalties for errors.
Boards of directors need basic understanding of tax rules affecting their organization. Regular training helps leadership make informed decisions about new programs or revenue sources.
Directors should review GST/HST procedures annually.
Financial management systems must grow with the organization. As charities expand beyond the small supplier threshold, they need more robust accounting processes.
Investing in proper software and training protects against future compliance problems.
Sustainability practices include:
Conducting annual reviews of tax exemptions and filing requirements
Building compliance costs into program budgets
Creating written procedures for GST/HST collection and remittance
Maintaining adequate financial reserves for unexpected tax obligations
Organizations should assess their tax position before adding new revenue streams. A simple analysis determines whether a proposed activity is taxable and how it affects overall compliance requirements.
This planning prevents surprises during tax season.
Conclusion
Charity organizations in Canada face specific GST/HST rules that differ from regular businesses. Most supplies made by registered charities are exempt from GST/HST, including donations, fundraising events where part qualifies as a charitable donation, and many donated goods sales.
However, charities must charge GST/HST on certain taxable supplies like admissions to events, recreational activities, and sales of goods in charity stores.
Registered charities can claim the Public Service Bodies’ Rebate to recover a portion of GST/HST paid on purchases, even when they don’t charge tax on their supplies.
Whether a charity needs to register for GST/HST depends on meeting small supplier limits, which use either a gross revenue test ($250,000 threshold) or taxable supplies test ($50,000 threshold).
The rules around real property, input tax credits, and determining which supplies are exempt versus taxable can become complex quickly.
Northfield & Associates, Global consulting firm helps charitable organizations navigate these GST/HST requirements and ensure compliance with Canada Revenue Agency regulations.
Our team understands the unique challenges charities face when managing tax obligations while focusing on their mission.
Charities in Canada face specific rules about tax exemptions, sales tax collection, and rebate claims. The answers below clarify common questions about how GST/HST applies to charitable organizations.
Are charities tax exempt in Canada?
Registered charities do not pay income tax on their earnings in Canada. The Canada Revenue Agency grants this exemption to organizations that hold registered charity status under the Income Tax Act.
However, tax-exempt status for income tax does not automatically mean exemption from all other taxes. Charities must still follow GST/HST rules when they buy or sell goods and services.
They may need to collect and remit sales tax depending on what they sell.
What is the tax exemption for donations?
Donations given to registered charities are not subject to GST/HST. The Canada Revenue Agency treats genuine donations as transfers of money without consideration, which means no goods or services are provided in exchange.
When a donor receives something of value in return, the transaction may not qualify as a true donation. If part of a payment is a donation and part is payment for goods or services, only the donation portion remains tax-exempt.
The remaining amount may be subject to GST/HST.
What is the most overlooked tax deduction in Canada?
Many charitable organizations overlook claiming Input Tax Credits on their business expenses. Registered charities that are also registered for GST/HST can claim ITCs to recover the sales tax they paid on eligible purchases.
The Public Service Bodies’ Rebate is another commonly missed opportunity. Eligible charities can claim a rebate of 50% of the GST/HST they paid on purchases that relate to exempt activities.
Some charities qualify for both ITCs and rebates on different types of expenses.
Are registered charities exempt from paying sales tax in Canada?
Registered charities must pay GST/HST on most purchases they make. Being a charity does not exempt an organization from paying sales tax to suppliers.
Charities can recover some of this tax through Input Tax Credits if they are registered for GST/HST. They can also claim the Public Service Bodies’ Rebate on eligible expenses.
The rebate amount is 50% of the GST paid and varies for the HST portion depending on the province.
Can charities avoid charging sales tax on goods or services they sell?
Most supplies made by charities are exempt from GST/HST. Exempt supplies include donation-based revenue, most fundraising activities where admission qualifies as a charitable donation, and sales of real property by charities.
Some supplies made by charities are taxable and require GST/HST collection. Taxable supplies include commercial sales of goods, certain services, and admission to events where no part qualifies as a charitable donation.
Charities must determine the tax status of each type of supply they make.
How can a charity claim a GST/HST rebate in Canada?
Charities claim rebates by filing the appropriate forms with the Canada Revenue Agency. The Public Service Bodies’ Rebate application requires documentation of eligible expenses and the GST/HST paid on those purchases.
Registered charities can claim a rebate of 50% of the GST paid on eligible purchases. They can also claim a portion of the HST paid, which varies by province.
Charities must track their expenses carefully. They should separate costs related to taxable activities from those related to exempt activities to calculate the correct rebate amount.
Legal Sources & References
Exempt Supplies Excise Tax Act, Schedule V (Lists healthcare, educational, and charity exemptions).
Zero-Rated Supplies Excise Tax Act, Schedule VI (Lists groceries, medical devices, exports).
CRA Guide RC4022 General Information for GST/HST Registrants (The official guide on how the $250k vs $50k thresholds work).
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 specialize 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, we specialize 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 strategic advisory and consulting firm partnering with private equity, sovereign, and institutional investors to deploy capital, manage regulatory, supporting senior leadership, boards, and capital providers across Cambodia, Canada, and international markets operating in complex regulatory, economic, and geopolitical environments, and drive enterprise value creation across complex global markets.
We advise boards, executives, entrepreneurs, and public-sector decision-makers on business strategy, institutional transformation, and high-stakes market challenges requiring disciplined judgment, capital efficiency, and execution certainty. Our work is concentrated across priority global sectors, including agribusiness, aviation and automotive, energy and natural resources, financial services, healthcare, infrastructure, real estate, immigration, education, and information technology.
Our platform integrates sector-specific intelligence with multidisciplinary advisory capabilities. Clients benefit from coordinated access to consulting, legal and regulatory counsel, financial management, risk assessment, real estate advisory, immigration, education, and technology expertise. This integrated model supports informed capital allocation, regulatory-compliant investment structuring, and execution-ready strategies designed to optimise returns, preserve downside protection, and enhance risk-adjusted performance.
Northfield combines consulting rigor with legal and regulatory judgment to support capital markets-aligned decision-making in complex, regulated, and rapidly evolving environments. We partner with private enterprises, institutional investors, family offices, and public-sector entities to structure, deploy, and manage capital effectively; strengthen governance; mitigate regulatory and geopolitical risk; and drive sustainable enterprise value creation.
Our engagements span strategy formulation, operational optimisation, organisational design, and change execution. We deliver measurable outcomes that improve financial performance, support disciplined growth, enhance valuation, and generate durable returns on investment for investors, shareholders, and institutional stakeholders. We operate with independence, precision, and accountability, aligned with long-term value creation and fiduciary standards.
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
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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.
Churches in Canada do not pay taxes because they operate as registered charities under Canadian law.
This allows them to avoid income tax, and their active church properties are usually exempt from property tax.
Most religious organizations in Canada qualify as registered charities, which exempts them from paying income tax and property tax on their main church buildings and related facilities.
This tax-free status has existed for decades and allows churches to focus resources on community programs and religious activities.
However, this arrangement faces growing scrutiny across the country.
Recent polls show Canadians are split on whether churches should keep these tax benefits, with debate intensifying over lost government revenue versus community benefits.
Understanding how these exemptions work, their impact on communities, and the ongoing controversies helps explain this complex issue affecting thousands of religious buildings nationwide.
Church Property Tax Exemptions and Their Local Impact
Churches across Canada receive significant property tax exemptions that reduce municipal revenue but support religious communities.
These exemptions vary by province and municipality, with some cities like Montreal implementing partial taxation systems for religious properties.
Municipal Property Tax Exemption Policies
Most Canadian municipalities exempt church properties from property taxes under provincial legislation.
However, some cities have begun charging partial taxes to religious institutions.
Iqaluit’s Partial Tax System:
Religious institutions pay 25% of their property tax
Exemptions must be renewed every three years
The local Catholic church pays approximately $40,000 annually
Montreal has implemented similar policies for certain religious properties.
The Anglican Church and other denominations now face partial taxation on some buildings.
Some municipalities require churches to demonstrate active worship use.
Properties used mainly for private meditation or non-religious activities may lose exemptions.
Key Requirements:
Active worship must be the primary purpose
Properties cannot be underutilized or vacant
Some cities require community benefit programs
Heritage Religious Buildings and Taxation
Historic churches face unique taxation challenges due to their heritage status and maintenance costs.
St. James the Apostle and similar heritage buildings often qualify for special considerations.
Heritage religious properties may receive:
Additional tax relief for restoration projects
Special assessment categories
Reduced rates for properties with historic designation
Maintenance Obligations:
Heritage churches must maintain their buildings to specific standards.
This creates financial pressure when combined with reduced exemptions.
Some provinces offer grants for heritage religious building preservation.
These programs help offset taxation increases and maintenance costs.
Municipal heritage committees work with religious organizations to balance tax revenue needs with preservation goals.
Church-Owned Land and Real Estate Assets
Churches owning multiple properties face varying tax treatment depending on property use.
Only land used directly for worship typically receives full exemption.
Exemption Categories:
Full exemption: Active worship spaces and connected land
Partial exemption: Church halls, administrative offices
No exemption: Rental properties, retail spaces, unused land
The Fung Loy Kok Institute case in Ontario established strict criteria for exemptions.
Courts rejected exemptions for properties used for:
Retail sales areas
Overflow camping areas
Private meditation spaces
Churches must carefully document how they use each property.
Volunteer-led activities may not qualify for the same exemptions as clergy-led worship.
Documentation Requirements:
Detailed usage records
Evidence of religious activities
Proof of community worship functions
Some churches now face reassessment of previously exempt properties.
Municipal assessors apply stricter standards to determine qualifying religious use.
Financial and Social Benefits of Tax-Exempt Churches
Churches in Canada provide financial value through housing programs, community support, and economic activity.
Research shows these contributions far exceed the tax revenue governments would collect from religious institutions.
Church Contributions to Affordable Housing and Social Services
Churches across Canada address the affordability crisis through direct housing programs and social services.
Many congregations operate affordable housing projects that provide below-market rent to low-income families and seniors.
Religious organizations run food banks, homeless shelters, and addiction recovery programs.
These services help communities during economic hardship and reduce pressure on government resources.
Churches also provide childcare services at reduced rates, helping working families manage costs.
Mental health counselling and refugee sponsorship programs represent other areas where churches fill service gaps.
These programs often operate with volunteer support, reducing costs compared to government-run alternatives.
Rent Subsidies and Support for Community Groups
Churches offer their facilities to community groups at below-market rates or free of charge.
This practice provides savings for local organizations and cultural groups.
Community centres, schools, and arts organizations use church spaces for meetings, events, and programs.
The rent subsidies help non-profit groups stretch their budgets.
Youth sports leagues and recreational programs use church gymnasiums and meeting rooms, reducing facility costs for families and organizations.
Churches also host voting stations, community forums, and emergency shelter spaces during disasters.
This civic support reduces municipal facility costs.
Economic “Halo Effect” of Churches
The “Halo Effect” measures the total economic value churches provide to their communities.
Research by Cardus found that Canadian religious congregations contribute $18.2 billion annually through various activities.
Churches generate economic activity through weddings, funerals, and community events.
These ceremonies bring visitors who spend money at local hotels, restaurants, and businesses.
Direct spending by churches on utilities, maintenance, and staff wages supports local economies.
Many churches employ administrative staff, custodians, and program coordinators.
The Cardus study showed churches provide 10.47 times more economic value than they receive in tax exemptions.
Every dollar in tax exemption generates over $10 in community benefits.
Controversies and Criticisms of Church Tax Exemptions
Church tax exemptions face growing criticism from concerns about lost municipal revenue, unequal treatment of religious groups, and the role of churches in Canada’s colonial history.
These debates have led some cities to change their tax policies and sparked nationwide discussions about fairness.
Debates About Public Revenue and Wealth Imbalance
Critics argue that church tax exemptions cost Canadian cities millions in lost revenue each year.
In Montreal, exempted taxes total approximately $110 million annually.
This lost revenue could address urgent social issues like affordable housing.
Many point to what Rev. Graham Singh calls the “Christian wealth imbalance” the fact that Christian churches own more land than any other charitable sector in North America.
Some religious leaders acknowledge this disparity.
Singh notes that if multiple charities owned a building, they might pay taxes, but churches remain exempt even when buildings sit empty.
The criticism extends beyond property taxes.
Atheists and humanists in British Columbia and Alberta argue that non-religious people shouldn’t subsidize churches through tax exemptions.
Supporters counter with the “halo effect” argument.
Research suggests churches contribute 10.4 times more to the economy than their assessed property taxes through community services and local spending.
Concerns Around Discrimination and Access
Tax exemption policies often favour established Christian denominations over newer religious groups.
Regulatory restrictions limit newer religious communities from accessing the same tax privileges.
In Montreal, St. James Anglican Church pays no property taxes on its $10 million property.
The nearby Al-Madinah mosque occupies a building not zoned for religious worship and pays approximately $100,000 yearly in property taxes.
These disparities highlight how zoning laws and historical establishment can create unequal treatment.
Newer religious groups face barriers to obtaining tax-exempt status that established churches do not encounter.
The system also raises questions about fairness to secular charitable organizations.
Non-religious charities providing similar community services may face tax burdens that religious organizations avoid.
Impact of Historic and Political Events on Tax Exemption
The discovery of unmarked graves at residential schools significantly impacted church tax exemptions.
Iqaluit became the first Canadian city to partially rescind exemptions in response to these findings.
MP Lori Idlout supported this change, stating it’s unfair for municipalities to carry the burden of faith-based groups connected to colonialism’s history.
Religious institutions in Iqaluit now pay 25% of their property taxes and must reapply for exemptions every three years.
In Quebec, the debate intensified after Bill 21 banned religious symbols in public spaces.
Media coverage questioned how the government justifies church tax exemptions while promoting state secularism.
The Catholic Church faces additional scrutiny due to sex abuse scandals.
Critics argue these institutions shouldn’t receive public subsidies through tax exemptions given their controversial history.
These events have shifted public opinion.
Recent polls show Canadians are evenly split: about one-third support exemptions, one-third oppose them, and one-third remain unsure.
Provincial and Federal Differences in Church Taxation
Church tax exemptions operate differently across Canada’s federal and provincial systems.
While federal tax policy remains consistent nationwide, each province sets its own rules for property tax exemptions and religious organization treatment.
How Provincial Laws Vary Across Canada
Every provincial and territorial government in Canada exempts churches from paying property taxes.
The scope of these exemptions varies significantly between provinces.
Most provinces extend church tax exemptions beyond the main worship building.
These additional exemptions often cover clerical residences and cemeteries owned by religious organizations.
Some provinces have stricter requirements for maintaining tax-exempt status.
Churches must prove they actively use their properties for religious purposes instead of leaving buildings vacant.
Provincial variations include:
Different definitions of qualifying religious property
Varying requirements for annual exemption applications
Different treatment of rental income from church properties
Separate rules for heritage religious buildings
British Columbia and Alberta have faced challenges from atheist and humanist groups.
These organizations argue that non-religious citizens should not subsidize church operations through tax exemptions.
Quebec presents a unique case due to its secular policies.
The province maintains church tax exemptions despite Bill 21, which banned religious symbols in public spaces.
Recent Government Reviews and Policy Changes
The federal government has considered changes to church tax policies in recent years.
A 2019 Senate committee inquiry into the charitable sector maintained existing exemptions but left future changes open.
In 2022, Iqaluit became the first Canadian city to partially eliminate church tax exemptions.
The decision followed discoveries of unmarked graves at residential schools.
Religious institutions in Iqaluit now pay 25 percent of their property taxes.
They must reapply for their reduced exemption every three years, creating ongoing administrative requirements.
The Standing Committee on Finance has proposed recommendations that could affect faith-based charities.
These proposals have raised concerns among religious organizations about potential broader policy changes.
Churches across Canada worry about losing tax-exempt status.
Many congregations operate with limited liquid assets despite owning valuable property, making tax payments financially challenging.
Key Figures, Case Studies, and Future Outlook
Several church leaders and politicians are shaping Canada’s debate about religious tax exemptions.
Real-world examples show how churches adapt to financial pressures while communities consider policy changes.
Rev. Graham Singh and the Transformation of St. Jax
Rev. Graham Singh leads St. James the Apostle, a 160-year-old Anglican church in downtown Montreal that he has rebranded as St. Jax.
Singh serves as CEO of Relèven, a non-profit that helps churches become financially stable by transforming them into community hubs.
St. Jax houses dozens of secular community groups and activities.
Singh uses the building’s property tax exemption to provide rent subsidies for social organizations facing high real estate costs.
Financial Reality:
Property value: $10 million
Potential annual tax bill: $150,000
Current tax payment: $0
Singh acknowledges the wealth imbalance in religious property ownership.
He argues that churches should not “hoard” property for exclusive use but must put buildings to good public use to justify tax exemptions.
The congregation struggles financially despite the tax break.
Singh says they are “just crunching along, like every other church, which is why they’re all closing.”
Notable Churches and Community Initiatives
Mike Wood Daly, CEO of Sphaera Research, calculated that Canadian churches contribute 10.4 times more to the economy than their assessed property taxes.
His research supports arguments for maintaining tax exemptions based on economic impact.
Montreal has over 400 historic churches, with 25 per cent facing serious financial problems.
The city still values these buildings as cultural symbols and tourist attractions despite maintenance costs exceeding $100,000 annually per church.
Iqaluit’s Historic Change:
MP Lori Idlout supported Iqaluit’s decision to become Canada’s first city to partially rescind church tax exemptions in 2022.
Religious institutions now pay 25 per cent of their property taxes.
The local Catholic church faces about $40,000 in annual taxes, which members say they cannot afford.
This demonstrates the financial pressure many congregations face when losing full exemptions.
Potential Changes to Church Taxation in Canada
Recent polls show Canadians are evenly divided on church tax exemptions.
Just over one-third approve of exemptions, one-third oppose them, and one-third remain unsure.
Crisis looms as 9,000 historic churches across Canada will likely close soon.
This massive closure threat adds urgency to tax exemption debates.
Current Challenges:
Religious property represents the largest single landowning category in the charitable sector
Many churches have valuable property but limited liquid assets
Heritage building maintenance costs strain small congregations
Newer religious groups face regulatory restrictions limiting tax privileges
A 2019 Senate committee inquiry into the charitable sector maintained the status quo.
Growing affordability crises in Canadian cities and declining religious participation continue to fuel debate about whether tax exemptions should change.
Conclusion
Churches in Canada currently operate as registered charities and do not pay income tax or property tax on their active religious properties.
This tax exemption generates significant debate, with Canadians split roughly into thirds between those who support, oppose, or remain unsure about these exemptions.
The financial impact is substantial, with some estimates suggesting religious tax exemptions cost Canadian governments millions in lost revenue annually.
Supporters argue that churches contribute far more to communities through social services and economic activity than they would generate in tax revenue.
Historic churches face particular challenges, as many struggle with maintenance costs while serving important heritage and community functions.
For religious organizations navigating these complex tax obligations and exemptions, professional guidance proves essential.
Our experienced team today to provides expert support and offers detailed consultations to ensure religious organizations maximize their benefits while meeting all regulatory requirements.
Churches in Canada receive tax exemptions as registered charities, but many people have questions about how these rules work.
The tax system treats religious organizations differently from regular businesses in several important ways.
Do churches have to pay taxes in Canada?
Churches don’t pay income tax when registered as charities. They receive property tax exemptions on active church properties including buildings, halls, and minister housing. However, some cities are changing this—Iqaluit now charges churches 25% of property taxes and requires exemption renewal every three years.
What organizations are tax exempt in Canada?
Registered charities (churches, mosques, temples), qualifying non-profit organizations, educational institutions, hospitals, and government organizations are tax-exempt. Organizations must serve a charitable purpose as defined by the Canada Revenue Agency.
How do churches make money in Canada?
Churches primarily rely on tax-deductible member donations. Additional income comes from space rentals, government grants, funding from larger religious organizations, fundraising events, and small revenue from bookstores or cafeterias.
Are churches subject to income tax?
No, registered charities don’t pay income tax. Churches must use income for charitable purposes only and cannot distribute profits. If they lose charitable status, they’d pay income tax. Church employees pay personal income tax on their wages.
Do local churches pay taxes?
Most don’t pay property taxes on main buildings and worship-related structures. However, some municipalities are reconsidering exemptions—Montreal loses an estimated $110 million annually. Churches may pay taxes on non-worship properties like rentals or unused buildings.
What is the tax imposed by the church?
Churches don’t impose taxes—only governments can. Some request voluntary tithes (a percentage of income) or charge fees for services like weddings. All contributions are voluntary donations, not legal requirements.
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 specialize 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, we specialize 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 strategic advisory and consulting firm partnering with private equity, sovereign, and institutional investors to deploy capital, manage regulatory, supporting senior leadership, boards, and capital providers across Cambodia, Canada, and international markets operating in complex regulatory, economic, and geopolitical environments, and drive enterprise value creation across complex global markets.
We advise boards, executives, entrepreneurs, and public-sector decision-makers on business strategy, institutional transformation, and high-stakes market challenges requiring disciplined judgment, capital efficiency, and execution certainty. Our work is concentrated across priority global sectors, including agribusiness, aviation and automotive, energy and natural resources, financial services, healthcare, infrastructure, real estate, immigration, education, and information technology.
Our platform integrates sector-specific intelligence with multidisciplinary advisory capabilities. Clients benefit from coordinated access to consulting, legal and regulatory counsel, financial management, risk assessment, real estate advisory, immigration, education, and technology expertise. This integrated model supports informed capital allocation, regulatory-compliant investment structuring, and execution-ready strategies designed to optimise returns, preserve downside protection, and enhance risk-adjusted performance.
Northfield combines consulting rigor with legal and regulatory judgment to support capital markets-aligned decision-making in complex, regulated, and rapidly evolving environments. We partner with private enterprises, institutional investors, family offices, and public-sector entities to structure, deploy, and manage capital effectively; strengthen governance; mitigate regulatory and geopolitical risk; and drive sustainable enterprise value creation.
Our engagements span strategy formulation, operational optimisation, organisational design, and change execution. We deliver measurable outcomes that improve financial performance, support disciplined growth, enhance valuation, and generate durable returns on investment for investors, shareholders, and institutional stakeholders. We operate with independence, precision, and accountability, aligned with long-term value creation and fiduciary standards.
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.
Running a charity in Canada brings significant financial responsibilities. These go far beyond fundraising and community outreach.
All registered charities must follow strict financial reporting rules set by the Canada Revenue Agency to maintain their charitable status and keep donor trust. Missing these requirements can lead to penalties, loss of tax benefits, or even loss of your charity registration.
This guide breaks down charity financial reporting into clear, manageable steps. We’ll explore the legal framework, core reporting requirements, and the consequences of falling behind on compliance.
Overview of Charity Financial Reporting in Canada
Canadian charities must follow specific financial reporting rules set by the Canada Revenue Agency. These requirements ensure organizations remain accountable to donors and maintain their charitable status.
Financial reporting builds public trust.
Purpose and Importance of Financial Reporting for Charities
Financial reporting forms the foundation for charity operations in Canada. We must file annual returns and financial statements to maintain our charitable registration with the CRA.
The Annual Information Return (T3010) is our primary reporting tool. This form shows how we use donations and grants throughout the year.
We must submit it within six months of our fiscal year-end. Missing this deadline can result in serious consequences:
Loss of charitable status
Financial penalties
Donor trust issues
Legal compliance problems
Financial statements help us track our impact. Donors want to see how their money helps our cause.
Government agencies use these reports to ensure we follow charity laws. We must keep detailed records of all transactions, including donations, expenses, and program costs.
Good record-keeping protects us during CRA audits and reviews.
Key Concepts: Transparency and Accountability
Transparency means we openly share information about our finances. Accountability means we take responsibility for how we use donated funds.
Transparency requirements include:
Publishing annual financial statements
Reporting revenue and expenses clearly
Showing how much goes to programs versus administration
The disbursement quota requires us to spend at least 3.5% of our assets on charitable activities each year. This ensures donated money helps our cause rather than sitting in investments.
We must also issue proper tax receipts for donations. These receipts must include specific information required by the CRA.
Incorrect receipts can cause problems for both donors and our organization.
Types of Charitable and Non-Profit Organizations
Canada recognizes different types of charitable and not-for-profit organizations. Each type has specific reporting requirements we must follow.
Registered charities include:
Relief of poverty organizations
Advancement of education groups
Advancement of religion organizations
Other purposes benefiting the community
Not-for-profit organizations that aren’t registered charities also exist. These groups follow different rules and cannot issue tax receipts for donations.
Organization Type
Tax Receipt Authority
Main Regulator
Key Form
Registered Charity
Yes
CRA
T3010
Non-Profit (Non-Charitable)
No
Provincial/Federal
Varies
We must determine which category fits our organization. This affects our reporting duties, tax benefits, and operational requirements.
Charitable organizations must spend their funds on charitable purposes. Non-charitable groups have more flexibility in their activities but receive fewer tax benefits.
Legal and Regulatory Framework for Charity Financial Reporting
Canadian charities operate under a structured legal framework managed by the Canada Revenue Agency’s Charities Directorate. The Income Tax Act serves as the primary legislation governing registered charities.
This law establishes tax-exempt status requirements and ongoing compliance obligations.
Overview of the Canada Revenue Agency and Charities Directorate
The Canada Revenue Agency (CRA) oversees all registered charities in Canada through its Charities Directorate. This division monitors charity operations to ensure compliance with federal tax laws.
The Charities Directorate uses a risk-based approach to promote compliance. Most charities follow the rules and only need guidance occasionally.
This allows the CRA to focus on organizations that pose higher risks.
Key responsibilities of the Charities Directorate include:
Processing charity registration applications
Reviewing annual information returns (T3010)
Conducting compliance audits
Investigating complaints about charities
Revoking charitable status when necessary
The CRA maintains detailed records of all registered charities. We can search this public database to verify an organization’s charitable status and review their filed documents.
Role of the Income Tax Act and Other Relevant Legislation
The Income Tax Act (ITA) provides the legal foundation for charitable organizations in Canada. Section 149.1 specifically outlines the requirements for maintaining registered charity status.
Under the ITA, charities must meet strict operational requirements. These include spending quotas, prohibited activities, and governance standards.
Failure to comply can result in penalties or revocation of charitable status.
Key ITA requirements include:
Annual disbursement quota (minimum spending on charitable activities)
Prohibition on political activities beyond permitted limits
Restrictions on business activities
Requirements for proper books and records
Provincial legislation also affects charities. Each province has incorporation laws that govern how charities organize and operate.
Charities must comply with both federal tax rules and provincial corporate laws.
Registered Charity Status and Its Implications
Registered charity status provides significant benefits but comes with substantial obligations. Tax-exempt status means charities don’t pay income tax on most revenue types.
Charitable status allows organizations to issue official donation receipts. Donors can claim tax credits for their contributions, making charitable giving more attractive.
This tax benefit is a major fundraising advantage.
Benefits of registered charity status:
Exemption from income tax
Ability to issue donation receipts
Access to certain government grants
Enhanced public credibility
Regulatory requirements are extensive. Charities must file annual T3010 returns with detailed financial information.
These returns become public records that anyone can access and review.
Loss of charitable status has serious consequences. The organization loses tax-exempt status and can no longer issue donation receipts.
The CRA may also impose revocation taxes on remaining assets.
Core Financial Reporting Requirements for Charities
Canadian registered charities must file comprehensive annual financial statements with the Canada Revenue Agency. This applies regardless of activity levels or financial balances.
These requirements include specific statement components, strict deadlines, and adherence to accounting standards.
Annual Financial Statements: Components and Standards
All registered charities must submit complete financial statements when filing their T3010 annual information return. The statements are mandatory even if our charity had zero activity or balances during the fiscal period.
Required Statement Components:
Statement of assets and liabilities (balance sheet)
Statement of revenues and expenses (income statement)
Prepared notes detailing accounting policies
Essential Notes Include:
Depreciation rates and accounting methods
Investment details with maturity dates and interest rates
Revenue sources and government grant specifications
Non-arm’s length party transactions
Donor-directed funds held for 10+ years
Future financial obligations
We must follow Accounting Standards for Not-for-Profit Organizations (ASNPO) set by the Canadian Accounting Standards Board. Charities with annual revenues over $250,000 should obtain professionally audited statements.
Smaller organizations can have their treasurer sign the financial reports. Our statements must accurately reflect all revenue sources and expenditures for the reporting fiscal year using consistent accounting methods.
Reporting Deadlines and Submission Procedures
The T3010 registered charity information return must be filed within six months of our fiscal year-end. This deadline applies to all registered charities regardless of size or activity level.
Filing Requirements:
Complete T3010 form submission
Attached annual financial statements
All required supporting documentation
Missing financial statements result in an incomplete filing. The Canada Revenue Agency considers incomplete returns as non-compliance.
This can lead to penalties or charity registration issues.
We can file our return electronically through the CRA’s online portal or submit paper copies by mail. Electronic filing provides faster processing and confirmation of receipt.
Late filings may result in monetary penalties and compliance reviews. Repeated non-compliance can lead to charity registration suspension or revocation.
Statement of Financial Position and Related Statements
The statement of financial position (balance sheet) provides a snapshot of our charity’s financial health at fiscal year-end. This statement lists all assets, liabilities, and net assets in a structured format.
Assets Section:
Current assets (cash, receivables, inventory)
Long-term investments and property
Equipment and capital assets
Liabilities Section:
Accounts payable and accrued expenses
Long-term debt obligations
Deferred revenue amounts
We can prepare financial statements using either cash basis or accrual basis methods. Cash basis records actual money received and spent during the fiscal year.
Accrual basis records earned revenue and incurred expenses regardless of payment timing. The chosen method must be clearly identified on our financial statements and used consistently throughout the entire return.
However, gift receipts must always use the cash method regardless of our primary accounting approach. Net assets represent the difference between total assets and liabilities, showing our charity’s accumulated financial position over time.
Compliance and Record-Keeping Obligations
Canadian charities must maintain proper accounting records and follow strict documentation requirements to meet CRA standards. These obligations include keeping detailed financial records, issuing compliant donation receipts, and establishing strong internal controls to protect charitable assets.
Maintaining Adequate Accounting Records
We must keep complete and accurate accounting records for all financial transactions. The CRA requires these records to be maintained for six years from the end of the tax year they relate to.
Our accounting records must include:
Bank statements and reconciliations
Receipts and invoices for all expenses
Donation records and supporting documentation
Payroll records and employment files
Minutes from board and committee meetings
We must store these records in Canada and keep them available for CRA inspection. We can keep records in electronic format, but they must be easily accessible and readable.
Financial documentation should track restricted and unrestricted funds separately. This helps us demonstrate compliance with donor restrictions and proper fund usage.
These requirements ensure transparency and accountability to donors and the public.
Small Charities (Under $10,000)
Charities with annual revenues under $10,000 typically don’t need professional audits.
We can prepare basic financial statements internally, but we must still maintain accurate records and file our T3010 return.
Medium Charities ($10,000 – $500,000)
Charities in this range may need compilation or review engagements.
A compilation involves an accountant preparing financial statements from our records, while a review engagement provides limited assurance that statements are reasonable.
An independent auditor examines our records and gives an opinion on whether statements fairly present our financial position.
Provincial regulations may also apply.
Some provinces have different thresholds or additional requirements beyond federal rules.
Selecting and Working with Auditors
Choosing the right auditor is crucial for effective financial oversight.
We should select professionals who understand charity operations and compliance requirements.
Auditor Qualifications
We need auditors who are licensed public accountants with charity sector experience.
They should understand Canadian Accounting Standards for Not-for-Profit Organizations (ASNPO) and CRA regulations.
Engagement Process
The audit engagement starts with planning and risk assessment.
Auditors examine our accounting records, test transactions, and verify financial statement accuracy.
They also assess our internal controls and compliance procedures.
Communication and Cooperation
We must provide complete access to records and staff during audits.
Clear communication helps auditors understand our operations and address issues early.
This cooperation leads to more efficient audits and better recommendations.
Responding to CRA Audits
The Canada Revenue Agency conducts compliance audits using risk-based selection criteria.
We need to understand this process and respond properly to maintain our charitable status.
CRA Audit Selection
The CRA selects charities for audit based on risk indicators like late filings, unusual financial patterns, or public complaints.
Random selection also occurs as part of ongoing monitoring.
Audit Process Steps
CRA audits usually begin with a notification letter outlining the scope and timeline.
We must provide requested documents and cooperate with CRA auditors.
The process can include interviews with staff and detailed examination of our records.
Possible Outcomes
Minor issues may result in educational letters with guidance for improvement.
Serious non-compliance can lead to penalties, sanctions, or loss of charitable status.
We have the right to respond to audit findings and appeal decisions through established procedures.
Consequences of Non-Compliance and Strategies for Ongoing Compliance
The Canada Revenue Agency takes charity compliance seriously.
Penalties can range from education letters to complete loss of registered status.
Organizations must use strong oversight systems and avoid reporting mistakes to protect their charitable registration and maintain donor trust.
Penalties and Loss of Registered Status
The CRA uses a graduated approach when charities fail to meet their reporting obligations.
Enforcement starts with education letters that guide organizations through compliance steps.
Compliance agreements come next.
These formal documents outline specific areas where our organization failed to comply, and we must commit to correcting these issues within set timeframes.
More serious non-compliance leads to sanctions:
Financial penalties
Suspension of tax-receipting privileges
Loss of qualified donee status
Temporary suspension of charitable registration
Revocation is the most severe consequence.
We lose our registered status and all associated privileges, including issuing donation receipts and receiving government grants.
The CRA considers several factors when determining penalties:
Length of non-compliance
How the issue arose
Resources involved in the violation
Impact on charitable purposes
Common Mistakes and How to Avoid Them
Filing incomplete or late T3010 returns is a frequent compliance failure.
We must submit these annual returns by the deadline, usually six months after our fiscal year-end.
Financial statement errors can cause significant problems.
Our statements must follow Canadian accounting standards, and qualified professionals should prepare or review these documents.
Inadequate record keeping causes compliance issues.
We must keep detailed records of all transactions, donations, and activities for at least six years.
Governance failures often trigger CRA attention.
Our board of directors must meet regularly and document decisions properly.
We need written policies for conflict of interest, fundraising, and program delivery.
Misuse of charitable funds is a serious violation.
We cannot use funds for non-charitable purposes or provide inappropriate benefits to directors or stakeholders.
Implementing Policy and Board Oversight
Strong governance starts with an engaged board of directors.
We need directors who understand their legal responsibilities and our charitable purposes.
Regular board meetings ensure proper oversight.
Our directors review financial reports, approve budgets, and monitor program effectiveness.
Meeting minutes document all decisions.
Written policies protect our organization.
We should develop policies covering:
Financial management and controls
Fundraising practices
Conflict of interest procedures
Executive compensation
Risk management
Internal controls safeguard our financial health.
We separate duties, use approval processes for expenditures, and conduct regular financial reviews.
We require multiple signatures for significant transactions.
Annual compliance reviews help identify potential issues.
We assess our financial position, review reporting obligations, and ensure we meet all deadlines.
This proactive approach maintains stakeholder confidence and protects our registered status.
Conclusion
Staying compliant with CRA reporting requirements protects your charitable status and builds donor trust. Keep accurate records, file returns on time, and maintain proper governance to avoid costly penalties.
Strong internal controls help you focus on your mission instead of regulatory problems. Regular reviews and clear policies prevent common mistakes that trigger CRA audits.
Professional accounting support makes compliance manageable and protects your organization’s future. Get expert help from Northfield & Associates to simplify your financial reporting and keep your charity compliant.
Frequently Asked Questions
Canadian charity leaders often have questions about financial reporting requirements and compliance obligations. Here are clear answers to the most common concerns about CRA regulations and best practices.
What do charities need to report in Canada?
Canadian registered charities must file the T3010 Annual Information Return within six months of their fiscal year-end. This includes complete financial statements, revenue and expense details, program information, and governance data. All charities must report regardless of their activity level or financial position.
How long do charities need to keep financial records in Canada?
Charities must keep all financial records for six years from the end of the tax year they relate to. This includes bank statements, receipts, donation records, payroll files, and board meeting minutes. Records must be stored in Canada and available for CRA inspection.
What is the statement of recommended practice for accounting and reporting by charities?
Canadian charities follow the Accounting Standards for Not-for-Profit Organizations (ASNPO) set by the Canadian Accounting Standards Board. These standards require specific financial statement components including balance sheets, income statements, and detailed notes explaining accounting policies and transactions.
Do nonprofits have to release financial statements in Canada?
Registered charities must make their T3010 returns and financial statements publicly available through the CRA’s online database. Non-charitable nonprofits have different disclosure requirements depending on their provincial incorporation rules, but generally face less stringent public reporting obligations.
Do charities need to prepare financial statements?
Yes, all registered charities must prepare annual financial statements regardless of size or activity. Charities with revenue over $500,000 typically need audited statements, while smaller organizations can have internally prepared statements signed by their treasurer or an officer.
How do you ensure compliance with financial regulations?
Maintain accurate records, file T3010 returns on time, and follow CRA guidelines for charitable activities. Implement strong internal controls, conduct regular board oversight, and consider professional accounting help. Regular compliance reviews help identify issues before they become serious problems.
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.
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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.
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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.
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Advancing Global Partnerships, Together.
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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.
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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.
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Running a nonprofit in Canada requires understanding the various financial forms that need to be filed with the Canada Revenue Agency (CRA). One such form is Form T1044, which can sometimes cause confusion.
In this guide, we’ll cover when nonprofits need to file Form T1044, key differences from other tax forms, filing deadlines, common mistakes to avoid, and what happens if you miss the deadline. We’ll also answer frequently asked questions to help your organization stay compliant with CRA requirements.
This article will explain what Form T1044 is, who needs to file it, why it’s important, and how to file it, making sure it’s all easy to understand and applicable to nonprofits and organizations in Canada.
Understanding which form your organization needs to file is crucial for CRA compliance. Here’s how T1044 and T3010 differ:
Feature
Form T1044 (NPO)
Form T3010 (Registered Charity)
Who Files
Tax-exempt nonprofit organizations
Registered charities (Qualified Donees)
Asset Threshold
Over $200,000 in assets
All registered charities must file
Income Threshold
Over $10,000 in certain income types
All registered charities must file
Filing Deadline
6 months after fiscal year-end
6 months after fiscal year-end
Purpose
Maintain tax-exempt status
Maintain charitable registration
Public Information
Not publicly available
Publicly searchable on CRA website
Tax Receipts
Cannot issue donation receipts
Can issue official donation receipts
Key Takeaway: Registered charities file T3010, not T1044. However, some nonprofit organizations that are not registered charities must file T1044 if they meet the asset or income thresholds. An organization cannot be both a registered charity and required to file T1044 for the same activities.
Who Needs to File Form T1044?
The T1044 form is not required for all non-profit organizations. Generally, an organization must file this form if it meets these criteria:
It is a non-profit organization: This includes social clubs, recreational groups, or any other entity that doesn’t aim to generate profits for its members.
It has had assets of over $200,000 at any time during the fiscal year: If the organization’s total assets exceed this threshold, it must submit Form T1044.
It received more than $10,000 in income: This includes interest, dividends, or rentals. If the organization earned more than this amount during the fiscal year, filing the form is mandatory.
Organizations that meet these conditions are expected to submit the T1044 return. It’s important to note that not all nonprofits fall under these criteria, so it’s essential to review the organization’s financial situation carefully.
Organizations Exempt from Filing T1044
Not every nonprofit in Canada needs to file Form T1044. Your organization is exempt from filing if:
Organizations Below the Thresholds:
Total assets remained under $200,000 throughout the entire fiscal year, AND
Investment income (interest, dividends, rentals) was $10,000 or less for the fiscal year
Registered Charities:
Organizations registered with the CRA as charities file Form T3010 instead and do not file T1044
Qualified Donees:
Registered Canadian amateur athletic associations (RCAAAs)
Registered journalism organizations (RJOs)
These organizations have their own filing requirements
Organizations Filing Other Returns:
NPOs that file a T2 Corporation Income Tax Return for a taxation year don’t need to file T1044 for that same year
Important Note: Even if your organization was previously exempt, you must reassess your filing requirements annually. If your assets grow or your investment income increases beyond the thresholds, you’ll need to file T1044 for that fiscal year.
If you’re unsure whether your organization qualifies for an exemption, contact a charity and nonprofit lawyer or tax professional familiar with CRA regulations.
Why Is Filing Form T1044 Important?
Filing the T1044 is critical for staying in compliance with CRA regulations. If an organization fails to submit this form when required, there could be significant consequences:
Penalties: Organizations that do not file this form on time may face financial penalties. These penalties can accumulate quickly, putting a financial strain on the organization.
Loss of tax-exempt status: In extreme cases, failing to file the required forms may cause the organization to lose its tax-exempt status. This would mean the organization could be taxed on its income, undermining its financial health.
Increased CRA scrutiny: If an organization regularly fails to meet its filing requirements, it may attract additional scrutiny from the CRA, leading to audits or other compliance checks.
How to File Form T1044?
Filing the T1044 form can seem complex, but the CRA provides guidelines to simplify the process. Here are the steps to follow:
Download the form: You can access Form T1044 on the CRA’s website here.
Gather required information: To fill out the form, you’ll need accurate records of the organization’s financial activities for the fiscal year. This includes:
The total value of the organization’s assets
Details on any income received, such as interest or rental income
The organization’s financial statements
Complete the form: Carefully fill in the required information, ensuring all financial data is correct.
Submit the form: Once completed, submit the form by mail to the address provided on the CRA website. It is important to send the form by the deadline, which is six months after the end of the organization’s fiscal year.
Keep a copy: Always keep a copy of the completed form and the financial documents used to complete it for your records.
Form T1044 must be filed within six months after the end of your organization’s fiscal year-end. This is a firm deadline that applies regardless of your organization’s size or structure.
Deadline Examples:
Fiscal year ends December 31, 2024 → T1044 due by June 30, 2025
Fiscal year ends March 31, 2025 → T1044 due by September 30, 2025
Fiscal year ends September 30, 2024 → T1044 due by March 31, 2025
Weekend and Holiday Rules:
If your filing deadline falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or it is postmarked on the next business day.
First-Time Filers:
If your organization is filing Form T1044 for the first time because it has crossed the asset or income thresholds, the same six-month deadline applies from your fiscal year-end.
Pro Tip: Don’t wait until the last minute. Mail delays can cause your return to arrive late even if you send it before the deadline. Consider mailing your T1044 at least two weeks before the due date to account for postal delays.
Common Mistakes to Avoid When Filing Form T1044
Many nonprofits make avoidable errors when filing T1044. Here are the most common mistakes and how to prevent them:
1. Incorrect Asset Valuation
Organizations often miscalculate their total assets by forgetting to include all property, investments, and receivables. Remember to include the fair market value of all assets, not just cash and bank accounts.
2. Missing Income Sources
Some organizations fail to report all sources of investment income. Include all interest from bank accounts and investments, dividend income, rental income from property, and capital gains from asset sales.
3. Late Filing
Missing the six-month deadline is one of the most common mistakes. Set calendar reminders well in advance of your deadline and build in time for preparation and review.
4. Incomplete Financial Statements
The CRA requires complete and accurate financial statements. Ensure your statements are prepared according to Canadian accounting standards and include all required schedules and supporting documentation.
5. Not Updating Contact Information
If your organization has moved or changed its contact person, failing to update this information on the form can lead to missed CRA correspondence. Always verify that your current mailing address and contact details are correct on the form.
6. Assuming Exemption Without Verification
Some organizations assume they don’t need to file without carefully checking the thresholds. Review your financial position every year to confirm whether filing is required.
7. Using Outdated Forms
The CRA occasionally updates Form T1044. Always download the most current version from the CRA website rather than using a saved copy from previous years.
How to Avoid These Mistakes:
Maintain detailed and accurate financial records throughout the year, conduct internal reviews before filing, and consider having a charity and nonprofit lawyer or accountant review your completed form before submission.
What Happens After Filing?
Once Form T1044 is submitted, the CRA will review it to ensure the organization meets the necessary requirements for tax-exempt status. If any issues arise, the CRA may request additional information or clarification. It’s important to be responsive to these requests to avoid further complications.
What to Do If You Miss the T1044 Filing Deadline
If your organization has missed the T1044 filing deadline, don’t panic. Taking prompt action can help minimize penalties and compliance issues.
Step 1: File Immediately
Even if you’ve missed the deadline, file your T1044 as soon as possible. Late filing is better than not filing at all. The $25 per day penalty is capped at $2,500, so filing late will stop the penalty from continuing to accumulate.
Step 2: Include an Explanation Letter
When you submit your late return, include a cover letter explaining:
Why the return was filed late
What steps you’ve taken to prevent future late filings
Any extenuating circumstances (illness, organizational changes, etc.)
Step 3: Consider Voluntary Disclosure
If your organization has multiple years of unfiled returns, you may be eligible for the CRA’s Voluntary Disclosures Program. This program can reduce or eliminate penalties if you come forward before the CRA contacts you.
Step 4: Pay Any Assessed Penalties Promptly
If the CRA assesses penalties or interest charges, pay them as quickly as possible to avoid additional interest accumulation.
Step 5: Set Up Systems to Prevent Future Late Filings
Create a compliance calendar with filing deadlines
Assign responsibility for tax filings to a specific board member or staff person
Set up reminders at 8 months, 5 months, and 1 month before your deadline
Consider hiring a bookkeeper or accountant to manage filing requirements
Repeated Late Filing:
If your organization repeatedly files late, the CRA may increase scrutiny of your nonprofit, potentially leading to audits or challenges to your tax-exempt status. Establishing reliable filing systems is crucial for long-term compliance.
When to Seek Legal Help:
If you’ve missed multiple years of filings or have received correspondence from the CRA about unfiled returns, consult with a charity and nonprofit lawyer immediately to protect your organization’s tax-exempt status.
Do Charities Need to File T1044?
Registered charities in Canada file a different form called the T3010, which is the annual Registered Charity Information Return. However, organizations that are classified as non-profits but not registered charities (or “Qualified Donees” as it is called in legal and CRA parlance) as may still need to file the T1044. It is important to distinguish between different types of organizations to determine the correct forms required by the CRA.
Consult a professional: If your organization is unsure about whether it needs to file the T1044 or how to complete it, consider consulting with a tax professional or an experienced charity and not-for-profit lawyer who is familiar with CRA regulations for charities and non-profits.
Monitor asset and income thresholds: Regularly review the organization’s financial status to ensure it does not surpass the $200,000 asset or $10,000 income thresholds unexpectedly, which would trigger the need to file the form.
Conclusion
Filing Form T1044 is an important responsibility for many nonprofits in Canada. While not all organizations need to file this form, those that do must ensure they meet the filing requirements to avoid penalties, maintain their tax-exempt status, and stay compliant with CRA regulations.
By understanding the filing process, knowing the deadlines, avoiding common mistakes, and staying proactive, organizations can ensure a smooth filing experience. If you’re ever uncertain about your filing obligations or need assistance with CRA compliance, don’t hesitate to consult with a charity and nonprofit lawyer who can provide expert guidance tailored to your organization’s needs.
Need Help With Form T1044 or Nonprofit Compliance?
Filing Form T1044 and maintaining CRA compliance can be complex. If your organization needs guidance on filing requirements, has missed deadlines, or is facing CRA scrutiny, our experienced charity and nonprofit lawyers can help.
We provide comprehensive legal support for nonprofits and charities across Canada, including assistance with CRA forms, compliance issues, tax-exempt status protection, and nonprofit governance.
Frequently Asked Questions About Form T1044
What is Form T1044 used for?
Form T1044, the Non-Profit Organization (NPO) Information Return, is used by the Canada Revenue Agency to gather financial information from tax-exempt nonprofit organizations. It helps the CRA verify that qualifying nonprofits continue to meet the requirements for tax-exempt status under the Income Tax Act.
Do all nonprofits in Canada need to file T1044?
No. Only nonprofits that have assets exceeding $200,000 at any point during the fiscal year OR investment income (interest, dividends, rentals) exceeding $10,000 for the fiscal year must file T1044. Nonprofits below both thresholds are exempt from filing.
What is the penalty for not filing T1044?
The penalty for late filing is $25 per day, up to a maximum of $2,500. Additional penalties may apply for repeated failures to file. The CRA may also charge interest on unpaid penalties and could potentially revoke an organization’s tax-exempt status for continued non-compliance.
Can I file T1044 online?
Currently, Form T1044 must be filed by mail. Unlike Form T3010 for registered charities, there is no electronic filing option available for T1044 at this time. Check the CRA website for any updates to filing methods.
How long does it take the CRA to process T1044?
Processing times vary depending on the CRA’s workload and the complexity of your return. Generally, you can expect processing to take 4 to 8 weeks after the CRA receives your return. If the CRA requires additional information, processing may take longer.
What documents do I need to file T1044?
You’ll need your organization’s complete financial statements for the fiscal year, including balance sheet and income statement, detailed asset listings and valuations, records of all investment income (interest, dividends, rentals), your organization’s governing documents (if requested), and proof of nonprofit status.
Can a charity file both T3010 and T1044?
No. Registered charities file Form T3010 only. Organizations that are nonprofits but not registered charities may need to file T1044 if they meet the asset or income thresholds. An organization is either a registered charity or a nonprofit organization for CRA filing purposes, not both.
Running a nonprofit in Canada requires understanding the various financial forms that need to be filed with the Canada Revenue Agency (CRA). One such form is Form T1044, which can sometimes cause confusion.
In this guide, we’ll cover when nonprofits need to file Form T1044, key differences from other tax forms, filing deadlines, common mistakes to avoid, and what happens if you miss the deadline. We’ll also answer frequently asked questions to help your organization stay compliant with CRA requirements.
This article will explain what Form T1044 is, who needs to file it, why it’s important, and how to file it, making sure it’s all easy to understand and applicable to nonprofits and organizations in Canada.
Understanding which form your organization needs to file is crucial for CRA compliance. Here’s how T1044 and T3010 differ:
Feature
Form T1044 (NPO)
Form T3010 (Registered Charity)
Who Files
Tax-exempt nonprofit organizations
Registered charities (Qualified Donees)
Asset Threshold
Over $200,000 in assets
All registered charities must file
Income Threshold
Over $10,000 in certain income types
All registered charities must file
Filing Deadline
6 months after fiscal year-end
6 months after fiscal year-end
Purpose
Maintain tax-exempt status
Maintain charitable registration
Public Information
Not publicly available
Publicly searchable on CRA website
Tax Receipts
Cannot issue donation receipts
Can issue official donation receipts
Key Takeaway: Registered charities file T3010, not T1044. However, some nonprofit organizations that are not registered charities must file T1044 if they meet the asset or income thresholds. An organization cannot be both a registered charity and required to file T1044 for the same activities.
Who Needs to File Form T1044?
The T1044 form is not required for all non-profit organizations. Generally, an organization must file this form if it meets these criteria:
It is a non-profit organization: This includes social clubs, recreational groups, or any other entity that doesn’t aim to generate profits for its members.
It has had assets of over $200,000 at any time during the fiscal year: If the organization’s total assets exceed this threshold, it must submit Form T1044.
It received more than $10,000 in income: This includes interest, dividends, or rentals. If the organization earned more than this amount during the fiscal year, filing the form is mandatory.
Organizations that meet these conditions are expected to submit the T1044 return. It’s important to note that not all nonprofits fall under these criteria, so it’s essential to review the organization’s financial situation carefully.
Organizations Exempt from Filing T1044
Not every nonprofit in Canada needs to file Form T1044. Your organization is exempt from filing if:
Organizations Below the Thresholds:
Total assets remained under $200,000 throughout the entire fiscal year, AND
Investment income (interest, dividends, rentals) was $10,000 or less for the fiscal year
Registered Charities:
Organizations registered with the CRA as charities file Form T3010 instead and do not file T1044
Qualified Donees:
Registered Canadian amateur athletic associations (RCAAAs)
Registered journalism organizations (RJOs)
These organizations have their own filing requirements
Organizations Filing Other Returns:
NPOs that file a T2 Corporation Income Tax Return for a taxation year don’t need to file T1044 for that same year
Important Note: Even if your organization was previously exempt, you must reassess your filing requirements annually. If your assets grow or your investment income increases beyond the thresholds, you’ll need to file T1044 for that fiscal year.
If you’re unsure whether your organization qualifies for an exemption, contact a charity and nonprofit lawyer or tax professional familiar with CRA regulations.
Why Is Filing Form T1044 Important?
Filing the T1044 is critical for staying in compliance with CRA regulations. If an organization fails to submit this form when required, there could be significant consequences:
Penalties: Organizations that do not file this form on time may face financial penalties. These penalties can accumulate quickly, putting a financial strain on the organization.
Loss of tax-exempt status: In extreme cases, failing to file the required forms may cause the organization to lose its tax-exempt status. This would mean the organization could be taxed on its income, undermining its financial health.
Increased CRA scrutiny: If an organization regularly fails to meet its filing requirements, it may attract additional scrutiny from the CRA, leading to audits or other compliance checks.
How to File Form T1044?
Filing the T1044 form can seem complex, but the CRA provides guidelines to simplify the process. Here are the steps to follow:
Download the form: You can access Form T1044 on the CRA’s website here.
Gather required information: To fill out the form, you’ll need accurate records of the organization’s financial activities for the fiscal year. This includes:
The total value of the organization’s assets
Details on any income received, such as interest or rental income
The organization’s financial statements
Complete the form: Carefully fill in the required information, ensuring all financial data is correct.
Submit the form: Once completed, submit the form by mail to the address provided on the CRA website. It is important to send the form by the deadline, which is six months after the end of the organization’s fiscal year.
Keep a copy: Always keep a copy of the completed form and the financial documents used to complete it for your records.
Form T1044 must be filed within six months after the end of your organization’s fiscal year-end. This is a firm deadline that applies regardless of your organization’s size or structure.
Deadline Examples:
Fiscal year ends December 31, 2024 → T1044 due by June 30, 2025
Fiscal year ends March 31, 2025 → T1044 due by September 30, 2025
Fiscal year ends September 30, 2024 → T1044 due by March 31, 2025
Weekend and Holiday Rules:
If your filing deadline falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or it is postmarked on the next business day.
First-Time Filers:
If your organization is filing Form T1044 for the first time because it has crossed the asset or income thresholds, the same six-month deadline applies from your fiscal year-end.
Pro Tip: Don’t wait until the last minute. Mail delays can cause your return to arrive late even if you send it before the deadline. Consider mailing your T1044 at least two weeks before the due date to account for postal delays.
Common Mistakes to Avoid When Filing Form T1044
Many nonprofits make avoidable errors when filing T1044. Here are the most common mistakes and how to prevent them:
1. Incorrect Asset Valuation
Organizations often miscalculate their total assets by forgetting to include all property, investments, and receivables. Remember to include the fair market value of all assets, not just cash and bank accounts.
2. Missing Income Sources
Some organizations fail to report all sources of investment income. Include all interest from bank accounts and investments, dividend income, rental income from property, and capital gains from asset sales.
3. Late Filing
Missing the six-month deadline is one of the most common mistakes. Set calendar reminders well in advance of your deadline and build in time for preparation and review.
4. Incomplete Financial Statements
The CRA requires complete and accurate financial statements. Ensure your statements are prepared according to Canadian accounting standards and include all required schedules and supporting documentation.
5. Not Updating Contact Information
If your organization has moved or changed its contact person, failing to update this information on the form can lead to missed CRA correspondence. Always verify that your current mailing address and contact details are correct on the form.
6. Assuming Exemption Without Verification
Some organizations assume they don’t need to file without carefully checking the thresholds. Review your financial position every year to confirm whether filing is required.
7. Using Outdated Forms
The CRA occasionally updates Form T1044. Always download the most current version from the CRA website rather than using a saved copy from previous years.
How to Avoid These Mistakes:
Maintain detailed and accurate financial records throughout the year, conduct internal reviews before filing, and consider having a charity and nonprofit lawyer or accountant review your completed form before submission.
What Happens After Filing?
Once Form T1044 is submitted, the CRA will review it to ensure the organization meets the necessary requirements for tax-exempt status. If any issues arise, the CRA may request additional information or clarification. It’s important to be responsive to these requests to avoid further complications.
What to Do If You Miss the T1044 Filing Deadline
If your organization has missed the T1044 filing deadline, don’t panic. Taking prompt action can help minimize penalties and compliance issues.
Step 1: File Immediately
Even if you’ve missed the deadline, file your T1044 as soon as possible. Late filing is better than not filing at all. The $25 per day penalty is capped at $2,500, so filing late will stop the penalty from continuing to accumulate.
Step 2: Include an Explanation Letter
When you submit your late return, include a cover letter explaining:
Why the return was filed late
What steps you’ve taken to prevent future late filings
Any extenuating circumstances (illness, organizational changes, etc.)
Step 3: Consider Voluntary Disclosure
If your organization has multiple years of unfiled returns, you may be eligible for the CRA’s Voluntary Disclosures Program. This program can reduce or eliminate penalties if you come forward before the CRA contacts you.
Step 4: Pay Any Assessed Penalties Promptly
If the CRA assesses penalties or interest charges, pay them as quickly as possible to avoid additional interest accumulation.
Step 5: Set Up Systems to Prevent Future Late Filings
Create a compliance calendar with filing deadlines
Assign responsibility for tax filings to a specific board member or staff person
Set up reminders at 8 months, 5 months, and 1 month before your deadline
Consider hiring a bookkeeper or accountant to manage filing requirements
Repeated Late Filing:
If your organization repeatedly files late, the CRA may increase scrutiny of your nonprofit, potentially leading to audits or challenges to your tax-exempt status. Establishing reliable filing systems is crucial for long-term compliance.
When to Seek Legal Help:
If you’ve missed multiple years of filings or have received correspondence from the CRA about unfiled returns, consult with a charity and nonprofit lawyer immediately to protect your organization’s tax-exempt status.
Do Charities Need to File T1044?
Registered charities in Canada file a different form called the T3010, which is the annual Registered Charity Information Return. However, organizations that are classified as non-profits but not registered charities (or “Qualified Donees” as it is called in legal and CRA parlance) as may still need to file the T1044. It is important to distinguish between different types of organizations to determine the correct forms required by the CRA.
Consult a professional: If your organization is unsure about whether it needs to file the T1044 or how to complete it, consider consulting with a tax professional or an experienced charity and not-for-profit lawyer who is familiar with CRA regulations for charities and non-profits.
Monitor asset and income thresholds: Regularly review the organization’s financial status to ensure it does not surpass the $200,000 asset or $10,000 income thresholds unexpectedly, which would trigger the need to file the form.
Conclusion
Filing Form T1044 is an important responsibility for many nonprofits in Canada. While not all organizations need to file this form, those that do must ensure they meet the filing requirements to avoid penalties, maintain their tax-exempt status, and stay compliant with CRA regulations.
By understanding the filing process, knowing the deadlines, avoiding common mistakes, and staying proactive, organizations can ensure a smooth filing experience. If you’re ever uncertain about your filing obligations or need assistance with CRA compliance, don’t hesitate to consult with a charity and nonprofit lawyer who can provide expert guidance tailored to your organization’s needs.
Need Help With Form T1044 or Nonprofit Compliance?
Filing Form T1044 and maintaining CRA compliance can be complex. If your organization needs guidance on filing requirements, has missed deadlines, or is facing CRA scrutiny, our experienced charity and nonprofit lawyers can help.
We provide comprehensive legal support for nonprofits and charities across Canada, including assistance with CRA forms, compliance issues, tax-exempt status protection, and nonprofit governance.
Frequently Asked Questions About Form T1044
What is Form T1044 used for?
Form T1044, the Non-Profit Organization (NPO) Information Return, is used by the Canada Revenue Agency to gather financial information from tax-exempt nonprofit organizations. It helps the CRA verify that qualifying nonprofits continue to meet the requirements for tax-exempt status under the Income Tax Act.
Do all nonprofits in Canada need to file T1044?
No. Only nonprofits that have assets exceeding $200,000 at any point during the fiscal year OR investment income (interest, dividends, rentals) exceeding $10,000 for the fiscal year must file T1044. Nonprofits below both thresholds are exempt from filing.
What is the penalty for not filing T1044?
The penalty for late filing is $25 per day, up to a maximum of $2,500. Additional penalties may apply for repeated failures to file. The CRA may also charge interest on unpaid penalties and could potentially revoke an organization’s tax-exempt status for continued non-compliance.
Can I file T1044 online?
Currently, Form T1044 must be filed by mail. Unlike Form T3010 for registered charities, there is no electronic filing option available for T1044 at this time. Check the CRA website for any updates to filing methods.
How long does it take the CRA to process T1044?
Processing times vary depending on the CRA’s workload and the complexity of your return. Generally, you can expect processing to take 4 to 8 weeks after the CRA receives your return. If the CRA requires additional information, processing may take longer.
What documents do I need to file T1044?
You’ll need your organization’s complete financial statements for the fiscal year, including balance sheet and income statement, detailed asset listings and valuations, records of all investment income (interest, dividends, rentals), your organization’s governing documents (if requested), and proof of nonprofit status.
Can a charity file both T3010 and T1044?
No. Registered charities file Form T3010 only. Organizations that are nonprofits but not registered charities may need to file T1044 if they meet the asset or income thresholds. An organization is either a registered charity or a nonprofit organization for CRA filing purposes, not both.
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Many Canadian organizations struggle to determine which tax form they need to file with the Canada Revenue Agency.
The confusion often centres around two key documents: Form T1044 for non-profit organizations and Form T3010 for registered charities.
The main difference is that registered charities must file Form T3010 annually, while non-profit organizations file Form T1044 only when they meet criteria such as having assets over $200,000 or passive income exceeding $10,000.
This distinction reflects the fundamental differences in how these organizations operate and their tax obligations under Canadian law.
Understanding which form applies to your organization is crucial for maintaining compliance with the CRA and avoiding penalties.
The choice between registered charity status and non-profit organization designation affects tax receipt eligibility, reporting requirements, and spending obligations.
Overview of T1044 and T3010
The T1044 and T3010 are distinct information returns required by the Canada Revenue Agency for different types of organizations.
The T1044 serves non-profit organizations that meet specific asset or income thresholds, while the T3010 is mandatory for all registered charities regardless of their financial position.
Purpose of T1044
Form T1044 acts as the Non-Profit Organization Information Return under the Income Tax Act.
The Canada Revenue Agency uses this form to monitor tax-exempt organizations and ensure compliance with federal tax regulations.
The primary purpose is to collect financial data from non-profit organizations that exceed certain thresholds.
This includes organizations with assets over $200,000 or investment income exceeding $10,000 annually.
The CRA reviews this information to verify that organizations continue to qualify for tax-exempt status.
Organizations that fail to file risk losing their tax exemption and facing financial penalties.
First, it provides the Canada Revenue Agency with information to verify that registered charities remain compliant with charitable regulations.
Second, the T3010 promotes public accountability and transparency.
All T3010 returns become publicly searchable on the CRA website, allowing donors and the public to access current information about registered charities.
The form captures detailed financial data, program activities, and governance information.
This comprehensive reporting helps the CRA monitor charitable activities and ensures organizations meet their charitable obligations.
Primary purposes include:
Maintaining charitable registration
Public transparency requirements
Regulatory oversight
Donor accountability
Who Must File Each Form
T1044 Filing Requirements:
Non-profit organizations must file T1044 when they meet specific criteria during their fiscal year.
Organizations with total assets exceeding $200,000 at any point must file this return.
Additionally, organizations receiving more than $10,000 in passive income (interest, dividends, rentals) must submit the form.
This applies to social clubs, recreational groups, and other non-profit entities that are not registered charities.
T3010 Filing Requirements:
All registered charities must file the T3010 annually, regardless of their asset levels or income amounts.
This requirement applies even when charities have no income or expenses during the fiscal year.
Registered Canadian amateur athletic associations and registered journalism organizations also fall under T3010 requirements.
These organizations cannot file T1044 for the same activities covered by their T3010 return.
Important distinction: An organization cannot file both forms for the same fiscal period and activities.
Registered Charities vs Non-Profit Organizations
Registered charities must operate exclusively for charitable purposes and can issue official donation receipts.
Non-profit organizations serve broader social purposes like civic improvement and recreation but cannot provide tax receipts to donors.
Charitable Purposes and Activities
Registered charities operate under strict guidelines that limit their work to four specific charitable purposes.
These include relief of poverty, advancement of education, advancement of religion, and other purposes that benefit the community.
All charitable activities must directly advance these purposes.
A registered charity cannot use its resources for activities outside these categories.
The organization must dedicate all of its resources to charitable activities.
Every dollar raised must go toward furthering the charity’s charitable purposes.
Registration with the Canada Revenue Agency is mandatory for all organizations wanting charitable status.
The CRA issues a charitable registration number once approved.
Registered charities face spending requirements called disbursement quotas.
They must spend a minimum amount each year on their own charitable activities or qualifying disbursements to other charities.
NPO Purposes: Social Welfare, Civic Improvement, and Recreation
Non-profit organizations serve a much wider range of purposes than registered charities.
NPOs can focus on social welfare, civic improvement, pleasure, sport, or recreation.
These organizations cannot operate exclusively for charitable purposes.
If they do, they must register as charities instead of remaining as NPOs.
NPOs do not register with the CRA like charities do.
They receive no registration number and face fewer reporting requirements.
The organization cannot use its income to personally benefit its members.
One exception exists for clubs promoting amateur athletics in Canada.
NPOs have no mandatory spending requirements.
They can build reserves and spend money when needed without meeting annual quotas.
Most NPOs qualify for income tax exemption.
However, they may pay tax on property income or capital gains in some situations.
These receipts allow donors to claim charitable tax deductions on their personal tax returns.
Non-profit organizations cannot issue tax receipts unless they also hold charitable registration.
Donations to NPOs provide no tax benefits to donors.
This difference significantly affects funding opportunities.
Many donors prefer giving to organizations that provide tax receipts.
Registered charities often attract larger donations because of the tax benefits they offer.
Corporate donors especially value the tax deduction opportunities.
Both organization types generally avoid paying income tax on their regular operations.
However, registered charities receive complete tax exemption while NPOs may face some tax obligations.
The ability to issue tax receipts makes registered charities “qualified donees” under Canadian tax law.
This status opens doors to certain grants and funding programs not available to regular NPOs.
Filing Requirements and Eligibility
Non-profit organizations in Canada face specific filing obligations based on their registration status and financial thresholds.
Registered charities must file T3010 returns annually, while non-profit organizations meeting certain criteria must file T1044 returns.
New short-form requirements are coming for smaller organizations.
Criteria for T1044 Filing
Non-profit organizations described in paragraph 149(1)(l) of the Income Tax Act must file Form T1044 when they meet specific financial thresholds.
The organization must file if it received taxable dividends, interest, rentals, or royalties totalling more than $10,000 during the fiscal period.
Organizations with total assets exceeding $200,000 at the end of the previous fiscal period must also file.
The asset calculation uses book value based on generally accepted accounting principles.
Once an organization files a T1044 for any fiscal period, it must continue filing for all subsequent periods regardless of future revenue or asset levels.
This creates a permanent filing obligation.
Key filing details:
Deadline: Six months after fiscal year-end
Penalty: $25 per day late (minimum $100, maximum $2,500)
Mailing address: Jonquière Tax Centre, T1044 Program
Agricultural organizations, boards of trade, and chambers of commerce under paragraph 149(1)(e) follow the same T1044 requirements.
Criteria for T3010 Filing
Registered charities must file Form T3010 annually regardless of their size or revenue.
This applies to all organizations registered under paragraph 149(1)(f) of the Income Tax Act.
The T3010 filing requirement is mandatory for maintaining charitable registration status.
There are no financial thresholds that trigger this obligation.
Filing specifications:
Due date: Six months after fiscal year-end
Scope: All registered charities
Purpose: Accountability and transparency reporting
Registered Canadian amateur athletic associations and registered national arts service organizations also file T3010 returns.
These organizations cannot file T1044 returns as they fall under different Income Tax Act provisions.
Charities that also qualify as non-profit organizations may need to file both T3010 and T1044 returns if they meet the T1044 thresholds.
New Reporting Obligations for NPOs
Starting with fiscal years beginning on or after January 1, 2026, new filing requirements will affect smaller non-profit organizations.
Organizations not meeting current T1044 thresholds must file a new short-form return.
The short-form return will require basic organizational information including the business number or trust number.
This expands reporting obligations to virtually all non-profit organizations.
Current vs. future requirements:
Pre-2026: Only NPOs meeting income or asset thresholds file T1044
2026 onwards: All NPOs file either T1044 or short-form return
These changes aim to improve transparency and compliance across the non-profit sector.
Organizations should prepare by ensuring proper record-keeping systems and understanding their new obligations.
The Canada Revenue Agency will provide additional guidance as the implementation date approaches.
Information Required on Each Return
The T1044 and T3010 information returns require different sets of financial and organizational data.
The T1044 focuses on basic organizational details and income sources for non-profit organizations, while the T3010 demands comprehensive financial reporting and detailed program information from registered charities.
Essential Details for T1044
The T1044 Non-Profit Organization Information Return collects fundamental information about tax-exempt organizations.
Organizations must provide their business number or trust number along with basic identification details.
Key requirements include the organization’s legal name and complete mailing address.
The form requires financial data about income sources and expenditures during the fiscal period.
Income reporting covers various revenue streams including:
Membership fees and dues
Property income from investments
Donations and grants received
Revenue from programs and services
Organizations must also report their total assets and liabilities.
This includes cash holdings, investments, and physical property owned by the organization.
The T1044 requires details about how funds were spent during the year.
This includes program expenses, administrative costs, and any payments made to directors or officers.
Filing thresholds determine which organizations must complete this return.
Organizations meeting specific income or asset requirements must submit the T1044 alongside their T2 Corporation Income Tax Return.
Key Details for T3010
The T3010 Registered Charity Information Return demands comprehensive reporting from all registered charities.
This form requires detailed financial statements and extensive program information.
Financial reporting includes complete revenue and expenditure breakdowns.
Charities must report all funding sources including donations, government grants, and property income from investments.
Asset reporting covers:
Cash and short-term investments
Long-term investments and endowments
Land, buildings, and equipment
Other assets owned by the charity
The form requires detailed information about charitable programs and activities.
Charities must describe their work and show how they advance their charitable purposes.
Governance information includes details about directors, trustees, and key staff members.
Charities must report compensation paid to directors and the highest-paid employees.
All registered charities must complete the T3010 annually, regardless of their size or income level.
The return must be filed within six months of the charity’s fiscal year-end to maintain good standing with the Canada Revenue Agency.
Penalties and Implications for Non-Compliance
Organizations face different penalty structures and consequences depending on whether they file T1044 or T3010 returns.
The Canada Revenue Agency imposes specific financial penalties for late filing, and continued non-compliance can threaten an organization’s tax-exempt status.
Financial Penalties for Late or Missing Returns
The CRA applies different penalty structures for each return type.
Non-profit organizations that do not file their T1044 return pay a penalty of $25 per day, up to a maximum of $2,500 per return.
The CRA does not impose penalties for first-time late filers of the T1044.
Registered charities face other consequences for T3010 non-compliance.
The CRA charges a late-filing penalty of $500 if a charity misses the six-month deadline after its fiscal year-end.
The agency does not apply this penalty if charities file before their registration is revoked.
Penalties for tax receipt violations are more severe:
5% penalty for first-time inaccurate receipts
10% penalty for repeat violations
125% penalty for false information on receipts
If false receipt penalties exceed $25,000, the charity loses its tax-receipting privileges for one year.
Impact on Tax-Exempt Status
Non-compliance puts the tax benefits both organization types receive at risk.
The CRA can revoke an NPO’s tax-exempt status if it repeatedly fails to file T1044 returns or keep proper records.
For registered charities, consequences escalate faster.
The agency sends a Notice of Intention to Revoke (Form T2051A) if it does not receive the T3010 return within seven months of the fiscal year-end.
Revocation happens by the tenth month if the charity still has not filed.
Once revoked, charities may owe a revocation tax on remaining assets if they do not transfer them to eligible donees in time.
Loss of charitable status means donors cannot claim income tax deductions for their gifts.
Organizations cannot reapply right away and re-registration is not guaranteed.
Choosing Between Registered Charity and NPO Status
Organizations should weigh their operational needs against compliance requirements when choosing their structure.
This decision affects fundraising, tax obligations, and how flexible the organization can be long-term.
Strategic Considerations for Organizations
Purpose alignment is the main factor in choosing a status.
Groups focused on poverty relief, education, religion, or community benefit should become registered charities.
Organizations centered on social welfare, recreation, or civic improvement fit better as NPOs.
Fundraising needs also play a big role.
Registered charities can issue official donation receipts, which attract donors who want tax benefits.
This ability often leads to more and larger donations.
NPOs have stricter limits on charitable activities.
They cannot operate solely for charitable purposes or they lose their NPO classification.
This rule affects organizations that may shift toward more charitable work in the future.
Operational flexibility also differs between the two types.
NPOs have fewer spending requirements and less regulatory oversight.
Registered charities must meet annual disbursement quotas and spend minimum amounts on charitable activities each year.
The registration process is different for each.
Registered charities go through a detailed application review with the Canada Revenue Agency.
NPOs only need to meet basic criteria and do not have a formal registration process.
Long-Term Impacts on Fundraising and Compliance
Funding sources are broader for registered charities.
Many foundations, government grants, and large donors require organizations to be registered charities.
This requirement can limit NPOs’ access to major funding opportunities.
Registered charities face higher compliance costs.
They must file detailed T3010 returns each year and keep thorough records of their activities.
NPOs usually file simpler T1044 forms with less strict reporting rules.
Public trust often favors registered charities because of government oversight and transparency rules.
Donors see charity registration as proof of legitimate operations and proper fund management.
Registered charities face more limits on commercial activities and must keep all revenue sources aligned with charitable purposes.
NPOs have more freedom in how they generate revenue.
Future changes in organizational status require careful planning.
Switching from NPO to registered charity status takes time and a lengthy application process.
Changing from charity to NPO status means permanently losing the ability to issue donation receipts.
Conclusion
The difference between T1044 and T3010 forms is clear.
Registered charities file T3010 returns each year, while non-profit organizations that are not registered charities use T1044 if they meet certain income or asset thresholds.
An organization cannot be both a registered charity and a non-profit for CRA filing purposes.
Which form to file depends on the organization’s registration status with the CRA.
T3010 forms promote transparency and help registered charities stay compliant.
T1044 forms collect information from non-profits with higher financial activity, allowing the CRA to monitor these organizations.
Filing the correct form is necessary to stay in good standing with the CRA.
Northfield & Associates helps organizations meet these requirements and stay compliant.
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
Organizations often ask which form applies to them and what the filing requirements are.
The T1044 is for non-profit organizations that meet certain criteria, while the T3010 is required for all registered charities in Canada.
What is the difference between T1044 and T3010?
The T1044 is the Non-Profit Organization Information Return.
The Canada Revenue Agency uses it to collect financial information from tax-exempt non-profit organizations that operate under paragraph 149(1)(l) of the Income Tax Act.
The T3010 is the Registered Charity Information Return.
It ensures registered charities stay compliant and provides transparency for the public.
Organizations file the T1044 with a Corporate Income Tax Return, but this usually does not lead to a tax bill.
The T3010 is a separate report designed specifically for registered charities.
Who needs to file a T1044 vs a T3010?
Non-profit organizations file a T1044 if they meet certain criteria under the Income Tax Act.
They must file when their total passive income from dividends, interest, rentals, or royalties exceeds $10,000 in a fiscal period.
All registered charities in Canada must file a T3010 every year.
This rule applies no matter the charity’s size or income.
The main difference is the organization’s legal status.
Non-profits that are not registered charities use the T1044, while registered charities use the T3010.
When are T1044 and T3010 returns due?
Both forms have similar deadlines based on the organization’s fiscal year-end.
Organizations generally have six months after their fiscal year-end to file.
The exact due date depends on when the fiscal year ends.
Organizations should check their year-end date and count six months forward to find their deadline.
Late filing can lead to penalties and possible loss of tax-exempt status.
Organizations should mark their filing dates on the calendar well in advance.
Can an organization ever file both T1044 and T3010?
Organizations cannot file both forms for the same fiscal period.
The choice depends entirely on their legal status with the CRA.
If an organization is a registered charity, it files the T3010.
If it is a non-profit that is not a registered charity, it may need to file the T1044 based on the criteria above.
An organization can switch from one form to the other if its status changes.
For example, a non-profit that becomes a registered charity stops filing T1044 and starts filing T3010.
What are the penalties for non-compliance in filing the T1044 or T3010 forms?
The CRA can charge financial penalties for late filing or non-compliance.
Penalties depend on the organization’s revenue and how late the filing is.
Registered charities that do not file the T3010 can lose their charitable status.
This means they lose the ability to issue tax receipts and may have to pay tax on their income.
Non-profit organizations that do not file required T1044 forms may lose their tax-exempt status.
This would make them liable for corporate income tax on their earnings.
Why does it matter whether my organization files T1044 or T3010?
Filing the correct form helps your organization keep its tax-exempt or charitable status with the CRA. If you use the wrong form or don’t file at all, you risk losing these legal protections.
The T3010 lets registered charities issue tax receipts to donors. If a charity can’t provide receipts, attracting donations becomes much harder because supporters can’t claim tax deductions.
Proper filing builds transparency and public trust. The CRA makes this information public, so donors can make informed decisions about which organizations to support.
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!
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!
Can a Canadian Charity Provide Benefits to its Directors?
In Canada, registered charities generally cannot pay directors just for holding board positions. However, they may compensate directors for specific goods, services, or facilities provided beyond governance duties.
This distinction between directorial roles and additional services creates opportunities for legitimate compensation. Charities must still comply with strict regulations.
Understanding these rules is crucial as charities seek qualified directors and manage complex operations. The legal framework varies by province and carries significant consequences for non-compliance.
Charity leaders must understand both the possibilities and the strict safeguards that govern director benefits.
Legal Framework Governing Director Benefits
The legal framework for director benefits in Canadian charities includes federal and provincial legislation. The Income Tax Act sets the foundation for registered charities, while provincial acts govern corporate structure and compensation rules.
Key Federal and Provincial Acts
The Canada Not-for-profit Corporations Act governs federally incorporated charities and sets basic rules for director compensation. This act allows reasonable compensation for services provided to the charity.
Each province has its own not-for-profit corporations act for provincially incorporated charities. In Ontario, the Charities Accounting Act provides specific rules for director payments.
This act requires strict procedures, including:
Written board agreements before payment
Board meetings with at least four uninvolved directors present
Maximum 20% of voting directors can receive compensation
Full financial disclosure in annual statements
Other provinces have similar but different requirements. Always check the specific provincial laws where the charity operates.
Corporate bylaws and governing documents must explicitly allow director compensation for any payments to be valid.
Income Tax Act Provisions
The Income Tax Act sets the federal tax framework for registered charities in Canada. Section 149.1 defines what qualifies as a registered charity and establishes basic operating rules.
Charities cannot provide undue benefits to any person, including directors, trustees, and connected persons. All transactions must serve the charity’s purposes.
Private benefit rules are strict. Any benefit to directors must be:
Reasonable compensation for actual services
In the charity’s best interest
Properly documented and approved
The Act also requires charities to spend a minimum amount on charitable activities each year. Excessive director compensation could reduce these required expenditures.
Violations can result in penalties, suspension, or loss of charitable status. The CRA regularly audits charities for improper director benefits.
CRA Requirements for Registered Charities
The Canada Revenue Agency (CRA) enforces charity law through detailed policies and regular audits. Charities must show that all director benefits serve legitimate charitable purposes.
Key CRA requirements include:
Proper documentation of all director payments
Market-rate compensation for services provided
Board independence in approval decisions
Annual reporting of director benefits
The CRA publishes guidance documents explaining acceptable practices. These documents help charities understand rules and avoid violations.
Audit procedures focus on director compensation. The CRA examines board meeting minutes, payment records, and supporting documentation.
Keep detailed records of all decisions and approvals. Non-compliance can trigger sanctions, penalties, compliance agreements, or loss of charitable status.
The CRA takes director benefit violations seriously because they undermine public trust in the charitable sector.
General Rule: Prohibition on Director Benefits
Canadian charity law restricts directors from receiving personal benefits from the organizations they govern. These rules protect charitable assets and ensure directors act in the charity’s best interests.
Duty to Act Without Personal Benefit
Directors of Canadian charities cannot receive compensation simply for holding their director positions. This rule applies across all provinces and territories.
The Canada Revenue Agency enforces this prohibition through federal tax policy. Provincial laws also support this restriction.
Directors must serve without expecting payment for governance duties. This includes attending board meetings, voting, and providing oversight.
Key prohibited benefits include:
Director fees or stipends
Payment for board meeting attendance
Compensation for general governance activities
Benefits tied to board positions
Charitable resources must go toward charitable purposes. Directors who seek personal gain create conflicts that harm the charity’s mission.
Fiduciary Duty Overview
Directors owe fiduciary duties to their charities under Canadian law. They must put the charity’s interests above their own personal interests.
Fiduciary duties require directors to act with loyalty, care, and good faith in all charity matters.
Core fiduciary principles include:
Acting in the charity’s best interests
Avoiding conflicts of interest
Using charity resources properly
Making informed decisions
When directors receive personal benefits, they violate these fiduciary duties. This creates legal risks for both the director and the charity.
Courts can hold directors personally liable for breaching fiduciary duties. The CRA can also revoke charitable registration for improper director benefits.
Restricted Use of Charity Property
Charity property must serve charitable purposes, not personal ones. Directors cannot use charity assets, funds, or resources for their own benefit.
The Income Tax Act prohibits organizations from making income available to directors. This rule also prevents indirect benefits through creative arrangements.
Restricted uses include:
Personal loans from charity funds
Free use of charity property
Below-market transactions with directors
Gifts or personal benefits from charity resources
Provincial charity laws reinforce these restrictions. Ontario’s Charities Accounting Act and similar laws create additional barriers to director benefits.
Violations can result in serious consequences. The CRA may revoke charitable registration, and directors may face personal liability for misused funds.
Permitted Benefits and Exceptions
While Canadian charities face restrictions on director compensation, specific exceptions allow for reasonable expenses, service compensation under strict conditions, and liability insurance coverage. These exceptions help charities operate effectively while maintaining transparency and accountability.
Reimbursement of Reasonable Expenses
Charities can reimburse directors for legitimate expenses incurred while carrying out their duties. This includes travel, accommodation, and meal expenses for charity business.
All reimbursements must be reasonable and directly related to charity activities. Proper documentation is essential for each expense claim.
Common reimbursable expenses include:
Travel costs for board meetings or charity events
Accommodation during overnight charity business
Meal expenses while on charity duties
Communication costs for charity-related calls or internet
The charity should establish a clear expense policy. This policy must outline what expenses qualify for reimbursement and require proper receipts.
Compensation for Services Rendered
Ontario charities can pay directors for specific services beyond their director role, under the Charities Accounting Act. This compensation must meet strict legal requirements.
Can a Canadian Charity Located in Ontario Pay its Directors?
In Canada, the compensation of directors in charitable organizations can be a complex matter governed by specific provincial regulations. Understanding these regulations is crucial for charities to ensure compliance while fairly remunerating directors for their services. This post highlights the conditions for charities located in Ontario specifically, and which are therefore subject to the Charities Accounting Act, with guidelines for compensating directors or persons connected to directors of registered charities.
Payment for Goods, Services, or Facilities: The payment must be for goods, services, or facilities provided by the director to the registered charity.
Reasonable Amount: The amount of the payment must be reasonable for the goods, services, or facilities provided.
Best Interest of the Charity: The payment for goods, services, or facilities must be in the best interest of the registered charity.
Financial Responsibility: Payments cannot result in the registered charity’s debts and liabilities exceeding the value of its charitable property.
Written Agreement: Before a payment is made, the board of directors must permit the payment via a written agreement that includes the maximum amount that can be paid.
Board Resolution: The board of directors must arrive at the written agreement through a resolution at a duly constituted board meeting, with at least four directors (not including those connected to the person providing the goods/services) present.
Exclusion of Involved Directors: Directors receiving payment and those connected to them may not attend or vote at the meeting where the resolution is made.
Limit on Payments: The total number of directors receiving payment under s. 2.1 of O Reg 4/01 of the Charities Accounting Act cannot exceed 20% of the number of voting directors.
Financial Disclosure: Details about the arrangement must be noted in the registered charity’s annual financial statements and presented to the members at the annual meeting.
Director’s Satisfaction: Each director must be satisfied that the payment is being made in accordance with s. 2.1 of O Reg 4/01 of the CAA. If a charity can fulfill these requirements, it can reasonably compensate its directors for services rendered to the organization. This framework ensures transparency, accountability, and adherence to legal standards in the management of charitable funds.
Director and Officer Liability Insurance
Charities can purchase liability insurance to protect directors from personal lawsuits. This insurance covers legal defence costs and potential damages from director decisions.
Liability insurance helps charities attract qualified directors. Many potential board members worry about personal financial risk.
The insurance typically covers:
Legal defence costs for lawsuits
Damages awarded against directors
Employment practices claims
Regulatory investigations
The insurance policy should include appropriate coverage limits. The policy must cover all directors and officers of the charity.
This benefit protects both the charity and its leadership. It allows directors to make decisions without fear of personal financial ruin.
Conflict of Interest and Compliance Safeguards
Canadian charities must have strong systems to identify and manage conflicts of interest when providing benefits to directors. These safeguards ensure compliance with the Charities Accounting Act and maintain public trust.
Identifying Conflicts of Interest
Directors face conflicts when their personal interests compete with their charity’s best interests. Conflicts arise when directors or their connected parties receive payments, goods, or services from the charity.
Common conflict situations include:
Directors providing services to the charity for payment
Family members of directors receiving employment or contracts
Directors having financial interests in suppliers or vendors
Board members voting on matters that benefit them personally
The appearance of conflict matters as much as actual conflicts. Directors must avoid situations that could appear improper to donors, regulators, or the public.
Clear policies should define what constitutes a conflict. These policies should cover direct and indirect benefits, including payments to spouses, children, or business partners of directors.
Managing Conflicts and Disclosure
Proper disclosure forms the foundation of conflict management. Directors must declare potential conflicts before board discussions begin.
Written disclosure of all relationships and interests that could create conflicts is required. Key disclosure requirements include:
Written declaration of all potential conflicts
Annual conflict of interest statements from all directors
Immediate disclosure when new conflicts arise
Documentation of all conflict management decisions
Conflicted directors cannot participate in related discussions or votes. They must leave the room during deliberations about matters affecting their interests.
Keep detailed records of all conflict situations and how they were managed. These records show commitment to proper governance and regulatory compliance.
Regulation and Court Approval Processes
The Charities Accounting Act requires specific procedures when paying directors. Written board resolutions must involve at least four non-conflicted directors, and no more than 20% of voting directors can receive payments.
Court approval may be necessary for some benefit arrangements. Seek legal advice for complex situations or when payments exceed routine service agreements.
Regulatory compliance steps:
Document all decisions in board minutes
Include benefit details in annual financial statements
Report arrangements to members at annual meetings
Ensure payments remain reasonable for services provided
File required reports with provincial and federal authorities. Trustees and directors share responsibility for meeting all disclosure requirements completely and on time.
Compensation Policies and Best Practices
Canadian charities must establish clear policies to ensure director compensation meets CRA requirements and serves the organization’s best interests. Proper assessment methods and transparent disclosure practices protect both the charity and its directors from regulatory violations.
Assessing Fair and Reasonable Compensation
We need to benchmark compensation against similar roles in comparable organizations.
The CRA requires that payments be reasonable for the services provided.
Key assessment factors include:
Market rates for similar positions
Director’s qualifications and experience
Time commitment required
Geographic location of the charity
We should document our decision-making process thoroughly.
This includes comparing salaries from other charities of similar size and mission.
The Income Tax Act requires compensation to be in the charity’s best interest.
We must show that paying the director benefits our organization more than hiring an outside contractor.
Board evaluation should consider:
Whether the director has specialized skills
If the role requires significant time beyond normal governance duties
Whether the compensation helps retain valuable expertise
Public Disclosure and Accountability
We must include director compensation details in our annual financial statements.
This transparency helps maintain public trust and meets regulatory requirements.
The CRA expects charities to be open about how donation funds are used.
High director salaries can damage our reputation if not properly justified.
Disclosure requirements include:
Total compensation amounts
Number of directors receiving payment
Description of services provided
We should prepare clear explanations for donors and the public about why compensation is necessary.
Our fiduciary duty requires us to use charitable funds responsibly while ensuring effective leadership.
Board minutes must document the approval process and reasoning behind compensation decisions.
This protects directors and demonstrates compliance with provincial regulations.
Risks, Penalties, and Consequences of Non-Compliance
If charities improperly provide benefits to directors, the Canada Revenue Agency (CRA) can impose significant financial penalties.
The CRA can ultimately revoke charitable status, and directors may also face personal liability under the Income Tax Act.
Tax Penalties and Revocation of Status
The CRA treats improper benefits to directors as “undue benefits” under the Income Tax Act.
This triggers serious financial consequences for charities.
Financial penalties apply immediately.
The penalty equals 105% of the benefit amount.
For example, if we pay a director $10,000 inappropriately, we face a $10,500 penalty.
Repeat violations lead to harsher sanctions.
The CRA imposes more severe penalties for subsequent violations within five years.
This includes potential suspension of our ability to issue donation receipts.
Registration revocation is the ultimate penalty.
For serious non-compliance, the CRA can revoke our charitable status entirely. This means:
Loss of tax-exempt status
Inability to issue donation receipts
Required dispersal of all assets
Payment of revocation tax on remaining assets
The process escalates quickly.
The CRA may proceed directly to revocation for serious violations rather than imposing intermediate sanctions first.
Personal Liability for Directors
Directors face personal consequences beyond organizational penalties when charities provide improper benefits.
Directors can be personally liable for penalties.
Under the Income Tax Act, directors may be held responsible for the charity’s tax obligations and penalties when they knew or should have known about violations.
Culpable conduct increases exposure.
If directors show “wilful, reckless or wanton disregard of the law,” they face additional penalties.
This includes making false statements to maintain registration.
Joint liability applies in some cases.
When multiple parties participate in benefit schemes, directors can be jointly liable for the full penalty amount.
Due diligence provides some protection.
Directors who can prove they exercised reasonable care and took steps to prevent violations may avoid personal liability.
Special Considerations for Trustees and Restricted Funds
Trustees carry specific legal duties when managing charity assets, especially when handling restricted funds designated for particular purposes.
These responsibilities create additional compliance requirements beyond standard director compensation rules.
Duties of Charity Trustees
Trustees must maintain direct control over all charity funds and assets.
We cannot delegate this core responsibility to employees or outside consultants, though they may provide guidance.
Key trustee obligations include:
Managing restricted and unrestricted funds according to donor intentions
Ensuring all expenditures align with the charity’s stated purposes
Maintaining proper oversight of financial decisions
When trustees receive compensation, we must be extra careful with restricted funds.
Money designated for specific purposes cannot pay trustee benefits unless the donor explicitly permits such use.
The trustee role carries fiduciary duties under provincial law.
We must act in the charity’s best interests at all times. This means avoiding conflicts between personal compensation and proper fund management.
Administration of Restricted Funds
Restricted funds create binding legal obligations for charities.
When we accept donations with specific conditions, the charity becomes a trustee subject to charitable trust law.
Common restricted fund types:
Endowment funds
Scholarship programs
Building funds
Equipment purchases
We cannot use restricted money for general operations or trustee compensation unless donors specifically allow it.
Breaking these restrictions risks penalties, lawsuits, or loss of charitable status.
Proper documentation is essential.
We must track restricted funds separately and report their use in annual statements.
Any trustee benefits paid from these funds requires clear donor authorization in writing.
The Canada Revenue Agency expects charities to honour all donor restrictions while furthering charitable purposes outlined in governing documents.
Conclusion
Canadian charities can provide benefits to directors, but strict legal requirements must be followed. The rules vary by province, with Ontario having specific conditions under the Charities Accounting Act.
Payment must be for actual goods or services, the amount must be reasonable, a written board agreement is required, and a maximum of 20% of directors can receive payment. Financial disclosure in annual statements is also mandatory.
Directors cannot simply be paid for holding their position, they must provide value beyond basic governance duties, and the charity’s best interests must always come first.
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.
CEOs in Toronto and Vancouver typically earn more than those in smaller cities.
The organization’s revenue and complexity influence salary ranges.
Healthcare and education nonprofits often pay higher salaries than community organizations.
What policies should a Canadian charity implement to ensure transparency in director remuneration?
Charities should create clear written policies about director compensation before making any payments. These policies should explain when and how directors can receive benefits.
The board should disclose all compensation arrangements in annual financial statements. Members should review this information at the annual meeting.
Conflict of interest policies prevent directors from benefiting inappropriately from their positions. Directors need to declare potential conflicts and abstain from related votes.
Charities should review compensation regularly to ensure it remains reasonable. Independent evaluations help keep payment levels appropriate.
Charities should keep records such as board resolutions, written agreements, and maximum payment amounts. These documents show compliance with provincial regulations and support accountability.
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.
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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.
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