Not-for-profit (NFP) organizations have needs that differ greatly from those of traditional businesses and often have different priorities. Whether you run a foundation, charity, association or community care agency, securing additional funding will significantly impact the way you operate. Each year, Canadian not-for-profit organizations are required to do more with less. Service demands continue to grow while funds become less accessible. For most agencies, understanding and complying with complex regulatory changes while growing revenue and containing costs poses significant challenges. As shifts in financial reporting standards and funding continue to dominate the accounting arena, not-for-profit organizations face additional complexities and potential implications.
REGISTERED CHARITIES TAXATION REQUIREMENTS
Registered charities include charitable organizations as well as charitable foundations, both public and private that have registered with the CRA for charitable status. Tax advantages of a registered charity include:
• Tax exempt entity under Part 1 of the Income Tax Act
• Allows issuance of official tax receipts for gifts received
• May qualify for a partial rebate on GST/ HST paid
Charities are required to file:
• T3010-1 Registered charity information return
• TF725 Registered charity basic information sheet
• T1235 Directors/ trustees and like officials worksheet
• T1236 Qualified donees worksheet/ amounts provided to other organizations (if applicable)
• T2081 Excess corporate holdings worksheet for private foundations (if applicable)
At RAVINDER MAKKAR CPA, CGA office, we assist in Taxation planning for our clients. Taxation issues vary for different types Professional Corporations and can be complex. Along with our tax advisers, we can help your organization to be tax-compliant and efficient.
For further information contact us at: 905-791-6666 or e-mail: makkarcpa@hotmail.com
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