Summary Policy

Date
September 3, 2003

Reference Number
CSP - N03

Key Words
Non-profit organization

Policy Statement

Under the Income Tax Act, a non-profit organization is an association organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit (e.g., a club, society, or association). The organization will generally be exempt from tax if no part of its income is payable to, or available for, the personal benefit of a proprietor, member, or shareholder unless the proprietor, member, or shareholder is a club, society, or association whose primary purpose and function is to promote amateur athletics in Canada.

A non-profit organization cannot issue official donation receipts.

References

• Charitable Purposes, CSP - C01.
• RCAAA, CSP - R01.
• Income Tax Guide to the Non-Profit Organization (NPO) Information Return, T4117.
• Non-Profit Organization (NPO) Information Return, T1044.
• T2 Corporation Income Tax Return, T2.
• T2 Corporation - Income Tax Guide, T4012.
• Non-Profit Organizations, IT-496.
• Non-Profit Organizations - Taxation of Income from Property, IT-83.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, para. 149(1)(l) and ss. 149(5) and 149(12).