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Non-profit Organization - NPO - Information Return
Canada Revenue Agency (CRA)
Last Verified:
2004-11-09
Act: Income Tax Act, R.S.C. 1985, c. 1, 5th Supp.
Regulation: Not applicable.
To Whom Does This Apply?
As required by subsection 149(12) of the Income Tax Act, your organization may have to file the Non-Profit* Organization (NPO) Information Return for a fiscal period ending after December 31, 1992, if it is:
- an NPO described in paragraph 149(1)(l); or
- an agricultural organization, a board of trade, or a chamber of commerce described in paragraph 149(1)(e).
Summary
An NPO, described in paragraph 149(1)(l) of the Income Tax Act is a club, society, or association that is organized and operated solely for:
- social welfare;
- civic improvement;
- pleasure or recreation; or
- any other purpose except profit.
Also, no part of the income of these organizations can be payable to, or otherwise available for, the personal benefit of any proprietor, member or shareholder, unless the proprietor, member or shareholder was a club, society or association whose primary purpose was to promote amateur athletics in Canada. For a more comprehensive description, see CRA's Income Tax Bulletin.
The new Non-Profit Organization Information Return is a two-page information tax return.
Organizations have to file this return:
- if they receive, or are entitled to receive dividends, interest, rentals or royalties in a fiscal period totalling more than $10 000;
- if their total assets were more than $200 000 at the end of the immediate preceding fiscal period (the amount of your organization's total assets is the book value of these assets calculated using generally accepted accounting principles); or
- if a NPO information return was to be filed for a preceding fiscal period.
Once an organization has filed this information return, it has to keep filing, for as long as it remains an NPO, regardless of the dollar value of its revenues or the book value of its assets.
The Non-Profit Information Return is divided into seven sections.
Section A: Identification.
Section B: Amount received during the fiscal period (you can report on a cash or accrual basis, as long as you use one method consistently).
Section C: Statement of assets and liabilities at the end of the fiscal period.
Section D: Remuneration and taxable benefits (e.g. leased vehicles and low-interest housing loans).
Section E: The organization's activities.
Section F: Location of books and records.
Section G: Certification.
The publication T4117 entitled Income Tax Guide to Non-Profit Organization Information Return shows users how to complete the return line by line. The form T1044 - Non-Profit Organization (NPO) Information Return is available on CRA Web site.
* Also known as nonprofit, non profit, not-for-profit, voluntary and volunteer organizations.
DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.
Quebec Contact(s):
See National Contact.
National Contact(s):
Canada Revenue Agency
Toll-free (information): 1-800-959-5525 (Business Enquiries and Registrations)
Toll-free (publications): 1-800-959-2221 (Forms and Publications)
Web site: http://www.cra.gc.ca/menu-e.html