069 | Taxes for Non-Profit Organizations
In this post, we are going to specifically cover Taxes for Non-Profit Organizations.
Oh wait a minute! Non-Profit Organizations don't pay taxes! Right! Post over 😁
Seriously though ... yes, it is true that Non-Profits fall into a very different category with the Canada Revenue Agency as far as taxes are concerned.
The first place to start, is to determine if your Non-Profit Organization is required to file a FormT1044 NPO Information Return. The parameters that would require a filing are:
1. Your NPO received or was entitled to receive taxable dividends, interest, rentals, or royalties totalling more than $10,000 in the fiscal period
2. The total assets of the organization were more than $200,000 at the end of the immediately preceding fiscal period (the amount of the organization's total assets is the book value of these assets calculated using generally accepted accounting principles)
3. Your NPO had to file an NPO information return for a previous fiscal period. Once an organization has filed an NPO information return for a fiscal period, it must file an information return for all subsequent fiscal periods, as long as it remains an NPO and regardless of the dollar value of its revenues or the book value of its assets in those later years.
So, if your organizations falls into one of the above, then a filing will be on your To-Do list. Your filing deadline is no later than six months after the end of your fiscal period. If you file late, the penalty is $25 per day late. There is a minimum penalty of $100 and a maximum of $2,500 for each failure to file.
The second place to go, is to refer to CRA for guidance if you prefer to file on your own. For much further and in-depth information, here is the link to #CRA's Guide to Income Tax for Non-Profit Organizations: click here.
The last step on your list is to contact us for help! Reach out to us for number crunching assistance.