Do Nonprofits Have to File Tax Returns in Canada? What Every Canadian Organization Should Know

If you run or are starting a nonprofit in Canada, you might wonder: “Do we need to file a tax return if we don’t pay taxes?” The short answer is yes. Most nonprofits do have to file a return with the Canada Revenue Agency (CRA), even if they don’t owe any tax. Here’s what you need to know, written in plain language.

What Is a Nonprofit in Canada?

In Canada, a nonprofit organization (NPO) is a group that operates for a purpose other than to make a profit. Common examples include:

• Sports clubs
• Community groups
• Social or cultural organizations
• Religious organizations that are not registered as charities

Note: A registered charity is a special type of nonprofit that has extra benefits and responsibilities. Not all nonprofits are registered charities.

Do Nonprofits Have to File a Tax Return?

Yes. Most nonprofit organizations in Canada must file a tax return every year with the CRA, even if:

• They don’t earn much money
• They are run by volunteers
• They don’t pay any taxes

Failing to file can cause problems down the road, including loss of tax-exempt status or issues with banks and funders.

Which Tax Return Do Nonprofits File?

Nonprofits that are not registered charities must file Form T1044 – Non-Profit Organization (NPO) Information Return if they meet either of these conditions:

1. They earned more than $10,000 in the year from dividends, rentals, royalties and interest,
   or
2. They owned assets worth more than $200,000 at any point in the year.

Even if a nonprofit doesn’t meet these two criteria, it might still need to file a T2 corporate tax return if it is incorporated federally or provincially (even if no tax is payable). In some cases, incorporated nonprofits file a T2 Short Return plus the T1044.

What About Registered Charities?

Registered charities in Canada do not file the T1044. Instead, they must file an annual T3010 – Registered Charity Information Return. This return is required even if the charity has no income or expenses. It includes:

• Financial information
• Activities for the year
• Information on directors and trustees

Missing this return can lead to revocation of charity status, meaning the charity can no longer issue donation receipts.

What Happens If a Nonprofit Doesn’t File?

If a nonprofit fails to file its required forms:

• The CRA may revoke its tax-exempt status.
• The organization could face penalties or fines.
• It may have trouble getting grants, funding, or even opening a bank account.

Also, late or missing filings create red flags if the organization ever wants to become a registered charity in the future.

Filing Deadlines

• T1044 and T2: Due six months after the organization’s fiscal year-end.
• T3010 (for charities): Due six months after the charity’s fiscal year-end.

Summary: Filing Rules for Canadian Nonprofits

‍

Even if your nonprofit doesn’t make a profit, you still have legal filing responsibilities. Knowing what forms to file—and when—can help you stay in good standing with the CRA and avoid unnecessary penalties. If you’re not sure which forms apply to your group, it’s a good idea to speak with an accountant or charity lawyer familiar with Canadian nonprofit rules.

Need Help Starting or Managing a Nonprofit or Charity in Canada?

Our team helps Canadian organizations register as charities or nonprofits and stay compliant—from incorporation to annual filings. Reach out to learn more. Email us to ask@charitylawgroup.ca or call 416-488-5888. We're excited to help.

Frequently Asked Questions

Get quick answers to common questions about nonprofit finances and tax requirements in Canada.

Do nonprofits have to disclose financials to the public in Canada?

It depends on the type of nonprofit. Registered charities must make their financial statements available to the public through the Canada Revenue Agency (CRA). You can view these on the CRA's website. Other nonprofits that aren't registered charities don't have to share their finances publicly, but they may need to report to their members or provincial regulators. Some provinces have their own rules about financial disclosure for incorporated nonprofits.

Who is required to file a tax return in Canada?

You must file a tax return if you owe taxes to the CRA. You should also file if you want to claim benefits like the GST/HST credit or Canada Child Benefit, even if you don't owe taxes. Self-employed people need to file returns. If the CRA asks you to file, you must do so. It's a good idea to file even if you're not required to, as you might get a refund or qualify for credits.

Does non profit organization file tax return?

Yes, most nonprofits file tax returns in Canada. Registered charities must file a T3010 Charity Information Return every year. Nonprofit organizations that aren't charities may need to file a T2 Corporation Income Tax Return, even if they don't owe taxes. The specific requirements depend on whether the nonprofit is incorporated and if it has taxable income. Filing on time helps maintain good standing with the CRA.

How to check my tax return status in Canada?

You can check your tax return status online through My Account on the CRA website. Sign in and look for "Tax Returns" to see the status. You can also use the MyCRA mobile app. Another option is to call the CRA's Tax Information Phone Service at 1-800-959-8281. Wait at least eight weeks after filing a paper return or two weeks after filing online before checking. The CRA will show if your return is received, being processed, or assessed.

Do non-profits have to file tax returns in Canada?

Yes, non-profits usually have to file tax returns in Canada. Registered charities file a T3010 form each year with details about their activities and finances. Other nonprofits typically file a T2 Corporation Income Tax Return if they're incorporated, even if they don't owe taxes. Filing deadlines vary based on the organization's year-end. Not filing can result in penalties or loss of registered status for charities. Check with the CRA to confirm what your specific nonprofit needs to file.