Charity Information Return

Since a registered charity is exempt from tax, such a charity does not have to file a tax return. However, under the Income Tax Act (the Act), every registered charity must file an information return each year; i.e. Form T3010: Registered Charity Information Return. The return must be filed no later than six months after the end of the charity’s fiscal period. For example, if the charity’s fiscal period-end is March 31^st, the information return is due by September 30^th.

If the charity is a corporation, it does not have to file a T2 Corporation Income Tax Return during the period it has charitable status. If, however, the charity loses its charitable status, it must resume filing a T2 return.

A registered charity can also be subject to other federal, provincial, or territorial filing requirements under its incorporating statute or other statutes that govern its operations. For more information on federal incorporation, visit the Corporations Canada website at corporationscanada.ic.gc.ca/eic/site/cddgc.nsf/eng/home. For more information on provincial or territorial incorporation, visit canada.ca/charities-giving, select “A to Z index,” and see “Other government resources for donors.”

Registered charities in the province of Quebec also have to file a provincial annual return.

If a charity does not file an information return as and when required, its registered status can be revoked in which case it would:

1. i) no longer be exempt from tax, unless another exemption applies;
2. ii) not be able to issue official donation receipts in respect of which a donee can claim a credit/deduction; iii) be required to transfer its property to an eligible donee or be subject to a revocation tax equivalent to the full value of its remaining assets. In Guide RC4424: Completing the Tax Return Where Registration of a Charity is Revoked, the CRA states:

If we do not receive Form T3010 within three months after the end of the charity’s fiscal period, we will send Form TX11D, Reminder to Registered Charities to File a Return. If we still do not receive Form T3010 within seven months after the end of the fiscal period, we will send a T2051A, Notice of Intention to Revoke a Charity’s Registration, by registered mail. The date of this notice is important: The charity has 90 days from the date that the T2051A was issued to either file its Form T3010, or to file an objection if it believes that it has met the filing requirements and that its registration should not be revoked … After 90 days, we will begin the revocation process.

The charity’s registration is officially revoked when a notice is published in Part I of the Canada Gazette. We will then send the revoked charity a T2051B, Notice of Revocation of Charity’s Registration, which gives the effective date of revocation and includes Form T2046, Tax Return Where Registration of a Charity is Revoked, with certain key information already filled in. The revoked charity will be instructed to fill out and send us Form T2046 no later than one year after the date on the T2051A … If we do not receive the completed Form T2046 three months before it is due, we will send the revoked charity Form T1114, Reminder to file Form T2046.

See also the following CRA publications:

• Maintaining the charity’s status as a legal entity;
• Completing Form T3010 Registered Charity Information Return and,
• T3010 checklist—how to avoid common mistakes when filing your return.

Another reason to file an information return is that the public and the media routinely use the CRA’s Charities Listings to review charities’ T3010 returns.

As of June 2019, registered charities can complete and file Form T3010 online through My Business Account (available on canada.ca). Charities can also update their organization’s information online and correspond with the Charities Directorate electronically through My Business Account.

Our office would be happy to prepare or review the charity information return. Please call if you have questions or wish to discuss these matters further.