Charitable organizations in Canada are regulated under the Canadian Income Tax Act through the Charities Directorate of the Canada Revenue Agency. There are more than 85,600 registered charities in Canada.   There are three types of registered charities. Every registered charity is designated as a: Charitable organization;  Public foundation, or Private foundation.

The designation a charity receives depends on its structure, its source of funding, and its mode of operation.   A registered charity is notified of its designation by the CRA when it receives a Notice of Registration.  All registered charities, regardless of their designation, can issue official donation receipts for income tax purposes.   Charity organization must be established and resident in Canada, operate for charitable purposes, and devote its resources to charitable activities.

The Canada Revenue Agency “CRA” has recently released a document, “Consequences of non-filing” which reminds charities that their registered status can be revoked if they fail to file the annual charity T3010 on time. The consequences of revocation for the charity are:

  • it no longer qualifies for exemption from income tax as a registered charity
  • it cannot issue official donation receipts; and
  • it may be subject to a tax equivalent to the full value of its remaining assets

At MASTERTAX we provide you the complete services you need to prepare and maintain the financial records of your charitable organization in good status.  We prepare and file your Annual Charity (T3010) Returns, financial Statements, and offer annual Books and Records as required by the federal Government.  we are here to help and if you need assistance Call today for a free consultation at 647-2290343