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Bookkeeping for nonprofits follows the same basics as any business, with two extra jobs: showing where restricted money went, and filing the right annual return on time. A registered charity files its T3010 within six months of its fiscal year end. Many nonprofits owe nothing to the CRA beyond keeping good records, but some must file a T1044.
Is a nonprofit organization the same as a charity?
No, and the filing rules differ. A registered charity has CRA registration, can issue official donation receipts and files the T3010 information return. A non-profit organization (NPO) is generally exempt from income tax without being a charity. It can’t issue those receipts.
Check which one you are before you set up your books. A charity’s books have to support the T3010, which reports activities, revenue sources and spending. An NPO’s books mostly have to support its own board and members, plus a T1044 if it meets the thresholds.
Which annual returns might you owe?
| Type | Return | Due |
|---|---|---|
| Registered charity | T3010 information return | Within six months of fiscal period end |
| Non-profit organization | T1044 information return, if it meets the tests | No later than six months after fiscal period end |
A charity with a December 31 year end files by June 30. One with a March 31 year end files by September 30. The CRA’s when to file the T3010 page lists a due date for every month-end. Miss it and the CRA may revoke the registration, which ends the right to issue receipts and can lead to a revocation tax.
The T1044 test is more particular. An NPO must file if it received more than $10,000 in taxable dividends, interest, rentals or royalties, or if its total assets passed $200,000 at the end of the previous fiscal period. Once it has filed, it keeps filing every year. The CRA lists a late penalty of $25 a day, with a $100 minimum and a $2,500 maximum. Read the current T4117 guide before you rely on any of this for your own case.
How should nonprofits handle daily bookkeeping?
Track money by purpose as well as by bank account. If a grant is meant for a youth program, you need to see what came in, what was spent and what remains. A spreadsheet with one column for each fund does this for a small group.
Imagine a community hockey association in Sudbury. It gets $8,000 in registration fees and a $5,000 grant for new equipment. If both land in one bank account and one column, nobody can say later whether the grant was spent on gear. Two funds, two columns, and the question answers itself.
A few habits do most of the work. Keep every receipt and tie it to a program or an event. Record donations when they arrive, with the donor and the date. Reconcile the bank account every month, because a treasurer who does it monthly rarely faces a nasty surprise at the annual meeting.
Keep records for six years from the end of the last tax year they relate to, the CRA’s general rule, unless the CRA gives written permission to destroy them earlier. Also look at what your funders and your governing documents ask for. We couldn’t check grant conditions, so those are yours to read.
What if the organization has paid staff?
Then payroll is the part to get right. Even an organization that pays no income tax has to hold back tax, CPP and EI from employees and send them in. Take one employee paid $3,000 every two weeks in Ontario. The payroll remittance calculator shows $961.03 to remit each pay period. The full cost of that job for the period is $3,228.41, well above the pay cheque itself.
Budget with that second figure. Boards often approve a salary and forget the employer share. You can also see what the employee takes home with the take-home pay calculator, which helps when you’re setting a wage.
What about GST/HST? Nonprofits still pay it on purchases, and the tax on a $2,000 invoice in Ontario is $260 at 13%, according to the GST/HST calculator. Your group may or may not get a rebate, and that depends on its status and revenue. We haven’t confirmed those rules here, so check the CRA’s pages for public service bodies.
Do volunteers need to be paid or reported?
Volunteers who receive no pay don’t create payroll, so nothing goes through the remittance side. What does need a record is any money you hand them back, such as mileage or a reimbursed supply run. Keep the receipt or a signed note for each one, so the treasurer can show what the money was for when a board member or auditor asks a year later.
If anyone is paid, even a small honorarium, check the payroll rules before the first payment goes out. It’s much easier than fixing it afterwards.
What goes wrong most often?
One person holding all the money is the biggest risk, for the group and for that person. Have a second signer and a second set of eyes on the monthly reconciliation.
Mixing restricted and general money is next. Spend a grant on the wrong thing and you may have to pay it back.
Missed deadlines come third. Put the return date in the calendar the day the fiscal year ends, not a month before.
Where this information comes from
Filing rules and dates come from the Canada Revenue Agency‘s pages on the T3010 registered charity return and on the T4117 guide to the T1044 NPO return, as read in September 2026. Record-keeping rules come from the CRA guide RC188. Payroll and sales tax figures come from our calculators using 2026 data. This site is independent and isn’t connected to the CRA or any government.
Frequently asked questions
When is the T3010 due?
Within six months of the charity's fiscal period end. A December 31 year end means June 30.
Does every nonprofit file a T1044?
No. The CRA says an NPO must file if it had more than $10,000 in taxable dividends, interest, rentals or royalties, or more than $200,000 in assets at the end of the prior period, or filed before.
How long should a nonprofit keep its records?
Six years from the end of the last tax year they relate to, unless the CRA allows earlier destruction.
Can an NPO issue donation receipts?
Official donation receipts come from registered charities. A non-profit organization that is not a charity can't issue them.
Do nonprofits with staff remit payroll?
Yes. Employers hold back and send in income tax, CPP and EI, and add their own share of CPP and EI.
- Self-employed taxes in Canada: income, CPP and GST
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