Does my non-profit club or association need to file a tax return?

Non-profit organizations (NPO) can range from extremely small to multi-national and everything in between. Many NPO’s start with a small group, a shared purpose, and a bank account. Over time these organizations grow and it is important to consider CRA’s perspective.

1)  NPO’s are exempt from profit as long as they are organized for the purpose of:

• social welfare
• civic improvement
• pleasure or recreation; or
• any other purpose except profit

2)  NPO’s are required to file an ‘information-only’ tax return if they:

• receive dividend, interest, rent, or royalties of $10,000+ in its fiscal period
• have total assets of $200,000+ at the end of the immediately preceding fiscal period
• were required to file a tax return in a prior year

Disclaimer: The above article is intended for small clubs/associations. Some NPO’s have specific requirements that may result in additional tax filings.