Question 1

What bookkeeping does a Canadian non-profit need?

Accepted Answer

Canadian non-profits need fund accounting (separating restricted vs. unrestricted funds), grant income tracking, donation recording, payroll for any staff or contractors, HST/GST compliance (most non-profit activities are HST-exempt), and board-ready monthly financial reports. Registered charities also need T3010 annual return preparation.

Question 2

What is a T3010 and who files it?

Accepted Answer

The T3010 (Registered Charity Information Return) must be filed annually by all CRA-registered charities within 6 months of their fiscal year-end. It discloses revenues, expenses, program activities, executive compensation, and political activities. Non-filing results in CRA revoking charitable status. We prepare T3010-ready financial schedules for your accountant.

Question 3

Is HST charged on non-profit activities in Canada?

Accepted Answer

Most activities of non-profit organizations and registered charities are HST-exempt, but there are exceptions. Membership fees, donations, and government grants are generally exempt. However, if a non-profit sells goods or services (e.g., a charity shop, ticket sales for events), HST may apply depending on whether the organization is registered and whether it qualifies as a 'small supplier.' We ensure your HST filings properly separate exempt and taxable revenues.

Question 4

What is fund accounting for non-profits?

Accepted Answer

Fund accounting is a method used by non-profits to track money by its intended use rather than just by account category. A restricted fund holds donations or grants that must be used for a specific purpose (e.g., 'Equipment Fund'). An unrestricted fund holds money available for general operations. Proper fund accounting is required by donors, auditors, and CRA to demonstrate that grant money was spent on its intended purpose.

Bookkeeping built for
non-profit organizations.

We speak
non-profit finance.

From registered charities to community clubs.

Non-profit bookkeeping
questions answered.

Let us handle the books.
You focus on your mission.

Bookkeeping built fornon-profit organizations.

We speaknon-profit finance.

From registered charities to community clubs.

Non-profit bookkeepingquestions answered.

Let us handle the books.You focus on your mission.

Bookkeeping built for
non-profit organizations.

We speak
non-profit finance.

Non-profit bookkeeping
questions answered.

Let us handle the books.
You focus on your mission.