Feds propose stricter reporting rules for non-profits with revenues above $100K

Thousands of non-profits could be impacted by proposed federal government changes to reporting requirements.

The Department of Finance is considering requiring any non-profit with annual revenue exceeding $100,000 to file a full information return.

The change could bring many mid-sized organizations into the reporting system for the first time.

Under current legislation, tax-exempt organizations are only required to file an annual information return, known as a T1044, if their passive income exceeds $10,000, their total assets at the end of the previous fiscal period exceed $200,000, or they were previously filed.

The government is also introducing a new short-form annual return for organizations that fall below the $100,000 threshold, requiring information about leadership, finances and activities.

Non-profits earning less than $10,000 annually would remain exempt from the short form filing requirement.

The change could mean more non-profits would need to update their bookkeeping practices and pay closer attention to compliance. 

Ottawa said the move is aimed at increasing transparency and gathering better data about non-profits. 

Public consultations on the draft legislation are open until Feb. 27.

If approved, the change would apply to fiscal years starting after Dec. 31, 2026.