Feds propose stricter reporting rules for non-profits with revenues above $100K
Why It Matters
New compliance requirements could significantly increase reporting obligations and administration costs for non-profits, many of which already face staffing strains.
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.
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