There’s a definite distinction when it comes to Not-for-Profit organizations (NPO) and Registered Charity. Both have different tax requirements under the Canadian tax code. A charity needs to apply to the Canada Revenue Agency (CRA) to be officially registered as a charity. It is exempt from tax and is allowed to issue donation receipts. NPO’s too are generally exempt from tax as long as they meet certain criteria in the tax legislation, though it cannot issue donation receipts.
Importantly, an NPO can be unincorporated or incorporated. Unincorporated NPOs are not required to file an income tax return. We will help NPOs file their tax returns by taking on board the following considerations: