1. What is the T3010?
The T3010 is an annual information return that registered charities are required to file with the Canada Revenue Agency (CRA). It has several components and all of them must be submitted, with no missing information, in order to comply with the requirements of being a registered charity.
The form itself was introduced 25 years ago and has two main goals: to ensure that charities are complying with the relevant income tax laws and to increase transparency and public trust of charities by providing publicly available information on their operations.
2. Who has to file a T3010?
Only federally registered charities need to file the return. Registered charities are organizations that have gone through an approval process with the Ministry of National Revenue; they may issue tax receipts to donors and are exempt from paying income tax.
3. Where do we get this form?
As a registered charity, the CRA will send you the form and remind you when it is due but you must ensure that the mailing address they have on file is correct and that it is the address where you would like to receive the material. Remember that they record 3 addresses for each charity: the mailing address (which may be a post office box, the home of the treasurer, a board member or the Executive Director, etc.), the physical address, and the address of where the books and records are kept.
The mailing address on file could be the address of someone (the treasurer or a board member, for example) who is no longer with your charity. It is important that you make sure the CRA has the correct contact information (and update them if that information changes). Although the CRA makes every effort to ensure that you receive the forms, the responsibility is yours. You can download the forms and resource materials from the CRA website.
4. When do we have to file the return?
Within six-months of your registered charity’s fiscal year end, you must file a complete return. A complete T3010 return includes at least four parts: the Registered Charity Information Return (form T3010), the Registered Charity Basic Information Sheet or BIS (form TF725), the Directors Worksheet (the list of directors/ trustees/ officials - complete with all required information - including postal codes) and a copy of your financial statements. If applicable, you must also send the Qualified Donees Worksheet (the list of qualified donees - complete with all the required information – including Business Numbers).
5. What happens if we don’t file a return or if our return is late?
Failure to file a complete return within six-months of your fiscal year end could result in the loss of charitable status and a monetary penalty of $500.
6. Is this something our auditors automatically complete with our audit?
No; the T3010 is completed by your charity and is an indispensable part of your obligation as a registered charity. The specific individual responsible may vary in different charities - it may be your accountant, Treasurer, or Executive Director for example.
7. How does CRA use the form to determine if a charity is not complying with regulations?
In exchange for their privileged status of being exempt from paying tax, registered charities are accountable to the government and the public for the money they raise and how they use their resources.
The Canada Revenue Agency (CRA) regulates registered charities under the Income Tax Act. To keep their charitable status, charities must meet certain obligations and requirements. While charities on the whole vary a great deal, there should be some similarity in the returns of similar types of charities. If there is something on a return that is out of sync with the information expected regulators know to take a closer look at that charity. Usually the things that catch their attention are found to be acceptable or the result of human error - illegal, illegitimate or fraudulent activity is very rare. Their scrutiny preserves the good reputation of Canada’s charitable sector.
In filing a complete T3010 return with the CRA, a charity is providing evidence that demonstrates that it is complying with the Act: operating for charitable purposes and public benefit (not private gain), devoting its resources to charitable activities and following the requirements of the Income Tax Act when issuing official donation receipts.
8. Who will have access to the information we provide on the form?
The Basic Information Sheet and part of the T3010 are available to the public online on the CRA website. Confidential information like Directors’ birthdays, addresses etc. are not online but this information must be included in your return.
Sections of the return marked confidential are not released to the public but under the Income Tax Act, the CRA can share some confidential information with other government departments and agencies. The sharing of any confidential information provided by charities is subject to strict federal rules. The CRA is also required to release confidential information in connection with any legal proceedings.
9. Why does CRA post the form on the web?
Canada Revenue Agency (CRA) is committed to providing information about legitimate registered charities to Canadians and promoting the transparency and accountability of registered charities in good standing.
10. What are the main problem areas of compliance related to the form?
- You must include the Basic Information Sheet even if there are no changes. Ensure the addresses for Books and Records, Physical Location etc. are accurate and up to date.
- You must include Directors’ birthdates, information about whether Directors/Trustees are at arm’s length, and whether or not they were directors at year-end.
- Check that numbers add up to the totals you give and that corresponding line items in different sections of the form are consistent (i.e. have the same number in them).
- Make sure that all the information is complete. If you indicate that you have programs, include program descriptions and expenditures; if you indicate that you have foreign programs, ensure you include the name of the country (spelled correctly) and foreign programs expenditures; if you indicate that you have paid staff, include wage expenditures (and vice versa).
- Ensure the BN/Registration # for the qualified donee is correct (and not left blank).
- Don’t complete sections that do not apply to your charity (for example, only foundations should fill out the sections pertaining to foundations).
- Make sure you understand the rules around compensating directors, disbursement quotas, political activities and fundraising expenses.
- Include your financial statement
- Remember to sign it!
11. What are the main things we can do to help us accurately complete the form?
Know what you will need to know. The task of completing the return can be made much easier if you develop data collection systems and internal record keeping practices that ensure that all the information that you will need to complete the return is gathered in a consistent way throughout the year (and year to year, regardless of who is completing the return).
Start the process of completing the T3010 well in advance of the due date for your return. Consult the reference materials and online resources to ensure that you understand items that require interpretation and judgment. Recognize that sometimes there is a delay in receiving answers from the CRA to your questions. Keep notes year-to-year about what you’ve learned.
Plan to need more time than you might expect. People usually underestimate how long it will take them to gather all the information needed and to fill out all the forms and worksheets. Remember, you may need information from a number of different people in your charity and they may need lead-time to prepare it for you. Consider what financial resources may be required. You may need to consult a professional or hire an accountant, attend a workshop or training session for example.
Keep the dual purpose of the T3010 in mind. The information in the return demonstrates the legal compliance of your charity to government regulators AND serves to secure the public trust by showing transparently how donations are used to serve charitable ends.
12. Where can charities get help when they fill out the form?
The Charities Directorate is committed to helping registered charities understand and comply with the rules and regulations of the Income Tax Act. They operate a free electronic mailing list that notifies subscribers to the Charities What's New list of additions to the Charities Web site, Charities Newsletters, policy statements and commentaries, new guidelines and new information about outreach activities like the Charities Directorate Roadshow. The CRA website houses all forms, guides and publications as well a glossary of terms used.
- Website: http://www.cra-arc.gc.ca/tx/chrts/menu-eng.html
- Telephone:
The CRA Charities Directorate bilingual toll-free telephone service provides information about registered charities. This service is available weekdays (except statutory holidays) from 8 a.m. to 8 p.m. Eastern TimeIn the Ottawa area:
(613) 954-0410 (English) or (613) 954-6215 (bilingual)Toll free elsewhere in Canada:
1-800-267-2384 (English) or 1-888-892-5667 (bilingual) - Other Information:
Subscribe to the CRA Charities Directorate’s “What's New” electronic mailing list, to be notified when important new information is added to the website. http://www.cra-arc.gc.ca/esrvc-srvce/mllst/sbscrbchrts-eng.html
