The Canada Revenue Agency (CRA) offers registered charities listed with it a special tax-exempt status. While charities don’t need to pay taxes, they have to comply with CRA’s reporting requirements. One stringent requirement is to file the T3010 return within six months after the end of their fiscal period. These returns assure the agency that the charity is using the donor’s money appropriately, thereby building trust and transparency.
As the CRA transitions to a digital-by-default environment, it is encouraging charities to submit T3010 online. This will help charities avoid delays in physical mail delivery and meet their T3010 filing deadlines with just a click.
When Should Registered Charities File T3010 Return?
As mentioned above, it is mandatory for every registered charity, whether active or inactive, to file its T3010 return.
An inactive charity is one that did not participate in any charitable activities or use its resources for charitable purposes throughout the fiscal year. Such charities must file returns explaining the reason for their inactivity in Section C: Question 2 of T3010 to avoid losing their status as a charity or even their registration.
Alternatively, if the charity has halted charitable activities with no intention of resuming them, they can apply for voluntary revocation of its registration after filing the T3010 return. After revocation, the charity will be liable to pay taxes (from which it was exempt earlier). It will no longer be allowed to issue donation receipts and will have to give its remaining assets to an eligible beneficiary or pay a revocation tax equivalent to the value of all its assets.
The T3010 form is an Information return that helps the CRA stay informed about the charity’s activities.
Steps to File T3010 Form Online
The digital form is easy to fill out and is processed instantly.
- Registered charities or their authorized representatives can register for a My Business Account (MyBA) or Represent a Client (RaC), respectively, to fill the T3010 form online.
- Charities can then choose to file their T3010 returns using either the interactive form or CRA-certified software.
- Having signed in, they can update their information and upload any supporting documents online. In case of the interactive form, it automatically populates the correct version of the T3010 return and any other required forms.
- Charities can follow the instructions of the interactive form, fill out all required fields, and click on the “Submit” button.
Apart from filing the T3010 online, charities can also opt for receiving important correspondence from the CRA online through the same MyBA or RaC account.
The Elements of Form T3010
The biggest advantage of filing the T3010 return online is that all necessary forms, sections, and other documents are automatically included in the filing process. This ensures that there are no loose ends left on your end and all your financial information is accurately and timely relayed to the CRA in one go. These necessary documents include:
- Form T3010, Registered Charity Information Return
- Financial statements with the same fiscal year-end
- Form T1235, Directors/Trustees and Like Officials Worksheet
- Form T1236, Qualified donees worksheet / Amounts provided to other organizations (if applicable)
- Form T1441, Qualifying Disbursements: Grants to Non-Qualified Donees (if applicable)
- Form T2081, Excess corporate holding worksheet for private foundations (if applicable)
If you miss any of these, you will also receive reminders regarding the same.
What Happens After You File Your Returns Online?
On hitting the “Submit” button after filling out the T3010 form, your return is processed instantly and securely, and the public portion of your charity’s information return becomes visible on the List of Charities the very next day. You receive confirmation from the CRA about the successful filing of your return.
This accessible and systematic process makes filing the T3010 return very efficient, fast, and transparent – something that is highly important, especially for a charitable institution.
Amending Return After Filing
The successful filing doesn’t mean that the return is error-free. It only means it is duly filled. It is the charity’s responsibility to ensure all the information filled in is correct.
Despite all your caution, in case you do notice an error, you can also file an adjustment request online using your MyBA account under “Adjust a return” or send it by mail.
- Do not file a new return for the same fiscal year. Instead, download Form T1240, Registered Charity Adjustment Request.
- Get the form duly signed by a representative of your charity that the CRA has on file.
- Enter the revised information in “Section C – Form T3010 adjustment details” in the T1240 form.
- For adjustments to any other forms or documents, describe the changes in “Section C – Other details or explanations” and attach a copy of the amended document.
Be sure to keep copies of the T1240 form and any revised documents for your record.
Contact Black and Gill LLP in Etobicoke to Help Your Registered Charities File Returns
The T3010 returns filing is more than just filing the form. It needs details of your finances. A professional accountant specializing in charities can help you prepare and file complete and accurate returns and stay compliant with reporting requirements.
At Black and Gill LLP, our accountants and bookkeepers provide services such as preparing financial statements and filing returns. To learn more about how Black and Gill LLP can provide you with the best accounting and bookkeeping expertise, contact us online or call us at 416-477-7681 to learn more about how we can help you and your business.