I have been asked to consult on a very small non-profit organization and have never done one before. Form what I understand, form 1044 may need to be filed, depending on assets and income.
Are there any other requirements? A T2 would obviously need to be filed if they are incorporated or a T3 if it’s a trust. Is there ever a situation where an NPO could be structured as something other than a Corp or a trust?
Finally, I am not sure what to charge here. Would really appreciate some input.
Thanks!
You need education first.
A T2 is NOT required for non-profits. They file either a T1044 or a T3010 if it has Charity status. If it’s structured as a trust, a T3 is filed.
Be careful not to bite off more than you can chew as filing the wrong forms can cost them their status.
Personally, I do not do non-profits, and know absolutely nothing about them, and would definitely refer a potential engagement to others…
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However, a cursory reading of Guide T4012 (see page 9) informs thus:
"Who has to file a T2 return? Resident corporations All corporations—including non-profit organizations, tax-exempt corporations, and inactive corporations—have to file a T2 return for every tax year, even if there is no tax payable. The only exceptions to this rule are tax-exempt Crown corporations, Hutterite colonies, and corporations that were registered charities throughout the year."
Thanks for your feedback. I agree, not good to bite off more than I can chew. This NPO is federally incorporated and definitely requires a T2 to be filed, although exempt from Part 1 tax. Out of curiosity @joe.justjoe1, why don’t you do Non-profits?
