Guide to the T1044 Non-Profit Organization Information

If you're involved in running a non-profit organization (NPO) in Canada, you need to understand your tax filing obligations. While NPOs are generally exempt from paying income tax under paragraph 149(1)(l) of the Income Tax Act, many are still required to file an annual information return with the Canada Revenue Agency (CRA) using form T1044 — Non-Profit Organization (NPO) Information Return.

This guide explains who must file the T1044, what information it requires, how to complete it, and common pitfalls to avoid. Whether you're a newcomer starting a community organization or a volunteer serving on an NPO board, understanding this form is essential to keeping your organization in good standing with the CRA.

See also: Volunteering in Canada for Newcomers

What Is the T1044?

Quick tip: download the official T1044 first, then fill it while following this guide: Download T1044 form (official CRA).

The T1044 is an information return — not a tax return. This is an important distinction. NPOs that qualify for tax-exempt status under paragraph 149(1)(l) of the Income Tax Act do not pay income tax on their activities, provided they operate exclusively for non-profit purposes and no part of their income is available for the personal benefit of members. However, the CRA still requires certain NPOs to report financial and operational information annually.

The T1044 helps the CRA monitor whether organizations continue to meet the criteria for tax-exempt status and ensures transparency in the non-profit sector. You can download the form and guide from the CRA T1044 page.

Who Must File the T1044?

Not all NPOs are required to file. You must file the T1044 if your organization meets any one of the following criteria during the fiscal period:

• The organization received or was entitled to receive taxable dividends, interest, rentals, or royalties totalling more than $10,000
• The organization's total assets exceeded $200,000 at the end of the immediately preceding fiscal period
• The organization was required to file the T1044 in a previous fiscal period

If none of these conditions apply, filing the T1044 is optional — but you may still choose to file voluntarily to demonstrate compliance and maintain a transparent relationship with the CRA.

Important Distinction: NPO vs. Registered Charity

Do not confuse NPOs with registered charities. Registered charities file form T3010 (Registered Charity Information Return), not the T1044. An NPO that is not a registered charity cannot issue tax receipts for donations. The T1044 is specifically for organizations exempt under paragraph 149(1)(l) that are not registered charities.

See also: First-Year Tax Filing Guide

Filing Deadline

The T1044 must be filed within six months after the end of your organization's fiscal period. For example, if your fiscal year ends on December 31, your T1044 is due by June 30 of the following year. If your fiscal year ends on March 31, it's due by September 30.

Late filing can result in penalties. The penalty for filing a T1044 late is $25 per day, up to a maximum of $2,500. Continued failure to file can also prompt the CRA to question your organization's tax-exempt status.

How to Complete the T1044

The T1044 has several sections. Here's a walkthrough of each:

Section A: Identification

Provide your organization's legal name, business number (BN), address, fiscal period dates, and the name of the person responsible for the return. If your organization doesn't have a business number, you'll need to obtain one from the CRA before filing.

Section B: Information About the Organization

This section asks about the nature of your organization, including:

• The organization's main purpose or activity
• Whether the organization is incorporated (and under which jurisdiction)
• The number of members at the end of the fiscal period
• Whether the organization has a written constitution or governing documents
• Whether any part of the organization's income was available for the personal benefit of any member

The last point is critical. If any income benefits members personally, the organization may not qualify for tax-exempt status under paragraph 149(1)(l).

Section C: Financial Information

Report your organization's financial details for the fiscal period:

Revenue

• Membership fees
• Donations and gifts received (note: NPOs cannot issue tax receipts for these)
• Government grants and subsidies
• Fundraising revenue
• Program and service fees
• Investment income (interest, dividends, rental income)
• Other revenue

Expenditures

• Salaries and wages
• Program delivery costs
• Office and administrative expenses
• Occupancy costs (rent, utilities, maintenance)
• Professional and consulting fees
• Other expenditures

Assets and Liabilities

• Total assets at the end of the fiscal period
• Total liabilities at the end of the fiscal period
• Cash and investments breakdown
• Property and equipment

Section D: Detailed Financial Data

If the organization received more than $10,000 in taxable dividends, interest, rentals, or royalties, provide a detailed breakdown. This section exists because significant investment or rental income could indicate that the organization is operating more like a business than a non-profit, which could jeopardize its tax-exempt status.

Filing Methods

The T1044 can be filed:

• Online: Through the CRA's Internet file transfer service or through compatible accounting software
• By mail: Print and mail the completed form to the appropriate CRA tax centre (addresses are listed on the form)

Electronic filing is recommended for faster processing and confirmation of receipt.

Common Mistakes and How to Avoid Them

• Not filing when required: Many small NPOs don't realize they must file once their assets exceed $200,000 or they receive investment income over $10,000. Review the criteria annually.
• Confusing T1044 with T3010: The T3010 is for registered charities only. If you're not a registered charity, use T1044.
• Incorrect fiscal period: Ensure you report for the correct fiscal period. The fiscal period must be consistent from year to year unless the CRA approves a change.
• Missing the deadline: Set calendar reminders six months after your fiscal year end. The penalties for late filing add up quickly.
• Inaccurate financial reporting: Use proper bookkeeping throughout the year so you have accurate figures at filing time. Many NPOs use volunteer bookkeepers — ensure they understand basic accounting principles.
• Failing to maintain records: The CRA can audit NPOs and request supporting documentation. Keep all financial records, receipts, bank statements, and meeting minutes for at least six years.

Maintaining Tax-Exempt Status

Filing the T1044 correctly is part of maintaining your tax-exempt status, but it's not the only consideration. To remain exempt under paragraph 149(1)(l), your organization must:

• Operate exclusively for a non-profit purpose (social welfare, civic improvement, recreation, or similar)
• Ensure no income is distributed to or available for the personal benefit of members
• Not operate as a charity (unless separately registered as one)

If the CRA determines your organization no longer meets these criteria — perhaps because it has accumulated significant investment income, is distributing profits to members, or has strayed from its non-profit purpose — your tax-exempt status can be revoked. This would make the organization liable for income tax on its earnings.

When to Seek Professional Help

Consider engaging a professional accountant if:

• Your organization has complex financial activities (multiple revenue streams, investments, real estate)
• You're unsure whether your organization qualifies for tax-exempt status
• You've received a request for information or notice of audit from the CRA
• Your organization is transitioning to or from registered charity status
• You have employees and need to manage payroll tax obligations (T4s, source deductions)

Many accounting firms offer reduced rates or pro bono services for non-profit organizations. Provincial and local non-profit support networks may also connect you with volunteer accountants.

Conclusion

The T1044 Non-Profit Organization Information Return is a necessary part of operating a non-profit in Canada. While NPOs enjoy tax-exempt status, transparency and compliance are required in return. By understanding who must file, maintaining accurate financial records, and meeting filing deadlines, you can keep your organization in good standing with the CRA and focused on its mission.

For newcomers involved in community organizations, understanding Canadian regulatory requirements is an important step in building a sustainable and impactful non-profit. WelcomeAide is here to help you navigate these processes and succeed in your community-building efforts.