Charity Filing Guide

Guide T4033-1: You need to read the guide to understand the questions on Form T3010-1. Due to limited space, some of the questions omit information you need to know to fully answer the question. CRA doesn’t mail the Guide with the information return. It’s available online to read or download. If you don’t have Internet access, your local library or learning centre may be able to assist you. See the Resources section for a list of organizations. If you need a paper copy of the Guide, call CRA 1-800-267-2384.

Public vs. Confidential Information: Most of the information on Form T3010-1 is public, including the financial information. The only sections that are confidential are Section F and Schedule 4. Use the CRA Charities Listings to look up your entry so that you can see the information CRA posts online about your charity.

Inactive period: Filing Form T3010-1 is mandatory. You must complete and submit Form T3010-1 even If your charity was not active during the fiscal year:

• Complete Section A and Section B
• Answer "NO" to question C1 Line 1800
• Explain why your charity was inactive in C2 Ongoing Programs
• Have a member of your board of directors/ trustees who is authorized to sign for your charity complete Section E Certification.

If your charity has ceased operations, call CRA to arrange for voluntary revocation of your charitable registration.

This material is provided for information purposes only. Contact CRA for definitive information.

The barcode labels are stuck on the front of Form TF725 Registered Charity Basic Information Sheet (BIS). Stick a label on the completed copies of Form T3010-1, T1235, and T1236 before you submit them to CRA.

Do not throw out the Basic Information Sheet after removing the labels. There is important information on the back that you must review. You must submit the BIS to CRA along with the other forms.

If you didn’t receive a Basic Information Sheet, call CRA. They’ll print one for your charity and sent it to you. You cannot download this form from the CRA website. It is customized to each charity.

CRA does not grant extensions. It is your responsibility to know what you need to file and to submit the return by the deadline—no later than six months after your fiscal year-end—or risk losing your charitable registration.

To ensure that you get the information you need, be sure that CRA has a current mailing address for your charity. Many small and rural charities invest in a P.O. Box to use as a mailing address.

This material is provided for information purposes only. Contact CRA for definitive information.

There are two types of subordinate position:

1. Your charity is subordinate if your charity is a branch, section, division, or part of a larger organization and the governing documents of that larger organization apply to your group as well.

2. Your charity has its own governing documents, but your activities are determined by another organization,

You can find the name and BN of your parent organization on a previous year’s T3010-1. Or, call the other organization's head office if you’re not sure.

This material is provided for information purposes only. Contact CRA for definitive information.

If you answer "Yes", you need to send CRA more information:

If your charity stopped operating entirely

• Write a letter to CRA asking them to revoke your organization’s charitable status
• Attach the letter to Form T3010-1 when you file it.
• Download and submit FormT2046 Tax Return Where Registration of a Charity is Revoked
• See the guide RC4424 Completing the Tax Return Where Registration of a Charity is Revoked

If you already sent CRA a letter asking them to revoke your charity’s registered status

• Call to be sure they received it
• Submit a final Form T3010-1

If your charity stopped operating because it merged, amalgamated, or consolidated with another charity

• Call CRA 1-800-267-2384 to find out what documents you need to submit.

This material is provided for information purposes only. Contact CRA for definitive information.

You can find your charity’s designation on

• Form TF725 Registered Charity Basic Information Sheet
• The documents CRA sent when you initially registered your charity
• Re-registration documents, if applicable
• The CRA Online Charities Listings http://www.cra-arc.gc.ca/chrts-gvng/lstngs/menu-eng.html

The Charity Filing Guide does not include detailed information about Schedule 1, Foundations. If you need more information, contact CRA or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Directors/Trustees and Like Officials: The mandatory information for each member of your board of directors/trustees and any like officials (for example, a religious leader) includes the following:

Public Information

• Last name
• First name
• Initial
• Term start date (the beginning of the fiscal year for ongoing directors/trustees)
• Term end date (the end of the fiscal year for ongoing directors/trustees)
• Position
• At arm’s length with other Directors, etc.? Yes or No

Confidential Information

• Home address – street number and name
• City
• Province/Territory
• Postal code
• Telephone number
• Date of Birth (mandatory for identification)

CRA needs to know the “Total number of Directors/Trustees/Like Officials” who served on your board during the fiscal year. See the Completing Form T1235(09) section of the Charity Filing Guide for more information about filling out this form.

Institutional Trustee: Institutional trustees are banks or trust companies, for example. If an institutional trustee represents your charity, enter this information in the “Last name” field.

Ontario Charities: Charities incorporated, continued, or amalgamated in Ontario and subject to the Ontario Corporations Act can file Form RC232-WS Director/Officer Worksheet and Ontario Corporations Information Act Annual Return. If you’re eligible to file Form RC232, don’t file Form T1235(09).

For more information about Form RC232-WS, see the following document on the CRA website:Important information for registered charities incorporated, continued, or amalgamated in Ontario and subject to the Ontario Corporations Act. www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rtrn/ctao-eng.html

This material is provided for information purposes only. Contact CRA for definitive information.

Guide T4033-1: “An inactive charity is one that, during the entire fiscal period, did not use any of its resources to carry out its charitable activities, or to further the charitable purposes for which it is established.”(page 12)

You must complete and submit FormT3010-1 even If your charity was not active during the fiscal year:

• Complete Section A and Section B
• Answer “NO” to question C1 Line 1800
• Explain why your charity was inactive in C2 Ongoing Programs
• Have a member of your board of directors/ trustees who is authorized to sign for your charity complete Section E Certification.

Submit the return by the deadline—no later than six months after your fiscal year-end—or risk losing your charitable registration.

If your charity has ceased operations, call CRA to arrange for voluntary revocation of your charitable registration.

This material is provided for information purposes only. Contact CRA for definitive information.

Charitable programs include

• Activities operated by staff and/or volunteers
• Programs operated by intermediaries on your behalf
• Gifts to qualified donees

Charitable programs do not include any type of fundraising activity.

Program information is available to the public in the online CRA Charities Listings. The listings are a good opportunity to promote your charity to prospective donors. Give them a good picture of what your charity does by providing short, lively descriptions. CRA provides suggested action words and examples in Guide T4033-1. You must write the descriptions. You cannot attach annual reports or brochures.

Ongoing programs:
If you have electronic copies of your program descriptions, consider using the fillable/saveable T3010-1 form available on the CRA website instead of the paper copy they send to you. You can cut and paste the descriptions from your word processing program into the fillable/saveable form. This might be faster than rewriting the description on the paper form.

New programs:
New programs should be approved by CRA before you start to offer them. Let CRA know ahead of time so that they can verify that the programs fit your organization’s approved charitable purposes.

Common error: Listing fundraising activities. List charitable programs only.

This material is provided for information purposes only. Contact CRA for definitive information.

If your charity gave gifts to other charitable groups, you must complete Form T1236(10). Or, you can submit a list that contains the same information. Form T1236(10) is available on the CRA website.

Gifts include donations and gifts-in-kind.

Qualified donees are defined in the Income Tax Act. In general, qualified donees are organizations that can issue official tax receipts. Nonprofit organizations and foreign charities are not qualified donees.

Registered charities are allowed to use their resources in two ways (only):

1. Operate their own charitable programs
2. Donate funds to groups that are qualified donees as defined by CRA

If your charity gave gifts to groups that are not qualified donees according to the Income Tax Act, you must report the amounts on Form T1236(10). CRA views this as an opportunity to educate charities about allowable charitable activities.

See the CRA Glossary for the complete definition.

See Completing Form T1236(10) or the Glossary in the Charity Filing Guide for more information.

This material is provided for information purposes only. Contact CRA for definitive information.

If your charity operated programs outside Canada, directly or indirectly, you must complete Schedule 2 Activities Outside Canada.

If your charity made gifts to qualified donees operating outside Canada, do not enter this information in Schedule 2. Enter this information on Line 5050 Total amount of gifts made to all qualified donees in Section D or Schedule 6 as appropriate.

For more information, see Canadian Registered Charities Carrying Out Activities Outside Canada www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/tsd-cnd-eng.html

The Charity Filing Guide does not include detailed information about Schedule 2, Activities Outside Canada. If you need more information, contact CRA or an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Registered charities are allowed to carry on political activities, with three restrictions:

1. The activities must be non-partisan: you cannot support or oppose a particular candidate or political party.
2. The amount spent on political activities must be minor, generally no more than 10% of total disbursements.
3. The political activities must be directly related to your organization’s charitable activities.

Interactions with government in the normal course of business are not considered political activities.

For more information about political activities see Guide T4033-1 or Policy Statement CPS-022 Political Activities on the CRA website.

This material is provided for information purposes only. Contact CRA for definitive information.

The amount your organization spent on political activities should be minor compared to the amount you spent on charitable programs. So long as the amount is less than 10% of total disbursements, it should fall within the CRA guidelines.

Include amounts such as the following:

• Salaries, wages, and expense reimbursements for employees, volunteers, or directors
• Equipment
• Premises, location rental

This material is provided for information purposes only. Contact CRA for definitive information.

Cause-related marketing, Line 2640, refers to an arrangement between a charity and a business partner that involves selling merchandise with a portion of the proceeds going to the charity. For example, “pink” products that raise awareness of breast cancer.

If you raised funds by holding Bingos or Casino nights or Walk-a-thons/bike-a-thons, check Line 2650 Other and specify the type of event on Line 2660.

For details on CRA’s fundraising policies, see CPS–028: Guidance, Fundraising by Registered Charities on the CRA website.

This material is provided for information purposes only. Contact CRA for definitive information.

An external fundraiser is a person or company you hire to solicit funds on your behalf. CRA looks at external fundraising arrangements carefully:

• Does the external fundraiser operate at arm’s length from the charity? Is the external fundraiser completely independent?
• Did the charity solicit bids from competing fundraisers before awarding the contract?
• What is the payment structure? Is the work paid at fair market value? Arrangements that could result in excessive private benefit to the fundraiser, such as commission payments, may attract CRA’s attention.
• Is there a contract that documents the fundraising arrangement and shows that the charity is in control?

Donors want to know how much of their donation is going to charitable works and how much is going to administration and other non-charitable activities such as fundraising expenses. Transparency is a key element that contributes to donor confidence. CRA monitors external fundraising arrangements to be sure they are fair and transparent.

For details on CRA’s fundraising policies, see CPS–028: Guidance, Fundraising by Registered Charities on the CRA website.

The Charity Filing Guide does not include detailed information about external fundraisers or Schedule 4, Confidential Data. If you need more information, contact CRA or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Gross revenue means the total amount of money collected on your behalf before any expenses, fees, charges or other costs were deducted.

This question applies to external fundraisers only, not staff members or volunteers.

CRA uses the amounts in C7 (a) and C7 (b) to determine if the external fundraiser received an excessive private benefit, or if the work was paid at fair market value.

For details on CRA’s fundraising policies, see CPS–028: Guidance, Fundraising by Registered Charities on the CRA website.

This material is provided for information purposes only. Contact CRA for definitive information.

Amounts paid to external fundraisers include the following:

• Commissions
• Bonuses
• Finder's fees
• Set fee for services
• Honoraria
• Amounts due under contract
• Any other form of payment

Amounts retained include any and all amounts deducted by the external fundraiser from the money they raised before they paid the rest to your charity.

This question applies to external fundraisers only, not staff members or volunteers.

CRA uses the amounts in C7 (a) and C7 (b) to determine if the external fundraiser received an excessive private benefit, or if the work was paid at fair market value.

For details on CRA’s fundraising policies, see CPS–028: Guidance, Fundraising by Registered Charities on the CRA website.

This material is provided for information purposes only. Contact CRA for definitive information.

Check all that apply. Arrangements that could result in excessive private benefit to the external fundraiser may attract CRA’s attention.

This question applies to external fundraisers only, not staff members or volunteers.

For details on CRA’s fundraising policies, see CPS–028: Guidance, Fundraising by Registered Charities on the CRA website.

This material is provided for information purposes only. Contact CRA for definitive information.

External fundraisers should not issue tax receipts on your behalf. Only registered charities can issue official tax receipts. You should not allow anyone to use your charitable registration number, even if they are acting on your behalf.

This question applies to external fundraisers only, not staff members or volunteers.

For details on CRA’s fundraising policies, see CPS–028: Guidance, Fundraising by Registered Charities on the CRA website.

This material is provided for information purposes only. Contact CRA for definitive information.

A “No” answer means that

• You did not pay directors, trustees, or like officials for being members of the board

and

• The only payments you made to directors, trustees, or like officials were
  • to reimburse them for out-of-pocket expenses they incurred in the course of charity business
  • to reimburse them a reasonable amount for services provided to the charity

A “Yes” answer means that

• You paid directors, trustees, or like officials for being members of your board.

CRA permits reasonable payment to directors, trustees, or like officials for services they provided to your charity. However, local laws and regulations may be different. Check the requirements with your provincial or territorial government.

This material is provided for information purposes only. Contact CRA for definitive information.

If your charity paid employees, you need to complete Schedule 3, Compensation. Compensation includes, salary, wages, commissions, bonuses, fees, honoraria, plus taxable and non-taxable benefits.

See Completing Form T3010-1, Schedule 3 in the Charity Filing Guide for more information.

This material is provided for information purposes only. Contact CRA for definitive information.

The Charity Filing Guide does not include detailed information about donors not resident in Canada or Schedule 4, Confidential Data. If you need more information, contact CRA or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Non-cash gifts, or gifts-in-kind, are gifts of property such as equipment, furniture, computers, supplies, securities, land, artwork, etc.

Gifts of service are not gifts-in-kind because services are not physical things. Therefore, you can’t issue a tax receipt for a gift of service.

You’re not obligated to accept non-cash gifts. Many charities don’t accept non-cash gifts that they can’t put to immediate use. If the value of the gift is negligible, it may be more effort than it’s worth to accept the gift if the donor insists on receiving a tax receipt.

Before you issue a tax receipt in return for a non-cash gift, you must make some effort to determine the value of the gift. You can’t just issue a receipt for the amount the donor tells you. You have to be able to determine the fair market value (FMV) of the gift.

Fair Market Value is the price the item would be worth in the open market, assuming a knowledgeable buyer and a knowledgeable seller. In practical terms, what is a similar item worth in a second-hand store, garage sale, or on eBay?

If the value of the non-cash gift is over $1,000, CRA strongly recommends that the property be appraised by someone who is not associated with either the donor or the charity receiving the gift (i.e., a third party).

If you issued tax receipts for non-cash gifts, you must complete Schedule 5 Non-Cash Gifts.

If you received non-cash gifts but didn’t issue tax receipts in return, you don’t have to complete Schedule 5 Non-Cash Gifts.

This material is provided for information purposes only. Contact CRA for definitive information.

The Charity Filing Guide does not include detailed information about non-qualifying securities. If you need more information, contact CRA or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

The Charity Filing Guide does not include detailed information about donor use of charity property (loanbacks). If you need more information, contact CRA or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

You should never loan your charitable registration number to anyone or use it to issue receipts on behalf of another organization.

The following statement comes from the CRA website:

Caution: Lending registration numbers
Under no circumstances should a registered charity lend its registration number to another organization for receipting purposes. A registered charity is responsible for all tax receipts issued under its name and number and must account for the corresponding donations on its annual information return. A charity that lends its registration number risks losing its charitable registration. [http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/menu-eng.html]

This material is provided for information purposes only. Contact CRA for definitive information.

Form T3010-1 has two financial reporting sections:

• Section D: Financial Information
• Schedule 6: Detailed Financial Information.

Complete one of these sections, not both.

The form has two financial sections because CRA wants to reduce the burden of financial reporting for small charities. Section D is shorter and less complex than Schedule 6.

The three criteria at the top of Section D determine which financial section you need to complete. If your situation fits all three of these criteria, complete Section D:

1. The charity's gross annual revenue is less than $100,000.
2. The amount of all property (e.g., investments, rental properties) not used in charitable programs is less than $25,000.
3. The charity does not have permission to accumulate funds during this fiscal period.

If your situation fits any one of the following criteria, complete Schedule 6:

1. The charity's gross annual revenue exceeds $100,000.
2. The amount of all property (e.g., investments, rental properties) not used in charitable programs exceeds $25,000.
3. The charity currently has permission to accumulate funds during this fiscal period.

Call CRA 1-800-267-2384 if you are not sure which financial section to complete.

This material is provided for information purposes only. Contact CRA for definitive information.

• Report all amounts in Canadian dollars.
• Do not report cents.
• Round amounts up or down to the nearest dollar. If the figure ends in an amount less than 50 cents, round down. If the figure ends in an amount 50 cents or greater, round up.
• Add up the rounded amounts to be sure they sum to the totals on the form. You may need to adjust some of the amounts.
• Where applicable, check that the totals agree to your financial statements (or would, if the amounts on your financial statements were rounded).

This material is provided for information purposes only. Contact CRA for definitive information.

Accrual and cash describe two different methods for recording accounting transactions. Both methods use cash, cheques, credit cards, bills, invoices, receipts, etc.

The difference between accrual and cash relates to when transactions are recorded in the accounting system.

Accrual method

• record revenue when it is earned, even if the money has not been received
• record expenses when they are incurred, even if payment has not been made

Cash method

• record revenue when it is received
• record expenses when they are paid

Examples

These examples are quite simple, but they should help you understand which accounting method you use. If you’re still unsure, contact an accounting professional or call CRA 1-800-267-2384.

Example 1: Expenses
Situation: You receive the December phone bill at the end of November and pay it immediately.

Cash method: In November, you enter the phone bill in your expenses. The phone bill is recorded in your November accounting records.

Accrual method: In November, you record the phone bill as a prepaid expense for December. The phone bill is recorded in your December accounting records.

Example 2: Revenue
Situation: A donor uses a credit card to make a donation to your charity.

Cash method: You don’t record the donation in your books until you actually receive the money from the credit card company.

Accrual method: You record the donation in your books and you record the amount of the donation in accounts receivable. When you receive the money from the credit card company, which could be the following month, you reduce the amount of accounts receivable and record the money as a deposit in your bank account.

In general,

• If you use a manual bookkeeping system, you are probably using the cash method.
• If you use computer accounting software, you are probably using the accrual method.

The difference between accrual and cash is critical. The method you use affects your financial statements. CRA needs to know which method you use so that they can interpret your financial information correctly.

Common error: Not indicating the accounting method used. This information is important. Call CRA if you’re not sure.

This material is provided for information purposes only. Contact CRA for definitive information.

Check Yes if your charity owns land or buildings.

This material is provided for information purposes only. Contact CRA for definitive information.

Assets are things you own, such as money in the bank, accounts receivable, investments, office equipment, furniture, computers, supplies, land, buildings, etc.

Enter the total amount of all asset types from your financial statements. Include financial assets, such as bank accounts, accounts receivable, and investments; capital assets, such as land and buildings; and all other assets, such as furniture, computers, etc.

Total assets on Line 4200 should equal total assets shown on your financial statements (allowing for any rounding differences).

Note—Balance sheet vs. Section D: Some accounting systems include a balancing account, called equity, net assets, or surplus. Section D doesn’t include a balancing account, so the asset and liability section of your financial statements may not be an exact match with Section D. CRA is aware of this. The information return includes a copy of your financial statements so CRA will have the complete picture.

This material is provided for information purposes only. Contact CRA for definitive information.

Liabilities are things you owe, such as unpaid bills, loans, mortgages, etc.

Enter the total amount of all liabilities from your financial statements.

Total liabilities on Line 4350 should equal total liabilities shown on your financial statements (allowing for any rounding differences).

Note—Balance sheet vs. Section D: Some accounting systems include a balancing account, called equity, net assets, or surplus. Section D doesn’t include a balancing account, so the asset and liability section of your financial statements may not be an exact match with Section D. CRA is aware of this. The information return includes a copy of your financial statements so CRA will have the complete picture.

This material is provided for information purposes only. Contact CRA for definitive information.

Check "Yes" if your charity borrowed money from, loaned money to, or invested money with a person or company that was not at arm’s length from your charity.

Arm's length is an abstract concept used by CRA to describe whether individuals are likely to act independently, or whether it is likely that their interests are intertwined.

Individuals who are "at arm's length" from each other (distant) are not related in any way and do not have business ties to each other. CRA assumes that they act independently.

Individuals who are "not at arm's length" from each other (close) have some kind of relationship—blood, marriage, kinship, adoption, or business—that ties them together. CRA assumes that they are likely to act in concert.

See the diagram on the back of Form T1235(09) for a visual explanation of non-arm’s length relationships.

See the Charity Filing Guide Glossary for more information.

This material is provided for information purposes only. Contact CRA for definitive information.

Common error: Lines 4500 to 4650 do not add up to Line 4700. Check the addition.

Check “Yes” if your charity issued tax receipts for any type of gift received during the fiscal year.

This material is provided for information purposes only. Contact CRA for definitive information.

The term "eligible amount" refers to situations where part of the money you received from a donor was a donation and part was a payment for a dinner or other benefit the donor received as part of the event. The amount of the donation is an eligible gift. The amount for the benefit is not an eligible gift and should not be included on a tax receipt.

Include the following types of gifts:

• Donations
• Gifts-in-kind
• Eligible tax-receipted amounts from fundraising events

Do not include the following types of gifts:

• Gifts from other charities, enter this amount on Line 4510
• Gifts from foreign sources, enter this amount on Line 4575
• Non-eligible amounts from fundraising events, enter this amount on Line 4630

Note: Do not issue an official tax receipt for gifts received from other registered charities. A tax receipt is of no benefit to them since they do not pay taxes. Issue an acknowledgement receipt instead. Be sure to include their BN/Registration number.

This material is provided for information purposes only. Contact CRA for definitive information.

In general terms, 10 year gifts represent restricted funds that your charity is not allowed to spend right away. Line 4505 reports the amount of 10 year gifts included on Lines 4500, 4510, 4530, 4565, 4570, 4575, 4630, or 4650 depending on the source of the gift.

Definition from the CRA Glossary:
A ten-year gift is a donation made to a registered charity that is subject to a donor's written trust or direction that the gift, or any property substituted for it, be held by the recipient charity for ten years or more from the date the gift was made.

Note: 10 year gifts can have a term longer than 10 years.

Before the March 4, 2010 federal budget, 10 year gifts were a type of enduring property. The concept of enduring property was discontinued for fiscal periods ending on or after March 4, 2010, but the concept of 10 year gifts is still in effect.

The Charity Filing Guide does not include detailed information about 10 year gifts. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

See the Charity Filing Guide Glossary for more information about 10 year gifts.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount of gifts your charity received from oher registered charities.

Include the following types of gifts:

• Donations
• Gifts-in-kind
• Designated gifts

Note: Do not issue an official tax receipt for gifts received from other registered charities. A tax receipt is of no benefit to them since they do not pay taxes. Issue an acknowledgement receipt instead. Be sure to include their BN/Registration number.

See Gifts to Registered Charities in the Charity Filing Guide Glossary.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the amount of donations you received but did not issue a tax receipt for.

Include amounts such as the following:

• Gifts from unknown donors
• Unmarked donations in collection boxes or loose collections

Do not include the following amounts:

• Gifts from other charities, enter this amount on Line 4510
• Revenue from Canadian governments, report this on Line 4570
• Non tax-receipted amounts from all sources outside Canada, report this on Line 4575
• Non tax-receipted amounts from fundraising, report this on Line 4630

This material is provided for information purposes only. Contact CRA for definitive information.

Check Yes if you received any of the following types of revenue from any level of Canadian government during the fiscal year:

• Grants
• Contributions
• Contracts to provide goods and services directly to the government
• Any other type of funds

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount you received from any and all levels of Canadian government during the fiscal year. Keep a breakdown of this amount in your records.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount your charity received from foreign governments, individuals, or organizations outside Canada.

If a single donor (person, group, or government) gave $10,000 or more, you must complete Schedule 4 Confidential Data, Question 2 Information about Donors not Resident in Canada. You may want to let potential foreign donors know that you must disclose this information for gifts of $10,000 or more.

You should not issue tax receipts for amounts received from sources outside Canada.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount received from fundraising activities for which you did not issue a tax receipt.

Do not deduct expenses from the amounts entered on this line. Include the gross amounts received from fundraising activities carried on by your charity, as well as the gross amounts received directly by contracted fundraisers on your behalf.

Enter tax-receipted amounts from fundraising on Line 4500.

Non tax-receipted amounts include non-eligible amounts received from donors as part of fundraising activities. The term "non-eligible amount" refers to situations where part of the money you received was a donation, and part was payment for a dinner or other benefit the donor received as part of the event. The amount of the donation is an eligible gift. The amount of the benefit is not an eligible gift. It should be entered on this line. Non-eligible amounts should not be included on tax receipts.

In general, you can issue a tax receipt for the full amount you receive from a donor if the donor doesn’t receive anything in return, or if the donor only receives gifts that are of minor value compared with the size of the donation.

If the donor receives gifts or special privileges, which CRA calls advantages, that are worth more than 80% of the value of the donation, you cannot issue a tax receipt.

If the donor receives gifts or special privileges that are worth less than 80% of the value of the donation, you can issue a tax receipt for the portion of the donation that is over and above the value of any advantages received.

Issuing receipts for fundraising revenue can be a complex topic. Read Guide T4033-1 or call CRA 1-800-267-2384 for assistance.

See the Resources section for websites that provide more information.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total revenue received from the sale of goods and services offered as part of your charity’s programs, or from any other sales you made to individuals or organizations.

Do not deduct expenses from the amounts entered on this line.

Do not include the following amounts:

• Revenue from the sale of goods or services to any level of Canadian government, report this amount on Line 4570
• Revenue from the sale of goods or services as part of fundraising activities, report this amount on Line 4630

This material is provided for information purposes only. Contact CRA for definitive information.

Enter all other revenue not included in Lines 4500 to 4640.

Include the following amounts (if applicable):

• GST/HST rebates (If expenses on Lines 4800 to 4920 include GST)
• PST rebates (If expenses on Lines 4800 to 4920 include PST)
• Rental income (equipment or property)
• Leasing income (equipment or property)
• Any other sources of revenue

Note: If the expenses on Lines 4800 to 4920 do not include GST, you do not need to report GST/HST or PST rebates..

This material is provided for information purposes only. Contact CRA for definitive information.

Add Lines 4500, 4510, 4530, 4570, 4575, 4630, 4640, and 4650.

Do not include Line 4505. The amounts reported on Line 4505 are already included on Lines 4500 to 4650.

Total revenue on Line 4700 should equal total revenue on your financial statements (allowing for any rounding differences).

If the two amounts are not the same, check the following:

• Review lines 4500 to 4650 to be sure you recorded the amounts accurately
• Re-add lines 4500 to 4650 to be sure they sum to the total Line 4700
• Review your financial records to see if you left anything out
• Review your financial records to see if you counted something twice

This material is provided for information purposes only. Contact CRA for definitive information.

Common error: Lines 4860, 4810, and 4920 do not add up to Line 4950. Check the addition.

Enter the total amount paid for professional and consulting fees.

Include amounts paid to

• Accountants or bookkeepers
• Lawyers or legal professionals
• Fundraisers
• Other professionals who provided consulting services to your charity

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount paid or incurred for expenses such as the following:

• Travel costs (bus fare, airfare, taxis, etc.)
• Accommodation costs
• Vehicle costs (gas, repairs, upkeep, lease payments)

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the amounts for all other expenditures recorded in your financial statements.

Include the following amounts (if applicable)

• Charitable program expenditures
• Grants that must be returned (if you use the accrual method of accounting)
• Amounts sent to the Charities Directorate as part of a compliance agreement
• Expenditures made to earn rental income (repairs, maintenance)

Do not include the following amounts:

• Professional and consulting fees, enter this amount on Line 4860
• Travel and vehicle expenses, enter this amount on Line 4810

This material is provided for information purposes only. Contact CRA for definitive information.

Total expenditures on Line 4950 plus gifts to qualified donees (Line 5050) should equal the total expenses shown on your financial statements (allowing for any rounding differences).

If the two amounts are not the same,

• Review your financial records to see if you left anything out or counted something twice.
• Review Section D to be sure you recorded the amounts accurately and added the total correctly.

This material is provided for information purposes only. Contact CRA for definitive information.

Line 5000 and Line 5010 break out the amounts included in Line 4950 (Total expenditures) that were spent on charitable programs (Line 5000) and management and administration (Line 5010).

Enter the part of the amount on Line 4950 that represents all the expenses that are essential to deliver your charitable programs. See Guide T4033-1 for an example.

Do not include amounts spent on the following activities. Enter these expenses on Line 5010:

• Management
• Administration
• Fundraising
• Political activities

Be sure to include all relevant expenses, or portions of expenses, that support your charitable programs. For example, equipment costs, rent, heat, hydro, and any other type of expense.

Remember: Some expenses, such as salaries, utilities, or rent, may include costs for both charitable programs and non-charitable activities. Split the total to ensure that your full program costs are recorded. Allocate expenses using a logical, consistent method, for example the number of hours or amount of space required.

A simple example: A church pays a custodian $7,000 a year to maintain the church property. The building is used for charitable activities six days a week. On Saturdays, the building is rented to a community group (not a charitable program).

Report the custodian’s salary expense on Form T3010-1 as follows:

Enter $7,000 on Line 4920 to report the full amount paid to the custodian.
Enter $6,000 on Line 5000 to report the amount related to charitable programs (6/7 x $7,000)
Enter $1,000 on Line 5010 to report the amount related to non-charitable (management and administration) activities (1 /7 x $7,000).

Common error: Leaving Line 5000 blank. Be sure to enter your charitable program expenses. CRA cannot calculate this information. It’s critical to show them how much you spent on charitable work.

This material is provided for information purposes only. Contact CRA for definitive information.

Line 5000 and Line 5010 break out the amounts included in Line 4950 (Total expenditures) that were spent on charitable programs (Line 5000) and management and administration (Line 5010).

CRA knows that management and administration expenses are a necessary part of running a charity. They don’t object to reasonable expenses. Their concern is that the majority of a charity’s resources should go toward charitable programs, not management and administration expenses..

Enter the part of the amount on Line 4950 that represents management and administration expenses required to run your charity.

Be sure to include all relevant expenses, or portions of expenses, that support your charitable programs. For example, equipment costs, rent, heat, hydro, and any other type of expense.

Include amounts spent on activities such as the following:

• Board meetings
• Administrative services such as accounting, auditing, personnel
• Banking fees, accounting services
• Fundraising
• Political activities
• Salaries for staff or managers not directly involved in charitable programs
• Supplies and equipment
• Rent, lease, occupancy costs for administration offices
• Applying for grants, government funding, gifts from foundations
• Other expenses that did not support charitable programs

Remember: Some expenses, such as salaries or rent, may include both charitable programs and non-charitable activities. Split the total to ensure that your program costs are recorded accurately. Allocate expenses using a logical, consistent method, for example the number of hours or amount of space required.

A simple example: A church pays a custodian $7,000 a year to maintain the church property. The building is used for charitable activities six days a week. On Saturdays, the building is rented to a community group (not a charitable program).

Report the custodian’s salary expense on Form T3010-1 as follows:

Enter $7,000 on Line 4920 to report the full amount paid to the custodian.
Enter $6,000 on Line 5000 to report the amount related to charitable programs (6/7 x $7,000)
Enter $1,000 on Line 5010 to report the amount related to non-charitable (management and administration) activities (1 /7 x $7,000).

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount of gifts made to qualified donees.

Include the following types of gifts:

• Donations
• Gifts-in-kind
• Designated gifts

Qualified donees are defined in the Income Tax Act. In general, qualified donees are organizations that can issue official tax receipts, such as registered charities. Nonprofit organizations and foreign charities are not qualified donees.

Cross-check: The amount on Line 5050 should equal the total amount of all gifts entered on Form T1236(0910) Qualified Donees Worksheet/Amounts Provided to Other Organizations.

See Gifts to Registered Charities in the Charity Filing Guide Glossary.

See the CRA Glossary for a definition of qualified donee.

See Completing Form T1236(0910) or the Charity Filing Guide Glossary for more information.

This material is provided for information purposes only. Contact CRA for definitive information.

Total expenditures on Line 5100 should equal the total expenses shown on your financial statements (allowing for any rounding differences).

If the two amounts are not the same, check the following:

• Review lines 4860, 4810, and 4920 to be sure you recorded the amounts correctly.
• Re-add the totals on lines 4950 and 5100
• Review your financial records to see if you left anything out
• Review your financial records to see if you counted something twice

Note: Do not include Line 5000 or Line 5010 in this total. The amounts reported on Lines 5000 and 5010 are already included in Lines 4860, 4810, and 4920.

This material is provided for information purposes only. Contact CRA for definitive information.

This section must be completed and signed by a board member or like official who has the authority to sign for your charity.

It cannot be completed by a third party, for example a lawyer or accountant who prepared the T3010-1 for you.

Cross-check: The person who certifies Section E should be one of the individuals listed on Form T1235(09).

Note: You may need to collect signatures from two individuals. If your financial statements were not prepared by a professional, the Treasurer should review and sign your charity’s financial statements.

This material is provided for information purposes only. Contact CRA for definitive information.

The person who signs here certifies that all the information in all the forms in the T3010-1 Information Return is accurate, complete, and up to date. Be sure to give him or her all the relevant documents to review.

The information return includes the following forms:

• T3010-1 Registered Charity Information Return
• TF725 Registered Charity Basic Information Sheet
• The charity’s financial statements, including notes and attachments if any.
• T1235(09) Directors/Trustees and Like Officials Worksheet (or an equivalent list or Form RC232-WS for certain Ontario charities)
• T1236(10) Qualified Donees Worksheet/Amounts Provided to Other Organizations, or an equivalent list (if applicable)
• RC232-WS Director/Officer Worksheet and Ontario Corporations Information Act Annual Return or RC232 Ontario Corporations Information Act Annual Return (Ontario charities only, if applicable)
• T2081 Excess Corporate Holdings Worksheet for Private Foundations (if applicable)

It is common for the president of the board of directors or board of trustees to certify the T3010-1 Information Return.

Common error: Not signing the return. Be sure an authorized representative signs this form.

This material is provided for information purposes only. Contact CRA for definitive information.

All information in Section F is confidential. It does not appear in the online CRA Charities Listings.

Post office box numbers and rural routes are not sufficient because the address must be a place that a CRA representative could visit, if necessary.

You can use a post office box as a mailing address for your charity. But you cannot use a mailing address as the physical location of your charity or for your books and records.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the address where your charity is located. CRA needs a physical address to verify that a registered charity is located in Canada. This could be a board member’s home address if your charity does not have office space.

Enter accurate, up-to-date information. If CRA has a question about your return, it will be easier to resolve if they can contact someone at your charity.

You can use post office box, general delivery, rural route, site, or compartment numbers as part of the address, but they are not enough on their own. If you live in an area that does not have street names or numbers, provide a complete description of your location. Here is an example from Guide T4033: "the first green house eastbound on Highway 4 from Oldtown."

Common error: Leaving this line blank. CRA needs a Canadian address for your charity to ensure you are in compliance with the Income Tax Act.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the address where you keep your charity’s books and records. This must be somewhere a CRA representative could visit, if necessary. Use a board member’s home address if your charity does not have office space.

Enter accurate, up-to-date information. If CRA has a question about your return, it will be easier to resolve if they can contact someone at your charity.

You can use post office box, general delivery, rural route, site, or compartment numbers as part of the address, but they are not enough on their own. If you live in an area that does not have street names or numbers, provide a complete description of your location. Here is an example from Guide T4033: "the first green house eastbound on Highway 4 from Oldtown."

Registered charities must keep their books and records at a Canadian location. The books and records should allow a CRA audit to verify the following information(from Guide T4033-1):

• Official donation receipts issued
• Revenue received and expenditures made
• That the charity meets the applicable requirements for continued registration
• Source deductions and taxes payable

Common error: Leaving this line blank. Maintaining adequate books and records that are accessible to CRA, if necessary, is an important part of your obligations as a registered charity.

This material is provided for information purposes only. Contact CRA for definitive information.

One of the most common mistakes on Form T3010-1 is leaving address information blank. CRA needs to know who completed the return in case they need clarification or further information. If they can contact you quickly, the issue will be easier to resolve, and your charity’s registered status will not be put at risk.

If an accountant, bookkeeper or other professional prepared the return, include the name of their firm.

Common error: Leaving this line blank. Be sure to provide all contact information.

This material is provided for information purposes only. Contact CRA for definitive information.

One of the most common mistakes on Form T3010-1 is leaving address information blank. CRA needs to know who completed the return in case they need clarification or further information. If they can contact you quickly, the issue will be easier to resolve, and your charity’s registered status will not be put at risk.

If an accountant, bookkeeper or other professional prepared the return, include the name of their firm.

Common error: Leaving this line blank. Be sure to provide all contact information.

This material is provided for information purposes only. Contact CRA for definitive information.

If the board member or trustee who signed Section E: Certification also completed Form T3010-1, answer Yes.

Cross-check: If the same board member who certified in Section E also prepared the form, check to be sure that his or her name is listed on Form T1235(09) Directors/Trustees and Like Officials Worksheet.

This material is provided for information purposes only. Contact CRA for definitive information.

Info

Use this checklist when you complete Form T3010-1 to ensure that you complete all necessary schedules and include all the required attachments.

You may find it convenient to photocopy the checklist and use it separately.

This material is provided for information purposes only. Contact CRA for definitive information.

This guide is designed to help volunteers at small and rural charitable organizations, not foundations.

The Charity Filing Guide does not include detailed information about Schedule 1, Foundations.

If you need more information:

• Read Guide T4033-1
• Contact CRA 1-800-267-2384
• Seek advice from an accounting or legal professional

This material is provided for information purposes only. Contact CRA for definitive information.

This is a complex topic that falls outside the scope of the Charity Filing Guide.

The Charity Filing Guide does not include detailed information about Schedule 2, Activities Outside Canada.

If you need more information:

• Read Guide T4033-1
• Contact CRA 1-800-267-2384
• Seek advice from an accounting or legal professional

This material is provided for information purposes only. Contact CRA for definitive information.

CRA includes the following payments and benefits in compensation:

• Salaries
• Wages
• Commissions
• Bonuses
• Fees
• Honoraria
• Taxable benefits
• Non-taxable benefits
• Charity's portion of payments such as pension, medical plan, insurance plan, CPP, EI, federal and provincial income tax, and workers compensation benefits
• Any other payments or benefits that form part of an employee's employment income

Compensation does not include reimbursement made for out-of-pocket expenses on the charity's behalf, such as travel claims.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the usual number of permanent, full-time compensated positions at your charity. Include all types of employees, managers, support staff, administrative staff, etc.

The number of positions may not be the same as the number of bodies that occupied those positions. For example, if someone left your charity during the year and was replaced by someone else who took over the same job, that counts as one position.

Do not include independent contractors in the count.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the number of positions at your charity that fall within each compensation range. Include the 10 highest-paid, permanent, full-time, compensated employees, regardless of job title.

The dollar figures include all forms of compensation, not just salary. Remember to include taxable and non-taxable benefits and other applicable costs.

Do not include contractors or professional consultants.

The number of positions in each range may not be the same as the number of bodies that occupied those positions. For example, if someone left your charity during the year and was replaced by someone else who took over the same job, that counts as one position.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total number of part-time and part-year employees. Use the number of bodies in this type of position not the usual number of positions.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount spent on compensation for part-time and part-year employees.

Do not include contractors or professional consultants.

Include benefits and other compensation costs, not just salary or wages.

CRA includes the following payments and benefits in compensation:

• Salaries
• Wages
• Commissions
• Bonuses
• Fees
• Honoraria
• Taxable benefits
• Non-taxable benefits
• Charity’s portion of payments such as pension, medical plan, insurance plan, CPP, EI, federal and provincial income tax, and workers compensation benefits
• Any other payments or benefits that form part of an employee’s employment income

Compensation does not include reimbursement made for out-of-pocket expenses on the charity’s behalf, such as travel claims.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount spent on all compensation costs for full-time and part-time employees.

Do not include contractors or professional consultants.

CRA includes the following payments and benefits in compensation:

• Salaries
• Wages
• Commissions
• Bonuses
• Fees
• Honoraria
• Taxable benefits
• Non-taxable benefits
• Charity’s portion of payments such as pension, medical plan, insurance plan, CPP, EI, federal and provincial income tax, and workers compensation benefits
• Any other payments or benefits that form part of an employee’s employment income

Compensation does not include reimbursement made for out-of-pocket expenses on the charity’s behalf, such as travel claims.

If you’re required to complete Schedule 6: Detailed Financial Information (instead of Section D Financial Information), enter the amount from Line 390 on Line 4880.

This material is provided for information purposes only. Contact CRA for definitive information.

This is a complex topic that falls outside the scope of the Charity Filing Guide.

The Charity Filing Guide does not include detailed information about Schedule 4, Confidential Data.

If you need more information:

• Read Guide T4033-1
• Contact CRA 1-800-267-2384
• Seek advice from an accounting or legal professional

This material is provided for information purposes only. Contact CRA for definitive information.

Identify the types of non-cash gifts you received and gave the donor a tax receipt for in return.

If you didn’t issue a tax receipt for a non-cash gift, you don’t need to identify the type of gift.

Two types of gifts have complex conditions attached:

• Gifts of cultural property (Line 520)
• Gifts of ecological property (Line 525)

See Guide T4033-1 or seek professional expertise if you’ve received, or have been offered, a gift of cultural or ecological property.

Line 540 Privately-held securities includes hedge funds.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total eligible amount of tax-receipted non-cash gifts.

The term "eligible" refers to the part of the gift that is eligible to be tax-receipted. This is the value of the gift over and above the value of any advantage the donor received in return. See Guide T4033-1 for a definition of "Eligible amount of gift."

Non-cash gifts, or gifts-in-kind, are gifts of property such as equipment, furniture, computers, supplies, securities, land, artwork, etc.

Gifts of service are not gifts-in-kind because services are not physical things. Therefore, you can’t issue a tax receipt for a gift of service.

You’re not obligated to accept non-cash gifts. Many charities don’t accept non-cash gifts that they can’t put to immediate use. If the value of the gift is negligible, it may be more effort than it’s worth to accept the gift if the donor insists on receiving a tax receipt.

Before you issue a tax receipt in return for a non-cash gift, you must make some effort to determine the value of the gift. You can’t just issue a receipt for the amount the donor tells you. You have to make some effort to determine the fair market value (FMV) of the gift.

Fair Market Value is the price the item would be worth in the open market, assuming a knowledgeable buyer and a knowledgeable seller. In practical terms, what is a similar item worth in a second-hand store, garage sale, or on eBay?

If the value of the non-cash gift is over $1,000, CRA strongly recommends that you have the gift appraised, but it’s not mandatory.

If you issued tax receipts for non-cash gifts, you must complete Schedule 5 Non-Cash Gifts.

If you received non-cash gifts but didn’t issue tax receipts in return, you don’t have to complete Schedule 5 Non-Cash Gifts.

This material is provided for information purposes only. Contact CRA for definitive information.

Form T3010-1 has two financial reporting sections:

• Section D: Financial Information
• Schedule 6: Detailed Financial Information.

Complete one of these sections, not both.

The form has two financial sections because CRA wants to reduce the burden of financial reporting for small charities. Section D is shorter and less complex than Schedule 6.

The three criteria at the top of Section D determine which financial section you need to complete. If your situation fits all three of these criteria, complete Section D:

1. The charity's gross annual revenue exceeds $100,000.
2. The amount of all property (e.g., investments, rental properties) not used in charitable programs exceeds $25,000.
3. The charity currently has permission to accumulate funds during this fiscal period.

If your situation fits any one of the following criteria, complete Schedule 6:

1. The charity's gross annual revenue exceeds $100,000.
2. The amount of all property (e.g., investments, rental properties) not used in charitable programs exceeds $25,000.
3. The charity currently has permission to accumulate funds during this fiscal period.

Call CRA 1-800-267-2384 if you are not sure which financial section to complete.

This material is provided for information purposes only. Contact CRA for definitive information.

Accrual and cash describe two different methods for recording accounting transactions. Both methods use cash, cheques, credit cards, bills, invoices, receipts, etc.

The difference between accrual and cash relates to when transactions are recorded in the accounting system.

Accrual method

• record revenue when it is earned, even if the money has not been received
• record expenses when they are incurred, even if payment has not been made

Cash method

• record revenue when it is received
• record expenses when they are paid

Examples

These examples are quite simple, but they should help you understand which accounting method you use. If you’re still unsure, contact an accounting professional or call CRA 1-800-267-2384.

Example 1: Expenses

Situation: You receive the December phone bill at the end of November and pay it immediately.

Cash method: In November, you enter the phone bill in your November expenses. The phone bill is recorded in your November accounting records.

Accrual method: In November, you record the phone bill as a prepaid expense for December. The phone bill is recorded in your December accounting records.

Example 2: Revenue

Situation: A donor uses a credit card to make a donation to your charity.

Cash method: You don’t record the donation in your books until you actually receive the money from the credit card company.

Accrual method: You record the donation in your books and you record the amount of the donation in accounts receivable. When you receive the money from the credit card company, which could be the following month, you reduce the amount of accounts receivable and record the money as a deposit in your bank account.

In general,

• If you use a manual bookkeeping system, you are probably using the cash method.
• If you use computer accounting software, you are probably using the accrual method.

The difference between accrual and cash is critical. The method you use affects your financial statements. CRA needs to know which method you use so that they can interpret your financial information correctly.

This material is provided for information purposes only. Contact CRA for definitive information.

The statement of financial position shows assets (what you own) and liabilities (what you owe). It is also called a balance sheet or a statement of assets and liabilities.

This material is provided for information purposes only. Contact CRA for definitive information.

• Report all amounts in Canadian dollars.
• Do not report cents.
• Round amounts up or down to the nearest dollar. If the figure ends in an amount less than 50 cents, round down. If the figure ends in an amount 50 cents or greater, round up.
• Add up the rounded amounts to be sure they sum to the totals on the form. You may need to adjust some of the amounts.
• Where applicable, check that the totals agree to your financial statements (or would, if the amounts on your financial statements were rounded).

This material is provided for information purposes only. Contact CRA for definitive information.

Assets are things you own, such as money in the bank, accounts receivable, investments, office equipment, furniture, computers, supplies, land, buildings, etc.

In financial terms, short-term means one-year or less. Short-term investments are any type of investment that matures in one year or less, for example, 1-year GICs, 6-month term deposits, 1-year bonds, etc.

Include the following types of financial assets:

• Cash in the bank
• Cash on hand
• Short-term investments
• Guaranteed-term investment certificates
• Treasury bills
• Bonds
• Notes
• Long-term investments that will mature within one year. For example, a 5 year GIC in its fifth year.
• Any other current investments (current means one year or less)

Do not include investments in non-arm’s length parties (businesses owned by people who are closely related by blood, marriage, adoption or business ties to members of your board of directors). Report these amounts on Line 4130.

CRA Note: A negative amount should be reported under liabilities not assets.

This material is provided for information purposes only. Contact CRA for definitive information.

Report amounts owed to your charity by people who are involved with your charity, or by people who are related by blood, marriage, or business to people who are involved with your charity.

Report the following types of amounts receivable:

• Loans
• Advances or interest receivable on loans
• Mortgages
• Advances or interest receivable on mortgages
• Amounts receivable for goods and services purchased or rented by related parties

Non-arm's length (related) parties include the following people:

• Founders
• Directors/trustees and like officials
• Employees
• Members of your charity
• Any person or organization not at arms' length to these individuals
• Any person or organization not at arms' length to your charity

See the diagram on the back of Form T1235(09) for a visual explanation of non-arm’s length relationships.

This material is provided for information purposes only. Contact CRA for definitive information.

Include the following types of amounts receivable on this line:

• Accounts receivable from the sale of goods or services
• Current portion of long-term investments, such as mortgages and loans. Current means the portion you received during the fiscal year.

Do not include the following amounts:

• Cash, bank accounts, and short-term investments, report these amounts on Line 4100
• Amounts receivable from non-arm’s length individuals or organizations, report these amounts on Line 4110

Note: If you use cash-based accounting, you won’t have an Accounts Receivable account in your financial statements. However, you should have records of amounts owed to your organization by individuals and other organizations.

This material is provided for information purposes only. Contact CRA for definitive information.

The Charity Filing Guide does not include detailed information about Investments in non-arm's length parties.

If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

In financial terms, long-term means more than one year. Long-term investments are any type of investment that matures in more than one year. For example, the cash‑surrender value of life insurance policies, stocks, bonds, notes, shares, debt, loans, mortgages, reserves of gold, diamonds and other precious metals and stones, and all other long‑term investments.

Note from Guide T4033-1: Do not include amounts receivable from non‑arm's length individuals or organizations or any amounts reported on lines 4120, 4130 or 4170. Also, note that restricted funds must be reported on line 4170.

The Charity Filing Guide does not include detailed information about long-term investments. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the value of inventories at the end of the fiscal period, include the following items:

• Supplies on hand for use in your charity’s programs
• Goods on hand for use in your charity’s programs
• Supplies held for sale by your charity’s programs
• Goods held for sale by your charity’s programs

Types of inventory listed in Guide T4033-1:

• Articles that workers in a sheltered workshop manufacture
• Religious books or artifacts for sale
• Educational materials such as books in print or electronic form
• Medication in a hospital dispensary

Include any donated items held in inventory at fair market value. Donated items are non-cash gifts.

Do not include the following:

• Amounts receivable from all others, report these amounts on Line 4120
• Other assets, report these amounts on Line 4170

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the value of all land and buildings your charity owns in Canada.

Report the full cost of land and buildings. Include the cost of any major improvements you had to make in order to use the property for its intended purpose.

Report donated assets at the fair market value of the asset at the time the gift was received.

Accumulated amortization, report these amounts on Line 4166 for all capital assets together.

This material is provided for information purposes only. Contact CRA for definitive information.

In broad terms, capital assets are large or expensive items that your charity is planning to own and use for a number of years. Each organization develops accounting rules that govern what is or is not considered a capital asset. There is no one-size-fits-all definition.

For instance, a large charity may record office furniture, such as a new desk, as a capital asset. But, a small charity may record the purchase of a used desk as an expense, not an asset.

If your organization doesn’t have rules in place, consult a professional accountant who can advise you on how to handle this type of property.

Other capital assets include the following types of property:

• Equipment
• Vehicles
• Computers
• Furniture and fixtures

Report donated assets at the fair market value of the asset at the time the gift was received.

Accumulated amortization, report these amounts on Line 4166 for all capital assets together.

This material is provided for information purposes only. Contact CRA for definitive information.

Report the full cost of land and buildings and other capital assets held outside Canada in Canadian dollars. Include the cost of any major improvements you had to make in order to use the property for its intended purpose.

Other capital assets include the following types of property:

• Equipment
• Vehicles
• Computers
• Furniture and fixtures

Report donated assets at the fair market value of the asset at the time the gift was received.

Accumulated amortization, report these amounts on Line 4166 for all capital assets together.

The Charity Filing Guide does not include detailed information about capital assets outside Canada. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Amortization is also called depreciation. Amortization is an accounting entry that records the effects of wear and tear over the life of an asset. In financial statements, amortization is an expense, and accumulated amortization is offset against the value of an asset to show that the value of the asset declines as the asset is used. In this way, the value of an asset in the books reflects the value of that asset in the real world. A new truck is worth more than a truck that is nine years old.

Accumulated amortization the total amount of amortization that has been recorded in the financial statements since the capital asset was acquired.

Accumulated amortization should be a negative amount, shown with brackets, e.g. (1,500).

If you have questions about amortization, contact CRA 1-800-267-2384 or seek advice from an accounting professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the value of assets that don’t fit any of the other categories.

Include assets such as the following:

• Artwork that is not part of inventory
• Valuables that are not part of inventory
• Prepaid expenses (if you use the accrual method of accounting)
• Restricted funds, such as 10 year gifts

Note: Report negative amounts under liabilities not assets.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the amount of all 10 year gifts included in lines 4100 to 4170.

Definition from the CRA Glossary:
A ten-year gift is a donation made to a registered charity that is subject to a donor's written trust or direction that the gift, or any property substituted for it, be held by the recipient charity for ten years or more from the date the gift was made.

Note: 10 year gifts can have a term longer than 10 years.

Before the March 4, 2010 federal budget, 10 year gifts were a type of enduring property. The concept of enduring property was discontinued for fiscal periods ending on or after March 4, 2010, but the concept of 10 year gifts is still in effect.

The Charity Filing Guide does not include detailed information about 10 year gifts. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Total assets on Line 4200 should equal total assets shown on your financial statements (allowing for any rounding differences).

If the two amounts are not the same, check the following:

• Review lines 4100 to 4170 to be sure you recorded the amounts accurately
• Re-add lines 4100 to 4170 to be sure they sum to the total on Line 4200
• Review your financial records to see if you left anything out
• Review your financial records to see if you counted something twice

Note—Balance sheet vs. Section D: Some accounting systems include a balancing account, called equity, net assets, or surplus. Section D doesn’t include a balancing account, so the asset and liability section of your financial statements may not be an exact match with Section D. CRA is aware of this. The information return includes a copy of your financial statements so CRA will have the complete picture.

This material is provided for information purposes only. Contact CRA for definitive information.

Report amounts included in the following lines that were used for programs, events, activities, etc. that were not related to your charitable programs:

• Line 4150 Inventories
• Line 4155 Land and buildings in Canada
• Line 4160 Other capital assets in Canada
• Line 4165 Capital assets outside Canada
• Line 4170 Other assets

To make it easier to complete Form T3010-1, keep separate accounts for assets used in charitable programs and assets not used in charitable programs. If you separate the two categories in the books, you won’t have to split amounts out of combined accounts. If one asset is used for both charitable activities and non-charitable activities (such as management), you’ll need to allocate the amount that applies to each type of activity. Use a consistent and logical method. For instance, the number of hours or amount of space used by each type of activity.

This material is provided for information purposes only. Contact CRA for definitive information.

If you use cash-based accounting, you won’t have an accounts payable account or accrued liabilities in your financial statements.

Report the following types of transactions:

• Salaries owed but not yet paid at the fiscal year end
• The current (short-term) portion of long-term debt obligations such as loans, mortgages, notes,
• Payments due for goods and services received
• Contributions, gifts, and grants payable for charitable programs

Do not include the following amount:

• Amounts owing to non-arm’s length parties, enter this amount on Line 4320.

This material is provided for information purposes only. Contact CRA for definitive information.

If you use the cash method of accounting, you won’t have deferred revenue.

If you use the accrual method of accounting, enter the total amount of revenue received before the end of the fiscal year to pay for goods or services that were not provided by the end of the fiscal year (deferred revenue).

This material is provided for information purposes only. Contact CRA for definitive information.

Non-arm's length parties are people who are involved with your charity, or people who are related by blood, marriage, or business to people who are involved with your charity.

Non-arm’s length parties include the following people:

• Founders
• Directors/trustees and like officials
• Non-arm’s length employees
• Non-arm’s length members of your charity
• Any person or organization not at arms’ length to these individuals

Report the following types of amounts owed to non-arm’s length parties:

• Advances
• Loans
• Notes
• Mortgages
• Amounts owing for goods and/or services received
• Rent due for the use of property
• Salaries payable

See the diagram on the back of Form T1235(09) for a visual explanation of non-arm’s length relationships.

See the Charity Filing Guide Glossary for more information.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter liabilities not reported in Line 4300 to Line 4320.

Include amounts such as the following:

• The unused part of a government grant that your charity must return
• Long-term debt obligations such as loans, mortgages, and notes

Except for unusual circumstances, most of your liabilities should fit the categories in lines 4300 to 4320.

This material is provided for information purposes only. Contact CRA for definitive information.

Liabilities are things you owe, such as unpaid bills, loans, mortgages, etc.

Total liabilities on Line 4350 should equal total liabilities shown on your financial statements (allowing for any rounding differences).

If the two amounts are not the same, check the following:

• Review lines 4300 to 4330 to be sure you recorded the amounts accurately
• Re-add the amounts on lines 4300 to 4330 to be sure they sum to the total amount on Line 4350
• Review your financial records to see if you left anything out
• Review your financial records to see if you counted something twice

Note—Balance sheet vs. Section D: Some accounting systems include a balancing account, called equity, net assets, or surplus. Section D doesn’t include a balancing account, so the asset and liability section of your financial statements may not be an exact match with Section D. CRA is aware of this. The information return includes a copy of your financial statements so CRA will have the complete picture.

This material is provided for information purposes only. Contact CRA for definitive information.

This statement shows the source of all funds flowing into your charity and how those funds were used.

The statement of operations is also called an income statement, profit and loss statement, or a statement of income and expenses.

Note: Expenditures and Revenue

• If the expense amounts reported on Lines 4800 to 4920 include GST/HST or PST, then you must report any GST/HST or PST rebates received as revenue on Line 4650.
• If the expense amounts reported on Lines 4800 to 4920 do not include GST/HST or PST, do not report GST/HST or PST rebates on Line 4650.

This material is provided for information purposes only. Contact CRA for definitive information.

Except for the amount on Line 4600 Net proceeds from disposition of assets, enter the gross total amounts your charity received. Don’t deduct expenses or any other amounts from the revenue amounts reported.

Note: Pledges are not revenue. Amounts that have been promised (pledged) to your charity but not paid should not be counted as revenue. When you actually receive the money, then you record the funds as revenue in your books.

This material is provided for information purposes only. Contact CRA for definitive information.

The term eligible gifts refers to situations where part of the money you received from a donor was a donation and part was a payment for a dinner or other benefit the donor received as part of the event. The amount of the donation was an eligible gift. The amount of the benefit was not an eligible gift. CRA calls this amount an advantage received by the donor. It should not be included on a tax receipt.

Calculating the eligible amount of a gift can be a complex topic. Read Guide T4033-1 or contact CRA if you need more information.

Include the eligible amount of the following gifts (donations) for which you issued a tax receipt:

• Gifts-in-kind
• Tax-receipted amounts from fundraising
• Tax-receipted tuition fees, also reported separately on Line 5610

Do not include the following types of gifts:

• Gifts from other charities, enter this amount on Line 4510

See the CRA Glossary for a definition of eligible amount of gift.

This material is provided for information purposes only. Contact CRA for definitive information.

This line splits out the total eligible amount of tax-receipted tuition fees included in line 4500.

The term eligible refers to the part of the tuition fee that is not related to an advantage or benefit received by the donor in return for the gift.

Calculating the eligible amount of a gift can be a complex topic. Read Guide T4033-1 or contact CRA if you need more information.

For more information, see Income Tax Information Circular 75-23, Tuition Fees and Charitable Donations Paid to Privately Supported Secular and Religious Schools. http://www.cra-arc.gc.ca/E/pub/tp/ic75-23/README.html

Note: Line 5610 is not included in the total at Line 4700.

This material is provided for information purposes only. Contact CRA for definitive information.

In general terms, 10 year gifts represent restricted funds that your charity is not allowed to spend right away. Line 4505 reports the amount of 10 year gifts included on Lines 4500, 4510, 4530, 4565, 4570, 4575, 4630, or 4650 depending on the source of the gift.

Definition from the CRA Glossary:
A ten-year gift is a donation made to a registered charity that is subject to a donor's written trust or direction that the gift, or any property substituted for it, be held by the recipient charity for ten years or more from the date the gift was made.

Note: 10 year gifts can have a term longer than 10 years.

Before the March 4, 2010 federal budget, 10 year gifts were a type of enduring property. The concept of enduring property was discontinued for fiscal periods ending on or after March 4, 2010, but the concept of 10 year gifts is still in effect.

The Charity Filing Guide does not include detailed information about 10 year gifts. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

See the Charity Filing Guide Glossary for more information about 10 year gifts.

Enter the total amount of gifts your charity received from other registered charities.

Include the following types of gifts:

• Donations
• Gifts-in-kind
• Designated gifts

Note: Do not issue official tax receipts for gifts you receive from other registered charities. Instead, issue an acknowledgement receipt that includes all the information required on Form T1236(10). This will make it much easier to report this type of gift on Form T1236(10).

Information to include on an acknowledgement receipt:

• Name of organization
• Associated charity? Yes or No
• BN/Registration number
• City and Province/Territory
• Amount of designated gifts
• Amount of gifts-in-kind
• Total amount of gifts

See Gifts to Registered Charities in the Charity Filing Guide Glossary.

See the CRA Glossary for a definition of Designated Gifts.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the amount of donations you received, but did not issue a tax receipt for.

Include amounts such as the following:

• Gifts from unknown donors
• Unmarked donations in collection boxes or loose collections

Do not include the following amounts:

• Gifts from other charities, enter this amount on Line 4510
• Revenue from Canadian governments, report these amounts on Line 4540, 4550, 4560
• Non-tax receipted revenue from fundraising, report this on Line 4630
• Non-tax receipted amounts from all sources outside Canada (government and non-government), report this on Line 4575.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total revenue received or earned from the federal government.

Include the following revenue amounts:

• Grants
• Contributions
• Contracts for goods and services provided directly to the federal government or on its behalf

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total revenue received or earned from provincial or territorial governments.

Include the following revenue amounts:

• Grants
• Contributions
• Contracts for goods and services provided directly to the federal government or on its behalf

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total revenue received or earned from provincial or territorial governments.

Include the following revenue amounts:

• Grants
• Contributions
• Contracts for goods and services provided directly to the federal government or on its behalf

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount your charity received from foreign governments, individuals, or organizations outside Canada.

If a single donor (person, group, or government) gave $10,000 or more, you must complete Schedule 4 Confidential Data, Question 2 Information about Donors not Resident in Canada. You may want to let potential foreign donors know that you must disclose this information for gifts of $10,000 or more.

You should not issue tax receipts for amounts received from sources outside Canada.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount of interest and/or investment income received from the following sources:

• bank accounts
• GICs
• bonds
• mortgages
• loans
• stock dividends
• other investments

Do not include the following:

• Capital gains
• Investment losses
• Capital losses

Include all amounts received, whether or not you received an information slip from the financial institution. See your bank statements for the amount of interest paid by the financial institution into your accounts.

Include amounts received from arm’s length, non-arm’s length, and foreign individuals and organizations.

If the total amount is negative, record 0.

Convert amounts received from foreign sources into Canadian dollars. Use the exchange rate in effect on the day you received the funds. Or, if you use accrual accounting, you can use the rate in effect at the end of the fiscal period.

See the Bank of Canada website for foreign exchange rates: www.bankofcanada.ca/rates/

If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

This is a complex topic that falls outside the scope of the Charity Filing Guide.

The Charity Filing Guide does not include detailed information about gross proceeds from disposition of assets. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

Note: The amount on Line 4590 is not included in the total on Line 4700.

This material is provided for information purposes only. Contact CRA for definitive information.

This is a complex topic that falls outside the scope of the Charity Filing Guide.

The Charity Filing Guide does not include detailed information about net proceeds from disposition of assets. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount of income received from renting land and/or buildings. Do not deduct expenses.

Include income earned from renting property used in charitable programs. For example, renting out the church parking lot during the week.

Do not include income earned from renting or leasing equipment or other resources. Report these amounts on Line 4650 (Other revenue)

Note: If you earned income from renting property not used in charitable programs, add a note or appendix to your financial statements that provides details about the property. Include the note or appendix with your financial statements when you attach them to your T3010-1 Annual Information Return.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the amount of revenue received from the sale of memberships, dues, and association fees for which you did not issue a tax receipt.

You can issue a tax receipt for the full amount paid for memberships, dues, or association fees if the only advantage the donor received in return was the right to vote on matters related to the organization and/or a free newsletter.

If your charity gave members gifts or special privileges as part of their membership fees or dues, the situation is more complicated.

If the amount of the gifts or special privileges received, which CRA calls an advantage, is worth more than 80% of the fees or dues, you cannot issue a tax receipt.

If the amount of the advantage received is worth less than 80% of the fees or dues, you can issue a tax receipt for the portion of the fees or dues that are over and above the value of any advantages received.

This is a complex topic that falls outside the scope of the Charity Filing Guide.

If your charity offered members gifts such as hats, books, special ticket or subscription rates, or other items of value, read Guide T4033-1 or call CRA 1-800-267-2384 for assistance.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter tax-receipted amounts from fundraising on Line 4500.

Enter the total amount received from fundraising activities for which you did not issue a tax receipt.

Do not deduct expenses from the amounts entered on this line. Include the gross amounts received from fundraising activities carried on by your charity, as well as the gross amounts received directly by contracted fundraisers on your behalf.

Enter tax-receipted amounts from fundraising on Line 4500.

Non tax-receipted amounts include non-eligible amounts received from donors as part of fundraising activities. The term "non-eligible amount" refers to situations where part of the money you received was a donation, and part was payment for a dinner or other benefit the donor received as part of the event. The amount of the donation is an eligible gift. The amount of the benefit is not an eligible gift. It should be entered on this line. Non-eligible amounts should not be included on tax receipts.

In general, you can issue a tax receipt for the full amount you receive from a donor if the donor doesn’t receive anything in return, or if the donor only receives gifts that are of minor value compared with the size of the donation.

If the donor receives gifts or special privileges, which CRA calls advantages, that are worth more than 80% of the value of the donation, you cannot issue a tax receipt.

If the donor receives gifts or special privileges that are worth less than 80% of the value of the donation, you can issue a tax receipt for the portion of the donation that is over and above the value of any advantages received.

Issuing receipts for fundraising revenue can be a complex topic. Read Guide T4033-1 or call CRA 1-800-267-2384 for assistance.

See the Resources section for websites that provide more information.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the gross revenue received from the sale of goods and services offered as part of your charity’s programs, or from any other sales you made to individuals or organizations.

Do not deduct expenses from the amounts entered on this line.

Do not include the following amounts:

• Revenue from the sale of goods or services to any level of Canadian government, report this amount on Line 4540, 4550, or 4560
• Revenue from the sale of goods or services as part of fundraising activities, report this amount on Line 4630

This material is provided for information purposes only. Contact CRA for definitive information.

Enter all other revenue amounts not included in Line 4500 to Line 4640.

Include the following amounts (if applicable):

• GST/HST rebates (If expenses on Lines 4800 to 4920 include GST)
• PST rebates (If expenses on Lines 4800 to 4920 include GST)
• Rental income (equipment or property)
• Leasing income (equipment or property)
• Any other sources of revenue

Note: If the expenses on Lines 4800 to 4920 do not include GST, you do not need to report GST/HST or PST rebates.

This material is provided for information purposes only. Contact CRA for definitive information.

List the types of revenue included in Line 4650.

This material is provided for information purposes only. Contact CRA for definitive information.

Add lines 4500, 4510 to 4580, and 4600 to 4650.

Note: Lines 5610, 4505 and 4590 are not included in the total on Line 4700. The amounts included on these three lines are already included in the amounts reported on lines 4500, 4510 to 4580, and 4600 to 4650.

Total revenue on Line 4700 should equal total revenue on your financial statements (allowing for any rounding differences).

If the two amounts are not the same, check the following:

• Review lines 4500, 4510 to 4580, and 4600 to 4650 to be sure you recorded the amounts accurately
• Re-add lines 4500, 4510 to 4580, and 4600 to 4650 to be sure they sum to the total Line 4700
• Review your financial records to see if you left anything out
• Review your financial records to see if you counted something twice

Common error: Lines 4500, 4510 to 4580, and 4600 to 4650 do not add up to Line 4700. Check the addition.

This material is provided for information purposes only. Contact CRA for definitive information.

You must keep detailed records of your charity’s expenditures during the year. You cannot arbitrarily allocate a percentage of the total amount to various categories at the end of the year.

The categories used in Schedule 6 help CRA determine if your charity met its obligations under the Income Tax Act.

The expense categories on lines 4800 to 4920 may not match the categories in your accounting records. You may need to split or combine accounts to report the information CRA is asking for.

Check old T3010s to see where the amounts from your accounting system were entered on the form in past years. Unless CRA informed you that there were problems, it’s probably best to be consistent. Keep notes to document your decisions and record which number went where.

See Keeping Books with T3010-1 in Mind for ideas to help you link your accounting records with the categories on T3010-1.

This material is provided for information purposes only. Contact CRA for definitive information.

Include advertising and promotion expenses incurred to promote your charity and its programs.

Include expenses such as the following:

• Costs related to fundraising activities (including postage)
• Print or television ads
• Meals and entertainment
• Seminars
• Presentation booths
• Publications

Do not include professional or consulting fees related to advertising or promotion. Report these amounts on line 4860.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount paid or incurred for expenses such as the following:

• Travel costs (bus fare, airfare, taxis, etc.)
• Accommodation costs
• Vehicle costs (gas, repairs, upkeep, lease payments)

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount paid or incurred for interest payments, such as mortgage interest, and bank charges.

Report the non-interest potion (principal) of mortgage payments on Line 4850 Occupancy costs.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount paid or incurred for licences, memberships, and dues.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount paid or incurred for office supplies and expenses.

Include expenses such as the following:

• Postage
• Minor equipment purchases
• Meeting expenses
• Cost of preparing and distributing annual reports

Do not include expenses such as the following:

• Advertising and promotion expenses, report these amounts on Line 4800.
• Accommodation expenses, report these amounts on Line 4810
• Travel and vehicle expenses, report these amounts on Line 4810

This material is provided for information purposes only. Contact CRA for definitive information.

Occupancy costs include expenses such as the following:

• Rent
• Mortgage payments (principal)
• Maintenance and repairs
• Utilities
• Taxes
• All other costs related to maintaining premises used by your charity

Report expenditures related to investment assets on Line 4920.

Report mortgage interest on Line 4820 Interest and bank charges.

CRA Note: If you are claiming mortgage payments on this line, do not claim amortization for the same building on line 4900.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount paid for professional and consulting fees to external consultants or contractors.

Do not include amounts paid to employees.

Include amounts paid to

• Accountants or bookkeepers
• Lawyers or legal professionals
• Fundraisers
• Other professionals who provided consulting services to your charity

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount paid or incurred for expenses such as courses, seminars, webinars, and conferences for staff and volunteers.

This material is provided for information purposes only. Contact CRA for definitive information.

If you paid compensation to employees, you must complete Schedule 3: Compensation. Complete Schedule 3 first, then transfer the amount on Line 390 to Line 4880.

Cross-check: Enter the amount from Schedule 3, Line 390 (total expenditure on all compensation in the fiscal period).

This material is provided for information purposes only. Contact CRA for definitive information.

Donated goods are non-cash gifts.

If you use donated goods in your charitable programs, you need to report the fair market value of those goods on this line and on Line 5000 Total expenditures on charitable programs.

Note from Guide T4033-1: Do not include assets that have been capitalized and for which you intend to report amortization on line 4900.

This material is provided for information purposes only. Contact CRA for definitive information.

Include the cost of all supplies and non-capital assets purchased during the fiscal year.

Do not include capital assets. Report capital assets on line 4155, 4160, 4165, or 4166 as appropriate.

This material is provided for information purposes only. Contact CRA for definitive information.

This is a complex topic that falls outside the scope of the Charity Filing Guide.

The Charity Filing Guide does not include detailed information about amortization of capitalized assets. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

This is a complex topic that falls outside the scope of the Charity Filing Guide.

The Charity Filing Guide does not include detailed information about research grants and scholarships as part of charitable programs.

If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

Enter all expenditures from your financial statements not included in Line 4800 to Line 4910.

Include expenditures such as the following listed in Guide T4033-1:

Costs of producing and selling goods and services not used in charitable programs: also show these amounts on Line 5010 Administration, Line 5020 Fundraising, or Line 5030 Political activities, as applicable.

Premiums paid to maintain life-insurance policies that donors have given to the charity: also show this amount on Line 5020 Total expenditures on fundraising

Grants that must be returned (if you use the accrual method of accounting): also show this amount on Line 5040 Total other expenditures

Amounts sent to the Charities Directorate as part of a compliance agreement: also show this amount on Line 5000 Total expenditures on charitable programs

Costs of rental property the charity does not use in charitable programs or administration also show this amount on Line 5020 Total expenditures on fundraising

This material is provided for information purposes only. Contact CRA for definitive information.

List the types of expenses included in the amount on Line 4920.

This material is provided for information purposes only. Contact CRA for definitive information.

Total expenditures on Line 4950 plus gifts to qualified donees (Line 5050) should equal the total expenses shown on your financial statements (allowing for any rounding differences).

If the two amounts are not the same,

• Review your financial records to see if you left anything out or counted something twice.
• Review Section D to be sure you recorded the amounts accurately and added the total correctly.

The total on Line 4950 represents the amount your charity spent on conducting its own activities.

The next five lines, Line 5000 to Line 5040, report this amount by activity category:

• Line 5000 Charitable programs
• Line 5010 Management and administration
• Line 5020 Fundraising
• Line 5030 Political Activities (inside or outside Canada)
• Line 5040 Other

CRA needs this information so they can see how you spent the funds entrusted to your charity.

This material is provided for information purposes only. Contact CRA for definitive information.

Line 5000 to Line 5040 break the amounts included in Line 4950 Total Expenditures into five categories based on the type of activity rather than the type of expense.Break your total expenses into the following categories:

Charitable programs: Line 5000
Management and administration: Line 5010
Fundraising: Line 5020
Political Activities (inside or outside Canada): Line 5030
Other: Line 5040

The four categories—charitable programs, management and administration, fundraising, and political activities—cover the range of activities most charities engage in. You’ll probably find that all your expenses can be applied to one of these purposes.

The challenge is to get this information out of your accounting system. Most accounting systems set up accounts by expense type, not the end purpose of that expense. For example, one account for travel expenses, not four accounts: one for charitable program travel, one for management and admin travel, one for fundraising travel, and one for political activity travel. It is also possible that one trip could have had two or three purposes, based on what the individual did during that trip.

The amount of work involved in re-grouping expenses by purpose rather than expense type will depend on how your accounts are set up and how many transactions your charity processed during the fiscal year. Your system may have sub-accounts set up for each purpose that allow you to run a report by activity category. Or, you may have to rake through account printouts or ledgers and mark individual expenses as one of the four types, and then add each type together. This could be a lot of work. Give yourself time to complete the task.

See Keeping on Track in the Charity Filing Guide for ideas that might help.

This material is provided for information purposes only. Contact CRA for definitive information.

Be sure to include all relevant expenses, or portions of expenses, that support your charitable programs. For example, equipment costs, rent, heat, hydro, and any other type of expense.

Enter the part of the amount on Line 4950 that represents the expenses that are essential to deliver your charitable programs. See Guide T4033-1 for examples.

Do not include amounts spent on the following activities:

• Management , report this amount on Line 5010
• Administration, report this amount on Line 5010
• Fundraising, report this amount on Line 5020
• Political activities, report this amount on Line 5030

Be sure to include all relevant expenses, or portions of expenses, that support your charitable programs. For example, equipment costs, rent, heat, hydro, and any other type of expense.

Remember: Some expenses, such as salaries, utilities, or rent, may include costs for both charitable programs and non-charitable activities.Non-charitable activities include all activities that do not directly support your charitable programs. These may include management and administration, fundraising, and political activities. Split the total to ensure that your full program costs are recorded. Allocate expenses using a logical, consistent method, for example the number of hours or amount of space required.

A simple example: A church pays a custodian $7,000 a year to maintain the church property. The building is used for charitable activities six days a week. On Saturdays, the building is rented to a community group (not a charitable activity).

Report the custodian’s salary expense on Form T3010-1 as follows:

• Enter $7,000 on Line 4920 to report the full amount paid to the custodian.
• Enter $6,000 on Line 5000 to report the amount related to charitable programs (6/7 x $7,000)
• Enter $1,000 on Line 5010 to report the amount related to non-charitable (management and administration) activities (1 /7 x $7,000)

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the part of the amount on Line 4950 that represents management and administration expenses required to run your charity.

Be sure to include all relevant expenses, or portions of expenses, that support your charitable programs. For example, equipment costs, rent, heat, hydro, and any other type of expense.

Include amounts spent on activities such as the following:

• Board meetings
• Admin services such as accounting, auditing, personnel
• Salaries for staff or managers not directly involved in charitable programs
• Supplies and equipment
• Rent, lease, occupancy costs for administration offices
• Applying for grants, government funding, gifts from foundations

Do not include amounts spent on the following activities.

• Charitable programs (Line 5000)
• Fundraising (Line 5020)
• Political activities (Line 5030)

Remember: Some expenses, such as salaries or rent, may include both charitable programs and non-charitable activities. Non-charitable activities include all activities that do not directly support your charitable programs. These may include management and administration, fundraising, and political activities. Split the total to ensure that your program costs are recorded accurately. Allocate expenses using a logical, consistent method, for example the number of hours or amount of space required.

A simple example: A church pays a custodian $7,000 a year to maintain the church property. The building is used for charitable activities six days a week. On Saturdays, the building is rented to a community group (not a charitable activity).

Report the custodian’s salary expense on Form T3010-1 as follows:

• Enter $7,000 on Line 4920 to report the full amount paid to the custodian.
• Enter $6,000 on Line 5000 to report the amount related to charitable programs (6/7 x $7,000)
• Enter $1,000 on Line 5010 to report the amount related to non-charitable (management and administration) activities (1 /7 x $7,000)

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the part of the amount on Line 4950 that represents expenses for fundraising activities carried out by your charity or by contracted fundraisers.

For information about fundraising see CPS–028: Fundraising by Registered Charities, on the CRA website.

Be sure to include all relevant expenses, or portions of expenses, that support your charitable programs. For example, equipment costs, rent, heat, hydro, and any other type of expense.

Include amounts spent on activities such as the following:

• Salaries
• Overhead
• Promotional materials
• Campaign supplies
• Electronic data processing
• Year-round office expenses directly related to fundraising
• Promoting the charity and its programs to the community for fundraising purposes
• Fees paid to fundraising consultants or agencies
• Amounts retained by fundraising consultants or agencies
• Postage costs for direct mail canvassing

Do not include amounts spent on the following activities.

• Applying for grants or other types of government funding (Line 5010)
• Applying for gifs from qualified donees, usually foundations (Line 5010)
• Charitable programs (Line 5000)
• Management and administration (Line 5010)
• Political activities (Line 5030)

Remember: Some expenses, such as salaries or rent, may include both charitable programs and non-charitable activities. Non-charitable activities include all activities that do not directly support your charitable programs. These may include management and administration, fundraising, and political activities. Split the total to ensure that your program costs are recorded accurately. Allocate expenses using a logical, consistent method, for example the number of hours or amount of space required.

This material is provided for information purposes only. Contact CRA for definitive information.

Political activities should be a minor part of your total expenditures. In general, expenses related to political activities should account for no more than about 10% of your charity’s annual expenditures from year to year.

For information about allowable political activities see CPS-022: Political Activities, on the CRA website.

Be sure to include all relevant expenses, or portions of expenses, that support your charitable programs. For example, equipment costs, rent, heat, hydro, and any other type of expense.

Include amounts spent on activities such as the following:

• Salaries
• Fees paid to consultants
• Supplies
• Promotional materials
• Postage

Do not include amounts spent on the following activities.

• Charitable programs (Line 5000)
• Management and administration (Line 5010)
• Fundraising (Line 5020)

Remember: Some expenses, such as salaries or rent, may include both charitable programs and non-charitable activities. Non-charitable activities include all activities that do not directly support your charitable programs. These may include management and administration, fundraising, and political activities.

This material is provided for information purposes only. Contact CRA for definitive information.

CRA assumes that most charities will not enter an amount on this line. Most expenditures should fall into the categories reported on Lines 5000, 5010, 5020, and 5030.

In rare cases, a charity might have an amount to report on this line, such as a grant that must be returned to another registered charity or level of government.

Do not include amounts spent on the following activities.

• Charitable programs (Line 5000)
• Management and administration (Line 5010)
• Fundraising (Line 5020)
• Political activities (Line 5030)

This material is provided for information purposes only. Contact CRA for definitive information.

Enter the total amount of gifts made to qualified donees.

Include the following types of gifts:

• Donations
• Gifts-in-kind
• Designated gifts

Qualified donees are defined in the Income Tax Act. In general, qualified donees are organizations that can issue official tax receipts, such as registered charities. Nonprofit organizations and foreign charities are not qualified donees.

Cross-check: The amount on Line 5050 should equal the total amount of all gifts entered on Form T1236(10) Qualified Donees Worksheet/Amounts Provided to Other Organizations.

See Gifts to Registered Charities in the Charity Filing Guide Glossary.

See the CRA Glossary for a definition of Qualified Donee.

See Completing Form T1236(10) or the Charity Filing Guide Glossary for more information.

This material is provided for information purposes only. Contact CRA for definitive information.

You can calculate the total expenditure figure in a couple of ways:

1. Add Line 4950 plus Line 5050.

Or

2. Add Lines 5000 to 5050. (Lines 5000, 5010, 5020, 5030, and 5040 breakdown the amount on Line 4950, so this calculation should give you the same result as adding Lines 4950 and 5050.)

To be sure you have the correct total, try both calculations and compare the results.

Total expenditures on Line 5100 should equal the total expenses shown on your financial statements (allowing for any rounding differences).

If the two amounts are not the same, check the following:

• Review lines 4800 to 4920 and lines 5000 to 5050 to be sure you recorded the amounts correctly.
• Re-add the totals on lines 4950 and 5100
• Review your financial records to see if you left anything out
• Review your financial records to see if you counted something twice

Common error: Lines 4950 and 5050 do not add up to Line 5100. Check the addition.

This material is provided for information purposes only. Contact CRA for definitive information.

Accumulating property does not mean saving money or investing. It means raising funds for a specific, large, multi-year project.

Registered charities are allowed to accumulate property (funds) for a large project, such as a building fund, if they request and receive written permission from CRA first.

Note from Guide T4033-1: Upon written approval from the Minister and subject to terms and conditions, the charity will be exempt from its disbursement quota obligation on the amount accumulated, plus any income earned on this amount.

If you accumulated funds, but you did not get permission from CRA beforehand, call CRA 1-800-267-2384 for assistance.

See Asking for Permission to Accumulate Funds on the CRA website for more information: www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rqsts/ccmlt-eng.html

The Charity Filing Guide does not include detailed information about accumulating funds. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

This question refers to amounts raised for a specific project for which CRA has given you permission to accumulate funds.

Registered charities are allowed to accumulate property (funds) for a large project, such as a building fund, if they request and receive written permission from CRA first.

If you accumulated funds, but you did not get permission from CRA beforehand, call CRA 1-800-267-2384 for assistance.

The Charity Filing Guide does not include detailed information about accumulating funds. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

Common error: Entering an amount on Line 5500 when you don’t have permission from CRA to accumulate funds. Call CRA if you’re in this situation.

This material is provided for information purposes only. Contact CRA for definitive information.

This question refers to amounts raised for a specific project for which CRA has given you permission to accumulate funds.

Registered charities are allowed to accumulate property (funds) for a large project, such as a building fund, if they request and receive written permission from CRA first.

If you accumulated funds, but you did not get permission from CRA beforehand, call CRA 1-800-267-2384 for assistance.

The Charity Filing Guide does not include detailed information about accumulating funds. If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

The Charity Filing Guide does not include detailed information about special reduction to the disbursement quota.

If you need more information, see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

This material is provided for information purposes only. Contact CRA for definitive information.

CRA uses the value of property not used in charitable activities reported on Lines 5900 and 5910 to calculate your charity’s disbursement quota. Their disbursement quota calculation is included on Form T1242 Registered Charity Information Return Summary.

The March 4, 2010 federal budget changed the rules governing the disbursement quota. For fiscal periods ending on or after March 4, 2010, the 80% rule was discontinued. The spending requirement of 3.5% applied to the average value of property not used in charitable activities or administration remains in effect.

Line 5900
The average value of property not used for charitable activities or administration during the 24 months before the beginning of the fiscal period is used to calculate the disbursement quota for this year (the one you’re reporting in this T3010).

Line 5910
The average value of property not used for charitable activities or administration during the 24 months before the end of the fiscal period is used to calculate the disbursement quota for next year.

For Charitable Organizations the threshold is $100,000.
If the average value of property not used for charitable activities or administration in the 24 months before the beginning of this fiscal period is more than $100,000, the disbursement quota is 3.5% of that amount.

If the average value is less than $100,000 the disbursement quota does not apply.

For Public and Private Foundations the threshold is $25,000.
If the average value of property not used for charitable activities or administration in the 24 months before the beginning of this fiscal period is more than $25,000, the disbursement quota is 3.5% of that amount.

If the average value is less than $25,000 the disbursement quota does not apply.

For more information about Property not used in Charitable Activities see Guide T4033-1, contact CRA, or seek advice from an accounting or legal professional.

For more information about the Disbursement Quota, see the Charity Filing Guide Glossary, Guide T4033-1, or see the web page Annual spending requirement (disbursement quota) on the CRA website: www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/spndng/menu-eng.html

Property includes land and buildings, cash, bank deposits, stocks, bonds, GICs, mutual funds, and other types of financial property.

The Charity Filing Guide does not include detailed information about property not used in charitable activities.

See Guide T4033-1 for a couple of examples that may help explain the steps involved in this calculation.

If you need more information, contact CRA, or seek advice from an accounting or legal professional.

Common error: Leaving Lines 5900 and 5910 blank when entries are required.

This material is provided for information purposes only. Contact CRA for definitive information.

Property includes land and buildings, cash, bank deposits, stocks, bonds, GICs, mutual funds, and other types of financial property.

The Charity Filing Guide does not include detailed information about property not used in charitable activities.

See Guide T4033-1 for a couple of examples that may help explain the steps involved in this calculation.

If you need more information, contact CRA, or seek advice from an accounting or legal professional.

Common error: Leaving Lines 5900 and 5910 blank when entries are required.

This material is provided for information purposes only. Contact CRA for definitive information.