Charity Filing Guide

The return is mailed to an address other than the Charities Directorate

Mail the return to Charities Directorate:
Charities Directorate
Canada Revenue Agency
Ottawa ON K1A 0L5

The return is filed on the wrong form

Use Form T3010-1 for fiscal periods that end on or after March 04, 2010
Use Form T3010B for fiscal periods that end January 01, 2009 to March 3, 2010
Use Form T3010A for fiscal periods that end before December 31, 2008
Use Form T1240 Registered Charity Adjustment Request to change a return that has already been filed

The financial statements are not attached

Attach your financial statements.

If your charity doesn’t use financial statements, you need to create some for CRA.CRA requires at least two statements:

1. Statement of Assets and Liabilities (also known as a Balance Sheet)
2. Statement of Revenue and Expenditures (also known as an Income Statement)

See the CRA website for information about financial statements and a sample set of statements.

Financial statements
http://www.cra-arc.gc.ca/tx/chrts/prtng/rtrn/fnncl-eng.html

Sample Financial Statements
http://www.cra-arc.gc.ca/tx/chrts/prtng/rtrn/smpls-fnncl-eng.html

Remember to include notes or appendixes attached to the financial statements. All financial information on Form T3010-1 is posted online in the CRA Charities listings. CRA sends a copy of your financial statements to members of the public upon request. Remove confidential information, such as bank account numbers, before you send a copy of your statements to CRA.

The financial statements do not have the same fiscal period ending as the T3010-1 return

Be sure that the financial statements you send to CRA represent the same fiscal period reported on Form T3010-1.

You must inform CRA in writing, and provide documentation, if you change the date of your charity's fiscal year-end.

The Registered Charity Basic Information sheet is not attached

The Registered Charity Basic Information Sheet is the sheet with the sticky labels on it. Do not throw it out after removing the labels. There is important information on the back that you need to review. You must send this form back to CRA with the rest of the forms in the information return package.

Section C2
Fundraising activities instead of charitable activities are described

Report only charitable program activities in Section C2. CRA does not consider any type of fundraising event to be a charitable activity. Events held to raise funds that were used to support charitable programs are not charitable programs in and of themselves.Report fundraising activities in any of the following sections that apply to your charity: C7; C8; D3; D4; Schedule 4, Question 1; Schedule 6, Revenue and Expenditures sections and Line 5020.

Section E Certification is not signed.

Section E must be signed by a member of your board of directors or board of trustees who is authorized to sign on behalf of your charity. An accountant or lawyer who prepared the form for your charity cannot sign Section E. Only an authorized member of your board can sign.

D1
Financial reporting method: cash or accrual not checked

Cash and accrual describe two different methods of recording accounting transactions. Both methods use cash, cheques, credit cards, bills, invoices, receipts, etc. CRA needs to know the method because it affects how they interpret your financial information.

The difference is when transactions are recorded in the accounting system.

Cash method

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

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

Contact an accounting professional or call CRA 1-800-267-2384 if you are not sure which method you use.

D3 Revenue
Lines 4500 to 4650 do not add up to the amount on Line 4700

Check the math. Re-add all the totals on the final copy of the form before you mail it. This will catch any addition errors from your working copy and any errors you made when you copied the numbers to the final copy of the form.The Charity Filing Guide's Interactive T3010-1 calculates the totals for you. Be sure to copy the amounts accurately to the copy you submit to CRA.

D4 Expenditures
Lines 4860 to 4920 do not add up to the amount on Line 4950

Check the math. Re-add all the totals on the final copy of the form before you mail it. This will catch any addition errors from your working copy and any errors you made when you copied the numbers to the final copy of the form.The Charity Filing Guide's Interactive T3010-1 calculates the totals for you. Be sure to copy the amounts accurately to the copy you submit to CRA.

D4 Expenditures
Line 5000 How much did the charity spend on charitable programs? is left blank.

Be sure to enter the total amount you spent on charitable program activities. This should be your biggest expense category.Line 5000 and Line 5010 take the total expenditure amount (Line 4950) and break it into expenses related to charitable work and expenses related to running your organization. CRA cannot figure out this breakdown from the expense categories reported on Lines 4860 to 4920. You must track where the money went and what it was used for as part of your reporting obligations to CRA.See Keeping Books with T3010-1 in Mind in the Charity Filing Guide for ideas to help you track your expenses.

F1
Physical address of the charity and the address in Canada for the charity's books and records are missing or out-of-date.

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.CRA needs to know the physical address of your charity because a registered charity must be located in Canada.CRA needs to know the address where your books and records are kept. This must be a location that a CRA representative could visit, if necessary.You can use a board member's home address if your charity does not have an office.

F2
Name and address of the individual who completed this return is missing contact information.

CRA needs to know who completed the return in case they need clarification or further information.

If they can contact someone quickly, the issue will be easier to resolve, and your charity's registered status will not be put at risk.

Revenue
Lines 4500, 4510 to 4580, and 4600 to 4650 do not add up to the amount on line 4700

Check the math. Re-add all the totals on the final copy of the form before you mail it. This will catch any addition errors from your working copy and any errors you made when you copied the numbers to the final copy of the form.The Charity Filing Guide's Interactive T3010-1 calculates the totals for you. Be sure to copy the amounts accurately to the copy you submit to CRA.

Expenditures
Lines 4950 and 5050 do not add up to the amount on line 5100

Check the math. Re-add all the totals on the final copy of the form before you mail it. This will catch any addition errors from your working copy and any errors you made when you copied the numbers to the final copy of the form.The Charity Filing Guide's Interactive T3010-1 calculates the totals for you. Be sure to copy the amounts accurately to the copy you submit to CRA.Note: Line 5000, 5010, 5020, 5030, and 5040 are not included in the total Line 5100.

Permission to accumulate property
There are entries on lines 5500 to 5520 when the charity has not been granted permission to accumulate funds

Accumulating funds doesn't mean putting money in the bank. It means you have permission from CRA to collect funds for a large project that will take more than one year to complete, such as a building fund. There are special rules for this situation. You must make a request in writing and receive CRA's permission to accumulate property before you begin to raise money. If you started to accumulate funds for a large project without permission, contact CRA for advice.

Property not used in charitable activities
There are no entries on line 5900 and 5910 when required.

If your charitable organization owned property valued at more than $100,000 that was not used for charitable programs or administration, you must complete Line 5900 and Line 5910.

If your public or private foundation owned property valued at more than $25,000 that was not used for charitable programs or administration, you must complete Line 5900 and Line 5910.

This can be a complex calculation. See the examples in Guide T4033-1 or contact CRA for assistance.

Director/Trustee date of birth is missing

The members of your board of directors or board of trustees must give you their birthdates. CRA needs this information so that they can accurately identify the people listed on Form T1235 Directors/Trustees and Like Officials Worksheet. This information is sensitive. Treat it with respect. File it in a safe place so that you don’t have to ask every year.

Director/Trustee arm's length status is missing

Arms' length is an abstract concept that CRA uses to determine if individuals are likely to make independent decisions, or if they are likely to be strongly influenced by one another. Simply put, if someone is at arm's length from someone else, they are not related in any way. It is safe to assume that they act independently. People who are not at arm’s length are close to each other. They are related by blood, marriage, adoption, or tied together through business interests. See the diagram on the back of Form T1235 Directors/Trustees and Like Officials Worksheet(09) for a diagram that may help you understand the concept.

Director/Trustee postal code is missing

CRA needs complete address information, including the postal code. If the director/trustee can't provide this information, you'll have to look it up.Post offices and public libraries have postal code directories.The Canada Post website has a postal code finder: http://canadapost.ca/cpotools/apps/fpc/personal/findByCity?execution=e1s1

Qualified Donees BN/Registration numbers are missing

Look at the acknowledgement receipt the charity gave you in return for your gift. It should have the BN/Registration number on it.Call the charity to get the information.Use the CRA Charities Listing to look up the charity and find their BN/Registration number. It is public information.http://www.cra-arc.gc.ca/tx/chrts/dnrs/lstngs/menu-eng.html

D2 Summary of Financial Position
Line 4200 Total assets

Total assets Line 4200 = Total assets on financial statements

D2 Summary of Financial Position
Line 4350 Total liabilities

Total liabilities Line 4350 = Total liabilities on financial statements

D3 Revenue
Line 4700 Total revenue

Total revenue Line 4700 = Total revenue on financial statements

D4 Expenditures
Line 5100 Total expenditures

Total revenue Line 5100 = Total expenses on financial statements

Assets
Line 4200 Total assets

Total assets Line 4200 = Total assets on financial statements

Liabilities
Line 4350 Total liabilities

Total liabilities Line 4350 = Total liabilities on financial statements

Revenue
Line 4700 Total revenue

Total revenue Line 4700 = Total revenue on financial statements

Expenditures
Line 5100 Total expenditures

Total expenditures Line 5100 = Total expenses on financial statements

Name, signature, position in charity, date, telephone number

This person must be one of the directors, trustees or like officials listed on Form T1325(09)

Is this the same person who certified in section E?

If yes, this person's name and contact information must be on Form T1235(09)

D4 Expenditures
Line 5050 Total amount of gifts made to all qualified donees

Line 5050 = Total amount of gifts on Form T1236(10)

Schedule 6
Line 5050 Total amount of gifts made to all qualified donees

Line 5050 = Total amount of gifts on Form T1236(10)

Schedule 3: Compensation
Question 3, Line 390 What was the charity's total expenditure on all compensation in the fiscal period?

Schedule 6: Detailed Financial Information
Line 4880 Total expenditure on all compensation

Line 5900
The value of property not used for charitable activities or administration during the 24 months before the beginning of the fiscal period. (If the value is greater than $100,000 for a charitable organization, or $25,000 for a public or private foundation.)

Line 5910
The value of property not used for charitable activities or administration during the 24 months before the end of the fiscal period.(If the value is greater than $100,000 for a charitable organization, or $25,000 for a public or private foundation.)

D3 Revenue
Line 4700 Total revenue (Add lines 4500 to 4650)

D4 Expenditures
Line 4950 Total expenditures (Add lines 4860 + 4810 + 4920)

D4 Expenditures
Line 5100 Total expenditures (Add lines 4950 + 5050)
Note: Do not include line 5000 or line 5010

Assets
Line 4200 Total assets (add lines 4100 to 4170)

Liabilities
Line 4350 Total liabilities (add lines 4300 to 4330)

Revenue
Line 4700 Total revenue (add line 4500, 4510 to 4580, and 4600 to 4650)
Note: Do not include lines 5610, 4505, 5640 or 4590 in the total

Expenditures
Line 4950 Total expenditures before gifts to Qualified Donees (add lines 4800 to 4920)

Expenditures
Line 5100 Total expenditures (add amount from line 4950 and the amount from line 5050)

Total lines 4800 to 4920 = Line 4950 = Lines 5000 + 5010 + 5020 + 5030 + 5040

Lines 5100 = Line 4950 + 5050 = Total of lines 5000 to 5070