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Non-Profit Accounting for Ottawa Charities and NPOs
BBA Tax provides non-profit accounting for Ottawa associations, clubs, community groups and registered charities. We keep your books by fund and grant, prepare financial reports your board can follow, run payroll for your staff, and claim the GST/HST rebates you qualify for. We also help you prepare the right annual return, whether that is a T2, a T1044 or a T3010, so your filings with the CRA stay up to date.
How We Support Non-Profits
We set up QuickBooks so restricted grants, donations and program revenue are tracked separately from general funds. Each funder’s money can be traced to what it paid for, and you can show your board how much is left in every grant before the next claim or report is due.
Each month or quarter, we prepare a statement of revenue and expenses, a budget-to-actual comparison and a cash forecast. Your treasurer gets numbers that are easy to present, and directors can see early when a program is running over budget or a grant is going unspent.
We run payroll for program staff, coordinators and seasonal workers, remit source deductions on the CRA’s schedule and prepare T4 slips, which are due by March 1, 2027 for 2026. Eligible employers pay no Ontario Employer Health Tax on their first $1 million of Ontario payroll.
Charities and qualifying non-profits can recover 50% of the GST or federal part of the HST, and 82% of Ontario’s part, on eligible purchases through the public service bodies’ rebate. A non-profit qualifies when government funding is at least 40% of its total revenue. We calculate and file your claims.
Incorporated non-profits file a T2 every year, even with no tax owing, plus a T1044 if dividends, interest, rents and royalties top $10,000 or assets topped $200,000 at the previous year-end. Registered charities file the T3010 instead. Each is due six months after year-end, and we help you prepare whichever applies.
Built for Boards and Funders
A non-profit answers to members, funders, donors, the CRA and a volunteer board. We code every grant, donation and program cost so the same records support your funder reports, your annual return and your year-end review, instead of rebuilding the numbers for each audience every year.
Volunteer treasurers change, and knowledge can leave with them. We document your chart of accounts, month-end steps and approval process, so a new treasurer can pick up where the last one stopped. If you use an outside auditor or reviewer, we prepare the reconciliations and schedules they request at year-end.
Full-Service Non-Profit Accounting in Ottawa
We cover the full year for your organization: bookkeeping, payroll and T4s, GST/HST returns and rebate claims, board reports and support with your T2, T1044 or T3010. If you hire contractors, we help you check whether they are really employees and issue T4A slips to contractors where required. If the CRA questions a return or rebate claim, we help you respond with organized records.
Why Non-Profits and Charities Play by Different Rules
Being exempt from income tax does not mean being exempt from filing. The CRA treats a non-profit and a registered charity differently: they file different returns, face different GST/HST rules and have different rebate eligibility. Mixing them up can lead to a missed return, an unclaimed rebate or, for a charity, a threat to its registration.
Charity or Non-Profit?
A registered charity is set up exclusively for charitable purposes, must apply to the CRA for registration, can issue official donation receipts and must spend a minimum amount each year on its own charitable activities or qualifying disbursements. A non-profit operates for social welfare, recreation or another non-profit purpose, is not registered and cannot issue donation receipts.
Filing Thresholds Matter
Three tests trigger the T1044: more than $10,000 of dividends, interest, rents or royalties in the year, total assets above $200,000 at the end of the previous fiscal period, or having had to file one before. That third test means once you have to file, you keep filing. Late returns cost $25 a day, from $100 up to $2,500.
Reporting Rules May Expand
Federal draft legislation released in January 2026 proposes a T1044 for any non-profit with total receipts over $100,000, and a new short-form return for most others with receipts above $10,000. It would apply to fiscal periods beginning on or after January 1, 2027, but it is a proposal, not law, as of October 2026.
Employer Rules Still Apply
A non-profit with staff has the same payroll duties as any employer. It deducts CPP at 5.95% and EI at 1.63% from pay, adds the employer share and files T4 slips. Eligible employers are exempt from Ontario Employer Health Tax on their first $1 million of payroll, and registered charities keep that exemption even above $5 million.
Annual Returns & Filing for Non-Profits
Your filing list starts with your legal form. An incorporated non-profit files a T2 and, if it meets the thresholds, a T1044; an unincorporated one files a T1044 when the thresholds apply; a registered charity files the T3010. All three are due six months after year-end. We help with:
T2 returns for incorporated non-profit organizations
T1044 information returns when a CRA threshold is met
Financial figures and schedules for your charity's T3010
Why Ottawa Non-Profits Work With BBA Tax
We are in Westboro at 203-307C Richmond Road and can meet your treasurer or finance committee in person, or work remotely with organizations elsewhere in Canada. Our bookkeepers, led by Lead Accountant and ELITE Certified QuickBooks ProAdvisor Karim Bitar, can take on your monthly entries and reconciliations.
A free intro call lets us review your current books, filings and any CRA letters with you. Bookkeeping starts from $1,225 a year and GST/HST filing is $500 a year, and bundling services saves 10% to 25%. Our instant quote prices your exact situation.
What We Handle for Non-Profits
Your treasurer and board can hand these tasks to us and keep their attention on programs and members.
Fund and grant bookkeeping
Board financial reports
Staff payroll and T4 slips
GST/HST returns and rebate claims
T2, T1044 and T3010 support
Charity and Non-Profit Tax FAQ
Does a non-profit organization have to file a tax return in Canada?
It depends on its legal form and size. An incorporated non-profit must file a T2 corporation income tax return every year, even if it owes no tax. Any non-profit, incorporated or not, must also file a T1044 information return if it received more than $10,000 in dividends, interest, rents or royalties, had total assets over $200,000 at the end of the previous fiscal period, or was required to file one before. Both are due within six months of year-end.
When is a charity's T3010 due?
A registered charity must file its T3010 Registered Charity Information Return no later than six months after the end of its fiscal period. The CRA may revoke a charity’s registration for failure to file. A revoked charity can no longer issue official donation receipts, loses its income tax exemption as a registered charity, and must transfer its remaining assets to an eligible donee or pay a revocation tax. Charities file the T3010 instead of a T2 or T1044.
Do non-profits and charities have to charge HST?
Only if they are registered, and they must register once taxable supplies pass the small supplier limit. As public service bodies, non-profits and charities use a $50,000 threshold instead of $30,000, and charities and public institutions are also small suppliers if gross revenue was $250,000 or less in either of their last two fiscal years. Most supplies made by charities are exempt, and registered charities generally remit 60% of the HST they charge on most taxable sales.
What are the proposed 2027 reporting rules for non-profits?
They are proposals, not law. Under Finance Canada’s January 2026 draft legislation, a non-profit would also have to file a full T1044 when its total receipts exceed $100,000, on top of the current $10,000 and $200,000 tests. Most other non-profits would file a new short-form return showing activities, assets, liabilities, receipts, directors and officers, unless total receipts are $10,000 or less. If enacted, the rules would start with fiscal periods beginning on or after January 1, 2027.
Guides for Non-Profit Teams
Go deeper with these guides from the BBA Tax blog:
- How to Calculate and Report Payroll Remittance in Canada
- Employee vs Contractor in Canada: How the CRA Decides in 2026
- Understanding HST/GST Filing for Canadian Businesses: Everything You Need to Know
- Bookkeeping Tips for Small Business Owners: A Comprehensive Guide
- How to Respond to a CRA Review or Audit Letter
Success Stories
I'm an ELITE Certified QuickBooks ProAdvisor
Business owners regularly face issues with bookkeeping & this is where a ProAdvisor can help! Using my skills & experience, I can help you organize your books & even bring you back up to date if required. Let’s build up your books in order to provide you with the most up to date, reliable and accurate information about your company!
