An NPO, is a club society, or association that is not a charity and that is organized and operated solely for social welfare, civic improvement, pleasure or recreation, or any other purpose except profit. To be considered an NPO, no part of the income of such an organization can be payable to or available for the personal benefit of any proprietor, member, or shareholder, unless the proprietor, member, or shareholder is a club, society, or association whose primary purpose and function is to promote amateur athletics in Canada. An NPO is exempt from tax under Income Tax Act on all or part of its taxable income for a fiscal period if it meets all the above requirements for that period. However, an NPO must submit information return no later than six months after the end of its fiscal period to Ottawa Technology Centre, Ottawa. An NPO has to file T1044 if it received or is entitled to receive taxable dividends, interest, rentals or royalties totalling more than $10,000 or it owned assets valued at more than $200,000 at the end of the immediately preceding fiscal period, or it had to file an NPO information return for a previous fiscal period.
The information an NPO is required to file on form T1044 comprises on the following seven parts:
A study of Income Tax Guide T4117 provides complete picture of the requirements and responsibilities of the reporting activities to CRA.