Not For Profits & Charitable Organizations
All incorporated Not-For-Profit organizations should seek guidance on their reporting requirements from the Canada Not-For-Profit Corporations Act or the Ontario Not-For-Profit Corporations Act. The type of report to be issued by the Public Accountant will be dependent upon the type of corporation, gross annual revenues or a resolution made by the members of the organization.
- Compilation Engagements
Compilations, or notice to readers, are financial statements that we prepare for you based on information that you provide us. We do not express an opinion on these statements, although we can help you find solutions to meet your financial goals.
- Financial Statement Preparation
We can assist you in the preparation of your financial statements in accordance with professional accounting standards. Statements are prepared on a monthly, quarterly, semi-annual or annual basis depending on your needs.
- Audit Engagements
In an audit engagement, the objective for an independent professional public accountant is to express an opinion on the fairness of your financial statements in accordance with Accounting Standards for Not For Profit Organizations (ASNFPO). An auditor will test and gather evidence in order to obtain reasonable assurance that the financial statements are free of material misstatement. Audited financial statements are widely used for your members, bank, donors and government.
- Review Engagements
In a review engagement, the objective for the independent public accountant is to review your financial statements to determine whether they are plausible by following the Accounting Standards for Not For Profit Organizations (ASNFPO). Review engagements are commonly requested by members, foundations or government. Reviews provide limited assurance that your financial information conforms to Canadian Generally Accepted Accounting Principles (GAAP).
- Special Reports
Special reports may be requested by government or others providing your organization with funding or grant income. Typically, these kinds of reports require audited financial statements. No matter the type of report or engagement, let us assist you with meeting their requirements.
- Application for GST/HST Public Service Bodies Rebate
If you are a charity, you are eligible to file a GST/HST Public Service Bodies rebate every 6 months in order to recover the Federal and Provincial portions of the GST/HST the charity paid on expenditures. NPOs are eligible to recover GST/HST as well if greater than 40% of their income is received from government sources (or 40% of their income on average over the past three years).
Many organizations fail to record GST/HST properly in their recordkeeping. Please seek advice on recovering GST/HST on your capital expenditures, mileage reimbursements and other areas commonly overlooked.
If an NPO is not a registered charity then a corporate tax return needs to be completed annually even though the corporation is exempt from tax. We can help complete the tax return while protecting your tax exempt status.
- GST/HST Solutions
Most NPOs do not need to register for GST/HST but if they having taxable supplies in excess of $50,000 during the fiscal year and in excess of $250,000 in revenue from all sources then the NPO may be required to register and collect GST/HST. Be careful that you are dealing with taxable supplies and not exempt.
- Non-Profit Organization Information Return
Not all NPOs are required to file the T1044 Non-Profit Organization Information Return but if incorporated, not a registered charity and either of the following conditions applies then it must be filed within 6 months of their fiscal year-end, otherwise stiff penalties apply. The conditions include earning interest, dividend and other investment income in excess of $10,000 in the year or the organization has total assets in excess of $200,000 in the prior year.
- Registered Charity Information Return
All registered charities in Canada must file a T3010 Registered Charity Information Return within 6 months of its fiscal year end otherwise Canada Revenue Agency could de-register the charity. To avoid such penalties, be proactive and prepare financial statements along with organizing all required information throughout your fiscal year.
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