| Topic |
Registered Charity |
Non-Profit Organization |
| Purposes |
- must be established and operate exclusively for charitable purposes
|
- can operate for social welfare, civic improvement, pleasure, sport, recreation, or any other purpose except profit
- cannot operate exclusively for charitable purposes
|
| Registration |
- must apply to the Canada Revenue Agency (CRA) and be approved for registration as a charity
|
- no registration process for income tax purposes
|
| Charitable registration number |
- is issued a charitable registration number upon approval by the CRA
|
- is not issued a charitable registration number
|
| Tax receipts |
- can issue official donation receipts for income tax purposes
|
- cannot issue official donation receipts for income tax purposes
|
| Spending requirement (disbursement quota) |
- must spend a minimum amount on its own charitable activities or as gifts to qualified donees
|
|
| Returns |
- must file an annual information return (Form T3010) within six months of its fiscal period-end
|
- may have to file a T2 return (if incorporated), and/or an information return (Form T1044) within six months of its fiscal period-end
|
| Tax exempt status |
- is exempt from paying income tax
|
- is generally exempt from paying income tax
- may be taxable on property income or on capital gains
|
| GST |
- most supplies are exempt
- most calculate net tax using net tax calculation for charities
- is eligible to claim partial rebate of tax paid on supplies
|
- few supplies are exempt
- must calculate net tax in regular manner
- is only eligible to claim a partial rebate of tax paid on supplies if it receives significant government funding
|
