Increased funding for organizations that host free tax clinics

Backgrounder

Increased funding for organizations that host free tax clinics

The Canada Revenue Agency (CRA) is updating the Community Volunteer Income Tax Program (CVITP) Grant funding formula to expand the impact of free tax clinics and help eligible volunteer organizations serve Canadians seeking support to file their annual income tax and benefit return.

What is the CVITP Grant?

The CVITP Grant helps community organizations offset the cost of hosting a free tax clinic. The CRA has committed more than $10 million over three years to a pilot program offering grants to community organizations that host free tax clinics through the CVITP or Income Tax Assistance – Volunteer Program (ITAVP) in Quebec. Free tax clinics help people with a modest income and a simple tax situation file their tax returns, ensuring they receive the benefits and credits they are entitled to.

What’s new:

This year, the base amount of grant funding organizations can receive will increase from $500 to $1,500 for organizations that file 50 or more returns. A new supplemental amount of $250 has also been introduced for organizations that operate in rural and remote communities.

Here’s how it works:

Base amount:

Table of base amount
 

$500 for organizations that file 10 to 49 tax returns

*NEW*

$1,500 for organizations that file 50 or more tax returns


Supplemental amounts:

Table of supplemental amounts
 

$250 for organizations that serve Indigenous communities

 

$250 for organizations that operate in Northern communities

*NEW*

$250 for organizations that operate in rural and remote communities

 

$5 per tax return filed

Who is eligible?

Only organizations that host free tax clinics through the CVITP or the ITAVP in Quebec can apply for the grant. To apply for the 2023 funding cycle, you must have hosted a free tax clinic between June 1, 2022, and May 31, 2023.

To be eligible an organization must:

  • Be registered and approved to participate in the CVITP or ITAVP
  • Have been assigned a CVITP Organization Identification Number (COIN)
  • Host or administer a CVITP or ITAVP free tax clinic that provides tax filing services free of charge
  • Electronically file a minimum of 10 federal income tax returns for Canadians with a modest income and simple tax situation
  • Have at least 2 volunteers
  • Have a bank account with a Canadian institution and accept direct deposit
  • Be a non-profit, charity or community group

Your organization must not fall within the following categories:

  • Non-community or non-volunteer-based organizations operating tax clinics for profit
  • Federal or Provincial Member of Parliament offices
  • Municipal councilor offices

Application dates:

Organizations that host free tax clinics can submit grant applications starting on May 25, 2023. Applications close on July 31, 2023.

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