Non-profit organization

Summary policy

Date
September 3, 2003

Reference number
CSP-N03

Key words

Non-profit organization

Policy statement

Under the Income Tax Act, a non-profit organization is an association organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit (for example, a club, society, or association). The organization will generally be exempt from tax if no part of its income is payable to, or available for, the personal benefit of a 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.

A non-profit organization cannot issue official donation receipts.

References

• Summary policy CSP-R01, Registered Canadian amateur athletic association
• Guide T4117, Income Tax Guide to the Non-Profit Organization (NPO) Information Return
• Registered Charities Newsletter, Issue No. 19
• Form T1044, Non-Profit Organization (NPO) Information Return
• Interpretation Bulletin IT-496, Non-Profit Organizations
• Interpretation Bulletin IT-83, Non-Profit Organizations - Taxation of Income from Property
• T2 Corporation Income Tax Return, T2
• T2 Corporation - Income Tax Guide, T4012
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, para. 149(1)(l) and ss. 149(5) and 149(12)