By Ryan M. Prendergast

New Version of Form T3010 Coming in the New Year

In response to the Government of Canada's 2022 initiatives aimed at enhancing charitable spending within communities, legislative adjustments to disbursement quota rules for registered charities were enacted. The following information outlines the upcoming changes to the Form T3010, Registered Charity Information Return, scheduled for release by the Canada Revenue Agency (CRA) in January 2024.

Starting January 2024, a new version of the Form T3010 will be introduced to accommodate the modified reporting requirements resulting from the legislative amendments. Two distinct versions of the Form T3010 will be available for download:

Charities with fiscal periods concluding on or before December 30, 2023, are required to file using
version 23.

Charities with fiscal periods concluding on or after December 31, 2023, must file using version 24.

It is important to obtain the Form T3010 from the T3010 Registered Charity Information Return page during the preparation of the annual information return to ensure the use of the correct version. Submission of an outdated form will not be accepted for filing by the CRA.

The CRA strongly encourages all charities to leverage online filing options through My Business Account (MyBA) or Represent a Client. These platforms automatically present the appropriate version of the annual information return based on the fiscal period being filed. Information on how to sign up for MyBA can be found on the “Access our online services for charities” page.

For inquiries regarding these changes or assistance with online services, CRA representatives are available at 1-800-267-2384, Monday through Friday, 9 am to 5 pm.

Charities are advised to stay informed about these changes and ensure compliance with the updated filing requirements to facilitate a smooth transition to the new Form T3010 versions.

Charities May Be Eligible for GST/HST Rebate

The CRA is reminding charities that they may be eligible for a GST/HST rebate.

The CRA emphasizes that registered charities can claim a rebate on the GST/HST they pay through the Public Service Bodies’ (“PSB”) rebate. This allows eligible charities to recover 50% of the GST and the federal part of the HST paid on eligible purchases and expenses. If the charity is in a participating province, it is also entitled to a rebate on a portion of the provincial part of the HST.

The claim period for the PSB rebate depends on whether the charity is a GST/HST registrant or not. Registrants align their claim periods with their GST/HST reporting periods (annual, quarterly, or monthly), while non-registrants have two claim periods: the first six months and the last six months of their fiscal year. The amount claimed is determined by calculating the non-creditable tax charged during a specific claim period, excluding amounts claimed or entitled to as input tax credits, rebates, refunds, or remissions. The charity can use Form GST66 to file its PSB rebate application, or Form RC7066 for  provincial HST rebates, with up to four years allowed for filing from the due date of the GST/HST return covering the same dates as the claim period for registrants, and up to four years from the last day of the claim period for non-registrants.

The CRA provides additional resources, including Info Sheets and Guide RC4034, for instructions on calculating the non-creditable tax charged and understanding the rebate process. The agency encourages charities to take advantage of this rebate to alleviate the financial burden of the GST/HST on eligible expenses.

Additional resources to help charities acquire GST/HST rebates can be found online.

Disability Not-For-Profits can Apply for New Funding Program

The Government of Canada, through the Social Development Partnerships Program – Disability component (“SDPP-D”), is providing new funding opportunities to enhance the capacity of national disability organizations and address persistent barriers to accessibility and inclusion. Minister Kamal Khera announced a call for proposals under two streams of the SDPP-D: The Organizational Capacity Development stream, with up to $6.8 million over two years, and the Intersectional Capacity Development stream, with up to $3 million over two years.

The Organizational Capacity Development stream aims to improve strategic planning and leadership capacity of national disability organizations, offering funding from $250,000 to a maximum of $500,000 per project. The Intersectional Capacity Development stream, supporting collaborative projects addressing intersectional barriers, provides funds ranging from $500,000 to a maximum of $750,000.

Eligible not-for-profits have until December 21, 2023, to submit proposals. The initiative aligns with the Disability Inclusion Action Plan, focusing on building accessible and inclusive communities to eliminate physical, societal, and attitudinal barriers. The funding supports projects that enhance the ability of national disability organizations to serve the disability community effectively and collaboratively address intersectional barriers, fostering social inclusion and active participation of Canadians with disabilities in their communities.

Online information sessions in English and French are available to guide organizations through the application process, emphasizing the government's commitment to creating a truly inclusive country. The call for proposals is purported to reflect a strategic investment in strengthening the capacities of national disability organizations to contribute meaningfully to the Disability Inclusion Action Plan's objective of building a barrier-free and inclusive Canada.

Administrative Exemption from Trust Reporting by Charities

As reported in our Charity & NFP Law Bulletin No. 523, the CRA has clarified the reporting requirements for internal express trusts held by registered charities.

In accordance with a notice released by the CRA’s Charities Directorate on Friday, November 10, 2023, in response to a call by the charitable sector for clarity, the CRA announced that it will not require registered charities to file the T3, Trust Income Tax and Information Return, for internal trusts.

The announcement explains that the CRA considers that internal trusts are created when a charity receives property as a gift that is subject to certain legally enforceable terms and conditions and holds that property as the trustee of the trust.

For more details, please see Charity & NFP Law Bulletin No. 523, dated November 13, 2023, as well as an article titled More Clarity Needed on T3 Filing Requirements for Charities and NPOs.

​Read the November 2023 Charity & NFP Law Update