Who this is for
Treasurers and directors of nonprofit organizations: community associations, clubs, cultural and religious organizations that are not registered charities.
The three numbers
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$10,000 of investment-type income. Taxable dividends, interest, rentals or royalties received or receivable in the fiscal period. Interest on a reserve fund, rent from a hall. If the total passed $10,000, the return is required.
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$200,000 of total assets. Measured at the end of the immediately preceding fiscal period. A building, a reserve fund, equipment, cash. If it was over $200,000 last year end, the return is required this year.
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Filed before. If the organization had to file a T1044 for any previous fiscal period, it files for every period after. The obligation does not switch off.
Deadline and penalty
The T1044 is due no later than six months after the end of the fiscal period. The late-filing penalty is $25 a day, with a minimum of $100 and a maximum of $2,500 for each failure to file.
The other return
A T1044 is an information return. An incorporated nonprofit may also have to file a T2 corporation income tax return, separately. Many societies are surprised to learn they owe the CRA a return even with no tax to pay. Ask.
One thing many people do not realize
The third test is the one boards forget. Once an organization has had to file a T1044 for any fiscal period, it must file for every period after that. That holds even in years when the income and asset thresholds are no longer met. A society that crossed $200,000 of assets once, perhaps during a building project, files forever.
What to prepare
- Financial statements for the last two fiscal periods
- A note of investment income by type for the current period
- Whether the organization has filed a T1044 before, and the last year filed
- The organization’s business number and fiscal year end
When professional help may make sense
A first filing after years of not filing. An organization that crossed a threshold without noticing. An organization unsure whether it is a nonprofit or something else for tax purposes.
How Rex Tax may be able to help
We prepare T1044 and T2 returns for nonprofits and work out whether the tests are met. We set up the bookkeeping so the thresholds are visible each year.
Official sources
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.