Consultation On Non-Profit Organizations

Over the past three years, CRA conducted an NPO Risk Identification Project. This project involved audits of a broad range of non-profit organizations (NPOs) to determine their compliance with the existing tax requirements. It was expected that a report on the results of this review would be released early this year. To date, no report has been published.

The Budget, however, announces that the Government will review the scope of the current tax exemption for NPOs. NPOs constitute a broad category of tax exempt organization under the Tax Act. In order to qualify as an NPO, an organization must be organized and operated for a purpose other than profit and must not make any income available to its members. It must also not be a charity.  NPOs include such varied groups as professional associations, recreational clubs, civic improvement organizations, cultural groups, housing corporations, advocacy groups and trade associations.