Form T1044 Guide: Does Your Canadian Charity Need to File?

Form T1044, the Non-Profit Organization (NPO) Information Return, is a CRA filing required for certain tax-exempt organizations in Canada. Your nonprofit must file it if your total assets exceeded $200,000 at any point in the fiscal year, you earned more than $10,000 in property income (interest, dividends, or rent), or you have filed a T1044 in a prior year and are still operating. Registered charities file the T3010 instead — T1044 applies to nonprofits that are tax-exempt under paragraph 149(1)(l) of the Income Tax Act but are not registered charities.

Running a nonprofit in Canada requires understanding the various financial forms the Canada Revenue Agency (CRA) requires. Form T1044 is one that causes regular confusion — especially for newer organizations trying to understand whether it applies to them. This guide covers everything you need to know about T1044: who must file it, why it matters, the penalties for missing it, and how to file it correctly.

What is Form T1044?

Form T1044 is a specific return called the "Non-Profit Organization (NPO) Information Return," which is required by the CRA for certain tax-exempt organizations in Canada. It gathers important financial information about the organization to ensure it complies with Canadian tax rules. Form T1044 is different from the T3010 form that registered charities must file.

Who Needs to File Form T1044?

The T1044 form is not required for all non-profit organizations. Generally, an organization must file this form if it meets these criteria:

1. It is a non-profit organization: This includes social clubs, recreational groups, or any other entity that doesn’t aim to generate profits for its members.
2. It has had assets of over $200,000 at any time during the fiscal year: If the organization’s total assets exceed this threshold, it must submit Form T1044.
3. It received more than $10,000 in income: This includes interest, dividends, or rentals. If the organization earned more than this amount during the fiscal year, filing the form is mandatory.

Organizations that meet these conditions are expected to submit the T1044 return. It’s important to note that not all nonprofits fall under these criteria, so it’s essential to review the organization's financial situation carefully.

Why Is Filing Form T1044 Important?

Filing the T1044 is critical for staying in compliance with CRA regulations. If an organization fails to submit this form when required, there could be significant consequences:

• Penalties: Organizations that do not file this form on time may face financial penalties. These penalties can accumulate quickly, putting a financial strain on the organization.
• Loss of tax-exempt status: In extreme cases, failing to file the required forms may cause the organization to lose its tax-exempt status. This would mean the organization could be taxed on its income, undermining its financial health.
• Increased CRA scrutiny: If an organization regularly fails to meet its filing requirements, it may attract additional scrutiny from the CRA, leading to audits or other compliance checks.

How to File Form T1044?

Filing the T1044 form can seem complex, but the CRA provides guidelines to simplify the process. Here are the steps to follow:

1. Download the form: You can access Form T1044 on the CRA’s website here.
2. Gather required information: To fill out the form, you'll need accurate records of the organization’s financial activities for the fiscal year. This includes:
   
   • The total value of the organization’s assets
   • Details on any income received, such as interest or rental income
   • The organization’s financial statements
3. Complete the form: Carefully fill in the required information, ensuring all financial data is correct.
4. Submit the form: Once completed, submit the form by mail to the address provided on the CRA website. It is important to send the form by the deadline, which is six months after the end of the organization's fiscal year.
5. Keep a copy: Always keep a copy of the completed form and the financial documents used to complete it for your records.

What Happens After Filing?

Once Form T1044 is submitted, the CRA will review it to ensure the organization meets the necessary requirements for tax-exempt status. If any issues arise, the CRA may request additional information or clarification. It’s important to be responsive to these requests to avoid further complications.

What If You Missed Filing T1044 in Previous Years?

If your organization was required to file T1044 but did not, you should file the outstanding returns as soon as possible. The CRA charges $25 per day late, up to a maximum of $2,500 per return. For organizations that have missed multiple years, penalties can accumulate quickly.

Steps to catch up on late T1044 filings:

1. Identify which fiscal years required a filing based on your asset and income thresholds for each year.
2. Gather financial records for each outstanding year.
3. Complete and submit a separate T1044 for each outstanding year.
4. Consider contacting a nonprofit accountant before filing to ensure the returns are accurate and to assess whether there are options to reduce penalties.

A nonprofit accounting professional can help you determine how many years are outstanding and file them efficiently, reducing the risk of further CRA scrutiny.

Do Charities Need to File T1044?

Registered charities in Canada generally file a different form called the T3010, which is the annual Registered Charity Information Return. However, some organizations that are classified as non-profits but not registered charities may still need to file the T1044. It is important to distinguish between different types of organizations to determine the correct forms required by the CRA.

Can a Registered Charity Ever Need to File T1044?

In rare cases, an organisation may hold a dual structure — operating as a registered charity for some activities while also running a related nonprofit entity that does not hold charitable status. In these situations, the separate nonprofit entity may still trigger T1044 filing obligations independently of the registered charity's T3010 filing.

If your organisation has a complex structure involving both charitable and non-charitable entities, consult a nonprofit accountant to confirm your exact filing obligations for each entity.

Best Practices for Filing Form T1044

• Stay organized: Maintaining detailed and accurate financial records throughout the year will make it easier to file the T1044 and avoid mistakes.
• Consult a professional: If your organization is unsure about whether it needs to file the T1044 or how to complete it, consider consulting with a tax professional or an experienced charity and not-for-profit lawyer who is familiar with CRA regulations for charities and non-profits.
• Monitor asset and income thresholds: Regularly review the organization's financial status to ensure it does not surpass the $200,000 asset or $10,000 income thresholds unexpectedly, which would trigger the need to file the form.
• Remember the "once a filer, always a filer" rule: If you have filed a T1044 in any prior year and are still operating, you must continue to file annually — even if you fall below both thresholds.

Filing Form T1044 is an important responsibility for many non-profits in Canada. While not all organizations need to file this form, those that do must ensure they meet the filing requirements to avoid penalties, maintain their tax-exempt status, and stay compliant with CRA regulations. By understanding the filing process and staying proactive, organizations can ensure a smooth filing experience.

Final Thoughts on T1044 Filing

So, what really matters for your T1044 return? Here is the gist:

• Property income over $10,000
• Total assets above $200,000
• Previous filings that mean you must keep submitting

What counts as property income? Only interest, dividends, rent, and royalties. Membership fees, donations, and grants do NOT count toward the $10,000 threshold.

Deadlines are crucial. Get that T1044 in within six months of your fiscal year-end, or you’ll face $25-per-day penalties (up to $2,500).

Typical filing scenarios:

• Income from dividends or interest
• Owning a rental property
• Royalty payments
• Assets growing past the threshold

The form isn’t just a hoop to jump through. It helps you keep your tax-exempt status and gives the CRA the details they need. You’ll report income sources and organizational info here.

Good records make everything easier. Keep financial statements, investment records, and asset valuations handy. Accurate numbers help you avoid mistakes and meet requirements.

The T1044 is not the only tax form your nonprofit may need. Depending on your situation, you could also be required to file T2 corporate returns. It is worth checking with an accountant.

Not sure if your nonprofit needs to file T1044 this year — or worried you may have missed a prior year? Our team at B&H Charity Accounting Firm specialises in CRA compliance for Canadian nonprofits and charities. Book a free consultation → to get clarity on your obligations — no guesswork, just answers.

Frequently Asked Questions

Does a registered charity need to file Form T1044? 

No. Registered charities file the T3010 Registered Charity Information Return annually with the CRA. Form T1044 applies to nonprofits that are tax-exempt under paragraph 149(1)(l) of the Income Tax Act but are not registered charities. If your organization is a registered charity, T1044 does not apply to you.

What is the penalty for not filing T1044? 

The CRA charges $25 per day for each day the T1044 is filed late, to a maximum penalty of $2,500 per return. Ongoing failure to file can also attract additional CRA scrutiny and risk the organization's tax-exempt status. If you have missed prior years, file as soon as possible to limit further penalties.

What income counts toward the $10,000 T1044 threshold? 

Only property income counts — this includes interest, dividends, rent, and royalties. Membership fees, donations, grants, and other common funding sources do not count toward this threshold. Many nonprofits are surprised to learn that their main revenue does not trigger the requirement.

If my nonprofit filed T1044 last year but is now below the thresholds, do I still need to file? 

Yes. Once an organization has filed a T1044, it must continue filing in subsequent years even if it falls below the $10,000 property income or $200,000 asset thresholds. This is one of the most commonly misunderstood rules around T1044.

Can T1044 be filed online? 

Yes. Organizations can file T1044 electronically through the CRA's My Business Account portal. This is the recommended method, as it provides immediate confirmation and faster processing than paper filing. Certified tax software and professional tax preparers can also file T1044 electronically on your behalf.

What is the T1044 filing deadline? 

The T1044 is due within six months of your organization's fiscal year-end. For example, if your fiscal year ends December 31, your deadline is June 30. If your fiscal year ends March 31, your deadline is September 30. No extensions are available for this form.