Charity Annual Return (T3010): What Information You Must File Each Year — CPA Firm Near You, Montreal

Introduction

Every registered charity in Quebec must file an annual return — the T3010 Registered Charity Information Return — with the Canada Revenue Agency. Filing this return correctly is essential for maintaining charitable status. CRA uses the T3010 to assess governance, spending, financial stewardship, donation receipting, and compliance with the charity’s stated purpose. Mistakes or omissions can result in penalties, audits, or revocation. This guide explains what charities must report on the T3010 and how a CPA firm near you in Montreal can help ensure complete compliance.

Legal and Regulatory Framework

Under the Income Tax Act, every registered charity must file a T3010 within 6 months after its fiscal year-end. The filing includes:

1. Financial Information

Charities must report:
• Total revenue by category (donations, grants, fundraising, programs, investments)
• Total expenditures (charitable programs, administration, fundraising)
• Assets, liabilities, and capital property
• Compensation paid to directors, officers, and highest-paid staff

2. Donation Receipting Information

Charities must disclose:
• Total amount of receipted donations
• Number of receipts issued
• Receipts for non-cash gifts and valuations
• Correct registration number

3. Charitable Activities and Programs

Charities must describe:
• Their programs
• Where they operate (Canada or abroad)
• Gifts to other qualified donees
• Public benefit delivered

4. Governance and Management

Charities must report:
• Board of directors and trustee information
• Changes in governing documents
• Policies related to fundraising, compensation, and conflict of interest

5. Disbursement Quota Compliance

The T3010 must demonstrate that the charity meets the disbursement quota, the minimum amount it must spend on charitable activities annually.

Key Court Decisions

Courts have upheld revocations where charities:
• Failed to file the T3010 on time
• Submitted incomplete or inaccurate filings
• Issued improper donation receipts
• Did not meet disbursement quota requirements
• Could not demonstrate that activities aligned with stated charitable purposes

Judges emphasize accurate reporting, transparency, and program alignment.

Why CRA Targets Annual Returns

CRA reviews every T3010 filing to ensure:
• Charities spend funds on charitable purposes
• Receipting practices are compliant
• Excessive accumulation of reserves is justified
• Executive compensation is reasonable
• Foreign activities follow control and direction rules

Red flags include:
• Missing or late filings
• High administrative and fundraising costs
• Incomplete descriptions of activities
• Unusual payments to directors or related parties
• Large non-charitable expenditures

Mackisen Strategy

At Mackisen CPA Montreal, we help charities prepare complete, accurate T3010 filings. We:
• Reconcile financial statements with T3010 disclosure sections
• Review donation receipting systems
• Ensure compliance with disbursement quota requirements
• Document charitable programs clearly
• Maintain board and governance records
• Prepare GST/QST rebate filings alongside the T3010
• Build audit-ready filing packages

Real Client Experience

A Montreal charity missed its T3010 deadline and risked revocation. We filed all outstanding returns, coordinated with CRA, and restored compliance. Another charity reported unclear program expenditures; CRA opened an audit. We rebuilt records and clarified activity descriptions, preventing sanctions.

Common Questions

When is the T3010 due?

Six months after the charity’s fiscal year-end.

What happens if a charity does not file?

CRA can suspend receipting privileges or revoke charitable status.

Does the T3010 replace financial statements?

No. Charities must maintain full financial books and records.

What if a charity operates internationally?

The T3010 must include detailed reporting and control mechanisms.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps charities maintain transparency and compliance through accurate T3010 filings. Whether managing a large foundation or a small community charity, our expert team ensures precision and audit protection.