{"id":36196,"date":"2023-01-26T15:41:55","date_gmt":"2023-01-26T20:41:55","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=36196"},"modified":"2023-01-26T15:41:58","modified_gmt":"2023-01-26T20:41:58","slug":"making-grants-to-non-qualified-donees-cra-clarifies-reporting-obligations","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/legal\/2023\/01\/26\/making-grants-to-non-qualified-donees-cra-clarifies-reporting-obligations\/","title":{"rendered":"Making Grants to Non-Qualified Donees? CRA Clarifies Reporting Obligations"},"content":{"rendered":"\n

Is your charity making grants to non-qualified donees? CRA has clarified your reporting obligations<\/a>. Grants do not have to be specifically reported until the T3010 and T4033 are updated. The CRA anticipates these updates will be complete by spring 2023.<\/p>\n\n\n\n

Making Grants to Non-Qualified Donees \u2013 New Rules<\/h2>\n\n\n\n

Since June 23, 2022, charities have been legally allowed to make grants to non-qualified donees. This is due to legislative changes that, among other things, added the term \u201cqualifying disbursements<\/a>\u201d to the Income Tax Act<\/a> (ITA). For more details, see our post Bill C-19 Has Passed<\/a>.<\/p>\n\n\n\n

The ITA requires that for every grant over $5,000, the granting charity must report the name of the grantee, the purpose of the grant, and the total yearly amount granted to the grantee.<\/p>\n\n\n\n

Reporting Grants to Non-Qualified Donees – Not Yet Required<\/h2>\n\n\n\n

Until the T3010, Registered Charity Information Return<\/a> and the accompany guide T4033, Completing the Registered Charity Information Return<\/a> are updated, you are not required to report your granting activities.<\/p>\n\n\n\n

The T3010 and T4033 are being updated now. The CRA anticipates a spring 2023 release date.<\/p>\n\n\n\n

Books and Records  – Still Required!<\/h2>\n\n\n\n

Even though CRA has clarified that you don\u2019t have to report your granting activities (yet!), the CRA is also very clear that charities must keep adequate books and records<\/a> to support all granting activities:<\/p>\n\n\n\n

\n

\u201cYour books and records must contain enough information to allow the CRA to assess whether your charity is operating in accordance with the Income Tax Act.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Of course, the books and records requirement applies all the time, to all of your charity\u2019s operations. They must be sufficient to show your charity complies with applicable legislation.<\/p>\n\n\n\n

Guidance CG-032, Registered charities making grants to non-qualified donees (DRAFT)<\/h2>\n\n\n\n

As we discussed in an earlier blog post<\/a>, the CRA released draft guidance on making grants to non-qualified donees<\/a> (November 2022). The formal deadline to submit your feedback<\/a> is January 31, 2023.<\/p>\n\n\n\n

Grants in The Green<\/h2>\n\n\n\n

We\u2019ve got a space in The Green<\/a> where you can chat with other charities about grants and working with non-qualified donees.<\/p>\n","protected":false},"excerpt":{"rendered":"

Is your charity making grants to non-qualified donees? CRA has clarified your reporting obligations. Grants do not have to be specifically reported until the T3010 and T4033 are updated. The CRA anticipates these updates will be complete by spring 2023. Making Grants to Non-Qualified Donees \u2013 New Rules Since June… More<\/a><\/p>\n","protected":false},"author":10,"featured_media":36198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ts_fic_featured_image_caption":"Large desk with a laptop to the side, two calculators, each atop an open binder, with a partial view of two people sitting on either side of the desk, using the calculators.","footnotes":""},"categories":[159],"tags":[204,163,656,408,512,412],"series":[],"class_list":["post-36196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-charity-law-and-policy","tag-charity","tag-cra","tag-grants","tag-income-tax-act","tag-non-qualified-donees","tag-t3010"],"_links":{"self":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/36196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/comments?post=36196"}],"version-history":[{"count":0,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/36196\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/media\/36198"}],"wp:attachment":[{"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/media?parent=36196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/categories?post=36196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/tags?post=36196"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/cccc.org\/news_blogs\/wp-json\/wp\/v2\/series?post=36196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}