CRA’s Most Common Mistakes with the T3010B Registered Charity Information Return

CRA has posted a piece on “Avoiding common mistakes when filing the T3010B return” at http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rtrn/mstksb-eng.html

Here is a copy of the full document which is located at:  http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rtrn/mstksb-eng.html

Avoiding common mistakes when filing the T3010B return

Mistakes can cause various problems such as processing delays, missing returns, and incorrect disbursement quota calculations. Below is a list of common mistakes made when filing the T3010B, Registered Charity Information Return:

•the return is mailed to an address other than the Charities Directorate;
•the return is filed on the wrong form (see Filing the information return);
•the financial statements are not attached;
•the financial statements do not have the same fiscal period ending as the T3010B return;
•the Registered Charity Basic Information sheet is not attached;
•fundraising activities instead of charitable activities are described in Section C2;
•Director/Trustee dates of birth are missing on Form T1235, Directors/Trustees and Like Officials Worksheet;
•Directors/Trustees arm’s length status is missing on Form T1235;
•Directors/Trustees postal codes are missing on Form T1235;
•Qualified Donees’ BN/Registration numbers are missing on Form T1236, Qualified Donees Worksheet / Amounts Provided to Other Organizations;
•the Certification area in Section E is not signed.
To report financial information, charities can complete Section D or Schedule 6, depending on certain criteria.  If the charity has completed Section D:

•lines 4500 to 4650 do not add up to the amount on line 4700;
•lines 4860 to 4920 do not add up to the amount on line 4950;
•there is no entry on line 5000 for charitable program expenditures.
If the charity has completed Schedule 6:

•lines 4500, 4510 to 4580, and 4600 to 4650 do not add up to the amount on line 4700;
•lines 4950, 5050, 5060 and 5070 do not add up to the amount on line 5100;
•there are entries on lines 5500 to 5520 when the charity has not been granted permission to accumulate funds;
•there are no entries on line 5900 and 5910 when required.
  To change a return that has already been filed, see Amending the information return.

References
•T4033B, Completing the Registered Charity Information Return

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Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario.  To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit http://www.canadiancharitylaw.ca or http://www.globalphilanthropy.ca He can be contacted at .(JavaScript must be enabled to view this email address) or at 416-361-1982.

This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.