Questions About Non-Profit Accounting in Canada?

Fund accounting separates your money into different “buckets” based on how donors or grantors have restricted it. For example, donations for a specific program go in one fund, while unrestricted operating funds go in another. The CRA expects charities to track restricted funds separately because you’re legally bound to use that money only as intended—it’s not just good practice, it’s a compliance requirement.

Yes, if you’re a registered charity with the CRA, you must file a T3010 annual return within six months of your fiscal year-end. There’s no getting around this one—it’s your official report to the CRA showing your income, expenses, and how you spent donations. Missing the deadline can result in penalties and even loss of charitable registration.

A donation receipt is the official document you issue to donors so they can claim a tax deduction. A donation receipt slip is just informal documentation. Only charities registered with the CRA can issue tax-deductible donation receipts, and they must follow specific CRA rules about what information to include (charity registration number, donor name, donation amount, and date). If you’re issuing receipts, you need a system to track them and reconcile them to your financial records.

Look for software that lets you create multiple funds or cost centers and track transactions by fund. QuickBooks Online, Sage, and specialty non-profit platforms like Donorbox or Aplos can handle this. The key is being able to run separate financial statements for each fund and then combine them into consolidated statements for your T3010. If your software can’t do that, you’ll end up doing a lot of manual work in spreadsheets.

You’re breaking the donor’s intent, which is both a legal and ethical issue. If you spent restricted funds differently without donor permission, you’d need to go back to the donor and get written approval—or you’d need to return the money. The CRA and your charity’s board take this seriously. That’s why proper fund accounting matters so much; it keeps you accountable and prevents these situations from happening in the first place.

Yes. The T3010 is due within six months of your fiscal year-end, but there’s also the annual information return (Form T1236) for certain situations, and donation receipts must be issued within a reasonable timeframe after receiving a gift. The CRA also expects you to maintain records for at least six years. Missing any of these deadlines can trigger audits or penalties, so it’s worth putting them on your board calendar and setting reminders.