Your CRA Compliance Checklist for Canadian Churches
Happy New Year! As we step into 2025, it’s the perfect time to check in on your church’s finances and make sure everything is ready for CRA. While churches don’t pay taxes (thankfully!), there are still some important deadlines that churches need to meet. Below we will discuss some of the key CRA deadlines for churches.
1. TAX RECEIPTS: A SIMPLE CHECKLIST
Why It’s Important:
Issuing tax receipts isn’t just a formality. For your donors, it’s their ticket to claiming charitable donations on their personal tax returns (hello, tax refund!). And for your church, it’s a way to show appreciation as often a thank you letter is included with the tax receipt.
What You Need to Include:
Official Receipt Statement Title: “Official Receipt for Income Tax Purposes.”
Unique Serial Number: Every receipt gets its own unique number
Church’s Name, Address
Church’s CRA Registration Number
Donor’s Full Name and Address.
Date of Donation (the date or year you received it)
Eligible Donation Amount
Authorized Signature (usually the treasurer’s)
Include CRA Website on the bottom of the receipt: Canada Revenue Agency: Canada/ca/charities-giving
For good measure, add this statement: “No goods or services were provided in exchange for this contribution.”
Consequences of Missing the Mark:
If your receipts aren’t issued correctly, your donors won’t be able to claim their contributions. Often that church member then contacts the church and asks for a correct receipt to be reissued. That requires a lot of back and forth between the church office, the church member and CRA. It’s frustrating for everyone and damages the reputation of the church as wise stewards. Needless to say, it’s much better for everyone to take the time to get it right the first time.
When It’s Due:
Although you’ll often receive requests for receipts end of January by some eager donors, the deadlines for sending these out is
FEBRUARY 28.
CRA Resources for Tax Receipts:
CRA website has sample receipts you can view to ensure nothing required is missed. Note that the look can be different as long as all the required items are there. https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/sample-official-donation-receipts.html
2. T4 SLIPS FOR EMPLOYEES: DON’T FORGET THIS ONE
What Is It?
If your church has employees, it’s time to issue T4 slips. T4 slips summarize the income and deductions for each employee for the year. Employees must have these to file their own personal taxes. And as an employer, you are legally required to prepare them.
What You Need to Do:
Issue T4 Slips for anyone on the payroll, including salary and taxable benefits.
Double-check the Info: Make sure earnings, deductions, and benefits are accurate.
Submit the T4 to the CRA and give a copy to your employees.
Why It’s Important:
If you don’t issue these slips on time, your employees can’t file their taxes, and that could lead to penalties.
When It’s Due:
Get your T4 slips sorted and submitted by FEBRUARY 28th
CRA Resource on Preparing T4s:
CRA has a lot of information on their website. Here is a link to the employer’s guide for filing the T4 Slip and Summary. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4120/employers-guide-filing-t4-slip-summary.html
3. T3010 FILING: CHURCH’S INFORMATION RETURN
What Is It?
The T3010 is an annual information return that all registered charities, including churches, need to file with the CRA. It’s your chance to show the CRA how your church is operating—how much you’ve raised, how it’s been spent, and all the good work you’re doing.
What You Need to Do:
Gather Financial Records: Revenue, expenses, and how donations were used.
Complete the T3010 Form: The form asks for details on operations, financials, and board members.
Submit It to the CRA: You can do this online or on paper. We’d recommend online if possible.
Why It’s Important:
Filing the T3010 is crucial for keeping your charitable status intact. If you miss this deadline, you could face penalties or, even worse, lose your charitable status (something we’ve seen too often). The good news is it’s entirely preventable.
When It’s Due:
The T3010 must be filed within 6 MONTHS AFTER YOUR FISCAL YEAR-END. For churches with a December 31st fiscal year-end, the deadline is JUNE 30th.
CRA Resource on filing the T3010
This is an intimidating form. If you are not confident, please reach out an accountant or qualified bookkeeper to help walk through this with you. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4033/t4033-completing-registered-charity-information-return.html
BONUS ITEM: PSB REBATE - YES, YOU CAN GET MONEY BACK!
What Is It?
This is one of the best-kept secrets of church finances! The Public Service Body (PSB) rebate allows charities to get back a portion of the GST/HST paid on goods and services. A church in Ontario can claim 50% of the GST portion (5% of the 13% of HST) and 82% of the PST portion (8% of the 13% of HST). That translates to a total of 69.692% of total HST paid. Meaning if you paid $1,000 in HST during the year, you receive $692 back on your PSB rebate. It adds up!
“The Public Service Body (PSB) rebate allows charities to get back a portion of the GST/HST paid on goods and services.”
What You Need to Do:
Compile a list of the HST your church as paid during the year: Usually your bookkeeping software, or General Ledger will be able to produce a report on this for you. If not, then you’ll need to compile receipts and document the HST that was paid on every item.
Complete & Submit Your Application: Once your application is complete, submit it and wait for your rebate to be processed. The first time your church files, it will need to be done on paper and mailed in. After that first one is processed, you can then submit to CRA online, through the church’s My CRA Business Account.
Why It’s Important:
This rebate can provide some much-needed financial relief and help offset costs—especially if you’ve made substantial purchases throughout the year. It’s a return of money already spent, so it feels like ‘free cash’.
When It’s Due:
The PSB rebate doesn’t have a fixed deadline, however most charities can apply for this twice a year, in JULY for the preceding Jan-June transactions and in JANUARY for the preceding July to December transactions.
CRA Resource for PSB Rebate - https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/public-service-bodies.html
WRAPPING IT UP
As always, we’re here to help. If you have any questions or need support, just reach out! We’re happy to help you get your tax receipts, T4 slips, and T3010 filing in tip-top shape.
Here’s to a smooth, stress-free start to the new year! Keep up the great work and thank you for everything you do for your church community.
Let us know if you need a hand—we’ve got your back!