March 24, 2020

COVID – 19 UPDATE: for Not for Profit and Charities

Like everyone, we have been monitoring the COVID-19 situation and are listening to all government recommendations. Our staff is all working remotely, and we have invested heavily in technology to […]

Like everyone, we have been monitoring the COVID-19 situation and are listening to all government recommendations. Our staff is all working remotely, and we have invested heavily in technology to ensure there are no disruptions to normal work flow. We’ve compiled some economic updates for Not for Profits and Charities that we feel will be helpful during this time. Please feel free to reach out if you have any questions.

The Canada Revenue Agency (CRA) recently announced that the registered charities filing deadline for the T3010s that were previously due from March 18, 2020 till December 31, 2020, will now only be due on December 31, 2020.

This does help the bigger picture for many charities in Canada, and will reduce some of the stress on registered charities who are facing disruptions to their daily routines and services. For now, it seems this will only be for the T3010 charity returns, and not the 1044 NPO return, which still has a 6 month deadline.

With that in mind, there are some things to think about with this new extension. We encourage you, if you are able, to not leave things until the last minute. If multiple groups wait until the end of December, it will delay information on charities that the public should see, become harder to pull information, and capacity may be limited if too many wait until December.

Another thing to keep in mind is if you are only going to work on your financial statements and T3010s at the end of this year – you will then be working on the next financial statements and T3010s a few months later. This could be a lot at one time, leading to being overwhelmed.

Another announcement the CRA made recently was that the Charities Directorate has suspended all operations until further notice, including their call centre, registration, and audit activities. This would be an excellent time to check out that CRA CHAMP online system. With CHAMP you can make many changes to the information that CRA has on your charity.

We recently highlighted on our blog the payroll assistance the government has unveiled in response to the pandemic, this pertains to Not for Profits and Charities as well, so is outlined here:

Helping Businesses Keep Their Workers:
To support businesses that are facing revenue losses and to help prevent lay-offs, the Government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of the remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will implement this measure by reducing their remittances of income tax withheld on their employee’s remuneration. Employers able to access this measure include corporations eligible for the small business deduction, as well as non-profit organizations and charities. For more on this, view our blog here.

Temporary Income Support for Workers and Parents:
For those without paid sick leave (or similar workplace accommodation) who are sick, quarantined or forced to stay home to care for children, the Government is introducing the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks. The benefit will be administered through the Canada Revenue Agency (CRA) with application for the benefit available in April 2020.

Longer-term Income Support for Workers:
For those who lose their jobs or face reduced hours as a result of the current situation, the Government is providing additional support to workers not eligible for EI and providing EI benefits to workers who agree to reduce their normal working hours as a result of developments beyond the control of their employers.

To stay up to date on the COVID-19 updates as they pertain to the Not for Profit world, check out a couple of our Partners:
Calgary Chamber of Voluntary Organizations CCVO

If you have any questions, please don’t hesitate to reach out to your Catalyst advisor, or