Accounting

It depends on your governing law, revenue and funders. Under Ontario’s ONCA, public benefit corporations with revenue of $500,000 or more need an audit, while smaller ones can choose a review engagement or, under $100,000, neither, with member approval. Federal CNCA soliciting corporations need an audit above $250,000. In the US, spending $1 million or more in federal awards triggers a Single Audit, and many states and funders set their own requirements.

An official donation receipt must show the charity’s name, address and registration number, a unique serial number, where and when it was issued, the date of the gift, the donor’s name and address, the amount of the gift, any advantage received, the eligible amount, an authorized signature, and the CRA’s name and website. Keep a copy for at least two years after the end of the calendar year of the gift.

File Form 990-N if your gross receipts are normally $50,000 or less, Form 990-EZ if gross receipts are under $200,000 and total assets are under $500,000, and the full Form 990 if you exceed either limit. Returns are due on the 15th day of the fifth month after year-end (May 15 for a calendar year), and missing three years in a row automatically revokes tax-exempt status.

The T3010 Registered Charity Information Return is due six months after the end of your charity’s fiscal year, every year, even if the charity had little or no activity. A December 31 year-end means a June 30 deadline. The CRA does not grant extensions, and a charity that doesn’t file can lose its registered status.

The early warning signs of nonprofit cash flow trouble are delayed grant or donor payments, unexpected program or admin costs, no clear view of upcoming obligations, staff repeatedly delaying purchases, and financial reports that always look fine despite tight bank balances. A rolling 13-week cash flow forecast is the simplest way to spot problems before they hit.

A nonprofit CFO leads budgeting and forecasting, produces reliable financial reports for the board, manages cash flow and reserves, oversees restricted funds and grant compliance, keeps filings and audits on track, and advises leadership on financial strategy. Many growing charities get this through a part-time fractional CFO instead of a full-time hire.

Good bookkeeping is the foundation of nonprofit financial health. It keeps your records accurate and audit-ready, tracks restricted funds and grants separately, supports CRA or IRS filings, and gives your board reliable numbers for decisions. Nonprofit bookkeeping differs from business bookkeeping because it must track money by fund and purpose, not just by account.