A substantial portion of Canada’s economic activity is conducted by organizations whose purpose is to provide services or products on a non-profit basis. This is still a very large sector in our economy, consisting of over75000 registered charities and an additional 100,000 voluntary organization. Nonprofit organizations serve in a variety of sectors, such as religious, education, health, social services, commerce, amateur sports clubs, and the arts. Nonprofits do not have commercial owners and must rely on funds from contributions, membership dues, program revenues, fundraising events, public and private grants, and investment income.
From churches to youth organizations to the local chambers of commerce, nonprofit organizations make our communities more livable places. Unlike for-profit businesses that exist to generate profits for their owners, nonprofit organizations exist to pursue missions that address the needs of society. Nonprofit organizations serve in a variety of sectors, such as religious, education, health, social services, commerce, amateur sports clubs, and the arts.
Nonprofits do not have commercial owners and must rely on funds from contributions, membership dues, program revenues, fundraising events, public and private grants, and investment income.
For your convenience, we bring some info about None For Profit Organization;
Financial Statements of Nonprofit Organization are:
1. Statement of Financial Position
2. Statement of Operations
3. Statement of Financial Expenses(if required)
4. Statement of Cash Flow
5. Statements of Changes in Net Assets
6. Notes to Financial Statements
Differences between NFPO and for profit business:
Nonprofit For Profit
Owner None Stockholders
Primary mission Services for society Earn profit for shareholders
Secondary mission Maintained/expanded services Provide more services or goods
Tax status Exempt of tax if approved by CRA Corporate is subject to tax
Annually reporting T3 T2 general tax return
Does your organization depend on volunteers or board members to do your bookkeeping? Do you find it difficult to track membership data, remember renewal dates, or create due invoices? Are you unfamiliar with special nonprofit requirements, deferral method or the restricted fund method accounting? Do you have to prepare financial statements for grant?
Taxaccounting4U offers an affordable alternative. We can handle your group’s finances in a secure, professional manner. You will enjoy a consistent, continuous level of service even when the organization’s leadership changes.
Tax Accounting4U has extensive experience in NFPO accounting and is able to help in the setup and running of books for a variety of types of charitable organizations. We will:
- Send notices for dues
- Receive, record and deposit member payments, donations or tithes
- Pay approved bills
- Reconcile bank accounts
- Prepare monthly internal reports
- Handle donations as required for nonprofits
- Work with your Board of Directors
- Handle member and donor inquiries
- Budgeting for Non profit
- Help prepare for your audit and tax return
- Prepared Financial statements such as:
a. Statement of financial position
b. Statement of operations
c. Statement of Cash flow
d. Statement of Functional Expenses
e. Statements of Changes in Net Assets
f. Notes to Financial Statements