Does a club owe tax on interest or dividends?

The president of one of our clubs asked:

Our club received a Revenue Canada T5 form/document for interest earned on our deposit certificates. We have not previously received this, perhaps due to a smaller amount earned. Do we have instruction on “filing” a return, or how to handle?

Our Financial Manager, Doug Cucheron, answered:

A non profit organization (NPO) is exempt from tax on all or part of its taxable income if it is organized and operated solely for social welfare, civic improvement, pleasure or recreation, or any other purpose except for profit.  Also an NPO, does not have to file a T1044, Non-Profit Organization Information Return if it is a non profit organization as defined above, and if it received less than $10,000 in taxable dividends, interest, rentals, or royalties in a fiscal period. So your club should retain the T5 and carry on, as nothing further needs to be done.