Updating officers and directors of a not-for-profit organization (NPO) that is not a registered charity with the CRA, in order to register for a My Business Account, involves several steps. It’s important to distinguish between NPOs and registered charities, as the rules and forms can differ.
Here’s an outline of the steps:
Part 1: Update Officer/Director Information with the Incorporating Authority
Before contacting the CRA, any changes to your organization’s directors and officers should first be updated with the federal, provincial, or territorial authority that incorporated your NPO. This is a crucial step as the CRA relies on this information.
Determine Your Incorporating Authority:
If your NPO is federally incorporated, it’s likely under Corporations Canada (part of Innovation, Science and Economic Development Canada – ISED).
If your NPO is provincially incorporated, you’ll need to contact the relevant provincial corporate registry (e.g., if in Ontario, it would be the Ontario Business Registry – OBR).
File a Notice of Change with Your Incorporating Authority:
For federally incorporated NPOs: You would typically file a “Form 4006 – Changes Regarding Directors” through the Corporations Canada Online Filing Centre. These changes should be reported within 15 days of the change.
For provincially incorporated NPOs (e.g., Ontario): You would file a “Notice of Change” form, usually through an online portal like the OBR, or by mail. This also typically has a short deadline (e.g., 15 days in Ontario). This form updates information such as registered address, directors, and officers. Alternatively, these changes can often be reported as part of your annual corporate return.
Part 2: Inform the CRA of the Changes
Once the changes are reflected with your incorporating authority, you can then inform the CRA. The CRA primarily links director/officer information to your Business Number (BN). For NPOs that are not registered charities, the process is generally simpler than for registered charities.
Identify Your Business Number (BN): Your NPO should already have a 9-digit Business Number (BN) if it interacts with the CRA for purposes like payroll, GST/HST, or corporate income tax.
Methods to Update Officer/Director Information with CRA:
Online (Recommended for speed):
My Business Account: If an existing authorized individual (e.g., a current director or authorized representative with Level 3 access) already has access to your NPO’s My Business Account, they can often update director information through the “Profile” or “Manage authorized representatives” section. This is the most efficient method. To gain online access for new officers/directors, they would need to provide their Social Insurance Number (SIN) to the CRA.
“Submit documents” in My Business Account or Represent a Client: You can prepare a letter with the updated officer and director information (including full names, titles, SINs, phone numbers, and effective dates) and submit it through the “Submit documents” feature in either My Business Account or Represent a Client (if you are an authorized representative).
By Mail or Fax: You can send a letter to your CRA tax centre. This letter should include:
Your NPO’s Business Number (BN).
The full names, Social Insurance Numbers (SINs), and telephone number of any officers/directors to be added or deleted.
A clear statement of the action being taken (adding, removing, or updating information) should be accompanied by Minutes of the Meeting in which the update occurred.
The letter must be signed by an authorized individual for the BN account.
Sudbury Tax Centre
PO Box 20000, Station A
Sudbury, Ontario, P3A 5C1
Attention: Business Number Services (BNS)
Fax: 1-855-276-1529
By Phone: You can call the CRA’s Business Enquiries line (1-800-959-5525) to update officer or administrator information for unincorporated entities or other legal entities that are not charities. Be prepared to verify your identity and provide the necessary details.
Part 3: Registering for a My Business Account (for new officers/directors)
For new officers or directors who need to access the NPO’s My Business Account, they will need to register themselves.
- Personal CRA Account: Each individual needs to have their own personal CRA “My Account” access. If they don’t already have one, they can register using:
- Sign-In Partner: Using their online banking credentials.
- CRA User ID and Password: Registering directly with the CRA. This often involves providing their SIN, date of birth, postal code, and an amount from a recent personal income tax return. They will also need to create a CRA user ID and password and set up security questions. The CRA will mail a security code (typically within 5-10 business days) which is required to complete the registration.
- Access My Business Account: Once they have their personal CRA My Account set up and validated (by entering the security code), they can then access My Business Account.
- Add the Business Number to Their Profile:
- After signing in to My Business Account, they can select “Profile” or “Manage Business number(s) in your profile” and click on “Add a business.”
- They will then enter the NPO’s Business Number (BN). The CRA will link their SIN to the BN, granting them access to the NPO’s My Business Account. This linkage of SIN to BN is crucial for online access.
Important Considerations:
- Social Insurance Number (SIN): For online access to My Business Account, the SIN of the director/officer is generally required by the CRA to link their personal identity to the business number and grant them online access.
- Authorized Representatives: If your NPO uses an accountant or bookkeeper, they can access your NPO’s account through “Represent a Client” once they are authorized by the NPO.
- Keep Records: Always keep copies of all correspondence and forms submitted to both the incorporating authority and the CRA.
- Timelines: Be aware that processing times can vary for both incorporating authorities and the CRA.
- Provincial vs. Federal: The steps above apply broadly. If your NPO is incorporated provincially, specific provincial forms and processes will apply in Part 1.
By following these steps, you can ensure that your not-for-profit organization’s officer and director information is up-to-date with both your incorporating authority and the CRA, facilitating access to My Business Account for authorized individuals.