Managing the accounting for a nonprofit organization (NPO) in Quebec is nothing like managing the accounting for a private company. Government grants, donations, reporting to funders, NCOSBL standards, mandatory audits—the challenges are numerous and highly specific. Finding an accountant who specializes in NPOs is therefore a strategic decision for the long-term sustainability of your organization. At Bankeo, we’ve connected over 12,000 entrepreneurs and executives with accountants tailored to their needs through our network of more than 1,500 partner firms across Quebec.
A nonprofit organization operates in a financial environment that is fundamentally different from that of a private company. Its revenue comes from multiple and often restrictive sources: government grants, foundation donations, fundraising campaigns, volunteer contributions, and membership dues. Each funding source comes with its own accountability requirements.
Even a competent general accountant can quickly find themselves overwhelmed by the unique challenges of non-profit organizations. Here are the main reasons to choose an industry-specialized accountant over a generalist for your organization.
Private-sector not-for-profit organizations in Canada must apply the Accounting Standards for Not-for-Profit Organizations (NSNPOs), which constitute Part III of the CPA Canada Handbook. These standards differ significantly from the Accounting Standards for Private Enterprises (ASPE, Part II) and IFRS (Part I). An accountant who works exclusively with SMEs does not necessarily have a thorough understanding of NASN.
Unlike for-profit businesses, nonprofits often manage restricted funds —money received for a specific purpose. For example, a $50,000 grant for a youth program cannot be used to pay rent. A specialized accountant knows how to account for these funds separately and prepare the reports required by donors.
Each funding source (the Government of Quebec, foundations, Centraide, federal agencies) has its own forms, deadlines, and reporting formats. A specialized accountant is familiar with these requirements and prepares the necessary supporting documents: expense claim reports, program breakdowns, and funding sources.
Since 2024, the Quebec government has raised the grant threshold above which a financial audit is required: it has increased from $150,000 to $500,000. This change affects nearly 2,000 community organizations, which can now opt for a less costly review.
Nonprofit organizations in Quebec are subject to several legal obligations at both the provincial and federal levels. Understanding these obligations is essential to choosing the right accountant. For an overview of the costs of accounting services in Quebec, check out our detailed guide.
Even though a nonprofit organization is generally exempt from income tax, it is still required to file tax returns:
If your nonprofit organization engages in taxable sales, it must generally register for the GST and QST. The good news: Nonprofits that are not registered charities can claim a 50% rebate on the GST paid on certain eligible purchases (public service organization rebate method). This is a significant tax benefit that only an accountant familiar with the sector will be able to fully leverage.
Like any employer, a nonprofit organization that pays salaries must:
An accountant specializing in nonprofits also understands the unique aspects of volunteer work and the reimbursement of volunteers’ expenses, which should not be confused with compensation. To learn more about business accounting in general, visit our services page.
All non-profit organizations must retain their records and supporting documents for a period of six years following the last fiscal year to which they pertain. These documents must be kept at the organization’s premises or at another designated location.
The CPA Canada Handbook consists of four parts. Private-sector NPOs use Part III—Accounting Standards for Not-for-Profit Organizations (NSNPO). According to CPA Canada, these standards provide a framework for the presentation of NPO financial statements and introduce unique concepts.
An accountant who regularly works with nonprofits knows these standards inside out and will be able to apply them correctly. This helps avoid costly corrections during an audit or review engagement.
Depending on the size of your nonprofit and your funding sources, you will need a different level of assurance for your financial statements. Your specialized accountant will help you choose the right option. To learn more about audit engagements in general, check out our guide.
| Criterion | Compilation project | Review Mission | Audit |
|---|---|---|---|
| Level of coverage | No insurance | Moderate coverage | Reasonable (high) coverage |
| Work performed | Compilation of the data provided | Inquiries + Analytical Methods | Comprehensive audit (confirmations, inventories, tests) |
| Approximate cost | $1,500 - $5,000 | $3,000 - $10,000 | $5,000 – $20,000+ |
| When required | Petits OBNL (< 100 000 $ de revenus) | Nonprofit organizations receiving $100,000–$500,000 in grants | Nonprofit receiving > $500,000 in government grants |
| Production time | 2–4 weeks | 3–6 weeks | 4–10 weeks |
| Who does it | CPA required | CPA required | CPA auditor required |
To learn more about the differences between these engagements, see our article on compilation engagements and the notice to the reader.
If your organization receives grants from multiple government departments or foundations, each funding source may require a different level of insurance. The highest level required determines the type of policy you need. An accountant specializing in nonprofits will be able to identify the correct requirement from the outset.
Bankeo connects you for free with a CPA who understands the realities of community organizations in Quebec.
Find my accountantRates vary depending on the size of the organization, the complexity of the funding sources, and the type of assignment required. Here is a reference table based on current rates in Quebec. For a comprehensive comparison with SME rates, see our 2026 Accounting Rates Guide.
| Service | Petit OBNL (< 250k $) | Medium-sized nonprofit ($250,000–$1 million) | Large nonprofit organization (> $1 million) |
|---|---|---|---|
| Monthly bookkeeping | $150–$300/month | $300–$600/month | $600–$1,200/month |
| Compilation project | $1,500 - $3,000 | $2,000 - $5,000 | $5,000–$8,000 |
| Review Mission | $3,000–$5,000 | $5,000 - $10,000 | $10,000–$15,000 |
| Comprehensive audit | $5,000 - $7,500 | $7,500 - $20,000 | $20,000 - $35,000+ |
| Tax returns (CO-17 + T2) | $300–$500 | $500–$1,000 | $1,000–$2,000 |
| Accountability (by donor) | $300–$800 | $500–$1,500 | $1,000 - $2,500 |
These rates are estimates based on the ranges observed in Quebec in 2026. The actual cost depends on the number of transactions, the number of programs managed, and the complexity of your organization’s funding sources.
Choosing an accountant for a nonprofit organization involves different criteria than for a small business. Here are the key factors to consider, in addition to our guide on how to choose a business accountant.
Ask how many nonprofit organizations the accountant or firm works with. An accountant specializing in nonprofits should serve at least a dozen. Make sure they are familiar with the Canada Nonprofit Standards and are experienced in preparing reports for various funders.
A nonprofit organization that relies primarily on government grants has different needs than one that depends on individual donations or self-generated revenue. The accountant must understand the requirements of each of your revenue sources.
If your nonprofit organization needs an audit or a review engagement, the accountant must be a CPA (Certified Professional Accountant) registered withthe Ordre des CPA du Québec. An accounting technician cannot perform these engagements.
Nonprofits often use different software than small businesses. Certain tools, such as Sage Accounting or specialized solutions, allow you to manage restricted funds and maintain program-based accounting. A good nonprofit accountant is familiar with these tools and can guide you in using them. Check out our comparison of accounting software in Quebec.
An accountant who works with nonprofits should be able to provide you with references from organizations similar to yours—same industry, comparable size, and similar types of grants.
In addition to bookkeeping and preparing financial statements, an accountant specializing in nonprofits provides strategic services:
Every government or private grant comes with reporting requirements. The accountant prepares the financial statements, expense reports, and program-by-program breakdowns required by each funder.
Eligible non-profit organizations can claim a 50% refund of the GST paid. The accountant calculates and files these refund claims, which can result in thousands of dollars recovered each year. The accountant also manages tax obligations specific to non-profit organizations.
A good nonprofit accountant doesn't just look at the past. They help you plan your projected budgets by program, forecast cash flow, and prepare project budgets for grant applications.
Budget proposals are a key component of grant applications. An accountant who is familiar with your organization can prepare realistic and credible budgets that strengthen your funding applications.
Many small nonprofits rely on non-specialized staff for day-to-day financial management. A certified accountant can train your team on best practices for bookkeeping, using accounting software, and preparing supporting documents.
Quebec is home to thousands of nonprofits operating in a wide variety of sectors. A specialized accountant understands the financial nuances of each of these sectors, according to datafrom ESPACE OBNL:
Finding an accountant who understands the realities of the nonprofit sector isn’t easy. Many accounting firms offer general services without in-depth expertise in the nonprofit sector. That’s where Bankeo comes in.
As an accounting broker, Bankeo connects you—free of charge—with an accountant who’s a good fit for your organization’s specific needs. Our process is simple:
Since 2023, we have connected more than 12,000 entrepreneurs and business leaders with the right accountants through our network of over 1,500 firms across Quebec, with a satisfaction rate of over 95%.
Free service for organization leaders. Customized matching based on your mission, funding sources, and budget.
Find my accountantThere is no legal requirement to hire an accountant, but a nonprofit organization must file tax returns (CO-17, T2) and prepare financial statements. As soon as your organization receives grants, a professional accountant becomes virtually indispensable for accountability purposes.
An audit provides reasonable (high) assurance regarding your financial statements and costs between $5,000 and $25,000+. A review provides moderate assurance, costs between $3,000 and $15,000, and is sufficient for most nonprofits receiving less than $500,000 in government grants.
Since 2024, the Quebec government has required a financial audit for non-profit organizations receiving more than $500,000 in government grants (provincial or municipal). The previous threshold was $150,000.
For a small nonprofit (with less than $250,000 in revenue), expect to pay approximately $150 to $300 per month for bookkeeping and $1,500 to $3,000 for an annual financial statement preparation. The total annual cost is generally between $3,500 and $7,000.
Generally, no. A nonprofit organization is exempt from income tax as long as it meets the conditions set forth by law (no distribution of surplus to members, activities consistent with its mission). However, it must still file tax returns even if it is exempt.
Private-sector not-for-profit organizations apply the NFP Standards (Part III) of the CPA Canada Handbook. They may also choose to apply IFRS (Part I), but the NFP Standards are the most commonly used standard. A specialized accountant is familiar with these standards and knows how to apply them correctly.
Yes, to some extent. Eligible non-profit organizations (public service organizations) can claim a 50% refund of the GST paid on certain purchases. The QST refund varies depending on the type of organization. A specialized accountant can help maximize these refunds.
A nonprofit organization must retain all its accounting records, supporting documents, bank statements, and receipts for six years following the last year to which they relate. For donation receipts (charitable contributions), the retention period is two years following the revocation of registration.
Absolutely. Bankeo has a network of over 1,500 partner firms across Quebec, many of which specialize in nonprofits and community organizations. The service is free for organization leaders and allows you to compare several accountants before making your choice.
A nonprofit organization is an entity that does not distribute its surplus to its members. A registered charity is a nonprofit organization that has been registered with the CRA to issue tax receipts to donors. The accounting requirements for a charity are more stringent (3.5% disbursement quota, Form T3010).
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