Qualifying Non-Profit Organizations
To qualify for GST and QST rebates, a non-profit organization (NPO) must receive at least 40% of its revenue for the current fiscal year or the previous two fiscal years from government funding.
Government funding is money received from a grantor and identified as government funding in an NPO's financial statements. Its purpose is to help NPOs reach their goals or make exempt sales of property or services to a third party.
Funds can be paid directly by the grantor or through an indermediary. In the latter case, the intermediary must certify that they constitute government funding by completing form FP-322-V, Certificate of Government Funding.
NPOs must demonstrate that they qualify for a rebate for every fiscal year in which they claim one by filing form FP-523-V, Non-Profit Organizations – Government Funding, once a year (with the last rebate application for the year).
Qualifying NPOs can claim a rebate even if they are not registered for the GST or the QST.