Who We Help · Places of Worship · Cross-Border Tax
Church cross-border tax: mission funding and US guests, done by the book
For most congregations the border shows up in exactly two flows: support arriving from a US denomination or head office, and money sent out to missions. The first is straightforward revenue. The second is where CRA revokes registrations — a Canadian charity cannot simply wire funds to a US church or mission board. This page is short on purpose; it covers those two flows and the visiting-speaker rule most congregations miss.
By the AnalytIQ Accounting team · Last reviewed: August 12, 2026
Support arriving from a US denomination is the easy direction
Grants and support received from a US head office, mission board or sister congregation are simply revenue: no Canadian withholding applies to money your charity receives as a gift, and you issue no receipt to an organization. Record the funds at the exchange rate on receipt and report them on the T3010 with your other revenue from outside Canada. Any reporting the US body asks for in return is a matter of the funding agreement, not tax. Brampton and the wider GTA hold some of the country's largest congregations — gurdwaras, mandirs, mosques and churches sitting inside international faith networks — so on our desks these inbound flows are routine, not exotic.
Funding a US mission is where registrations get lost
A US church, mission board or 501(c)(3) is not a qualified donee, so your charity cannot simply transfer money to it — collecting for a cause and wiring the total south is conduit giving, and it is a revocation ground. Since the 2022 rules there are two compliant structures. A qualifying disbursement needs a written agreement, a purpose that fits inside your own charitable purposes, accountability reporting from the grantee, and T3010 disclosure once grants to one grantee pass $5,000 in a year. Alternatively, run the mission as your own activity: the missionary or field partner acts under an agency agreement, and your records show your board directing the work and the spending.
| The situation | The tax treatment |
|---|---|
| US head office supports your congregation | Revenue — no withholding; record it and report it on the T3010 |
| You fund a US mission or sister church | Qualifying disbursement or own-activities agency structure — never a bare transfer |
| A US pastor is paid to speak at your convention | Withhold 15% under Regulation 105 and issue a T4A-NR |
| US members donate to your congregation | Your Canadian receipt is rarely usable on a US return — set expectations early |
Visiting US clergy, and everything that stays home
An honorarium or speaker fee paid to a US resident for services performed in Canada carries a 15 percent Regulation 105 holdback and a T4A-NR slip after year-end — convention weekends and guest-preacher series are where we see this missed most. The visitor can seek a waiver in advance or file a Canadian return to recover the tax; the duty to withhold stays with your congregation either way. Everything else on a place-of-worship file is domestic: receipting discipline, the clergy residence deduction claimed through payroll on Form T1223, and the T3010 itself. That ground is covered on our church payroll page, with the treaty mechanics living at cross-border tax services. Fixed fees, quoted after a discovery call — most congregation files need less cross-border work than boards fear, and it is cheaper to confirm that than to guess.
Common questions.
Can we send money to our US parent church or its mission projects?
Not as a simple transfer — a US church is not a qualified donee. You need a qualifying disbursement with a written agreement and accountability reporting, or an own-activities structure where your board keeps direction and control of the work.
Do we withhold on a US preacher’s honorarium?
Yes — 15 percent under Regulation 105 on fees for services performed in Canada, reported on a T4A-NR. The speaker can apply for a waiver or recover the tax by filing in Canada, but the withholding obligation is yours.
Are donations from our US members deductible for them?
Usually not — the treaty limits their deduction to Canadian-source income, which most US residents lack. Congregations with a meaningful US donor base sometimes pair with a US friends-of organization, the structure covered on our charity cross-border page.
Related reading
Give across borders without risking the registration.
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