financial implications of getting an artreach grant
This information is a general overview of the financial implications for receiving an ArtReach grant, either as an individual or as a group/ organization/ collective. While we aim to provide information that’s helpful for all, tax situations vary from person-to-person and organization-to-organization, so please speak with your accountant or the CRA about your own unique tax situation.
ArtReach is NOT able to offset any tax costs in relation to the receipt of our grant funding.
We understand that taxes are confusing and can cause considerable stress, but know that you've got support!
ArtReach runs a Taxes for Artists workshop each February where you can learn about income reporting, expense tracking, HST + EI implications, and artist grants. Follow us on social media or keep an eye on our workshops page to be notified when registration for this session opens
Check out our Financial Management & Taxes Resource Page for information related to filing taxes as an artist
Reach out to our friends at Artbooks, a Toronto-based accounting company that supports artists and entrepreneurs with tax preparation and consultation
Grants to Individuals
The Canadian Revenue Agency considers a grant to an individual as taxable personal income.
If you receive an Artistic Creation Project grant or a Community Arts Programming grant as an individual, you will be required to provide your SIN number to ArtReach and a T4A form will be issued to you to file with your annual income taxes.
You can deduct all program/ project expenses (except for the funds you personally earned through the project) if valid proof is provided during tax filing. This means you will only pay taxes on the portion of the grant that you personally earned. Proof of expenses should be in the form of original receipts, invoices, etc. so be sure to keep all project-related receipts in a safe place!
For Grantees on ODSP/ OW
On December 13, 2017, the Ministry of Community and Social Services announced that arts grants are exempt as both income and assets for people on the Ontario Disability Support Program (ODSP) and Ontario Works (OW). This means that grants to individuals are exempt as income and assets in relation to ODSP and OW, except for amounts specifically intended to cover living costs.
Your grant from ArtReach is intended to support the program/ project you applied for and does not include the coverage of living costs, meaning the entire grant should be exempt.
Click here to read the Ontario Disability Support Program (ODSP) & Arts Grants Brochure for more information.
Grants to Grassroots Groups/ Organizations/ Collectives
Grassroots groups/ organizations/ collectives will not be issued a T4A form by ArtReach, but grants to unincorporated groups/ organizations/ collectives should be claimed during tax season. It is the decision of the group how this will be handled in terms of which group member(s) will claim the grant. The income and expenses to be claimed can be split across multiple group members, or one member can claim all of the income and expenses.
There are no tax implications to you as an individual for accepting a grant payment on behalf of your group/ organization/ collective.
For All Grantees
All income that you personally earn through the delivery of your funded program must be claimed as personal income when filing your taxes. For instance, if you are paid $300 from your grant to coordinate your program or to pay yourself as an artist for your creation project, this $300 earned should be claimed as income.
This Is Confusing- What’s the Gist?
1. Maintain good financial records and keep your receipts
It's important that you thoroughly track all grant income and expenses, and keep all project related receipts and invoices (especially as an individual artist). It’s good practice, and you’ll likely need these come tax time
2. Claim the income you personally earn through this grant on your taxes
It’s your responsibility to claim any income you earn through an ArtReach grant as personal income during your tax filing