To determine your organization’s level, use your average revenues over the last three years (charities should use the amount on line 5100 of their Registered Charity Information Return (T3010) along with the average number of full-time equivalent (FTE) employees over the last three years.
The definition of full-time employment can vary from one organization to another but it is generally defined as between 35 and 40 hours of work per week, 52 weeks per year.
Nonprofits that are not registered charities must submit their most recent financial statements identifying their annual average expenses.
Level 1 – Organizations with up to 5 FTE employees and up to $2 million in annual expenses.
Level 2 – Organizations with up to 50 FTE employees and up to $10 million in annual expenses.
Level 3 – Organizations with more than 50 FTE employees or over $10 million in annual expenses.