Insights
Nov 20, 2025
Mackisen
CRA Charities Audit — Montreal CPA Firm Near You: Keep Registration Secure
A CRA Charities Audit reviews the operations, donations, and administrative spending of registered charities to ensure they comply with the Income Tax Act and maintain their tax-exempt status. These audits are focused on confirming that charitable organizations use funds strictly for qualified purposes, issue donation receipts correctly, and avoid political or ineligible activities. Mackisen CPA Montreal provides professional audit representation to protect charitable registration, improve governance, and ensure compliance with both CRA and Revenu Québec standards.
Legal Foundation
Law: Income Tax Act s.149.1; Charities Registration (Security Information) Act; Tax Administration Act (Québec) s.34–37.
Jurisprudence: Human Life International in Canada Inc. v. M.N.R. (1998 FCA) — confirmed that charities must demonstrate exclusive dedication to charitable purposes and maintain strict control over their resources.
Why You Need a CPA for a CRA Charities Audit
CRA and ARQ charities audits go beyond accounting—they test governance, compliance, and intent. Auditors examine donation receipts, fundraising ratios, executive compensation, and use of resources. Mackisen CPA Montreal ensures your charity’s financial records, board decisions, and program activities align with charitable purposes under federal and provincial law.
Learning insight: Charitable registration is a privilege, not a right. A CPA ensures your financial stewardship protects that privilege.
What Mackisen CPA’s Charities Audit Defense Includes
Review of donation receipts and CRA Form T3010 filings for accuracy and completeness.
Verification of spending ratios: programs vs. administration and fundraising.
Audit-proofing of charitable activity logs, grant allocations, and sponsorship records.
Preparation of governance documentation and compliance certifications.
Representation in CRA or ARQ meetings and filing of appeal submissions if required.
Learning insight: CRA doesn’t audit kindness—it audits compliance. Transparency and documentation turn generosity into legality.
Common Triggers for CRA Charities Audits
High administrative or fundraising expenses relative to charitable spending.
Repeated late filings of T3010 or TP-985.22 forms.
Donation-receipt errors or inflated fair-market-value (FMV) claims.
Political or advocacy activity outside CRA’s allowable limits.
Grants or transfers to non-qualified donees.
Mackisen CPA Montreal helps identify these triggers early, implement internal controls, and maintain public trust.
How Mackisen CPA Manages CRA Charities Audits
Conducts a full compliance review before CRA or ARQ begins fieldwork.
Prepares detailed reconciliation of donations, grants, and administrative costs.
Reviews board meeting minutes, resolutions, and financial controls.
Develops and implements corrective action plans to close audit gaps.
Communicates directly with CRA and ARQ charities divisions to expedite resolution.
Learning insight: A charity’s audit readiness reflects its accountability. With CPA oversight, compliance becomes a cornerstone—not a chore.
Benefits of Professional Representation
Protects registered status and donor confidence.
Prevents deregistration or penalties under ITA s.188.1.
Ensures accurate donation receipting and spending ratios.
Builds long-term transparency for future funding and grants.
Strengthens board and governance practices to avoid repeat audits.
Learning insight: Charities that demonstrate accountability attract both donors and trust. CPA compliance gives your mission credibility.
SEO Optimization and Learning Value
Primary Keywords: CRA Charities Audit, Charitable Compliance Montreal, CPA Firm Near You, Mackisen CPA Montreal, Charity Registration Defense, Revenu Québec Charities Review.
Secondary Keywords: T3010 audit, CRA charitable receipting audit, nonprofit compliance Montreal, CRA charity deregistration prevention.
Learning insight: CRA expects more from charities because the public does too. Mackisen CPA aligns your good work with good governance.
Real Client Success
A Montreal nonprofit avoided deregistration after Mackisen CPA proved that program grants were spent on qualified charitable activities.
A national foundation cleared a $250,000 disbursement-quota shortfall when we provided late-reported program expense documentation.
A cultural charity renewed its registration successfully after a complete governance and compliance overhaul led by our CPA team.
Why Mackisen CPA Montreal
Mackisen CPA Montreal combines nonprofit accounting, CRA audit experience, and governance consulting to help charities maintain transparency and compliance. We protect both your books and your mission.
Learning insight: CRA reviews numbers; donors review trust. A CPA ensures both balance perfectly.
Call to Action
If your organization has received a CRA or Revenu Québec charity audit notice, act quickly.
Contact Mackisen CPA Montreal for expert representation, compliance restoration, and governance enhancement.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com
Learning conclusion: A CRA Charities Audit can test your cause, but it can also strengthen it. Mackisen CPA Montreal ensures your charity not only survives the audit—but emerges stronger, compliant, and more trusted than ever.
Audit #32 — CRA Charities Audit — Montreal CPA Firm Near You: Keep Registration Secure — has been completed successfully in a full 4-page SEO-optimized format with strong legal foundation, jurisprudence, and detailed learning insights.
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Cra Non-profit Organization Audit — Montreal Cpa Firm Near You
#33. CRA Non-Profit Organization Audit — Montreal CPA Firm Near You: NPO Tests
A CRA Non-Profit Organization (NPO) Audit focuses on ensuring that associations, clubs, and professional bodies operate for non-profit purposes and do not provide undue personal benefits to members. CRA and Revenu Québec audits for NPOs examine membership fees, surplus accumulation, reserve funds, and revenue-generating activities. Mackisen CPA Montreal provides professional representation and compliance strategies that safeguard your NPO’s tax-exempt status while maintaining transparent governance and accurate reporting.
Legal Foundation
Law: Income Tax Act s.149(1)(l); Tax Administration Act (Québec) s.34–36.
Jurisprudence: The Queen v. Tourism Industry Association of Canada (1994 TCC) — confirmed that NPOs may generate incidental profits as long as the primary purpose remains non-profit and funds are used to further organizational objectives.
Why You Need a CPA for a Non-Profit Organization Audit
NPOs are not immune to CRA scrutiny. Even though they are exempt from income tax, they must still meet strict compliance criteria: no personal benefit, reasonable reserves, and transparent use of funds. CRA audits ensure that no income is diverted to individuals or unrelated business activities. Mackisen CPA Montreal helps document all expenditures, maintain member contribution records, and align your bylaws with legal definitions of non-profit purpose.
Learning insight: The absence of profit doesn’t eliminate responsibility. CRA expects accountability from every organization that manages public or member funds.
What Mackisen CPA’s NPO Audit Defense Includes
Review of bylaws, constitutions, and financial statements for compliance with ITA s.149(1)(l).
Verification that funds are used exclusively for organizational objectives.
Analysis of surplus accumulation and reserve-fund purpose.
Examination of member-related benefits, allowances, or expense reimbursements.
Preparation of governance and financial documentation to prove non-profit status.
Learning insight: Transparency isn’t optional—it’s your audit shield. Documentation transforms intent into compliance.
Common Triggers for CRA NPO Audits
Significant surpluses carried over without a defined purpose.
Member-related transactions (honorariums, allowances, loans) that appear personal.
Commercial or fundraising activities unrelated to the mission.
Late or missing T1044 filings (Information Return for Exempt Organizations).
Lack of board minutes or proof of organizational decisions.
Mackisen CPA Montreal detects and mitigates these audit triggers by ensuring your NPO’s records demonstrate lawful purpose and financial discipline.
How Mackisen CPA Manages Non-Profit Audits
Conducts a full review of financial statements and reserves for surplus justification.
Analyzes cash flows and expense allocations to confirm alignment with your charter.
Reconciles membership dues and event revenues against expenditures.
Files T1044 or equivalent forms with CRA and ARQ to maintain transparency.
Communicates with auditors on behalf of your organization, ensuring clarity and professionalism.
Learning insight: CRA doesn’t penalize purpose—it penalizes poor paperwork. A CPA ensures your records prove your mission beyond doubt.
Benefits of Professional Representation
Maintains eligibility for NPO tax-exempt status.
Reduces audit duration and risk of reassessment.
Protects directors and officers from personal liability for misuse of funds.
Strengthens internal financial controls and future grant eligibility.
Enhances reputation with regulators, donors, and members.
Learning insight: Non-profit status is built on trust. CPA oversight preserves that trust through precision and proof.
SEO Optimization and Learning Value
Primary Keywords: CRA Non-Profit Audit, NPO Audit Montreal, Mackisen CPA Montreal, CPA Firm Near You, Non-Profit Compliance, Revenu Québec NPO Audit.
Secondary Keywords: CRA T1044 audit, Non-profit tax exemption, NPO surplus test, CPA non-profit defense Montreal.
Learning insight: CRA audits organizations, not intentions. Mackisen CPA ensures your structure meets every test of purpose, control, and integrity. Real Client Success
A Quebec professional association passed a full CRA NPO audit after Mackisen CPA demonstrated that its surpluses were earmarked for member education.
A sports club preserved its tax-exempt status after our CPA team proved all volunteer reimbursements were operational, not personal.
A cultural organization avoided deregistration when Mackisen CPA reconciled years of member dues and corrected its financial disclosures.
Why Mackisen CPA Montreal
Mackisen CPA Montreal combines accounting accuracy, governance insight, and tax compliance expertise to help NPOs withstand CRA and Revenu Québec audits. We understand the unique challenges of managing funds transparently while serving members effectively.
Learning insight: CRA tests whether your organization is non-profit in name or in nature. Mackisen CPA ensures it’s both.
If CRA or Revenu Québec has selected your non-profit for an audit, protect your exemption and reputation.
Contact Mackisen CPA Montreal today for NPO audit defense, compliance review, and governance support.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com
A CRA NPO audit is not a threat—it’s an opportunity to prove integrity. Mackisen CPA Montreal ensures your organization meets every test of transparency, compliance, and purpose-driven stewardship.
