CRA Charities Audit — Montreal CPA Firm Near You: Keep Registration Secure

A CRA Charities Audit focuses on verifying whether a registered charity continues to meet the legislative requirements for maintaining its charitable status. The Canada Revenue Agency (CRA) and Revenue Québec review fundraising activities, donation receipts, expenditures, and the use of funds to ensure compliance with both federal and provincial law. Mackisen CPA Montreal provides full audit defense and compliance management for charities, foundations, and non-profit organizations (NPOs) that rely on public trust and regulatory approval.

Legal Foundation

Law: Income Tax Act s.149.1 — defines charitable status and conditions for maintaining registration.
Jurisprudence: Human Life International in Canada Inc. v. MNR (1998 FCA) — confirmed that charities must operate exclusively for charitable purposes and devote substantially all resources to these activities.

Why You Need a CPA for a Charities Audit

CRA and ARQ auditors review more than financial statements—they examine governance, fundraising methods, and how donations are spent. Improper receipting, foreign activities, or ineligible expenditures can result in penalties, revocation, or loss of registration. A CPA ensures your charity’s financials and filings demonstrate transparency, compliance, and accountability.

Mackisen CPA Montreal develops comprehensive audit-ready systems that protect your organization from errors and preserve your registration status.

Learning insight: A charity audit isn’t about punishment—it’s about proving stewardship. A CPA shows that your organization manages donations with integrity and legal precision.

What Mackisen CPA’s Charity Audit Representation Includes

• Full review of CRA Form T3010 and Revenue Québec CO-17.SP filings.

• Verification of donation receipts for compliance with CRA guidelines.

• Governance and board-minute review for proper oversight documentation.

• Audit defense for foreign activity reporting (Form T3010 Schedule 2).

• Correction and amendment of previously issued receipts or expense allocations.

Learning insight: CRA views transparency as trust. The clearer your records, the more likely your organization is to maintain its registration.

Common Triggers for CRA Charities Audits

• Incomplete or inaccurate T3010 filings.

• Disproportionate administrative or fundraising expenses.

• Grants or disbursements to non-qualified donees.

• Foreign programs without supporting documentation.

• Donor-receipting irregularities or inflated valuations.

Mackisen CPA Montreal proactively addresses these risks by aligning your governance, accounting, and operational records with CRA’s compliance framework.

How Mackisen CPA Manages the Charity Audit Process

1. Conducts an initial compliance review using CRA’s Charities Directorate checklist.

2. Audits donation receipts, bank accounts, and expense allocations.

3. Reviews charitable activity definitions under ITA s.149.1 and ARQ rules.

4. Prepares a full response to CRA’s audit queries supported by law and documentation.

5. Implements governance and recordkeeping improvements for future compliance.

Learning insight: CRA auditors respect professionalism. When your responses are CPA-verified, your file is seen as organized, credible, and cooperative.

Benefits of Professional Representation

• Preserves charitable registration and reputation.

• Prevents costly revocation and penalties under ITA s.188.1.

• Builds trust with donors, government agencies, and grant providers.

• Enhances transparency and board accountability.

• Strengthens governance for long-term sustainability.

Learning insight: The cost of audit preparation is always less than the cost of losing registration. Prevention is your charity’s most effective safeguard.

SEO Optimization and Learning Value

Primary Keywords: CRA Charities Audit, Revenue Québec Charities Audit, CPA Firm Near You, Charity Tax Representation, Registered Charity Compliance, Non-Profit Audit Montreal, CRA Audit Help.
Secondary Keywords: CRA T3010 review, charity registration Montreal, donation receipting rules, CRA charity law compliance.

Learning insight: Charitable compliance is financial ethics in action. Mackisen CPA ensures your organization’s purpose, policies, and numbers reflect integrity and community trust.

Real Client Success

• A Montreal foundation preserved its charitable status after CRA questioned foreign disbursements; Mackisen CPA provided complete governance evidence and legal support.

• A non-profit avoided a $75,000 penalty when our team corrected donation-receipt errors and resubmitted verified forms.

• A religious organization passed a Revenue Québec audit after we restructured its books to align with registered-charity definitions.

Why Mackisen CPA Montreal

With over 35 years of combined expertise in non-profit and charity audits, Mackisen CPA Montreal ensures that your cause is not overshadowed by compliance risks. We combine accounting discipline, audit experience, and legal understanding to protect what matters most—your mission.

Learning insight: Charities exist to serve the public; Mackisen CPA exists to protect their ability to do so. Compliance is not paperwork—it’s preservation of purpose.

Learning conclusion: Charitable registration is both a privilege and a responsibility. Mackisen CPA Montreal ensures your finances, governance, and filings demonstrate the integrity your donors—and the law—expect.