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

A CRA Charities Audit reviews whether your registered charity continues to meet the requirements of the Income Tax Act. CRA ensures donations are receipted properly, funds are used for charitable purposes, and administrative costs remain reasonable. These audits test governance, transparency, and accountability — not just your accounting.
Mackisen CPA Montreal provides complete CRA audit defense and governance advisory for registered charities, non-profits, and foundations, ensuring your registration stays secure and your mission continues uninterrupted.

Legal Foundation

Law: Income Tax Act s.149.1 (rules for registered charities and foundations); Charities Registration (Security Information) Act; CRA Guidance CG-002 (Compliance Audits).
Jurisprudence: Human Life International in Canada Inc. v. M.N.R. (1998 FCA) — charities must devote substantially all resources to charitable activities and maintain control over use of funds.

Learning insight: CRA doesn’t audit generosity — it audits governance. Mackisen CPA helps you prove both.

Why CRA Audits Charities

CRA’s Charities Directorate conducts risk-based audits every year. Charities with inconsistent reporting or questionable activities are prioritized for review. Common triggers include:

• Excessive administrative or fundraising costs.

• Missing or incorrect T3010 annual information returns.

• Receipting errors (split receipts, fair-market-value issues).

• Political or advocacy activities exceeding 10% of resources.

• Transfers to foreign organizations without direction and control.

• Anonymous tips or donor complaints.

Learning insight: Transparency isn’t optional for charities — it’s the currency of trust. Mackisen CPA ensures your compliance earns that trust.

What CRA Checks During a Charity Audit

• Books and Records: CRA tests the accuracy of financial statements and donation ledgers.

• Receipting Practices: Validation of donor receipts, serial numbers, and eligible-gift details.

• Governance and Control: Review of bylaws, minutes, and conflict-of-interest policies.

• Program Expenditures: CRA ensures resources are spent directly on charitable purposes.

• Foreign Operations: Proof that overseas disbursements are properly directed and monitored.

Learning insight: CRA evaluates “direction and control” — meaning your charity must show how, not just where, money is spent.

Mackisen CPA’s Charities Audit Defense System

1. Compliance Review: Analyze your T3010 filings, receipts, and program spending ratios.

2. Governance Audit: Review board practices, meeting minutes, and internal controls.

3. Receipting Verification: Validate form, content, and numbering of donation receipts.

4. Expenditure Mapping: Match program costs to charitable objectives and fund restrictions.

5. Foreign Disbursement Oversight: Ensure all transfers abroad meet CRA’s control requirements.

6. CRA Representation: Handle all communications, meetings, and post-audit appeals.

Learning insight: CRA closes audits faster when your CPA presents the file as a system, not a stack of receipts.

Common CRA Findings in Charity Audits

• Donation receipts missing CRA-required details.

• Personal benefits to directors or members.

• Overlap between charitable and business activities.

• Missing documentation for restricted funds or grants.

• Late or incomplete T3010 filings.

Mackisen CPA Montreal identifies and fixes these issues proactively, preparing a compliant, evidence-based defense before CRA finishes its review.

Learning insight: CRA’s definition of compliance is documentation, not intention. We help you prove both.

Penalties and Sanctions for Non-Compliance

CRA can impose serious penalties if deficiencies are found:

• Suspension of Receipting Privileges (up to 1 year).

• Revocation of Registration, leading to a 100% revocation tax on remaining assets.

• Financial Penalties under ITA s.188.1 for improper receipting or ineligible activities.

• Loss of Charitable Status, disqualifying the organization from federal and provincial benefits.

Learning insight: For charities, loss of status isn’t just financial — it’s reputational. Mackisen CPA prevents both.

SEO Optimization and Learning Value

Primary Keywords: CRA Charities Audit, Mackisen CPA Montreal, CPA Firm Near You, Charity Compliance Canada, Registered Charity Audit Defense.
Secondary Keywords: CRA T3010 review, donation receipt verification, charitable governance audit, CRA revocation prevention, Revenu Québec non-profit audit.

Learning insight: Online authority comes from transparency — so does CRA compliance. Mackisen CPA builds both into every client relationship.

Real Client Success

• A Montréal humanitarian foundation avoided revocation after Mackisen CPA proved all overseas grants were controlled under written agreements.

• A private education charity reinstated receipting privileges after our team corrected reporting errors and retrained staff on CRA receipting rules.

• A community arts organization passed its CRA audit with zero adjustments when Mackisen CPA reconstructed its donation and expense ledgers for three prior years.

Learning insight: CRA accepts human error — but only when it’s followed by professional correction.

Why Mackisen CPA Montreal

Mackisen CPA Montreal has 35 years of experience supporting charities and non-profits across Québec and Canada. Our bilingual team of CPAs provides financial transparency, audit representation, and strategic governance solutions to help organizations focus on their missions, not their audits.
We ensure compliance with both federal and provincial regulations — protecting your charitable registration while enhancing donor confidence.

Learning insight: A charity’s purpose inspires donors — its compliance sustains them. Mackisen CPA ensures you excel at both.