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 Revenue 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

1. Conducts a full compliance review before CRA or ARQ begins fieldwork.

2. Prepares detailed reconciliation of donations, grants, and administrative costs.

3. Reviews board meeting minutes, resolutions, and financial controls.

4. Develops and implements corrective action plans to close audit gaps.

5. 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

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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.

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.