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

A CRA Charities Audit is a specialized compliance examination conducted to verify whether a registered charity continues to meet the requirements of the Income Tax Act, including proper use of donations, maintenance of adequate books, and compliance with fundraising and receipting regulations.
Mackisen CPA Montreal assists charitable organizations across Québec and Canada to prepare, defend, and strengthen their compliance posture — ensuring continued registration and protection from penalties or revocation.

Legal Foundation

Law: Income Tax Act s.149.1 (definition and obligations of registered charities), s.188.1 (penalties and revocation), and s.230 (record-keeping).
Jurisprudence: Human Life International in Canada Inc. v. Minister of National Revenue (1998 FCA) — CRA may revoke charitable registration if the organization fails to devote substantially all its resources to charitable purposes.

Learning insight: CRA doesn’t question your cause — it questions your compliance. Mackisen CPA ensures your charitable impact is supported by transparent, audit-proof documentation.

Why CRA Targets Charitable Organizations

CRA’s Charities Directorate monitors over 85,000 registered charities and selects files for audit based on specific risk indicators, including:

• Incomplete or inaccurate T3010 annual returns.

• Fundraising costs exceeding program spending.

• Related-party transactions without fair-market justification.

• Foreign activities not properly tracked or reported.

• Political or advocacy activities outside CRA’s allowable limits.

• Donor-receipt irregularities or false receipting schemes.

Learning insight: Charities aren’t targeted for good work — they’re tested for good records. Mackisen CPA transforms your mission data into verifiable compliance evidence.

CRA Charities Audit Process

1. Audit Notice Issued: CRA provides a written notification outlining scope, years under review, and required records.

2. Pre-Audit Review: CRA assesses Form T3010, financial statements, and past correspondence for inconsistencies.

3. On-Site Examination: CRA visits the charity’s offices to inspect donation receipts, minutes, contracts, and activity records.

4. Findings & Recommendations: CRA issues a proposal letter with findings and gives time for response.

5. Final Decision: CRA may accept explanations, impose sanctions, or proceed with revocation.

Learning insight: CRA expects clarity. When your purpose, spending, and records all align, the audit becomes a confirmation — not a confrontation.

Mackisen CPA’s Charity-Audit Defense Framework

1. T3010 Reconciliation: Align T3010 data with audited financial statements.

2. Donation Receipting Review: Verify that all receipts include mandatory fields and match donor ledgers.

3. Fundraising Efficiency Analysis: Calculate ratios and benchmarks against CRA guidelines.

4. Foreign Activities Documentation: Confirm that overseas projects meet “direction and control” standards.

5. Governance Proof: Review board minutes, conflict-of-interest policies, and CRA correspondence.

6. Audit Response Management: Draft legal and accounting replies addressing CRA’s technical findings.

Learning insight: The audit isn’t about punishment — it’s about process. Mackisen CPA builds the process before CRA arrives.

Frequent CRA Findings in Charity Audits

• Missing or duplicate donation receipts.

• Excessive administrative or fundraising expenses.

• Related-party transactions lacking independent approval.

• Foreign charitable work without signed agency agreements.

• Misallocation between charitable and political activities.

• Failure to maintain 10-year gift records.

Mackisen CPA identifies these weaknesses before CRA does — turning vulnerabilities into structured compliance controls.

Learning insight: CRA respects structure. Mackisen CPA builds compliance systems that stand up to every question.

Real-World Success

• A Montréal-based non-profit avoided revocation after Mackisen CPA reconstructed seven years of missing donor receipts and governance minutes.

• A humanitarian foundation retained its charitable status when we proved that 92% of its foreign spending met the “direction and control” requirement.

• A religious organization reduced a $45,000 penalty to zero after Mackisen CPA demonstrated that its fundraising costs were necessary and proportionate.

Learning insight: CRA can revoke a number — not a mission. Mackisen CPA ensures your mission remains recognized, regulated, and respected.

Educational and SEO Value

Primary Keywords: CRA Charities Audit, Charitable Registration CRA, Mackisen CPA Montreal, Charity Audit Canada, CPA Firm Near You, CRA Nonprofit Compliance.
Secondary Keywords: CRA T3010 audit, charitable receipts Canada, Mackisen charity defense, CRA political activity rules, charity registration protection.

Learning insight: CRA demands compliance; Google rewards authority. Mackisen CPA Montreal earns both by turning professional expertise into trusted, shareable education.

Why Mackisen CPA Montreal

With more than 35 years of combined CPA and charity-compliance experience, Mackisen CPA Montreal represents registered charities, foundations, religious institutions, and NGOs before CRA and Revenu Québec.
We align mission-driven organizations with accounting precision and legislative transparency — ensuring that every dollar donated serves both your cause and the law.

Learning insight: Charity builds trust through impact; Mackisen CPA protects that trust through compliance.

Call to Action

If your organization has received a CRA Charities Audit notice, or you wish to strengthen your compliance before one arrives, contact Mackisen CPA Montreal for a full charity audit defense plan.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A charity’s credibility is built on cause and compliance. Mackisen CPA Montreal ensures your financial integrity and charitable purpose remain beyond reproach — so you can keep making a difference without disruption.