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

A CRA Charities Audit focuses on verifying whether registered charities and non-profit organizations comply with the Income Tax Act, particularly regarding donation receipting, fundraising activities, and the use of charitable resources. Mackisen CPA Montreal represents charities, foundations, and non-profit organizations during CRA audits to protect their registration, reputation, and donor trust.

Charities are held to a higher legal standard — not just for financial accuracy, but for ethical accountability. Our goal is to help you maintain transparency while avoiding deregistration, penalties, or loss of public confidence.

Legal Foundation

Law: Income Tax Act s.149.1 — defines requirements for charitable registration and ongoing compliance.
Jurisprudence: Human Life International v. Minister of National Revenue (1998 FCA) — confirmed that charities must devote resources exclusively to charitable purposes and maintain adequate control over funds.

Learning insight: A charity’s greatest asset is credibility. Mackisen CPA ensures every donation, expense, and activity reinforces that trust.

Why CRA Conducts Charities Audits

The CRA’s Charities Directorate conducts audits when:

• Donation receipts appear inflated or improperly issued.

• Excessive fundraising or administrative costs raise concern.

• Charitable funds are transferred to unregistered entities.

• Political or non-charitable activities exceed allowable limits.

• Disbursement quotas or books and records are incomplete.

Learning insight: CRA doesn’t audit for punishment — it audits for proof. With the right documentation, your cause remains fully protected.

CRA Audit Process for Charities

1. Notice of Audit: CRA informs the charity that its operations are under review.

2. Records Review: CRA requests donation receipts, ledgers, and governing documents.

3. Activity Analysis: CRA checks that all spending supports charitable objectives.

4. Compliance Evaluation: CRA measures adherence to the 3% disbursement quota and receipting standards.

5. Outcome: CRA may issue a compliance agreement, suspend receipting privileges, or recommend deregistration.

Mackisen CPA Montreal ensures that your responses are complete, timely, and aligned with legal standards to prevent negative outcomes.

What Mackisen CPA’s Charities Audit Defense Includes

• Full review of donation receipts, ledgers, and financial statements.

• Verification of disbursement-quota compliance and allowable expense ratios.

• Audit of charitable programs versus administrative costs.

• Preparation of proper donation receipts under ITA s.3501.

• Liaison with CRA Charities Directorate to resolve findings amicably.

Learning insight: Every receipt tells a story — of compliance or of concern. Mackisen CPA ensures yours tell the right one.

Common Red Flags in CRA Charities Audits

• Fund transfers to foreign or unregistered organizations.

• Personal benefit from charitable funds or related-party transactions.

• Missing or duplicate donation receipts.

• Fundraising contracts with excessive third-party fees.

• Political or advocacy activities exceeding the 10% threshold.

Mackisen CPA mitigates all of these risks through documentation, reconciliation, and compliance-driven governance controls.

Real-World Results

• A Montréal humanitarian charity maintained its registered status after CRA questioned its foreign disbursements — Mackisen CPA documented full operational control.

• A Québec educational foundation avoided a receipting suspension when our team rebuilt its donation-tracking system within 30 days.

• A community non-profit cleared a $75,000 reassessment when we proved that its program expenses qualified as charitable work.

Learning insight: CRA wants transparency, not termination. Mackisen CPA delivers transparency through organization and accountability.

SEO Optimization and Educational Value

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Secondary Keywords: CRA Charities Directorate audit, non-profit compliance, Mackisen CPA audit support, CRA donation receipt errors, Montréal charity CPA firm.

Learning insight: Credibility drives both Google ranking and donor trust. A compliant charity is a visible charity.

Why Mackisen CPA Montreal

Mackisen CPA Montreal provides complete CRA audit support for charities and non-profits — from registration to annual filings and audit representation. Our bilingual CPA team ensures every record, receipt, and return meets CRA and Revenu Québec standards. We combine accounting, legal, and governance expertise to protect your charitable status and reputation.

Learning insight: Charitable compliance isn’t paperwork — it’s stewardship. Mackisen CPA helps you serve with integrity, not anxiety.

Call to Action

If CRA or Revenu Québec has contacted your charity for an audit or compliance review, act quickly.
Contact Mackisen CPA Montreal today for audit defense, registration maintenance, and receipting compliance.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: CRA Charities Audits test integrity, not intent. Mackisen CPA Montreal safeguards your mission with transparent accounting, legal compliance, and unwavering professionalism.