Maintaining Charitable Status and Filing T3010 2025 — How to Stay Compliant and Avoid CRA Penalties

Once registered as a charity, compliance is ongoing. CRA requires annual filings, transparent financial reporting, and adherence to approved charitable activities. Missing T3010 or CO-17.S returns can lead to revocation or penalties. Mackisen CPA Auditors Montreal manages every aspect of compliance, ensuring your organization maintains good standing with CRA and Revenu Québec.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 149.1: Defines obligations of registered charities, including public benefit, recordkeeping, and annual filing.
CRA Form T3010: Mandatory return for all registered charities, filed within six months of year-end.
Taxation Act (Quebec) Section 1000: Requires CO-17.S filing for Quebec-registered charities.
CRA Policy CPS-024: Details best practices for financial accountability and restricted fund management.
Charities Accounting Act (Ontario): Establishes penalties for misuse of charitable property.

Key Court Decisions

Alliance for Life Ontario v. M.N.R. (1999): Upheld CRA’s authority to revoke status for political activities.
Bayit Lepletot v. The Queen (2017): Reaffirmed that business income must serve charitable purposes.
Toronto Humane Society v. Canada (2020): Confirmed that excessive administrative costs can breach public benefit requirements.

Why CRA and Revenu Québec Audit Charities

Audits target charities with late or missing filings, unexplained revenue, or excessive fundraising costs. CRA compares T3010 data against donor tax claims to identify discrepancies. Revenu Québec focuses on misreported grants and fundraising events. Mackisen ensures consistent, verifiable reporting across all levels.

Mackisen’s Strategy

1. Filing Compliance — Prepare and submit T3010 and CO-17.S within deadlines.

2. Governance Review — Verify board minutes, disbursement quotas, and restricted fund usage.

3. Financial Transparency — Prepare annual financial statements meeting audit requirements.

4. Fund Management — Track and segregate donations to meet CRA’s public benefit tests.

5. Audit Support — Represent organizations during CRA and Revenu Québec reviews.

Real Client Experience

A Montreal charity lost status after failing to file for two years. Mackisen filed retroactive returns, reconciled accounts, and secured reinstatement. A Quebec foundation faced CRA questions about donor receipts; Mackisen verified records and cleared all findings.

Common Questions

When is the T3010 due? Within six months of fiscal year-end.
Can I file late? Yes, but delays may suspend your charitable status.
Do I need audited financials? Required if annual revenue exceeds CRA thresholds.

Why Mackisen

Mackisen CPA Auditors Montreal ensure your charity meets all filing and reporting obligations. We manage CRA correspondence, prevent revocation, and maintain donor confidence. Call Mackisen CPA Auditors Montreal today for your 2025 Charity Compliance Consultation. The first meeting is free and protects your charitable status.