6 Charity Compliance Review tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to charity compliance review work, not a general example.
Case Study 1 · Objection and relief
Desk-Review Assessment Of $106,000 Vacated — Environmental Charity with Restricted, Ottawa
Client: An environmental charity with restricted funds · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
Assessment vacated$106,000
Supporting recordsNow on file
AccountCleared
The situation
An environmental charity with restricted funds in Ottawa, Ontario was carrying $106,000 of penalties and interest arising from a T3010 filed eleven months after year-end for the third year running, much of it accumulated during a period the CRA itself had delayed.
What we did
We reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $106,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 2 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $29,000 — Professional Member Association, Red Deer
Client: A professional member association · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$29,000
Filed with17 days to spare
Next yearPapers ready
The situation
With the deadline for charity compliance review weeks away, a professional member association in Red Deer, Alberta was carrying a disbursement quota shortfall discovered during a CRA charity audit. The exposure if the date slipped was around $29,000.
What we did
We reissued compliant donation receipts and rebuilt the receipting template against the regulation requirements. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 17 days to spare. $29,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Records and systems rebuilt
Month-End Close Cut From 10 Weeks To 8 Days — Community Sports Association, Mississauga
Client: A community sports association · Where: Mississauga, Ontario · Engagement: 3 weeks, fixed fee
Close time before10 weeks
Close time after8 days
Year-endReview, not rebuild
The situation
The accounting file at a community sports association in Mississauga, Ontario was built on restricted grant funds recognised as revenue in the year received rather than as spent. The year-end had taken 10 weeks each of the last three years.
What we did
We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 8 days instead of 10 weeks, and the year-end is a review rather than a reconstruction.
Case Study 4 · CRA review defended
$62,000 Proposed Adjustment Withdrawn In Full — Foundation Making Grants, Regina
Client: A foundation making grants · Where: Regina, Saskatchewan · Engagement: 8 weeks, fixed fee
Adjustment withdrawn$62,000
File closed in8 weeks
Penalties assessedNone
The situation
A foundation making grants in Regina, Saskatchewan received a proposal letter opening a review of charity compliance review. The CRA had identified donation receipts issued without the required registration number and proposed an adjustment of $62,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We brought the T3010 filings current, corrected the prior-year schedules, and set an internal deadline 90 days after year-end so the filing stopped being late, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $62,000 of it. The file closed in 8 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Missed incentive claimed
$69,000 In Credits Claimed That Prior Filings Had Missed — Arts Organisation with Grant, Calgary
Client: An arts organisation with grant funding · Where: Calgary, Alberta · Engagement: 4 weeks, fixed fee
Credits claimed$69,000
Years adjusted6
Review outcomeNo adjustment
The situation
An arts organisation with grant funding in Calgary, Alberta had been filing for 6 years without ever claiming the incentives its activity qualified for. Behind that sat a T3010 filed eleven months after year-end for the third year running.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent.
The result
$69,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 6 · Cash and remittance control
$84,000 Of Working Capital Freed From The Tax Cycle — Registered Charity with Two, Burnaby
Client: A registered charity with two program streams · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Working capital freed$84,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A registered charity with two program streams in Burnaby, British Columbia was profitable on paper and short of cash every month. A T3010 filed eleven months after year-end for the third year running explained most of the gap.
What we did
We reissued compliant donation receipts and rebuilt the receipting template against the regulation requirements and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$84,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
