6 worked Charity Compliance Review case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to charity compliance review work, not a specific client's file.
Case Study 1 · Objection and relief
Desk-Review Assessment Of $106,000 Vacated — First-Time Information Filer, Ottawa
Client: A non-profit that has never filed an information return · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
Assessment vacated$106,000
Supporting recordsNow on file
AccountCleared
The situation — A non-profit that has never filed an information return, Ottawa, Ontario
A non-profit that has never filed an information return in Ottawa, Ontario was carrying $106,000 of penalties and interest. The charges arose from restricted grant funds recognised as revenue in the year received rather than as spent. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A non-profit that has never filed an information return, Ottawa, Ontario
We reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A non-profit that has never filed an information return, Ottawa, Ontario
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 — Housing Non-Profit, Red Deer
Client: A housing non-profit · 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 — A housing non-profit, Red Deer, Alberta
A housing non-profit in Red Deer, Alberta was weeks away from the deadline for charity compliance review. Behind that sat program funds granted to a group that was not a qualified donee, with nothing on file about how the money was to be used. The exposure if the date slipped was around $29,000.
What we did for A housing non-profit, Red Deer, Alberta
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A housing non-profit, Red Deer, Alberta
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 — Grant-Making Foundation, Mississauga
Client: A foundation making grants · Where: Mississauga, Ontario · Engagement: 3 weeks, fixed fee
Close time before10 weeks
Close time after8 days
Year-endReview, not rebuild
The situation — A foundation making grants, Mississauga, Ontario
The accounting file at a foundation making grants in Mississauga, Ontario had a weak foundation. It was built on GST/HST paid on everything with no public service body rebate ever claimed. The year-end had taken 10 weeks each of the last three years.
What we did for A foundation making grants, Mississauga, Ontario
We papered the grant with written accountability terms, reporting milestones and a right to recover anything unspent. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A foundation making grants, Mississauga, Ontario
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 — Public Service Body, Regina
Client: A public service body absorbing sales tax on its purchases · Where: Regina, Saskatchewan · Engagement: 8 weeks, fixed fee
Adjustment withdrawn$62,000
File closed in8 weeks
Penalties assessedNone
The situation — A public service body absorbing sales tax on its purchases, Regina, Saskatchewan
A public service body absorbing sales tax on its purchases in Regina, Saskatchewan received a proposal letter opening a review of charity compliance review. The CRA had identified a disbursement quota shortfall discovered during a CRA charity audit. It proposed an adjustment of $62,000, with 30 days to respond.
What we did for A public service body absorbing sales tax on its purchases, Regina, Saskatchewan
We treated the response as an evidence exercise rather than an argument. We reissued compliant donation receipts and rebuilt the receipting template against the regulation requirements. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A public service body absorbing sales tax on its purchases, Regina, Saskatchewan
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 — Grant-Funded Arts Organisation, 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, Calgary, Alberta
An arts organisation with grant funding in Calgary, Alberta had been filing for 6 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat restricted grant funds recognised as revenue in the year received rather than as spent.
What we did for An arts organisation with grant funding, Calgary, Alberta
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we separated the charitable program activity from the revenue-generating activity in the accounts, so each was reported on the schedule it belonged in.
The result — An arts organisation with grant funding, Calgary, Alberta
$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 — Social Services Agency, Burnaby
Client: A social services agency · 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 social services agency, Burnaby, British Columbia
A social services agency in Burnaby, British Columbia was profitable on paper and short of cash every month. Donation receipts issued without the required registration number explained most of the gap.
What we did for A social services agency, Burnaby, British Columbia
We stopped the receipting immediately and wrote to donors setting out which contributions were and were not eligible for a credit. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A social services agency, Burnaby, British Columbia
$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 by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
