6 worked Charity Financial Audit 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 financial audit work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$11,500 Saved By Correcting What Prior Filings Had Missed — Religious Congregation, Saskatoon
Client: A religious congregation · Where: Saskatoon, Saskatchewan · Engagement: 7 weeks, fixed fee
Saving identified$11,500
RecurringYes
Positions documentedAll
The situation — A religious congregation, Saskatoon, Saskatchewan
A religious congregation in Saskatoon, Saskatchewan asked for a second opinion on charity financial audit. That followed three years of rising tax. The review found a T3010 filed eleven months after year-end for the third year running.
What we did for A religious congregation, Saskatoon, Saskatchewan
We built the comparison first: current structure against two alternatives. Then 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 result — A religious congregation, Saskatoon, Saskatchewan
First-year saving of $11,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 2 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $120,000 — Charity with Related Business, Brampton
Client: A charity operating a related business activity · Where: Brampton, Ontario · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$120,000
Filed with19 days to spare
Next yearPapers ready
The situation — A charity operating a related business activity, Brampton, Ontario
A charity operating a related business activity in Brampton, Ontario was weeks away from the deadline for charity financial audit. Behind that sat restricted grant funds recognised as revenue in the year received rather than as spent. The exposure if the date slipped was around $120,000.
What we did for A charity operating a related business activity, Brampton, Ontario
We papered the grant with written accountability terms, reporting milestones and a right to recover anything unspent. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A charity operating a related business activity, Brampton, Ontario
Filed with 19 days to spare. $120,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Backlog brought current
$71,000 Of Arbitrary Assessments Vacated After 6 Years — Social Services Agency, Red Deer
Client: A social services agency · Where: Red Deer, Alberta · Engagement: 6 weeks, fixed fee
Arbitrary tax vacated$71,000
Years brought current6
Account statusCurrent
The situation — A social services agency, Red Deer, Alberta
6 years of unfiled returns had turned into notional assessments at a social services agency in Red Deer, Alberta. Underneath lay program funds granted to a group that was not a qualified donee, with nothing on file about how the money was to be used. Collections had already started.
What we did for A social services agency, Red Deer, Alberta
We reissued compliant donation receipts and rebuilt the receipting template against the regulation requirements. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A social services agency, Red Deer, Alberta
All 6 years were accepted as filed. $71,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 6 years.
Case Study 4 · CRA review defended
$15,500 Reassessment Reduced To Nil On Review — Grant-Funded Arts Organisation, Moncton
Client: An arts organisation with grant funding · Where: Moncton, New Brunswick · Engagement: 3 weeks, fixed fee
Reassessment reduced toNil
Tax protected$15,500
Prior filingsUndisturbed
The situation — An arts organisation with grant funding, Moncton, New Brunswick
A review notice arrived at an arts organisation with grant funding in Moncton, New Brunswick, covering charity financial audit for two tax years. The auditor's working position was an adjustment of $15,500. It was driven by GST/HST paid on everything with no public service body rebate ever claimed.
What we did for An arts organisation with grant funding, Moncton, New Brunswick
Rather than negotiate, we rebuilt the record. We separated the charitable program activity from the revenue-generating activity in the accounts, so each was reported on the schedule it belonged in. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — An arts organisation with grant funding, Moncton, New Brunswick
The auditor accepted the documented position and closed the review without adjustment, protecting $15,500 and leaving the prior filings undisturbed.
Case Study 5 · Cash and remittance control
Remittance Schedule Corrected, $134,000 Refunded — Public Service Body, Guelph
Client: A public service body absorbing sales tax on its purchases · Where: Guelph, Ontario · Engagement: 8 weeks, fixed fee
Overpayment refunded$134,000
Late remittances sinceZero
ScheduleAutomated
The situation — A public service body absorbing sales tax on its purchases, Guelph, Ontario
Remittances at a public service body absorbing sales tax on its purchases in Guelph, Ontario were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat a disbursement quota shortfall discovered during a CRA charity audit.
What we did for A public service body absorbing sales tax on its purchases, Guelph, Ontario
We stopped the receipting immediately and wrote to donors setting out which contributions were and were not eligible for a credit. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A public service body absorbing sales tax on its purchases, Guelph, Ontario
Penalties stopped from the following remittance onwards, and $134,000 of overpaid instalments was refunded.
Case Study 6 · Objection and relief
$136,000 Of Penalties And Interest Cancelled On Relief — Grant-Making Foundation, Calgary
Client: A foundation making grants · Where: Calgary, Alberta · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$136,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A foundation making grants, Calgary, Alberta
An assessment of $136,000 landed at a foundation making grants in Calgary, Alberta following a desk review. It turned on surplus accumulating year after year with no resolution recording what it was being held for. The auditor had not seen the records behind it.
What we did for A foundation making grants, Calgary, Alberta
We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A foundation making grants, Calgary, Alberta
$136,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
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.
