6 worked Charity Financial Statements 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 statements work, not a specific client's file.
Case Study 1 · Objection and relief
$36,500 Of Penalties And Interest Cancelled On Relief — Charity with Related Business, Moncton
Client: A charity operating a related business activity · Where: Moncton, New Brunswick · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$36,500
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A charity operating a related business activity, Moncton, New Brunswick
An assessment of $36,500 landed at a charity operating a related business activity in Moncton, New Brunswick following a desk review. It turned on GST/HST paid on everything with no public service body rebate ever claimed. The auditor had not seen the records behind it.
What we did for A charity operating a related business activity, Moncton, New Brunswick
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 charity operating a related business activity, Moncton, New Brunswick
$36,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Scaling without breaking
Second-Province Expansion Handled, $114,000 Of Cash Released — Social Services Agency, Kitchener
Client: A social services agency · Where: Kitchener, Ontario · Engagement: 6 weeks, fixed fee
Cash released$114,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A social services agency, Kitchener, Ontario
Revenue at a social services agency in Kitchener, Ontario was up sharply and cash was tighter than ever. Underneath it 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.
What we did for A social services agency, Kitchener, Ontario
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. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A social services agency, Kitchener, Ontario
$114,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 3 · Records and systems rebuilt
Books Rebuilt From Source, $6,900 In Unclaimed Input Tax Found — Grant-Funded Arts Organisation, London
Client: An arts organisation with grant funding · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Unclaimed tax found$6,900
Records rebuilt31 months
ProcessDocumented
The situation — An arts organisation with grant funding, London, Ontario
An arts organisation with grant funding in London, Ontario could not answer basic questions about its own numbers. Restricted grant funds recognised as revenue in the year received rather than as spent sat between the bank statements and the ledger.
What we did for An arts organisation with grant funding, London, Ontario
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 documented the process so the work does not depend on any one person remembering how it was done.
The result — An arts organisation with grant funding, London, Ontario
Records rebuilt and reconciled, $6,900 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $18,000 Saved Each Year — Public Service Body, Hamilton
Client: A public service body absorbing sales tax on its purchases · Where: Hamilton, Ontario · Engagement: 5 weeks, fixed fee
Annual saving$18,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A public service body absorbing sales tax on its purchases, Hamilton, Ontario
A public service body absorbing sales tax on its purchases in Hamilton, Ontario had outgrown the structure it started with. A T3010 filed eleven months after year-end for the third year running was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A public service body absorbing sales tax on its purchases, Hamilton, Ontario
We mapped the current structure and modelled the target. Then we recorded the purpose of each reserve, so the accumulated surplus supported the organisation’s status rather than raising a question about it. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A public service body absorbing sales tax on its purchases, Hamilton, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $18,000 a year while removing the exposure the old one carried.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $104,000 Across 3 Open Years — Grant-Making Foundation, Mississauga
Client: A foundation making grants · Where: Mississauga, Ontario · Engagement: 3 weeks, fixed fee
Recovered$104,000
Open years claimed3
Ongoing trackingIn place
The situation — A foundation making grants, Mississauga, Ontario
An incentive review at a foundation making grants in Mississauga, Ontario started from a simple question: what has never been claimed? The answer ran to 3 years. It was driven by program funds granted to a group that was not a qualified donee, with nothing on file about how the money was to be used.
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 documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A foundation making grants, Mississauga, Ontario
The credits produced $104,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $68,000 Across Corporate And Personal Returns — Housing Non-Profit, Lethbridge
Client: A housing non-profit · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Combined saving$68,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A housing non-profit, Lethbridge, Alberta
Nothing was wrong at a housing non-profit in Lethbridge, Alberta. The filings were on time and accurate. What they were not was planned. Donation receipts issued without the required registration number had never been reviewed.
What we did for A housing non-profit, Lethbridge, Alberta
We stopped the receipting immediately and wrote to donors setting out which contributions were and were not eligible for a credit. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A housing non-profit, Lethbridge, Alberta
$68,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
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.
