6 worked Foundation Accounting and Tax 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 foundation accounting and tax work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $14,000 In Unclaimed Input Tax Found — Grant-Making Foundation, Kitchener
Client: A foundation making grants · Where: Kitchener, Ontario · Engagement: 10 weeks, fixed fee
Unclaimed tax found$14,000
Records rebuilt15 months
ProcessDocumented
The situation — A foundation making grants, Kitchener, Ontario
A foundation making grants in Kitchener, Ontario could not answer basic questions about its own numbers, because tax receipts issued for two years by an organisation that was registered only as a non-profit sat between the bank statements and the ledger.
What we did for A foundation making grants, Kitchener, Ontario
We papered the grant with written accountability terms, reporting milestones and a right to recover anything unspent, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A foundation making grants, Kitchener, Ontario
Records rebuilt and reconciled, $14,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · Objection and relief
$92,000 Of Penalties And Interest Cancelled On Relief — First-Time Information Filer, Winnipeg
Client: A non-profit that has never filed an information return · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$92,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A non-profit that has never filed an information return, Winnipeg, Manitoba
An assessment of $92,000 landed at a non-profit that has never filed an information return in Winnipeg, Manitoba following a desk review. The auditor had not seen the records behind restricted grant funds recognised as revenue in the year received rather than as spent.
What we did for A non-profit that has never filed an information return, Winnipeg, Manitoba
We recorded the purpose of each reserve, so the accumulated surplus supported the organisation’s status rather than raising a question about it, then set out the legislative basis for the position alongside the documents supporting it.
The result — A non-profit that has never filed an information return, Winnipeg, Manitoba
$92,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · CRA review defended
$12,000 Proposed Adjustment Withdrawn In Full — Community Sports Association, Kelowna
Client: A community sports association · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$12,000
File closed in11 weeks
Penalties assessedNone
The situation — A community sports association, Kelowna, British Columbia
A community sports association in Kelowna, British Columbia received a proposal letter opening a review of foundation accounting and tax. The CRA had identified GST/HST paid on everything with no public service body rebate ever claimed and proposed an adjustment of $12,000, with 30 days to respond.
What we did for A community sports association, Kelowna, British Columbia
We treated the response as an evidence exercise rather than an argument. We separated the charitable program activity from the revenue-generating activity in the accounts, so each was reported on the schedule it belonged in, then indexed every supporting document against the specific line the auditor had questioned.
The result — A community sports association, Kelowna, British Columbia
The proposed adjustment was withdrawn in full — all $12,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Case Study 4 · Deadline rescue
Filed On Time From A Standing Start, $71,000 Penalty Avoided — Member Association, Burnaby
Client: A professional member association · Where: Burnaby, British Columbia · Engagement: 10 weeks, fixed fee
Penalty avoided$71,000
Turnaround10 weeks
FiledOn time
The situation — A professional member association, Burnaby, British Columbia
A professional member association in Burnaby, British Columbia came to us 10 weeks before its filing deadline with surplus accumulating year after year with no resolution recording what it was being held for. A late filing would have triggered a penalty of roughly $71,000 before interest.
What we did for A professional member association, Burnaby, British Columbia
We worked backwards from the deadline. 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, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A professional member association, Burnaby, British Columbia
The return was filed on time and complete. The $71,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $77,000 Across 4 Open Years — Restricted-Fund Charity, Mississauga
Client: An environmental charity with restricted funds · Where: Mississauga, Ontario · Engagement: 11 weeks, fixed fee
Recovered$77,000
Open years claimed4
Ongoing trackingIn place
The situation — An environmental charity with restricted funds, Mississauga, Ontario
An incentive review at an environmental charity with restricted funds in Mississauga, Ontario started from a simple question: what has never been claimed? The answer ran to 4 years, driven by tax receipts issued for two years by an organisation that was registered only as a non-profit.
What we did for An environmental charity with restricted funds, Mississauga, Ontario
We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — An environmental charity with restricted funds, Mississauga, Ontario
The credits produced $77,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $115,000 Of Cash Released — Charity with Related Business, Windsor
Client: A charity operating a related business activity · Where: Windsor, Ontario · Engagement: 6 weeks, fixed fee
Cash released$115,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A charity operating a related business activity, Windsor, Ontario
Revenue at a charity operating a related business activity in Windsor, Ontario was up sharply and cash was tighter than ever. Underneath it sat a disbursement quota shortfall discovered during a CRA charity audit.
What we did for A charity operating a related business activity, Windsor, Ontario
We reissued compliant donation receipts and rebuilt the receipting template against the regulation requirements. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result — A charity operating a related business activity, Windsor, Ontario
$115,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
