6 worked Fund Accounting 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 fund accounting work, not a specific client's file.
Case Study 1 · Objection and relief
Desk-Review Assessment Of $57,000 Vacated — Grant-Funded Arts Organisation, Calgary
Client: An arts organisation with grant funding · Where: Calgary, Alberta · Engagement: 3 weeks, fixed fee
Assessment vacated$57,000
Supporting recordsNow on file
AccountCleared
The situation — An arts organisation with grant funding, Calgary, Alberta
An arts organisation with grant funding in Calgary, Alberta was carrying $57,000 of penalties and interest. The charges arose from surplus accumulating year after year with no resolution recording what it was being held for. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for An arts organisation with grant funding, Calgary, Alberta
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 framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An arts organisation with grant funding, Calgary, Alberta
The assessment was vacated. $57,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 2 · Backlog brought current
Collections Halted And $33,500 Cut From A 5-Year Backlog — Food Bank, Lethbridge
Client: A food bank with donated inventory · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Balance reduced by$33,500
Backlog cleared5 years
CollectionsHalted
The situation — A food bank with donated inventory, Lethbridge, Alberta
By the time a food bank with donated inventory in Lethbridge, Alberta called, 5 years were outstanding. The CRA had assessed on estimates. Underneath it sat GST/HST paid on everything with no public service body rebate ever claimed.
What we did for A food bank with donated inventory, Lethbridge, Alberta
We reconstructed the records year by year. We reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent. Each filing replaced an arbitrary assessment with a real one.
The result — A food bank with donated inventory, Lethbridge, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $33,500, and a relief application addressed part of the accumulated interest.
Case Study 3 · Missed incentive claimed
$99,000 Credit Claim Filed And Accepted Without Adjustment — Restricted-Fund Charity, Kelowna
Client: An environmental charity with restricted funds · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Claim value$99,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — An environmental charity with restricted funds, Kelowna, British Columbia
An environmental charity with restricted funds in Kelowna, British Columbia assumed the credits did not apply to a business its size. Surplus accumulating year after year with no resolution recording what it was being held for meant they had applied all along.
What we did for An environmental charity with restricted funds, Kelowna, British Columbia
We identified the qualifying activity and built the documentation to support it. 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 — An environmental charity with restricted funds, Kelowna, British Columbia
$99,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $29,000 Of Cash Released — Public Service Body, Moncton
Client: A public service body absorbing sales tax on its purchases · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Cash released$29,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A public service body absorbing sales tax on its purchases, Moncton, New Brunswick
Revenue at a public service body absorbing sales tax on its purchases in Moncton, New Brunswick was up sharply and cash was tighter than ever. Underneath it sat tax receipts issued for two years by an organisation that was registered only as a non-profit.
What we did for A public service body absorbing sales tax on its purchases, Moncton, New Brunswick
We stopped the receipting immediately and wrote to donors setting out which contributions were and were not eligible for a credit. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A public service body absorbing sales tax on its purchases, Moncton, New Brunswick
$29,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 5 · CRA review defended
$128,000 Reassessment Reduced To Nil On Review — Community Sports Association, Victoria
Client: A community sports association · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Reassessment reduced toNil
Tax protected$128,000
Prior filingsUndisturbed
The situation — A community sports association, Victoria, British Columbia
A review notice arrived at a community sports association in Victoria, British Columbia, covering fund accounting for two tax years. The auditor's working position was an adjustment of $128,000. It was driven by a T3010 filed eleven months after year-end for the third year running.
What we did for A community sports association, Victoria, British Columbia
Rather than negotiate, we rebuilt the record. We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A community sports association, Victoria, British Columbia
The auditor accepted the documented position and closed the review without adjustment, protecting $128,000 and leaving the prior filings undisturbed.
Case Study 6 · Planning that cut the bill
$43,000 Cut From The Annual Tax Bill — Religious Congregation, Kitchener
Client: A religious congregation · Where: Kitchener, Ontario · Engagement: 11 weeks, fixed fee
First-year saving$43,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A religious congregation, Kitchener, Ontario
A religious congregation in Kitchener, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left donation receipts issued without the required registration number on the table.
What we did for A religious congregation, Kitchener, Ontario
We modelled the current position against the alternatives before changing anything. Then we papered the grant with written accountability terms, reporting milestones and a right to recover anything unspent.
The result — A religious congregation, Kitchener, Ontario
The change saved $43,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
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.
