6 worked Non-Profit Compilation Engagement 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 non-profit compilation engagement work, not a specific client's file.
Case Study 1 · Backlog brought current
3 Years Filed, $39,500 Removed From The Assessed Balance — Public Service Body, Saskatoon
Client: A public service body absorbing sales tax on its purchases · Where: Saskatoon, Saskatchewan · Engagement: 7 weeks, fixed fee
Years filed3
Assessed balance removed$39,500
CollectionsStopped
The situation — A public service body absorbing sales tax on its purchases, Saskatoon, Saskatchewan
A public service body absorbing sales tax on its purchases in Saskatoon, Saskatchewan had not filed for 3 years. The CRA had issued arbitrary assessments. The business was carrying a T3010 filed eleven months after year-end for the third year running. That came on top of a growing interest balance.
What we did for A public service body absorbing sales tax on its purchases, Saskatoon, Saskatchewan
We started with the oldest year and worked forward so each year's closing balances fed the next. 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. We filed the years in sequence rather than all at once.
The result — A public service body absorbing sales tax on its purchases, Saskatoon, Saskatchewan
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $39,500 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $105,000 Freed — Receipting Charity, Barrie
Client: A charity issuing donation receipts to individual donors · Where: Barrie, Ontario · Engagement: 3 weeks, fixed fee
Cash freed$105,000
Compliance failuresNone
ReportingMonthly
The situation — A charity issuing donation receipts to individual donors, Barrie, Ontario
A charity issuing donation receipts to individual donors in Barrie, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. A disbursement quota shortfall discovered during a CRA charity audit already sat in the file.
What we did for A charity issuing donation receipts to individual donors, Barrie, Ontario
We recorded the purpose of each reserve, so the accumulated surplus supported the organisation’s status rather than raising a question about it. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A charity issuing donation receipts to individual donors, Barrie, Ontario
Growth was absorbed without a compliance failure. $105,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Planning that cut the bill
$66,000 Cut From The Annual Tax Bill — Social Services Agency, Winnipeg
Client: A social services agency · Where: Winnipeg, Manitoba · Engagement: 7 weeks, fixed fee
First-year saving$66,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A social services agency, Winnipeg, Manitoba
A social services agency in Winnipeg, Manitoba was compliant but paying more than it needed to. The prior year had been filed correctly. It still left GST/HST paid on everything with no public service body rebate ever claimed on the table.
What we did for A social services agency, Winnipeg, Manitoba
We modelled the current position against the alternatives before changing anything. Then we stopped the receipting immediately and wrote to donors setting out which contributions were and were not eligible for a credit.
The result — A social services agency, Winnipeg, Manitoba
The change saved $66,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 4 · Cash and remittance control
Remittance Schedule Corrected, $103,000 Refunded — Food Bank, Red Deer
Client: A food bank with donated inventory · Where: Red Deer, Alberta · Engagement: 11 weeks, fixed fee
Overpayment refunded$103,000
Late remittances sinceZero
ScheduleAutomated
The situation — A food bank with donated inventory, Red Deer, Alberta
Remittances at a food bank with donated inventory in Red Deer, Alberta were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat tax receipts issued for two years by an organisation that was registered only as a non-profit.
What we did for A food bank with donated inventory, Red Deer, Alberta
We reissued compliant donation receipts and rebuilt the receipting template against the regulation requirements. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A food bank with donated inventory, Red Deer, Alberta
Penalties stopped from the following remittance onwards, and $103,000 of overpaid instalments was refunded.
Case Study 5 · Structure rebuilt
Corporate Structure Rebuilt For $70,000 Of Annual Savings — Religious Congregation, Vancouver
Client: A religious congregation · Where: Vancouver, British Columbia · Engagement: 5 weeks, fixed fee
Saving per year$70,000
DocumentationComplete
Transfer basisRollover
The situation — A religious congregation, Vancouver, British Columbia
The structure at a religious congregation in Vancouver, British Columbia dated from years earlier. It had been set up for a business that no longer existed. Donation receipts issued without the required registration number had become expensive.
What we did for A religious congregation, Vancouver, British Columbia
We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A religious congregation, Vancouver, British Columbia
$70,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Client: A housing non-profit · Where: Burnaby, British Columbia · Engagement: 10 weeks, fixed fee
Penalty cancelled$104,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A housing non-profit, Burnaby, British Columbia
A housing non-profit in Burnaby, British Columbia had already missed one deadline and was about to miss a second. Behind 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. A penalty of $104,000 was accruing.
What we did for A housing non-profit, Burnaby, British Columbia
We split the work into what had to happen before the deadline and what could follow it. 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 — A housing non-profit, Burnaby, British Columbia
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $104,000 of the penalty already assessed on the earlier year.
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.
