6 worked Non-Profit 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 non-profit financial statements work, not a specific client's file.
Case Study 1 · CRA review defended
Audit Defence Closed In 7 Weeks, $41,000 Cleared — First-Time Information Filer, Halifax
Client: A non-profit that has never filed an information return · Where: Halifax, Nova Scotia · Engagement: 7 weeks, fixed fee
Proposed tax cleared$41,000
Review duration7 weeks
OutcomeNo change
The situation — A non-profit that has never filed an information return, Halifax, Nova Scotia
A non-profit that has never filed an information return in Halifax, Nova Scotia was selected for review. Surplus accumulating year after year with no resolution recording what it was being held for had shown up in the CRA's automated matching. The proposed adjustment on non-profit financial statements came to $41,000.
What we did for A non-profit that has never filed an information return, Halifax, Nova Scotia
We separated the charitable program activity from the revenue-generating activity in the accounts, so each was reported on the schedule it belonged in. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A non-profit that has never filed an information return, Halifax, Nova Scotia
The review closed with no change. $41,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $133,000 Reversed — Receipting Charity, Kitchener
Client: A charity issuing donation receipts to individual donors · Where: Kitchener, Ontario · Engagement: 4 weeks, fixed fee
Amount reversed$133,000
ObjectionAllowed in full
Account balanceNil
The situation — A charity issuing donation receipts to individual donors, Kitchener, Ontario
A charity issuing donation receipts to individual donors in Kitchener, Ontario had been reassessed for $133,000. 21 days were left on the objection deadline. The reassessment rested on donation receipts issued without the required registration number.
What we did for A charity issuing donation receipts to individual donors, Kitchener, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we stopped the receipting immediately and wrote to donors setting out which contributions were and were not eligible for a credit.
The result — A charity issuing donation receipts to individual donors, Kitchener, Ontario
The appeals officer allowed the objection in full. $133,000 was reversed and the account returned to a nil balance.
Case Study 3 · Records and systems rebuilt
Month-End Close Cut From 6 Weeks To 9 Days — Restricted-Fund Charity, Kelowna
Client: An environmental charity with restricted funds · Where: Kelowna, British Columbia · Engagement: 6 weeks, fixed fee
Close time before6 weeks
Close time after9 days
Year-endReview, not rebuild
The situation — An environmental charity with restricted funds, Kelowna, British Columbia
The accounting file at an environmental charity with restricted funds in Kelowna, British Columbia had a weak foundation. It was built on tax receipts issued for two years by an organisation that was registered only as a non-profit. The year-end had taken 6 weeks each of the last three years.
What we did for An environmental charity with restricted funds, Kelowna, British Columbia
We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — An environmental charity with restricted funds, Kelowna, British Columbia
The file reconciles. Month-end closes in 9 days instead of 6 weeks, and the year-end is a review rather than a reconstruction.
Case Study 4 · Missed incentive claimed
$87,000 Credit Claim Filed And Accepted Without Adjustment — Social Services Agency, Mississauga
Client: A social services agency · Where: Mississauga, Ontario · Engagement: 7 weeks, fixed fee
Claim value$87,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A social services agency, Mississauga, Ontario
A social services agency in Mississauga, Ontario assumed the credits did not apply to a business its size. A T3010 filed eleven months after year-end for the third year running meant they had applied all along.
What we did for A social services agency, Mississauga, Ontario
We identified the qualifying activity and built the documentation to support it. 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 result — A social services agency, Mississauga, Ontario
$87,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 5 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $25,500 — Grant-Making Foundation, Saskatoon
Client: A foundation making grants · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$25,500
Filed with19 days to spare
Next yearPapers ready
The situation — A foundation making grants, Saskatoon, Saskatchewan
A foundation making grants in Saskatoon, Saskatchewan was weeks away from the deadline for non-profit financial statements. 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 $25,500.
What we did for A foundation making grants, Saskatoon, Saskatchewan
We reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A foundation making grants, Saskatoon, Saskatchewan
Filed with 19 days to spare. $25,500 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 6 · Backlog brought current
$68,000 Of Arbitrary Assessments Vacated After 7 Years — Food Bank, Red Deer
Client: A food bank with donated inventory · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Arbitrary tax vacated$68,000
Years brought current7
Account statusCurrent
The situation — A food bank with donated inventory, Red Deer, Alberta
7 years of unfiled returns had turned into notional assessments at a food bank with donated inventory 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 food bank with donated inventory, Red Deer, Alberta
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 then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A food bank with donated inventory, Red Deer, Alberta
All 7 years were accepted as filed. $68,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 7 years.
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.
