6 worked Non-Profit Review 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 review engagement work, not a specific client's file.
Client: A foundation making grants · Where: Kelowna, British Columbia · Engagement: 6 weeks, fixed fee
Penalty cancelled$16,500
Relief applicationGranted
ReturnAccepted as filed
The situation — A foundation making grants, Kelowna, British Columbia
A foundation making grants in Kelowna, British Columbia had already missed one deadline and was about to miss a second. Behind it sat restricted grant funds recognised as revenue in the year received rather than as spent. A penalty of $16,500 was accruing.
What we did for A foundation making grants, Kelowna, British Columbia
We split the work into what had to happen before the deadline and what could follow it. Then we reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent.
The result — A foundation making grants, Kelowna, British Columbia
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $16,500 of the penalty already assessed on the earlier year.
Case Study 2 · CRA review defended
$39,000 Proposed Adjustment Withdrawn In Full — Social Services Agency, Halifax
Client: A social services agency · Where: Halifax, Nova Scotia · Engagement: 4 weeks, fixed fee
Adjustment withdrawn$39,000
File closed in4 weeks
Penalties assessedNone
The situation — A social services agency, Halifax, Nova Scotia
A social services agency in Halifax, Nova Scotia received a proposal letter opening a review of non-profit review engagement. The CRA had identified GST/HST paid on everything with no public service body rebate ever claimed. It proposed an adjustment of $39,000, with 30 days to respond.
What we did for A social services agency, Halifax, Nova Scotia
We treated the response as an evidence exercise rather than an argument. We stopped the receipting immediately and wrote to donors setting out which contributions were and were not eligible for a credit. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A social services agency, Halifax, Nova Scotia
The proposed adjustment was withdrawn in full — all $39,000 of it. The file closed in 4 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Objection and relief
Desk-Review Assessment Of $109,000 Vacated — Restricted-Fund Charity, Guelph
Client: An environmental charity with restricted funds · Where: Guelph, Ontario · Engagement: 4 weeks, fixed fee
Assessment vacated$109,000
Supporting recordsNow on file
AccountCleared
The situation — An environmental charity with restricted funds, Guelph, Ontario
An environmental charity with restricted funds in Guelph, Ontario was carrying $109,000 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 environmental charity with restricted funds, Guelph, Ontario
We papered the grant with written accountability terms, reporting milestones and a right to recover anything unspent. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An environmental charity with restricted funds, Guelph, Ontario
The assessment was vacated. $109,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 4 · Records and systems rebuilt
Month-End Close Cut From 7 Weeks To 4 Days — Receipting Charity, Saskatoon
Client: A charity issuing donation receipts to individual donors · Where: Saskatoon, Saskatchewan · Engagement: 11 weeks, fixed fee
Close time before7 weeks
Close time after4 days
Year-endReview, not rebuild
The situation — A charity issuing donation receipts to individual donors, Saskatoon, Saskatchewan
The accounting file at a charity issuing donation receipts to individual donors in Saskatoon, Saskatchewan 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 7 weeks each of the last three years.
What we did for A charity issuing donation receipts to individual donors, Saskatoon, Saskatchewan
We recorded the purpose of each reserve, so the accumulated surplus supported the organisation’s status rather than raising a question about it. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A charity issuing donation receipts to individual donors, Saskatoon, Saskatchewan
The file reconciles. Month-end closes in 4 days instead of 7 weeks, and the year-end is a review rather than a reconstruction.
Case Study 5 · Missed incentive claimed
$132,000 Credit Claim Filed And Accepted Without Adjustment — First-Time Information Filer, Lethbridge
Client: A non-profit that has never filed an information return · Where: Lethbridge, Alberta · Engagement: 4 weeks, fixed fee
Claim value$132,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A non-profit that has never filed an information return, Lethbridge, Alberta
A non-profit that has never filed an information return in Lethbridge, Alberta assumed the credits did not apply to a business its size. Restricted grant funds recognised as revenue in the year received rather than as spent meant they had applied all along.
What we did for A non-profit that has never filed an information return, Lethbridge, Alberta
We identified the qualifying activity and built the documentation to support 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 non-profit that has never filed an information return, Lethbridge, Alberta
$132,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $31,000 Across Corporate And Personal Returns — Public Service Body, London
Client: A public service body absorbing sales tax on its purchases · Where: London, Ontario · Engagement: 11 weeks, fixed fee
Combined saving$31,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A public service body absorbing sales tax on its purchases, London, Ontario
Nothing was wrong at a public service body absorbing sales tax on its purchases in London, Ontario. 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 public service body absorbing sales tax on its purchases, London, 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. 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 public service body absorbing sales tax on its purchases, London, Ontario
$31,000 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.
