CRA Charity Compliance Services

Registered charities in Canada must comply with comprehensive CRA requirements designed to ensure charitable organizations operate transparently and use their resources for charitable purposes. Key compliance obligations include annual T3010 charity information returns, meeting minimum disbursement quotas (typically 85% of charitable receipts for most organizations), maintaining proper books and records, issuing official donation receipts that meet strict format requirements, and avoiding prohibited activities like excessive political advocacy or private benefit to individuals.

T3010 Filing Requirements mandate that all registered charities file an annual information return within six months of their fiscal year-end. The T3010 collects detailed information about your charity's finances, activities, governance, directors, compensation, and compliance with disbursement quotas. Failure to file on time can result in penalty fees, suspension of donation receipting privileges, and eventually revocation of charitable status for chronic non-filers. Our non-profit accounting services ensure accurate, timely T3010 filings that maintain your charity's good standing with CRA.

Disbursement Quota Requirements compel charities to spend minimum amounts on charitable activities or gifts to other qualified donees each year. Most charities must disburse at least 85% of their charitable receipted amounts (donations plus grants) plus 50% of investment income, though calculations vary for charities with different circumstances. We track disbursement ratios throughout the year, project year-end requirements, and help plan spending strategies that meet quota obligations while supporting your mission.

Charitable receipting rules govern official donation receipts, which must include specific information fields, be issued only for eligible gifts, follow prescribed formats, and be maintained with proper donor records. Our donor receipting services ensure complete compliance with CRA receipting requirements, reducing audit risk and maximizing donor tax benefits.

Our T3010 filing services ensure accurate, complete, and timely charity information returns that maintain your registered charity status. We combine thorough understanding of CRA requirements with meticulous attention to detail to prepare returns that satisfy audit scrutiny while presenting your charity's activities and finances accurately.

Year-Round Compliance Tracking begins long before filing season. We implement systems throughout the year that track disbursement quotas, maintain proper documentation for charitable activities, record ineligible benefits and non-qualifying expenditures, and monitor compensation levels that must be disclosed. This proactive approach prevents year-end surprises and ensures all required information is available and accurate when T3010 preparation begins.

Financial Data Preparation compiles the detailed financial information required on Schedule 6 of the T3010. We reconcile your fund accounting records to the formats required by CRA, categorize revenues and expenditures according to T3010 definitions, calculate disbursement ratios accurately, and document how quota requirements are met. Our financial preparation includes identifying qualifying vs. non-qualifying expenditures, calculating allowable fundraising ratios, and ensuring all charitable disbursements are properly documented.

Activity and Governance Reporting completes the qualitative sections of the T3010 that describe your charity's operations, programs, and structure. We prepare clear, accurate descriptions of charitable activities, list all directors/trustees with required disclosure information, report any related party transactions, and disclose compensation levels as required by CRA. Our activity reporting presents your charity's work accurately while satisfying disclosure requirements.

Review and Quality Assurance processes verify T3010 completeness and accuracy before submission. We conduct thorough reviews checking all calculations, confirming all required schedules are complete, verifying consistency between financial statements and T3010 figures, and ensuring all disclosure requirements are met. This quality assurance minimizes CRA inquiries and reduces audit risk.

Charitable receipting is one of the most visible aspects of CRA compliance and directly affects donor relationships. Our receipting services ensure your charity issues official donation receipts that comply fully with CRA requirements while maximizing donor tax benefits and building donor confidence through professional financial management.

Official Donation Receipt Preparation follows strict CRA requirements for format, content, and timing. We ensure every official donation receipt includes all mandatory elements: charity name and registration number, date of issuance, serial number, donor's full name and address, amount of cash donation or fair market value of non-cash gifts, statement that it's an official receipt for income tax purposes, and signature of authorized individual. Our receipt templates and processes eliminate common errors that could invalidate receipts for donor tax credit claims.

Eligibility Screening ensures receipts are issued only for eligible gifts that meet CRA criteria. We verify that donations represent voluntary transfers of property without valuable consideration, confirm the donor hasn't received excessive benefits in return, assess whether in-kind donations qualify for receipting, and determine fair market values for non-cash gifts according to CRA guidelines. This screening prevents issuance of non-compliant receipts that could trigger CRA review.

Complex Gift Handling manages receipting for specialized donation types that require additional documentation and valuation procedures. We process securities donations, flow-through shares, cultural property gifts, ecological gifts, real estate donations, and other complex gifts requiring specific CRA forms and valuation methods. Our expertise ensures these donations are receipted correctly to maximize donor tax benefits while maintaining complete CRA compliance.

Receipt Record Management maintains complete donor and receipting databases that support audit requirements and donor stewardship. We track all receipts issued, maintain donor information for privacy and stewardship, preserve supporting documentation for all donations, and can reproduce receipt records if CRA requests verification. Our record-keeping protects both your charity and your donors in case of audit or donor inquiries.

Disbursement quota compliance is one of the most critical CRA requirements for registered charities. Failure to meet minimum disbursement requirements can result in revocation of charitable status, loss of donation receipting privileges, and significant penalties. Our services provide year-round monitoring and planning to ensure your charity meets quota obligations while supporting your mission effectively.

Disbursement Calculation tracks your charity's progress toward meeting quota requirements throughout the year. Most charities must disburse at least 85% of charitable receipted amounts (donations and grants received) plus 50% of investment income annually. We calculate your specific requirements based on your charity type (community foundations, charitable organizations, public/private foundations each have different rules), track qualifying disbursements in real-time, project year-end requirements based on current performance, and identify planning opportunities to meet quota targets.

Qualifying Expenditure Identification ensures all charitable disbursements that count toward quota are properly documented and categorized. We maintain detailed records of charitable program expenses, gifts to qualified donees, and other qualifying expenditures while separately tracking non-qualifying administrative and fundraising costs. Our documentation provides the audit trail needed to prove quota compliance while supporting strategic decisions about resource allocation.

Quota Planning Support helps charities balance mission needs with compliance requirements. We model different spending scenarios to optimize impact while meeting quota targets, identify opportunities to accelerate charitable expenditures if quota shortfalls loom, and help structure multi-year spending plans that maintain consistent compliance. Our planning ensures quota obligations inform strategic decisions without driving them—keeping mission as the primary focus.

Accumulated Surplus Management monitors your charity's accumulated excess funds (resources that have built up over years of not meeting full disbursement quotas). While charities are permitted to maintain reasonable reserves for future needs, CRA may require action if accumulated surplus grows excessively. We help determine appropriate reserve levels for your charity's circumstances, document justification for maintained reserves, and plan appropriate surplus reduction strategies if CRA expresses concern.

CRA audits and reviews of registered charities can be stressful experiences that require comprehensive documentation and clear explanations of financial operations. Our audit support services ensure your charity is prepared for CRA scrutiny, responds effectively to information requests, and navigates audits with confidence.

Audit Preparation begins well before CRA contact through proactive compliance maintenance and documentation systems. We help charities implement proper record-keeping systems that satisfy audit requirements, maintain complete supporting documentation for all significant transactions, document processes and controls that demonstrate compliance, and conduct pre-audit compliance reviews that identify and address potential issues before auditors find them. This preparation approach transforms audits from stressful events into routine demonstrations of good governance.

Information Request Management coordinates your charity's response to CRA information requests during audits. We track all CRA requests for documents and information, assign responsibility for gathering each item, review materials before submission for accuracy and completeness, and ensure responses are provided within CRA deadlines. Our project management approach keeps audit responses organized and timely while maintaining your charity's operations during audit periods.

Audit Representation and Support provides expert assistance during CRA meetings and correspondence. We help interpret CRA questions, prepare accurate responses that address auditor concerns without creating additional issues, accompany charity representatives to audit meetings when helpful, and review proposed audit findings before they become final. Our support ensures audits proceed efficiently while protecting your charity's interests.

Post-Audit Compliance implements any changes required as a result of audit findings and helps prevent future audit issues. We address identified weaknesses in controls or documentation, modify processes to incorporate lessons learned, establish ongoing compliance monitoring to prevent recurrence, and document improvements for future reference. This continuous improvement approach strengthens your charity's compliance posture over time.

Getting started with professional CRA compliance support ensures your registered charity maintains good standing with CRA while focusing resources on your mission. We work with Canadian charities to implement compliance systems that satisfy regulatory requirements without creating administrative burdens that distract from charitable work.

Compliance Assessment reviews your charity's current compliance posture and identifies areas needing attention. We assess T3010 filing history and accuracy, review disbursement quota calculations and compliance, evaluate receipting procedures and documentation, and examine other CRA compliance areas including political activities, fundraising ratios, and related party transactions. This assessment provides a clear picture of compliance strengths and gaps.

Compliance System Design implements processes and controls that maintain compliance on an ongoing basis. We establish year-round tracking systems for key compliance metrics, implement documentation standards that satisfy audit requirements, develop processes for T3010 preparation and filing, and create monitoring systems that prevent compliance lapses. Our system design considers your charity's size, resources, and operational complexity to deliver practical solutions.

Training and Support ensures your staff and volunteers understand compliance requirements and can implement systems effectively. We provide training on CRA requirements relevant to your operations, guidance on maintaining compliance documentation, ongoing support for questions and issues that arise, and resources that help your team stay current on evolving CRA expectations.

Contact us today to discuss CRA charity compliance support for your registered charity. We help Canadian charities maintain compliance, avoid penalties, and focus on their mission with confidence that regulatory requirements are satisfied.