AUDIT PROCESSFORCHARITIES
The CRA takes an education-first approach to help registered charities follow the rules. These tools help charities comply:
Education first
websiteoutreach programclient service
reminder lettersaudit program
SELECTION
A charity can be selected for audit for various reasons including the following:
random selectioncomplaints from publicmedia articles orother public sources
information fromT3010 annual returnpast non-compliance
How is a charity selected for audit?
AUDIT
How does the CRA audit a charity?
The CRA reviews the finances andprograms of charities to make surethey follow the rules and operatefor charitable purposes. The typeof audit depends on the charity’ssize and complexity.The CRA works closely with charitiesand accepts additional informationthroughout the process.
Field AuditConducted atthe charity’s placeof businessEXAMINES:
the charity’s filepublicly availableinformationall booksand records
Office Audit Conducted at CRA officesEXAMINES:
the charity’s filepublicly available informationsome books and records
RESULT
No concernsno action
Minor concernseducation letter
Moderate concernscompliance agreement
Serious concernssanctionsregistration revokedregistration annulled
WHAT HAPPENSAFTER AN AUDIT?
If a charity disagrees with the CRA’s findings, it can respond. The CRA reviews the response and determines the appropriate action.
AUDITOUTCOME
MORE THAN 90% OF AUDITEDCHARITIES ARE ABLE TO CONTINUETHEIR CHARITABLE WORK.
RECOURSE
The charity has 90 daysto file an objectionwith theCRA’s Appeals Branch.
If the charity disagrees with theresult of the objection, it can appealto the Federal Court of Appealor the Tax Court of Canada.
What can a charity do if the CRA proposes sanctions or revocation?
Charities Education Program