TOP 10 CANADIAN CHARITY COMPLIANCE ISSUES

Q. I was just appointed as a Director of a Charity. What are important compliance issues I need to monitor to stay in the good graces of the CRA Charities Directorate?

A. The top 10 Compliance issues the CRA repeatedly focuses on are:

1. Incorrect issuance of Receipts;
2. Failure to file the annual T3010 return;
3. T3010 errors and omissions;
4. Undertaking non-charitable activities;
5. Gifts to Non-Qualified Donees;
6. Failure to maintain Direction and Control of activities operating in foreign jurisdictions;
7. Unreasonable fundraising costs;
8. Involvement in partisan political activities;
9. Unrelated business activities;
10. Inflated tax receipts related to Religious Tuition.

In the coming posts we will flesh out more details how Canadian Charities commonly stray from the rules on these issues.