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:
- Incorrect issuance of Receipts;
- Failure to file the annual T3010 return;
- T3010 errors and omissions;
- Undertaking non-charitable activities;
- Gifts to Non-Qualified Donees;
- Failure to maintain Direction and Control of activities operating in foreign jurisdictions;
- Unreasonable fundraising costs;
- Involvement in partisan political activities;
- Unrelated business activities;
- 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.