6 Charity Financial Statements tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to charity financial statements work, not a general example.
Case Study 1 · Objection and relief
$36,500 Of Penalties And Interest Cancelled On Relief — Environmental Charity with Restricted, Moncton
Client: An environmental charity with restricted funds · Where: Moncton, New Brunswick · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$36,500
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $36,500 landed at an environmental charity with restricted funds in Moncton, New Brunswick following a desk review. The auditor had not seen the records behind a T3010 filed eleven months after year-end for the third year running.
What we did
We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing, then set out the legislative basis for the position alongside the documents supporting it.
The result
$36,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Scaling without breaking
Second-Province Expansion Handled, $114,000 Of Cash Released — Community Sports Association, Kitchener
Client: A community sports association · Where: Kitchener, Ontario · Engagement: 6 weeks, fixed fee
Cash released$114,000
New registrationsComplete on day one
Compliance gapsNone
The situation
Revenue at a community sports association in Kitchener, Ontario was up sharply and cash was tighter than ever. Underneath it sat donation receipts issued without the required registration number.
What we did
We reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$114,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Case Study 3 · Records and systems rebuilt
Books Rebuilt From Source, $6,900 In Unclaimed Input Tax Found — Arts Organisation with Grant, London
Client: An arts organisation with grant funding · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Unclaimed tax found$6,900
Records rebuilt31 months
ProcessDocumented
The situation
An arts organisation with grant funding in London, Ontario could not answer basic questions about its own numbers, because a disbursement quota shortfall discovered during a CRA charity audit sat between the bank statements and the ledger.
What we did
We reissued compliant donation receipts and rebuilt the receipting template against the regulation requirements, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $6,900 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $18,000 Saved Each Year — Professional Member Association, Hamilton
Client: A professional member association · Where: Hamilton, Ontario · Engagement: 5 weeks, fixed fee
Annual saving$18,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
A professional member association in Hamilton, Ontario had outgrown the structure it started with. GST/HST paid on everything with no public service body rebate ever claimed was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and 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 — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $18,000 a year while removing the exposure the old one carried.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $104,000 Across 3 Open Years — Foundation Making Grants, Mississauga
Client: A foundation making grants · Where: Mississauga, Ontario · Engagement: 3 weeks, fixed fee
Recovered$104,000
Open years claimed3
Ongoing trackingIn place
The situation
An incentive review at a foundation making grants in Mississauga, Ontario started from a simple question: what has never been claimed? The answer ran to 3 years, driven by donation receipts issued without the required registration number.
What we did
We calculated and claimed the public service body rebate for every open period, recovering tax the organisation had been absorbing, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $104,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $68,000 Across Corporate And Personal Returns — Registered Charity with Two, Lethbridge
Client: A registered charity with two program streams · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Combined saving$68,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a registered charity with two program streams in Lethbridge, Alberta — the filings were on time and accurate. What they were not was planned. A T3010 filed eleven months after year-end for the third year running had never been reviewed.
What we did
We reclassified restricted contributions under the deferral method so revenue matched the year the funds were actually spent, and 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
$68,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
