Maintaining compliance with the Canada Revenue Agency (CRA) is essential for registered charities in Canada. Failing to follow CRA regulations can result in penalties, loss of registered status, and reputational damage. To ensure your charity remains in good standing, it’s crucial to understand and meet all compliance requirements. This guide will walk you through the key aspects of maintaining CRA compliance.
1. Understand Your Charity’s Legal Obligations
When a charity is registered with the CRA, it gains certain benefits, such as the ability to issue tax receipts. However, it also takes on legal responsibilities, including:
The T3010 return provides the CRA with details about your charity’s finances, activities, and governance. Late or missing filings can result in penalties or loss of registration. To ensure compliance:
Mark your calendar: The T3010 must be filed within six months after the end of your fiscal year.
Gather accurate financial records: Ensure all income and expenses are properly recorded.
Disclose fundraising and operational activities: Be transparent about how funds are used.
Report compensation information: If applicable, disclose salaries and benefits paid to staff.
The CRA provides an online portal for filing the T3010, making it easier to submit the required information.
3. Follow CRA Fundraising Guidelines
While fundraising is essential for charities, the CRA has strict rules to prevent excessive or misleading fundraising practices. Your charity must:
Ensure fundraising costs are reasonable: The CRA expects charities to keep fundraising costs within acceptable limits.
Avoid misleading donors: Ensure all fundraising materials accurately represent how donations will be used.
Separate fundraising from charitable activities: Funds raised must be used for charitable purposes, not excessive administrative expenses.
Disclose fundraising expenses on the T3010 return: Transparency in reporting builds trust with donors and regulators.
4. Meet the CRA’s Disbursement Quota
The disbursement quota ensures that charities use a portion of their funds for charitable activities rather than accumulating excessive assets. As of recent CRA updates:
Charities with over $100,000 in assets must spend at least 5% of their investment income on charitable activities.
Smaller charities must still meet their spending obligations, ensuring funds are actively used to support their mission.
Failure to meet the quota may lead to penalties or revocation of registered status.
Tracking expenditures carefully will help ensure your charity meets these requirements.
5. Keep Accurate Financial and Governance Records
To remain compliant, charities must maintain detailed records of all financial transactions and governance decisions. This includes:
Donation receipts: Issuing proper tax receipts and keeping records for at least six years.
Board meeting minutes: Keeping a record of decisions made by the board of directors.
Contracts and agreements: Maintaining copies of any partnerships or service agreements.
Payroll and employee records: Tracking compensation for employees and contractors.
Good recordkeeping helps ensure transparency and protects the charity in case of an audit.
Certain activities can jeopardize a charity’s registered status, including:
Private benefits: Ensuring no individuals or businesses profit from the charity’s funds.
Political partisanship: Avoiding direct or indirect support for political parties or candidates.
Excessive business activities: If your charity operates a business, it must be directly related to your mission and not generate excessive profits unrelated to charitable work.
8. Stay Updated on CRA Regulations
The CRA occasionally updates its guidelines for charities, so it’s important to stay informed. Your charity can:
Regularly check the CRA website for policy updates.
Attend compliance webinars and training sessions offered by legal and accounting professionals.
Consult with a charity lawyer to ensure ongoing compliance.
Conclusion
Staying compliant with the CRA is essential for Canadian charities to maintain their registered status and continue serving their communities. By keeping accurate records, meeting financial obligations, and following CRA guidelines, your charity can operate smoothly and avoid regulatory issues.
If you need help ensuring compliance, consulting with a charity law expert can provide valuable guidance. By staying proactive, your organization can focus on its mission while meeting all legal requirements.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping Service covers? People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Are Your Fundraising Activities in Compliance with CRA Guidelines?
Fundraising Activities
The necessity of fundraising for many charities is recognized by the Canada Revenue Agency (CRA), but it also expects that charities will not allocate an unreasonable amount of resources to fundraising activities. The CRA offers guidance on determining what it deems excessive, what activities it classifies as fundraising, and how charities should calculate their fundraising expenses.
Which activities are classified as fundraising?
Per the guidelines set by the Canada Revenue Agency (CRA), any action that involves soliciting assistance qualifies as fundraising, unless a charity meets one of the following criteria:
Activities such as planning, researching, or readying to request support, in addition to associated actions like profile enhancement, donor management, and donor acknowledgement, are deemed fundraising activities. Fundraising also encompasses the sale of products or services, barring those conducted as part of a related business endeavour. Both the charity’s own fundraising efforts and those performed on its behalf by employees, vendors, and volunteers are included.
“Support” covers cash and in-kind donations alike. However, the recruitment, solicitation, administration, and appreciation of volunteer assistance are not regarded as fundraising activities.
Soliciting funds from governments, foundations, or other registered charities, and running a related business, are activities that are not considered as fundraising.
“Substantially all” test
The term “substantially all” generally refers to “90% or more.” This test is typically based on the amount of content in an activity that is related to soliciting support, as well as the resources allocated to the activity. Additionally, the Canada Revenue Agency (CRA) assesses the fundraising portion’s relative prominence within the activity.
Four-part test
The CRA deems an activity to have taken place without solicitation of support if all of the following four questions are answered in the negative:
1. Was the main aim of the activity to raise funds?
In general, the objective that receives the greatest allocation of resources is deemed to be the primary goal of an activity. It can be challenging to differentiate between content that is charitable in nature versus content that is aimed at fundraising. For instance, a story about a child living on the streets could be shared with the intent of either raising funds or raising awareness about the social issue that the charity is addressing. To help determine this, the CRA looks for a clear objective for the activity that goes beyond fundraising.
2. Did the activity involve repeated or ongoing appeals, emotionally charged requests, gift incentives, donor rewards, or other fundraising merchandise?
If an activity included repetitive or emotionally charged requests for support, or if it featured incentives or merchandise designed to raise funds, it is likely that the primary focus of the activity was fundraising.
3. Was the target audience chosen for the activity based on their potential to contribute?
An activity’s audience will often reflect its purpose. For instance, a brochure sent to affluent neighborhoods while the charity’s programs are accessible to all (especially poorer) neighborhoods indicates that the main goal is fundraising.
4. Was commission-based pay determined by the number or amount of donations?
When an activity involves paying commissions or other types of performance-based compensation that are tied to the amount of funds raised, the entire activity is regarded as fundraising.
Additional considerations that impact CRA’s evaluation of fundraising.
In addition to the fundraising ratio, the CRA considers various factors when evaluating a charity’s fundraising effectiveness. In determining whether an issue exists, the CRA evaluates each charity on a case-by-case basis, assigning different weights to these factors:
“Best practices” that the CRA believes can minimize the risk of unsatisfactory fundraising;
How the charity’s size impacts fundraising efficiency;
Causes that have limited appeal, which may pose unique fundraising obstacles.
a. Cost-to-Revenue Ratio during Fiscal Period – Below 35%
This ratio is less likely to raise any questions or concerns from the CRA.
b. Cost-to-Revenue Ratio during Fiscal Period – 35% and Above
The CRA will scrutinize the average ratio across recent years to identify if there’s a pattern of high fundraising expenses. The higher this ratio, the greater the likelihood that the CRA will express concerns regarding the charity’s involvement in unacceptable fundraising practices, necessitating a more thorough examination of the expenditures.
c. Cost-to-Revenue Ratio during Fiscal Period – Exceeding 70%
At this level, the CRA will have increased concerns. To demonstrate that it’s not participating in unacceptable fundraising activities, the charity must present a valid explanation and reasoning for such a high level of expenditure.
Accounting for fundraising expenses
Except for one specific scenario, all expenses associated with fundraising activities must be meticulously documented as fundraising costs. Any activity involving the solicitation of support is deemed fundraising, except if the charity fulfills one of the two tests specified by the Canada Revenue Agency (CRA) to determine whether the activity would have occurred without the act of soliciting support.
The expenses associated with the following activities must be recorded partially as fundraising costs:
1. Activities that encompass asking for support, which would have taken place regardless of soliciting support, and satisfy the “four-part” test determined by the CRA.
2. Activities that necessitate the solicitation of support and would not have transpired otherwise are regarded as fundraising activities. However, there are certain exceptions to this rule, such as charitable activities specifically designed to inspire action or encourage positive behavioral change in their target audience.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
Get professional support today to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Disclaimer:
The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
When you have a new Charity, you need money fast to get everything up and running.
You need to pay for programs, overhead, and salaries.
There are thousands of ways you can raise money, but you need something that will work for YOU and generate as much as possible, not just the some cookie-cutter approach.
Before you start fundraising, get clear about why you’re raising money. Will your programs feed the hungry? Save a homeless animal? Be sure you’re asking for something that donors will support.
Once you’re clear, choose a strategy that will play to your personal strengths, appeal to your ideal donor prospects, and meet your revenue goals. In short, don’t try raising money the same way that the Charity down the street does. Try something that will most likely to work for you.
8 Fundraising Ideas for New Charities
Fundraising ideas are a dime a dozen and a Google search will return more ideas than you can ever implement. But not all ideas are created equally. Some are more efficient than others and some produce more revenue than others.
Check out these 8 hot ideas for fundraising. See if there’s one that feels like a good fit for you and give it a shot.
Hold an event. Something as simple as a backyard BBQ or a dinner in a church fellowship hall can be simple to organize and promote. Small events are great for raising modest amounts of money but can take a lot of work to pull off, so be ready to put the time in. To push your event over $10,000, create a planning committee to help with the details, get sponsors, and sell tickets.
Facebook fundraiser. Set your Charity up on Facebook and tap into the power of your current relationships through Facebook. Be sure to tell people WHY you’re raising money (e.g., feed 200 hungry people) to inspire them to give. Set a start and end date, and don’t be afraid to post frequently to remind people about your fundraiser. Don’t give up until it’s over – promote it all the way to the end. Most people are deadline-oriented and may wait until the last minute to give.
Crowdfunding. There are tons of crowdfunding sites online that can help you raise money through your network of relationships. One of my favorites is GivingGrid, which lets people upload a photo to fill in a blank spot for the donation they make. Understand that crowdfunding is not a “build it and they will come” model. You’ll still need to promote the fundraiser via email and social media to drive people to the crowdfunding site to give. This fundraising tactic can be a good way to get your Board and volunteers involved in fundraising since the ask is easy.
Online auction. If you have or can get a couple of dozen nice items or packages, consider holding an online auction. The benefit is that people from all over the world can participate as long as you can affordably ship the item to the winner. You can use one of the many online auction tools or use a Facebook group. Either way, the key to success is to have items that people want and can’t easily buy for themselves (artwork, experiences, etc.).
House parties. One of the best ways to leverage the relationships of key people including Board members, current donors, and volunteers is through house parties. Imagine if each of your Board members hosts a dinner party at their home and invites 20 of their friends, how fast you could raise awareness and find new donors for your organization! It doesn’t have to be fancy and there’s no need for a formal program – just a few words from you about what your new Charity will do once it’s up and running, then pass around some information and pledge cards.
Giving Day. If your community or province has a specified Giving Day, use that as an opportunity to raise money. There will already be lots of publicity around the day, so jump on the bandwagon to let people know about your organization. If they don’t have a specific site for you to set up a giving page, set up one on your website and track the donations that come in on and just before the Giving Day.
Champion letters. Invite your Board members and volunteers to send a special letter or email to their friends inviting them to give to your Charity. This is another great way to leverage the power of relationships since people will often give to Charities where their friends are involved. Be ready to write the letter for folks so all they have to do is insert their friends’ names and send.
Matching gift. Ask a Board member, current donor, or volunteer to offer to match donations up to their gift amount. People LOVE knowing their donation is matched dollar for dollar, and statistically proven to inspire more people to give.
Steer Clear of These Fundraising Ideas (at least for now)
You may notice there are a few things that are NOT on the list. That’s because not every method for fundraising is a good one – some strategies you should avoid. And not every good strategy works right now.
Here are 3 you should think carefully about while you’re in the startup phase:
Selling t-shirts, candles, calendars, etc. These have their place and can work well for some Charities, but the problem is they’re transactional. If you’re going to work hard to raise money, do it in a sustainable way. Raise money and build relationships at the same time so that people want to give again and again.
Corporate donations. Outside of event sponsorships, it’s tough to get corporate donations. As a startup, you’ll have a really hard time unless you know someone in a decision-making role in the company. Instead of spending time on this strategy that may not be successful for a new Charity, focus on something else that WILL bear fruit. You’ll be ready to go after corporate donations in a couple of years, especially if you’re growing a signature event.
Grants. Most new Charity founders want to go after grants and certainly it’s attractive, but it’s not as easy as it looks nor as productive as you’d like. Most funders want to see 3-5 years of experience before they’ll give you money. Plus, there’s an art and a science to grant writing that you must master to have a shot at getting funds. It’s smarter to start by building a donor base then working on grants later.
Ultimately, you need a fundraising plan that’s based on strategic decisions and sound fundraising practices to help you raise the kind of money you need to get your Charity up and running quickly.
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Book a Consultation with Northfield & Associates
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Disclaimer:
The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
For charitable organizations, maintaining compliance with the Income Tax Act is paramount. The consequences of falling short on these obligations are severe and can have a lasting impact on the charitable status of an organization. This article delves into the various measures that can be taken if a registered charity fails to meet its obligations, highlighting the importance of adherence to regulatory requirements.
Education Letters: A Compassionate Guide to Compliance
The first step in addressing non-compliance involves education letters. Rather than immediately resorting to punitive measures, authorities guide charities through the necessary steps to rectify their status. These letters serve as a constructive tool to bring organizations back in line with the requirements of the Income Tax Act.
Compliance Agreements: Committing to Corrective Action
In cases where non-compliance persists, authorities may implement compliance agreements. These documents explicitly outline the areas where the charity is falling short and commit the organization to take corrective action. Compliance agreements serve as a formalized roadmap, allowing charities to rectify their missteps and regain compliance status.
Sanctions: Financial Penalties and Temporary Suspensions
For more egregious instances of non-compliance, sanctions come into play. These can manifest as financial penalties, hitting charities where it hurts the most – their budget. Additionally, temporary suspensions of tax-receipting privileges and qualified donee status may be imposed. These sanctions act as a stern reminder of the importance of upholding the principles laid out in the Income Tax Act.
Revocation: The Ultimate Consequence
In cases deemed as serious breaches of the Income Tax Act, revocation becomes the ultimate consequence. This entails the loss of charitable registration and all associated privileges. The organization is essentially stripped of its ability to issue tax receipts and loses its standing as a qualified donee. Revocation serves as a stark reminder of the gravity of non-compliance, emphasizing the need for charities to adhere to their obligations under the Act.
In conclusion, the consequences of not meeting the obligations of registration for a charity are multi-faceted and severe. From the initial guidance provided through education letters to the ultimate measure of revocation, each step in the process underscores the importance of compliance. Charities must recognize the significance of adhering to the stipulations of the Income Tax Act to ensure their continued ability to make a positive impact in their respective communities.
Navigating director compensation rules can be complex.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
Get professional support today by email at info@northfield.biz, by phone at (416) 317-6806, or visit us or Schedule your free consultation to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
Ready for better nonprofit reporting?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping Service covers? People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Board meeting minutes serve as a crucial record of an organization’s governance practices, documenting who attended, what was discussed, and what decisions were made. They not only provide a reference for future discussions but also serve as a tangible record of the board secretary’s work.
While access to board minutes should be restricted due to confidentiality concerns, boards should still consider their presentation and content as a means of providing transparency to staff, association members, volunteers, and even the public. Therefore, it’s essential to carefully consider the content and format of the minutes, as well as the meetings themselves.
To capture the essential discussions in a useful way, board meeting minutes should be limited to four pages, even for meetings lasting up to two hours. Here are some guidelines to follow:
Annually, the board should review the format and level of detail included in its minutes. It’s important to highlight decisions made, actions agreed upon, and the associated responsibilities. When dealing with unfamiliar items, the chair or secretary should consult the board and determine how best to report them in the minutes. This dialogue should occur on multiple occasions to ensure the minutes accurately capture important information.
Maintaining consistency in the format of the minutes from meeting to meeting is crucial. To facilitate this, the secretary should create a template for the minutes with board approval, if one does not already exist. Having a template in place will make the secretary’s job easier and ensure that the minutes are consistent and easy to read.
The first page of the minutes should include the meeting date, time, location, and attendee names, including those who sent their regrets. It should also identify any guests and reports distributed during the meeting for context.
The minutes should align with the order of the meeting agenda and document the corresponding discussion and deliberation. This approach ensures that the minutes are organized logically, making them easier to comprehend.
The minutes should emphasize policy decisions and any action items to be taken in the future to ensure they are adequately documented. It’s important to identify who is responsible for implementing these decisions, whether it be the CEO, board, or committees, and to establish a completion date. The format used to document these items is flexible and can vary based on the preferences of the board, but the key is to clearly communicate the decision and action items to stakeholders.
The minutes should encapsulate enough of the meeting’s discussions to provide a general sense of what was said, including the questions asked and the pros and cons considered. They should also reflect the overall tone and sentiment of the meeting, serving as a valuable record of the board’s decision-making process.
Avoiding potential conflicts or misunderstandings, it is advisable to refrain from attributing specific comments to individual board members in the minutes. Instead, the minutes should focus on key discussion points and highlight the person responsible by name.
To maintain neutrality, it is best to avoid noting who voted for or against a decision in the minutes unless a director requests it. The minutes should only indicate whether a motion was passed or defeated, and if it was passed unanimously.
It may be necessary to record the names of the mover and seconder for important decision items that require formal motions, such as approving an annual budget or signing a contract for a new program. The board should develop a list of key decision types that require more formal and detailed recording in the minutes to ensure proper documentation.
When significant decisions are made, it is important for the minutes to clearly state the decision. Whether it’s granting approval for a policy (“the policy below has been approved…”) or consenting to an action (“the Board has agreed to the action below: “)
Proposals (motions) that are defeated may not necessarily be required to be logged in the minutes. Nevertheless, Directors may choose to indicate in the minutes that a contentious issue was deliberated and ultimately rejected.
Confidential information, particularly personnel records or client services, should not be included in the minutes. If the board receives confidential documents or reports, they can be referred to without repeating the information or attaching the reports. Personnel issues should only be mentioned in the minutes if they pertain to the CEO. In such cases, the minutes can provide a brief summary of the outcomes of the CEO’s evaluation or mention the percentage increase in salary. The minutes can also report on the approval of a salary scale or percentage wage increase without identifying specific employees.
If a board holds an in-camera session to discuss confidential matters, the minutes should report the nature and outcomes of the session on a need-to-know basis.
The way in which minutes are recorded and made accessible to others outside of the board raises questions about governance openness and transparency. Boards should avoid taking a minimalist approach to minutes or relying heavily on in-camera sessions to address this issue. It is important for boards to discuss and come to an agreement on their transparency aspirations and to periodically review their transparency practices.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping Service covers? People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
T3010 Return for Canadian Charities: Why It’s Important
Every year, usually around the same time your personal tax return is due, charity administrators across Canada face a filing deadline that can make or break their organization’s compliance status. The T3010 Registered Charity Information Return isn’t just paperwork – it’s your charity’s annual report card that determines whether you maintain good standing with the Canada Revenue Agency.
Here’s what makes the T3010 different from other government forms: it’s not just about your finances. The CRA uses your T3010 to evaluate whether you’re actually operating as a charity, following the rules, and deserving of your tax-exempt status. Get it wrong, and you could face penalties, compliance agreements, or even loss of charitable status.
The good news is that T3010 filing doesn’t have to be a nightmare. With proper preparation, understanding of requirements, and attention to detail, most charities can complete their annual returns accurately and on time. The key is knowing what the CRA is looking for and how to present your organization’s activities in the best light.
Let’s walk through everything you need to know about T3010 filing, from basic requirements to advanced strategies for presenting your charity’s work effectively.
What is the T3010 Return?
The T3010 Return, officially known as the “Registered Charity Information Return,” is a document that all registered charities in Canada must file with the CRA. This return provides detailed information about a charity’s activities, financials, and governance. Charities are required to submit this return every year, within six months of the end of their fiscal year.
The T3010 is crucial because it helps the CRA monitor the operations of charities to ensure they follow legal requirements. It also provides transparency to the public about how charities use their resources, fostering trust in the nonprofit sector.
Why is the T3010 Important for Canadian Charities?
There are several reasons why the T3010 is an essential filing for Canadian charities:
Compliance with the CRA: Registered charities must submit the T3010 annually to maintain their status as a charity. Failure to file can lead to penalties, fines, or even the revocation of charitable status.
Transparency and Accountability: By filing the T3010, charities provide transparency about their activities and finances. This helps donors, government agencies, and the public understand how charity resources are spent.
Eligibility for Funding: Many government and private funders require charities to file the T3010 as part of their eligibility for grants or funding opportunities.
Public Trust: Regular filing of the T3010 demonstrates a charity’s commitment to being open and accountable. This helps build trust with donors and the community.
Who Needs to File the T3010?
Only charities that are registered with the CRA are required to file the T3010. If your organization is a registered charity in Canada, you are legally obligated to complete and file this form every year. This applies to:
Charities that have received charitable registration from the CRA
Even if a charity did not receive any income during the year, it must still file a T3010 form.
What Information Does the T3010 Require?
The T3010 return requires charities to report various aspects of their operations. Below are some of the key sections that must be completed:
1. General Information
This includes the charity’s name, address, and contact details, as well as its charitable registration number. Charities must also update any changes in their organizational structure or contact details.
2. Financial Information
Charities must provide a detailed breakdown of their income and expenses. This includes:
Total revenue from donations, grants, and other sources.
Expenses for programs, administration, fundraising, etc.
Statement of assets and liabilities.
3. Activities and Programs
Charities need to report on the programs they run and the services they provide. This includes a description of their key activities, their goals, and how they measure success.
4. Fundraising Information
If a charity raises funds through various methods (like events, online donations, etc.), they must report the total amount raised and how the funds were used. The T3010 also asks about any professional fundraisers hired and the fees paid to them.
5. Governance and Management
This section requires details about the charity’s board of directors, including the number of board members and their roles. Charities also need to confirm that they have governance policies in place and that they follow the CRA’s rules for managing funds and operations.
How to File the T3010
Filing the T3010 return is done electronically through the CRA’s Charity Portal. Here’s a step-by-step guide on how to submit the form:
Log in to the CRA Charity Portal through the CRA’s My Business Account: You’ll need a CRA user ID and password to access the portal. If you don’t have one, you can create an account.
Complete the T3010 Form: Answer all the questions on the return, ensuring that the information is accurate. It’s helpful to gather all the necessary financial and program information before starting the form.
Review Your Information: Double-check the accuracy of the return before submitting it. Inaccurate information can delay the approval process and may lead to fines.
Submit the Return: Once the form is complete, submit it through the Charity Portal. You’ll receive an acknowledgment from the CRA once they’ve processed the return.
When is the T3010 Due?
The T3010 must be filed within six months after the charity’s fiscal year-end. For example, if a charity’s fiscal year ends on December 31st, the T3010 must be filed by June 30th of the following year.
If a charity misses this deadline, it could face penalties or the revocation of its charitable status. In some cases, the CRA may grant an extension, but this must be requested in advance.
Standard Filing Deadline
Your T3010 is due six months after your charity’s fiscal year-end. For example:
Fiscal year ends December 31: T3010 due June 30
Fiscal year ends March 31: T3010 due September 30
Fiscal year ends any other date: T3010 due six months later
No Extensions Available
Unlike personal tax returns, the CRA doesn’t grant extensions for T3010 filing. The deadline is firm, and late filing automatically triggers penalties.
What Happens if You Don’t File the T3010?
Failing to file the T3010 return on time can have serious consequences for a charity:
Late Filing Penalties: If a charity doesn’t submit the T3010 by the due date, the CRA may impose a penalty. The penalty is calculated based on the charity’s revenue, with larger charities facing higher fines.
Revocation of Charitable Status: If a charity fails to file the T3010, the CRA may revoke its charitable status, which means the charity would no longer be recognized as a charity in Canada. This can lead to the loss of tax exemptions, tax penalties, and the ability to issue donation receipts.
Loss of Public Trust: Not filing the T3010 or submitting incomplete or inaccurate information can damage a charity’s reputation and cause donors to lose confidence in the organization.
Common Mistakes to Avoid When Filing the T3010
Missing Information: Failing to provide all the required information, especially in the financial section, can delay processing or lead to rejection. Make sure all fields are complete and accurate.
Incorrect Financial Reporting: Charity financials should be thoroughly reviewed before submission. Errors or discrepancies in income or expenses can lead to penalties or questions from the CRA.
Late Submission: Always file before the due date. Filing late may result in fines or, in extreme cases, the loss of charitable status.
Common T3010 Filing Errors to Avoid
Learning from common mistakes helps you avoid problems that could trigger CRA questions or compliance issues.
Incomplete Activity Descriptions
Many charities provide vague descriptions of their activities that don’t clearly demonstrate charitable purpose:
Wrong: “We help people in need.” Right: “We provide emergency food assistance to 150 low-income families monthly through our community food bank, serving residents of downtown Toronto who meet income eligibility criteria.”
Financial Reporting Inconsistencies
Common financial errors include:
Numbers that don’t match your audited financial statements
Revenues and expenses that don’t add up correctly
Missing or incorrectly categorized transactions
Failure to report all revenue sources accurately
Governance Information Gaps
Many T3010s contain incomplete governance information:
Missing director information or qualifications
Inaccurate board meeting frequency reporting
Failure to report significant governance changes
Incomplete conflict of interest policy information
Political Activities Misreporting
Political activity reporting errors are particularly serious:
Failing to report political activities that actually occurred
Incorrectly categorizing advocacy work as non-political
Overstating political activities as charitable programs
Missing required explanations of how political activities further charitable purposes
Disbursement Quota Calculation Errors
Private foundations and some charitable organizations must meet disbursement quotas. Common errors include:
Incorrect calculation of required disbursements
Failure to account for eligible disbursements properly
To make the filing process easier and avoid mistakes, here are a few tips:
Start Early: Don’t wait until the last minute to file. Gather your financial and program details ahead of time to ensure everything is accurate.
Review the CRA’s Guide: The CRA provides a detailed guide to help you complete the T3010. Make sure to read it thoroughly before submitting the form.
Consult a Professional: If you’re unsure about how to complete the T3010, consider seeking help from a charity lawyer or accountant who specializes in nonprofit organizations. They can guide you through the process and ensure your return is filed correctly.
Keep Detailed Records: Maintain accurate financial records and supporting documentation throughout the year to make completing the T3010 easier. This will also help you in case of an audit.
T3010 Schedule Requirements and When to Use Them
The T3010 includes various schedules that provide additional detail about specific aspects of your charity’s operations. Understanding when to complete each schedule ensures comprehensive reporting.
Schedule 1: Charitable Programs
Complete this schedule if your charity operates formal charitable programs:
Required for most charitable organizations
Provides detailed description of each program
Reports resources devoted to program activities
Demonstrates charitable impact and outcomes
Schedule 2: Political Activities
Use this schedule when your charity engaged in political activities:
Required if you checked “yes” to political activities questions
Provides detailed description of political activities
Reports resources devoted to political activities
Explains how political activities further charitable purposes
Schedule 3: Business Activities
Complete when your charity operates business activities:
Required for any unrelated business activities
Reports revenue and expenses from business operations
Demonstrates arm’s length nature of business relationships
Shows compliance with business activity limitations
Schedule 4: Compensation
Use this schedule to report compensation information:
Required for certain compensation arrangements
Reports compensation for directors, trustees, and key employees
Provides transparency about organization’s compensation practices
Helps demonstrate reasonable compensation levels
Schedule 5: Gifts to Qualified Donees
Complete when your charity makes gifts to other qualified donees:
Reports grants or gifts to other registered charities
Provides information about recipient organizations
Demonstrates due diligence in gift-making
Shows compliance with qualified donee requirements
Schedule 6: Detailed Financial Information
Use for additional financial detail when required:
Provides breakdown of complex financial transactions
Reports detailed asset and liability information
Explains unusual financial circumstances
Supports main form financial reporting
Financial Statement Requirements for T3010
Your charity’s financial statements play a crucial role in T3010 filing and must meet specific CRA requirements.
Financial Statement Preparation Standards
Depending on your charity’s size, different financial statement requirements apply:
Small charities (revenue under $100,000):
Financial statements prepared by charity
No independent review required
Must follow basic accounting principles
Medium charities (revenue $100,000-$500,000):
Financial statements must be reviewed by independent accountant
Review engagement provides limited assurance
Must follow generally accepted accounting principles
Large charities (revenue over $500,000):
Financial statements must be audited by independent accountant
Audit provides highest level of assurance
Must follow generally accepted accounting principles
Timing Requirements
Financial statements must be prepared for the same fiscal period covered by your T3010. The statements should be completed before T3010 filing to ensure consistency between documents.
Key Financial Information for T3010
Your T3010 financial reporting must align with your financial statements:
Revenue figures must match exactly
Expense categorizations should be consistent
Asset and liability amounts must agree
Any significant variances require explanation
Common Financial Statement Issues
Problems that affect T3010 filing include:
Financial statements not completed in time for T3010 deadline
Inconsistencies between financial statements and T3010 reporting
Inadequate detail in financial statement notes
Missing required disclosures about related party transactions
Understanding charity registration costs helps you budget for professional financial statement preparation as part of your ongoing compliance expenses.
Electronic vs Paper T3010 Filing
The CRA strongly encourages electronic T3010 filing, which offers significant advantages over paper submission.
Benefits of Electronic Filing
Electronic filing through the CRA’s online portal provides:
Immediate confirmation of receipt
Built-in error checking and validation
Faster processing and availability of public information
Ability to save drafts and return to complete filing
Automatic calculation of certain fields
Electronic Filing Requirements
To file electronically, you need:
CRA business number and charitable registration number
Access to the CRA’s My Business Account portal
All required financial and operational information
Completed financial statements (if required)
Paper Filing Limitations
Paper filing is still available but has significant disadvantages:
Longer processing times
Higher risk of errors and omissions
No immediate confirmation of receipt
Limited error checking
Potential for lost or delayed documents
Mixed Filing Approach
Some charities prepare their T3010 using tax software, then submit electronically. This approach combines the convenience of professional preparation with the benefits of electronic submission.
Technical Support for Electronic Filing
The CRA provides technical support for electronic filing issues, but having professional help can resolve complex filing problems more efficiently.
T3010 Filing for First-Year Charities
New charities face unique challenges when filing their first T3010, as they may have incomplete years of operation and limited historical data.
First-Year Filing Timeline
Your first T3010 is due six months after your first fiscal year-end as a registered charity. This may be a partial year if you received charitable status partway through your fiscal year.
Unique First-Year Considerations
New charities often face special circumstances:
Limited operational history to report
Startup costs that may seem disproportionate
Board and governance structures still developing
Limited program delivery in early months
Describing Startup Activities
When describing your charitable activities, explain your startup phase:
Board formation and governance development
Program planning and development activities
Fundraising and resource development efforts
Community outreach and partnership building
Financial Reporting for New Charities
First-year financial reporting may include:
Significant startup and organizational costs
Limited revenue in early months of operation
Infrastructure investments in systems and capacity
Professional fees for registration and compliance
Setting Expectations for Future Years
Use your first T3010 to set realistic expectations:
Explain your growth plans and development timeline
Describe how your activities will expand in future years
Demonstrate understanding of compliance requirements
Show commitment to proper governance and oversight
Conclusion
The T3010 return is an essential filing for Canadian charities, ensuring they remain compliant with CRA regulations and continue to operate as registered charities. By submitting the return accurately and on time, charities can maintain their status, avoid penalties, and build trust with their donors and the public. Take the time to gather the necessary information, and if needed, seek professional assistance to ensure your T3010 is filed correctly.
Professional assistance with T3010 preparation often pays for itself by preventing errors that could trigger CRA audits or compliance reviews. Many charities find that working with experienced professionals improves both their filing accuracy and their overall understanding of compliance requirements.
BNorthfield & Associates provides comprehensive T3010 preparation and filing services, helping charities meet their annual reporting obligations while presenting their work in the best possible light to the CRA and the public.
Ready to streamline your T3010 filing process and ensure full compliance with CRA requirements? Work with professionals who understand both the technical requirements and strategic considerations that make T3010 filing an opportunity to showcase your charity’s impact and commitment to excellence.
Charity organizations frequently rely on volunteers to perform essential roles, and while volunteers are not employees, these organizations still have certain responsibilities toward them. To avoid potential issues, it is recommended to implement the following best practices.
Although volunteers are not considered employees…
Volunteers are not classified as employees due to the absence of monetary compensation for their work. Consequently, the minimum standards for workplaces outlined by the Ontario or federal government do not extend to them.
A contractual relationship
Despite the fact that volunteers are not considered employees, both the organization and the volunteers have obligations and entitlements toward each other. The legal framework governing the relationship between an organization and its volunteers is referred to as a contract for volunteer services, which can be either in written or verbal form.
While the organization relies on volunteers to fulfill its mission, volunteers are also obliged to fulfill their commitments to the organization. This means that the organization is responsible for providing a safe work environment for its volunteers, while the volunteers are expected to adhere to the organization’s instructions.
The organization’s duties
Charity organizations are obligated to exercise care towards their clients and volunteers by taking appropriate measures to prevent harm to them and others. Not properly ensuring the safety of volunteers may lead to the organization being held accountable for any harm that may be caused to its clients, volunteers, or any other parties while volunteers perform their tasks. This may include physical injuries or financial losses.
Additionally, charity organizations may be held accountable if they do not adequately screen, train, and supervise their volunteers. For instance, an organization may be held responsible if a volunteer commits a negligent act while performing their volunteer duties. Similarly, an organization may also be held liable if a volunteer suffers an injury due to inadequate training to perform the required tasks. Nevertheless, court proceedings and verdicts against charity organizations for their volunteers’ actions are rare in Canada.
Incidents during volunteer activities
As organizations may be held accountable for harm that their volunteers experience or cause to others, it may be advisable to contemplate insurance coverage for such risks. Organizations can initiate this process by verifying whether their existing policies cover these circumstances.
Attracting, instructing, and overseeing volunteers
Charity organizations must exercise the same level of care in recruiting and vetting volunteers as they do with employees. Depending on the situation, a criminal background check may be necessary (refer to the Police Checks section).
After selecting volunteers, the charity must equip them with adequate instruction and supervision. Volunteers should have a clear understanding of their responsibilities and the regulations they must adhere to.
Entering into a volunteer contract
It is recommended that volunteers sign a volunteer contract, outlining their obligations, permissible and impermissible actions, and expected conduct standards. The contract should also cover other regulations that the volunteers must comply with, such as upholding the charity policies and procedures and maintaining the confidentiality of information concerning the organization and its clients.
Typically, police checks are not obligatory. However, depending on the volunteer’s responsibilities and the individuals they will assist, it may be prudent to conduct a police check.
Your organization serves vulnerable populations
In this scenario, it is imperative to conduct a police check. For example, if the volunteer will be working with elderly people or individuals with disabilities, it is important to screen for any previous offences related to physical or emotional abuse.
Definition of vulnerable persons
The term “vulnerable persons” refers to individuals who may be susceptible to harm or exploitation due to their age, disabilities, or other temporary or permanent circumstances. These individuals can also be deemed vulnerable if they are reliant on others, such as a child who depends on their parents or a senior with limited autonomy who relies on their caregiver.
Additionally, an individual can be deemed vulnerable concerning someone who holds authority over them. For example, a student may be vulnerable to a teacher or trainer due to the power dynamics of their relationship.
Dangers of not performing police checks
Failing to conduct proper police checks on volunteers who will work with vulnerable persons could have serious consequences for the organization. If harm is caused to a vulnerable person due to a volunteer’s criminal behavior, the organization may be held liable. This may result in legal steps against the organization and significant damage to its reputation. Therefore, it is crucial for charity organizations to carefully screen volunteers who will work with vulnerable persons and take necessary precautions to ensure their safety.
Conducting Police Checks
Before carrying out a police check, it is important to obtain the volunteer’s consent and ensure that the results remain confidential. Once you have obtained the necessary permission, you can contact the police service in your region and provide them with details of the volunteer’s role and responsibilities, so they can conduct the appropriate type of verification.
Remember, the results of the police check are required to be kept confidential to safeguard the privacy of the volunteer. For more information on conducting police checks, you can visit the website of the Royal Canadian Mounted Police (RCMP) or get in touch with your local police service.
When the individual has a criminal record
Before excluding a volunteer based on their criminal record, it’s important to consider whether the offenses committed are relevant to the tasks they would be performing. It’s generally not acceptable to exclude someone if their offenses are not relevant to the volunteer position, as this could be considered discriminatory.
Safeguarding personal information
Charity organizations have a responsibility to safeguard any personal information they possess. Personal information is defined as any information that can be utilized to distinguish a specific individual.
The organization is responsible for protecting the personal information of the individuals who use its services, such as their medical history, financial situation, marital status, or criminal record. To prevent unauthorized access, this information should be stored in a secured location, for example, in a locked filing cabinet.
Additionally, charities must ensure that their volunteers maintain confidentiality and respect the privacy of this information. Volunteers should have access only to the information they need to do their jobs.
Confidentiality agreements
Volunteer confidentiality agreements may be deemed appropriate by the organization to safeguard personal or other sensitive information.
Collecting personal information from volunteers
When a charity organization recruits volunteers, it should gather only the personal information that is necessary for the volunteer’s activities. The organization must directly ask the volunteer for this information and seek authorization to request additional information from other sources, especially when conducting police checks or contacting reference persons.
Similarly, the charity must maintain the confidentiality of any personal information it has on its volunteers, such as police check results or driving records. Volunteers have the right to access their file maintained by the organization.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian law and can help ensure your organization follows proper procedures.
To discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
READY FOR BETTER NONPROFIT REPORTING?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping service. People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
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Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
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You’ve got a great idea for a charity and you’re ready to make it official. But then someone mentions legal fees, incorporation costs, and ongoing compliance expenses, and suddenly you’re wondering if you can afford to start a charity at all.
Here’s the thing that confuses most people about charity registration costs in Canada: the CRA doesn’t charge you anything to apply for charitable status. Zero dollars. But that doesn’t mean starting a charity is free. By the time you factor in incorporation, legal help, and setup costs, you’re looking at several thousand dollars to get properly established.
The biggest mistake new charity founders make is focusing only on the “free” CRA application and forgetting about everything else. Then six months into the process, they’re scrambling to find money for legal fees, professional services, and compliance costs they never saw coming.
Let’s break down exactly what charity registration actually costs in Canada, so you can budget realistically and avoid financial surprises that could derail your charitable mission.
Let’s start with the good news: submitting your charity application to the Canada Revenue Agency costs absolutely nothing. No application fee, no processing fee, no registration fee. The CRA will review your application, conduct their assessment, and issue your charitable registration number without charging you a penny.
What “Free” Actually Covers
The free CRA application covers:
Initial review of your charity application
Assessment of your charitable purposes and activities
Evaluation of your governance structure
Issuance of your charitable registration number (if approved)
Basic guidance during the application process
What “Free” Doesn’t Cover
While the CRA application itself is free, getting to that point involves costs that many people don’t anticipate:
Incorporating your organization before you can apply
Professional help preparing your application
Legal guidance to ensure your application meets CRA requirements
Ongoing compliance support once you’re registered
Think of it like getting a driver’s license. The road test might be free, but you still need to pay for driving lessons, insurance, and all the other requirements before you can legally drive.
Why the CRA Doesn’t Charge Fees
The CRA’s charity registration process is designed to encourage legitimate charitable activities that benefit Canadian society. Charging application fees would create barriers for organizations with limited resources but genuine charitable purposes.
However, this doesn’t mean the process is simple or that you won’t need professional help to navigate it successfully.
Incorporation Costs: Federal vs Provincial Breakdown
Before you can apply for charitable status, you need to incorporate your organization. This is where the first real costs appear, and they vary depending on which route you choose.
Federal Incorporation Through Corporations Canada
Federal incorporation costs:
Online filing: $200
Paper filing: $250 (not recommended)
NUANS name search: $8
Express service (if available): additional $100
Federal incorporation gives you name protection across Canada and makes it easier to operate in multiple provinces. Most charity lawyers recommend this route because it provides more flexibility as your organization grows.
Provincial Incorporation Costs by Province
Each province has its own incorporation fees and requirements:
Ontario: $155 online, $175 by mail
Additional NUANS search: varies
Express service: additional fees apply
British Columbia: Around $350
Name reservation: $30
Expedited service: additional $50-100
Alberta: Approximately $100
Name search: $30
Priority processing: additional fees
Quebec: Around $200
Name reservation and search: additional costs
Expedited service: extra fees
Other Provinces: Generally range from $100-$300
Additional Incorporation Expenses
Don’t forget these often-overlooked costs:
Registered office service: $200-$500 per year (if you don’t have a business address)
Corporate minute book and seal: $150-$300
Initial legal documentation: $500-$1,500
Professional incorporation service: $500-$1,000 (if you don’t use a lawyer for full charity registration)
Legal Professional Fees for Charity Registration
This is typically the largest expense in charity registration, and for good reason. The legal work involved in properly registering a charity requires specialized expertise that can make or break your application.
Most organizations working with experienced charity lawyers spend between $3,000 and $8,000 for complete registration services. This wide range reflects the complexity of different charity types:
DIY vs Professional Help: The Real Cost Comparison
Some people try to save money by handling charity registration themselves. While technically possible, this approach often costs more in the long run:
DIY success rate: About 60% on first application
Professional success rate: Over 90% on first application
Average time for DIY approval: 12-18 months
Average time with professional help: 6-8 months
When DIY applications get rejected, you typically end up hiring a lawyer anyway to fix the problems. By then, you’ve lost months of time and often spend more than if you’d hired professionals from the start.
Fixed-Fee vs Hourly Billing
Many charity lawyers offer fixed-fee arrangements for registration services. This gives you predictable costs and often better value than hourly billing. Ask potential lawyers about their fee structures and what’s included in their quoted prices.
Document Preparation and Filing Costs
Beyond professional legal fees, various document preparation and filing costs add up during the registration process.
Government Filing Fees
While the CRA application is free, other government filings during charity registration include:
Incorporation filing fees (as outlined above)
Name search and reservation fees
Amendment fees if changes are needed: $200-$500
Extra-provincial registration (if needed later): $200-$500 per province
Professional Document Services
If you’re not working with a full-service lawyer, you might need separate document services:
Corporate bylaws drafting: $1,000-$2,500
Policy development: $500-$1,500
Application form preparation: $1,500-$3,000
Supporting document preparation: $500-$1,000
Translation Services
If you’re incorporating in Quebec or need documents in both official languages:
Document translation: $0.15-$0.30 per word
Certified translation: additional fees
Bilingual document preparation: 25-50% premium
Post-Registration Setup Expenses
Getting your charitable registration number is exciting, but it’s just the beginning. Setting up your charity for operations involves additional costs that many people don’t anticipate.
Banking and Financial Setup
Business bank account opening: Usually free, but requires proper documentation
Monthly banking fees: $10-$30 per month
Transaction fees: Varies by bank and account type
Merchant services for donations: 2.2-3.5% per transaction
Accounting software: $15-$50 per month
Insurance Requirements
While not legally required for registration, insurance is essential for operating safely:
General liability insurance: $500-$1,500 per year
Directors and officers insurance: $1,000-$3,000 per year
Property insurance (if applicable): $200-$1,000 per year
Technology and Administrative Setup
Modern charities need basic technology infrastructure:
Professional website development: $1,000-$5,000
Domain and hosting: $100-$300 per year
Professional email system: $5-$15 per user per month
Donor management software: $50-$300 per month
Fundraising platform setup: $200-$1,000 plus ongoing fees
Initial Marketing and Communications
Getting the word out about your new charity involves startup costs:
Logo and brand design: $500-$2,500
Marketing materials: $500-$2,000
Website content and SEO: $1,000-$3,000
Social media setup: $200-$1,000
Ongoing Annual Compliance Costs
Charity registration isn’t a one-time expense. Once you’re operational, ongoing compliance requires regular professional support and various annual costs.
Annual Professional Services: $1,500 – $5,000
Most charities spend between $1,500 and $5,000 annually on professional compliance support:
Basic Annual Support ($1,500 – $2,500):
T3010 annual return preparation
Basic compliance guidance
Policy updates as needed
General legal questions
Comprehensive Annual Support ($2,500 – $5,000):
Complete T3010 preparation and filing
Ongoing compliance monitoring
Regular policy updates
Board training and governance support
CRA communication management
Government Annual Filings
Corporate annual returns: $20-$60 per year (depending on jurisdiction)
HST returns: Free to file, but may require professional help
Payroll remittances: If you have employees
Other Annual Expenses
Insurance renewals: Same as initial costs
Banking fees: $120-$360 per year
Software subscriptions: $180-$600 per year
Website maintenance: $200-$1,000 per year
Hidden Costs in Charity Registration Process
Experienced charity founders always have stories about costs they never saw coming. Here are the big ones that catch people off guard:
Application Revisions and Amendments
About 30% of charity applications require revisions or additional information from the CRA:
First revision with legal help: $500-$1,500
Multiple revision rounds: $1,000-$3,000 total
Major application rewrite: $2,000-$4,000
Extended Timeline Costs
When charity registration takes longer than expected, costs accumulate:
Extended professional services: $200-$500 per month
Opportunity costs from delayed fundraising
Additional board meetings and volunteer time
Interim operational costs without charitable status
Governance Training and Development
Many new charities underestimate the cost of properly training volunteer boards:
Professional governance training: $500-$2,000
Board retreat or strategic planning: $1,000-$3,000
Ongoing director education: $200-$500 per year
Compliance Catch-Up Costs
If your initial application doesn’t include all necessary policies and procedures:
Policy development after registration: $1,000-$3,000
Governance structure improvements: $500-$2,000
Financial system upgrades: $500-$2,000
Fundraising Setup Reality Check
Getting ready to actually raise money involves costs that aren’t part of registration:
Charitable receipting system: $500-$2,000 setup
Fundraising materials and campaigns: $1,000-$5,000
Grant application support: $500-$2,000 per major grant
Donor stewardship systems: $200-$1,000 setup
Budget Planning Template for New Charities
Here’s a realistic budget template for charity registration in Canada, broken down by timeline and necessity:
Phase 1: Incorporation and Application Preparation (Months 1-2)
Essential Costs:
Incorporation fees: $200-$350
Legal services for registration: $3,000-$8,000
Name search and basic setup: $100-$300
Total Phase 1: $3,300-$8,650
Phase 2: Application Processing (Months 3-8)
Potential Additional Costs:
Application revisions: $0-$2,000
Extended professional support: $0-$1,500
Total Phase 2: $0-$3,500
Phase 3: Post-Registration Setup (Months 9-12)
Essential Setup Costs:
Banking and financial setup: $200-$500
Basic insurance: $1,000-$3,000
Technology infrastructure: $1,500-$5,000
Initial marketing: $1,000-$3,000
Total Phase 3: $3,700-$11,500
Year 1 Total Budget Range: $7,000-$23,650
Conservative Planning Budget: $10,000-$15,000 Most well-planned charity registrations fall within this range when working with experienced professionals and planning for typical contingencies.
What to Budget for Year 2 and Beyond
Annual compliance costs: $2,000-$5,000
Insurance renewals: $1,500-$4,500
Technology and administrative: $1,000-$3,000
Growth and development: $2,000-$10,000
Total ongoing annual costs: $6,500-$22,500
Understanding the real costs of charity registration helps you plan effectively and avoid the financial surprises that derail many well-intentioned charitable initiatives. While starting a charity involves significant upfront investment, proper budgeting and professional guidance ensure your money is well spent.
Whether you’re registering a charity in Ontario or starting a nonprofit that might later convert to charitable status, understanding all the costs involved helps you make informed decisions about timing, structure, and professional support.
Working with experienced charity lawyers typically represents the largest single expense in charity registration, but it’s also the investment most likely to ensure success and prevent costly problems later.
Northfield & Associates provides transparent, fixed-fee pricing for charity registration services, helping you budget effectively while ensuring your organization gets the professional support it needs for successful registration and long-term compliance.
Ready to start your charity with a realistic budget and proper legal foundation?
Work with professionals who understand both the legal requirements and the financial realities of building a successful charitable organization in Canada.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
Get professional support today by email at info@northfield.biz, by phone at (416) 317-6806, or visit us or Schedule your free consultation to discuss your specific circumstances and receive expert assistance throughout the reinstatement process with our experienced legal team.
Ready for better nonprofit reporting?
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping Service covers? People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
PR consultants press@northfied.biz
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
Nobody starts a charity expecting to shut it down. You begin with hope, passion, and a vision for making the world better. But sometimes circumstances change in ways you never anticipated. Your founding board members move away, funding disappears, your target population’s needs evolve, or external factors make your mission impossible to pursue.
The thought of dissolving your charity feels like admitting failure, but sometimes it’s the most responsible decision you can make. Maybe your organization has achieved its original goals and is no longer needed. Perhaps you’re considering merging with another charity that can better serve your beneficiaries. Or maybe ongoing operational challenges have made it impossible to fulfill your charitable purposes effectively.
Here’s what many charity leaders don’t realize: dissolving a charity improperly can create serious legal problems for directors, compromise the charitable assets you’re trying to protect, and potentially violate your obligations to donors, beneficiaries, and the public. But when done correctly, dissolution can be a responsible way to ensure charitable assets continue serving charitable purposes and that all legal obligations are properly fulfilled.
The process of charity dissolution in Canada involves multiple legal requirements, regulatory obligations, and stakeholder considerations that must be carefully managed. Understanding these requirements helps ensure the dissolution process protects everyone involved while honoring the charitable intent behind your organization’s work.
When Charities Should Consider Dissolution
The decision to dissolve a charity is never easy, but certain circumstances make dissolution the most responsible choice for directors and stakeholders.
Mission Achievement or Obsolescence
Sometimes dissolution reflects success rather than failure:
Original mission accomplished: The charitable need your organization was created to address has been resolved or is being adequately served by others
Changed circumstances: Social, technological, or policy changes have made your approach obsolete or unnecessary
Better alternatives available: Other organizations are now better positioned to achieve your charitable goals
Planned sunset: Some charities are intentionally created with limited lifespans or specific end goals
Operational Sustainability Issues
When operational challenges make effective charitable work impossible:
Insufficient funding: Unable to raise adequate funds to carry out charitable activities effectively
Leadership vacuum: Cannot recruit or retain qualified board members or senior staff
Regulatory compliance problems: Ongoing difficulty maintaining compliance with charity law requirements
Insurance and liability concerns: Unable to obtain or afford necessary insurance coverage for operations
Governance and Management Breakdown
When organizational dysfunction prevents effective operations:
Board conflicts: Irreconcilable differences between board members that prevent effective governance
Mission drift: Organization has strayed from charitable purposes and cannot realign operations
Financial mismanagement: Serious financial problems that cannot be resolved through normal governance processes
Legal or reputational issues: Problems that compromise the organization’s ability to serve its charitable purposes
Strategic Restructuring Opportunities
Sometimes dissolution is part of strategic organizational planning:
Merger opportunities: Dissolving to merge with another organization that can better serve your beneficiaries
Consolidation initiatives: Multiple related organizations deciding to combine resources and efforts
Successor organization creation: Dissolving to create a new organization with updated structure or purposes
Asset transfer strategies: Moving charitable assets to organizations better positioned to use them effectively
External Pressure and Requirements
Circumstances beyond organizational control may necessitate dissolution:
Regulatory action: CRA revocation or other regulatory sanctions that make continued operation impossible
Legal liability: Lawsuits or liability issues that threaten organizational viability
Insurance loss: Inability to obtain necessary insurance coverage for continued operations
Facility or resource loss: Loss of essential facilities, licenses, or resources needed for charitable activities
Early Warning Signs
Organizations should consider dissolution planning when facing:
Consistently declining revenues or increasing deficits over multiple years
Difficulty recruiting qualified board members or volunteers
Reduced community support or engagement with charitable activities
Ongoing struggles to meet basic compliance and operational requirements
Loss of key partnerships or funding relationships essential to mission achievement
Legal Requirements for Charity Dissolution
Charity dissolution in Canada involves complex legal requirements that vary depending on how your organization is structured and where it operates.
Corporate Law Dissolution Requirements
Federal corporations under the Canada Not-for-profit Corporations Act must:
Obtain board resolution authorizing dissolution
Provide proper notice to members (if applicable)
Obtain member approval by special resolution (if required)
File articles of dissolution with Corporations Canada
Satisfy all corporate debts and liabilities
Distribute remaining assets in accordance with articles and bylaws
Provincial corporation requirements vary by jurisdiction:
Ontario (ONCA): Similar process to federal requirements with provincial-specific procedures
British Columbia: Dissolution under BC Societies Act with specific notice and approval requirements
Alberta: Societies Act dissolution procedures and asset distribution rules
Other provinces: Each has specific dissolution procedures and requirements
Timing and Notice Requirements
Board resolution: Must be passed by directors authorizing dissolution and specifying terms
Member notice: If organization has members, must provide advance notice of dissolution proposal
Member approval: Special resolution by members may be required depending on corporate structure
Public notice: Some jurisdictions require public notice of intended dissolution
Creditor notification: Must notify known creditors and provide opportunity for claims
CRA notification: Must inform CRA of intended dissolution and obtain clearance
Asset Distribution Planning
Identification of assets: Complete inventory of all organizational assets including:
Cash and investments
Real estate and equipment
Intellectual property and intangible assets
Restricted funds and endowments
Liability assessment: Identification and resolution of all organizational debts and liabilities:
Outstanding bills and contractual obligations
Employment obligations and severance costs
Lease termination costs and facility obligations
Potential or contingent liabilities
Asset distribution plan: Development of plan for distributing remaining assets in compliance with:
Corporate articles and bylaws requirements
Donor restrictions and fund limitations
Charity law asset distribution rules
Tax considerations for asset transfers
Documentation Requirements
Board minutes: Detailed minutes documenting dissolution decision and rationale
Member resolutions: If applicable, formal member approval of dissolution
Asset inventory: Complete documentation of all organizational assets and their disposition
Creditor settlements: Documentation of all debt payments and liability resolutions
Distribution records: Detailed records of how assets were distributed and to whom
Regulatory filings: All required government filings and clearances
Understanding these legal requirements becomes especially important when working with experienced charity lawyers who can ensure proper compliance throughout the dissolution process.
Asset Distribution Rules for Dissolved Charities
The distribution of charitable assets upon dissolution is strictly regulated to ensure resources continue serving charitable purposes.
Fundamental Asset Distribution Principles
Charitable purpose preservation: All assets held for charitable purposes must be transferred to other qualified donees that will use them for similar charitable purposes
No private benefit: Assets cannot be distributed to directors, members, or other private parties
Donor intent respect: Assets subject to donor restrictions must be transferred to organizations that will honor those restrictions
Public benefit maintenance: Asset distribution must continue serving the public benefit that justified the organization’s charitable status
Qualified Donee Requirements
Assets can only be distributed to organizations that qualify as donees under the Income Tax Act:
Registered charities in Canada
Qualified donees including certain government bodies and approved foreign charities
Similar organizations with compatible charitable purposes and proper legal status
Asset distribution to non-qualified organizations violates charity law and can result in penalties, tax liability, and potential director liability.
Restricted Fund Considerations
Donor-restricted assets: Must be transferred to organizations that can and will honor the original restrictions
Endowment funds: Principal amounts may need special handling to preserve donor intent about permanent restriction
Project-specific funds: Must go to organizations capable of completing the intended charitable projects
Geographic restrictions: Assets restricted to specific geographic areas must go to organizations serving those areas
Asset Valuation and Transfer Procedures
Fair market value assessment: Assets must be valued appropriately for tax and legal purposes
Professional appraisals: May be required for significant real estate, equipment, or other valuable assets
Transfer documentation: Proper legal documentation of asset transfers to receiving organizations
Tax considerations: Understanding tax implications for both dissolving and receiving organizations
Due Diligence for Receiving Organizations
Qualified donee verification: Ensuring receiving organizations are properly registered and in good standing
Capacity assessment: Confirming receiving organizations can effectively use transferred assets
Mission alignment: Ensuring receiving organizations have compatible charitable purposes
Financial stability: Assessing whether receiving organizations are financially stable enough to properly steward transferred assets
Special Asset Categories
Real estate transfers: May require special procedures, valuations, and legal documentation
Investment portfolios: May need professional management during transfer process
Intellectual property: Copyrights, trademarks, and other intellectual assets require special transfer procedures
Program assets: Equipment, materials, and resources used in charitable programs
Restricted funds with impossible purposes: May require court application or CRA approval for cy-près distribution to similar charitable purposes
CRA Notification and Final Returns
The Canada Revenue Agency has specific requirements for charity dissolution that must be carefully followed to maintain compliance and avoid penalties.
Advance Notification Requirements
Dissolution intent notification: Must notify CRA in advance of intended dissolution
Asset distribution plan: Provide detailed plan for asset distribution showing compliance with charity law
Timeline communication: Inform CRA of expected dissolution timeline and key milestones
Ongoing activity reporting: Continue reporting charitable activities until actual dissolution
Final T3010 Return Requirements
Final return designation: Final T3010 must be clearly marked as final return for dissolved organization
Complete activity reporting: Must report all activities and transactions up to dissolution date
Asset distribution reporting: Detailed reporting of how all assets were distributed
Final financial statements: Complete financial statements showing organization’s final financial position
Compliance confirmation: Demonstration that all charity law requirements were met throughout dissolution process
Books and Records Transfer
Record preservation: Must ensure proper preservation of organizational books and records
Transfer to receiving organization: May transfer records to organization receiving majority of assets
Independent storage: May need to arrange independent storage if no single successor organization
Access requirements: Must ensure CRA can access records for required retention period
Privacy and confidentiality: Must protect confidential donor and beneficiary information during transfer
Outstanding Compliance Issues
Penalty resolution: Must resolve any outstanding penalties or compliance issues before dissolution
Audit completion: If under CRA audit, must complete audit process before final dissolution
Compliance agreements: Must fulfill any outstanding compliance agreement obligations
Filing corrections: Must correct any errors in previous filings before dissolution
Final CRA Clearance
Clearance certificate: Obtain formal clearance from CRA confirming all obligations have been met
Tax account closure: Formally close organizational tax accounts with CRA
Charitable registration termination: Official termination of charitable registration number
Final confirmation: Written confirmation from CRA that dissolution process is complete
Working with qualified charity board members throughout the dissolution process helps ensure proper oversight and compliance with all regulatory requirements.
Corporate Dissolution vs Charity Revocation
Understanding the difference between voluntary dissolution and involuntary revocation helps charities choose the appropriate process and avoid unnecessary complications.
Voluntary Dissolution Process
Initiated by organization: Board and members (if applicable) decide to dissolve voluntarily
Controlled timeline: Organization controls timing and process within legal requirements
Asset distribution planning: Organization can plan asset distribution to maximize charitable benefit
Reputation protection: Voluntary dissolution typically causes less reputational damage than revocation
Clean closure: Proper voluntary dissolution provides clean legal closure with all obligations fulfilled
Involuntary Revocation by CRA
CRA-initiated process: CRA determines organization should lose charitable status
Common revocation grounds:
Failure to file required returns
Operating outside charitable purposes
Providing undue private benefit
Serious compliance violations
Inadequate books and records
Limited control: Organization has limited ability to control process once revocation proceedings begin
Potential penalties: May involve financial penalties and tax consequences
Reputational damage: Revocation typically causes significant reputational harm
Strategic Considerations
Timing advantages of voluntary dissolution:
Better control over asset distribution
More time for proper creditor notification and debt resolution
Opportunity to communicate dissolution rationale to stakeholders
Ability to complete outstanding charitable projects
Avoiding revocation through voluntary dissolution:
When compliance problems are serious but not yet subject to revocation
When organizational capacity is insufficient for continued operations
When mission achievement or obsolescence makes continued operation unnecessary
Appeal and Objection Rights
Revocation appeals: Organizations facing revocation can appeal CRA decisions
Objection process: Formal objection procedures for challenging CRA decisions
Court applications: In some cases, court applications may be appropriate
Settlement negotiations: Possibility of negotiating voluntary dissolution in lieu of revocation
Legal and Financial Consequences
Tax implications: Different tax consequences for voluntary dissolution vs revocation
Director liability: Potential personal liability differences between voluntary and involuntary processes
Asset distribution: More favorable asset distribution options with voluntary dissolution
Future activities: Impact on directors’ ability to be involved with other charities
Member and Board Approval Process
Proper approval processes ensure dissolution decisions are legally valid and reflect appropriate organizational governance.
Board Resolution Requirements
Initial authorization: Board resolution authorizing dissolution planning and preparation
Detailed dissolution plan: Board approval of specific dissolution plan including asset distribution
Final dissolution authorization: Formal board resolution authorizing actual dissolution filing
Documentation requirements: Proper board minutes documenting discussions, deliberations, and decisions
Voting thresholds: Understanding required voting thresholds for dissolution decisions
Member Involvement and Approval
Member notification: Proper advance notice to all members about proposed dissolution
Information provision: Providing members with sufficient information for informed decision-making
Meeting procedures: Proper procedures for member meetings to consider dissolution
Voting requirements: Understanding special resolution requirements for dissolution approval
Minority protection: Ensuring minority member rights are protected during dissolution process
Stakeholder Communication
Donor notification: Informing major donors about dissolution plans and asset distribution
Beneficiary communication: Ensuring beneficiaries understand how their interests will be protected
Community engagement: Appropriate communication with community stakeholders
Partner organizations: Notification of partner organizations that may be affected
Staff and volunteers: Proper communication with staff and volunteers about timeline and implications
Due Process Considerations
Reasonable deliberation: Allowing adequate time for consideration and discussion
Alternative exploration: Demonstrating consideration of alternatives to dissolution
Professional advice: Obtaining appropriate professional guidance for decision-making
Conflict management: Addressing any conflicts of interest in dissolution decisions
Documentation: Maintaining proper records of decision-making process and rationale
Legal Protection for Decision-Makers
Business judgment protection: Ensuring decisions are made with proper care and diligence
Professional guidance: Working with qualified legal counsel throughout the process
Insurance considerations: Ensuring director and officer insurance covers dissolution activities
Liability minimization: Following proper procedures to minimize potential personal liability
Creditor and Stakeholder Obligations
Charity dissolution requires careful attention to the rights and interests of various stakeholders who may be affected by the closure.
Creditor Identification and Notification
Complete creditor inventory: Identifying all organizational debts and obligations including:
Trade creditors and suppliers
Employment obligations and benefits
Lease and contract obligations
Loan and financing arrangements
Professional service providers
Government obligations (taxes, remittances, etc.)
Formal notice procedures: Providing proper legal notice to all known creditors
Claims process: Establishing process for creditors to submit claims against organization
Dispute resolution: Procedures for addressing disputed claims or obligations
Payment priorities: Understanding legal priorities for debt payment from available assets
Employee and Volunteer Obligations
Employment termination: Proper notice and severance for employees
Benefits continuation: Ensuring proper handling of employee benefits and pensions
Volunteer recognition: Appropriate acknowledgment of volunteer contributions
Reference letters: Providing employment references and documentation for staff
Professional development: Assisting staff with transition to new employment where possible
Contract and Partnership Obligations
Contract review: Evaluating all organizational contracts for termination provisions
Partnership agreements: Proper termination of partnerships and collaborative arrangements
Service agreements: Ensuring continuity of essential services for beneficiaries during transition
Vendor relationships: Professional handling of supplier and vendor relationships
Facility and equipment: Proper termination of leases and equipment arrangements
Beneficiary and Community Obligations
Service continuity: Ensuring continuation of essential services during dissolution process
Transition planning: Helping beneficiaries transition to other service providers
Information transfer: Properly transferring beneficiary information to successor organizations (with appropriate consents)
Community impact: Considering broader community impact of service discontinuation
Legacy preservation: Ensuring organizational history and achievements are appropriately documented and preserved
Donor and Funding Source Obligations
Donor communication: Informing donors about dissolution and asset distribution plans
Restricted fund compliance: Ensuring donor restrictions are honored in asset distribution
Grant obligations: Fulfilling outstanding grant reporting and compliance requirements
Recognition continuity: Ensuring donor recognition commitments are transferred to successor organizations where appropriate
Professional Assistance for Charity Dissolution
Charity dissolution involves complex legal, regulatory, and practical considerations that typically require professional guidance to navigate successfully.
Legal Counsel Requirements
Specialized charity law expertise: Dissolution involves charity law, corporate law, employment law, and other specialized areas
Regulatory compliance guidance: Ensuring compliance with CRA requirements and other regulatory obligations
Asset distribution planning: Professional guidance for legally compliant asset distribution
Documentation preparation: Proper preparation of legal documents and regulatory filings
Liability protection: Ensuring directors and officers are protected from personal liability
Accounting and Financial Services
Asset valuation: Professional valuation of organizational assets for distribution purposes
Financial statement preparation: Final financial statements and regulatory reporting
Tax compliance: Ensuring compliance with all tax obligations during dissolution
Audit completion: Completing any outstanding audit or review requirements
Record preservation: Proper preservation and transfer of financial records
Specialized Professional Services
Real estate professionals: For organizations with significant real estate holdings
Investment advisors: For organizations with complex investment portfolios
Insurance brokers: For managing insurance coverage during dissolution process
Human resources consultants: For organizations with significant employee obligations
Communications professionals: For managing public communications about dissolution
Cost-Benefit Analysis of Professional Help
Risk mitigation: Professional guidance reduces risk of costly mistakes and compliance violations
Efficiency gains: Professional experience typically results in faster, more efficient dissolution process
Liability protection: Proper professional guidance provides better protection for directors and officers
Relationship preservation: Professional handling typically results in better stakeholder relationships during transition
Peace of mind: Professional guidance provides confidence that all obligations are properly fulfilled
Choosing Professional Advisors
Charity law specialization: Ensuring legal counsel has specific charity law expertise and experience
Track record: Working with professionals who have successfully handled charity dissolutions
Comprehensive service: Choosing advisors who can coordinate all aspects of dissolution process
Cost transparency: Understanding fee structures and total costs for dissolution services
Client references: Obtaining references from other organizations that have used dissolution services
The decision to dissolve a charity is never easy, but when it’s the right decision, proper legal and professional guidance ensures the process protects everyone involved while honoring the charitable intent behind the organization’s work. Whether dealing with operational challenges, strategic restructuring, or changed circumstances, professional assistance helps ensure dissolution is handled responsibly and legally.
Understanding the dissolution process also helps charity leaders make informed decisions about whether dissolution is appropriate or whether alternative solutions might better serve the organization and its stakeholders.
Northfield & Associates provides comprehensive legal guidance for charity dissolution, helping organizations navigate the complex requirements while protecting the interests of directors, stakeholders, and beneficiaries. Professional guidance ensures the dissolution process is handled with the care and attention that charitable assets and stakeholder interests deserve.
Ready to explore your options and understand the dissolution process?
Work with experienced professionals who understand both the legal requirements and the sensitivity required for these difficult organizational decisions.
At Northfield & Associates our expert teams guidance on compliance requirements. Our team understands Canadian charity law and can help ensure your organisation follows proper procedures.
At Northfield & Associates, we have a team of professional bookkeepers and accountants to help your organization manage the books so that you can breeze through tax season.
We’re often asked by prospective clients what our Bookkeeping Service covers? People want to know what specific tasks we do, and what their responsibility is. This brief explainer page will answer that question. This is by no means an exhaustive list, but covers the most frequently asked questions.
Getting Started
Review your existing books for needed corrections or back-work
Chart of accounts setup or amendment
Assistance with setting up bank feeds
Limited assistance* with setting up payroll (QBO or Gusto only)
Your books brought current and reconciled if needed
Ongoing Monthly Bookkeeping
After-the-fact transaction recording
Post to general ledger
Post to other ledgers (as needed)
Bank account reconciliation
Monthly financial statements
Other bookkeeping services, as required
Best-practice bookkeeping advice and counsel
Year End
Assistance with 1099-NEC preparation*
Assistance with 1099-MISC preparation*
Year-end financial statements and period-end closing
What We Don’t Do
Pay bills
We do not offer bill-pay services at this time, nor do we manage Accounts Payable (AP) or Accounts Receivable (AR).
Payroll tax responsibility
Our bookkeepers can assist you in setting up your initial payroll service in QBO or Gusto. We are not responsible for entering payroll hours/salary, accruing payroll taxes, nor the transmittal of payroll taxes to the IRS or the state. Your full-service payroll provider (QBO, Gusto, or whatever other service a client uses) will be the responsible party for payroll and payroll tax compliance.
*Payroll deductions and benefits
We provide assistance with setting up a payroll account in either Quickbooks Online or Gusto, including entry of employee data. We do not assist in state registrations, benefits, or advise on deductions. Those service areas are provided directly by either QBO or Gusto.
Preparation of W2s
Similar to the last item, your full-service payroll provider (QBO/Gusto) is responsible for preparation of Form W2 for employees.
Sales tax reporting
For those nonprofits that sell taxable goods and/or services, your bookkeeper will assist in accounting for sales taxes collected and transmitted, but we do not prepare state sales tax reports.
Donation recording
We do not provide individual donation data entry into your neither your donor CRM nor Quickbooks Online, nor do we prepare year-end donor acknowledgements.
Administrative tasks
We cannot provide administrative services unrelated to our bookkeeping function.
Attend board meetings
Due to the constraints of time and distance, we are unable to be present, physically nor virtually, at a meeting of a client’s board of directors.*May incur additional fee per 1099-NEC or 1099-MISC.
Let’s Collaborate & Make a Difference!
Partner with us to amplify your mission. Whether it’s Charity accounting, financial transparency, or strategic growth—we’re here to help you create meaningful impact. Let’s work together to build a better future!
In this evolving economic landscape, collaboration with our firm offers clients a strategic advantage. With Cambodia’s reform-driven investment environment and Canada’s expanding footprint in Southeast Asia, our team of experienced consultants and legal advisors provides tailored guidance to help businesses navigate cross-border opportunities. We focus in developing comprehensive legal strategies, structuring international partnerships, and ensuring compliance in emerging markets.
By leveraging our regional insight and international expertise, you benefit from a trusted partner dedicated to helping you capitalize on growth potential in Cambodia and beyond.
Your Trusted Partner in International Bilateral Relations
At Northfield & Associates are focus in Foreign Direct Investment (FDI), international trade missions, and cross-border legal strategy. Our team of experienced consultants and legal advisors offers tailored guidance and strategic insight to help you navigate the complexities of international partnerships and development opportunities.
Whether you choose to meet in person at one of our offices or connect virtually, we provide flexible and accessible consultation options. During your session, we’ll assess your goals, review key documentation, and guide you through every stage of your FDI or trade mission engagement.
Let us help you take the next step with confidence supported by trusted legal and strategic counsel every step of the way.
Northfield & Associates
Advancing Global Partnerships, Together.
Take the First Step Today
If you believe you may be eligible for legal relief or simply need sound legal advice, we’re here to help. Contact us today to book your consultation. Let us provide the clarity, strategy, and peace of mind you need to move forward.
Disclaimer: The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
We serve our clients in English, Cambodian, Vietnamese, Mandarin and Cantonese, especially in Asian clients.
If you or anybody that you know, think that you meet the requirements and wish to receive further information.
We can help you start the application process and confirm eligibility requirements to participate.
We Offer Consultations & Meetings by Phone & Virtually. Affordable Fees.
Book a Consultation Today
Contact Northfield & Associates today to schedule a consultation with an experienced Consultant.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
Forward-Looking Information
This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the Company Facility; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company’s activities; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s amended annual information.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Questions?
info@northfied.biz
Within Corporate Newsroom
Media Contact:
media@northfied.biz
Press contact
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Charity Bookkeeping and Financial Management Best Practices
You started your charity to change the world, not to spend hours wrestling with spreadsheets and receipts. But three months into operations, you’re drowning in financial paperwork, your board is asking questions you can’t answer, and you’re pretty sure your bookkeeping system wouldn’t survive a CRA audit.
Here’s the reality that hits most charity founders like a brick wall: good financial management isn’t just about compliance – it’s the foundation that makes everything else possible. Poor bookkeeping doesn’t just create problems with regulators; it undermines your ability to make good decisions, demonstrate impact to funders, and plan for the future.
The good news is that charity bookkeeping doesn’t have to be overwhelming or expensive. With the right systems, clear processes, and basic understanding of requirements, you can create financial management practices that actually support your mission instead of draining your time and energy.
But here’s what many charity leaders don’t realize: nonprofit bookkeeping is different from business bookkeeping in important ways. The rules about fund restrictions, donation receipting, and compliance reporting require specialized knowledge that your regular business accountant might not have.
Let’s walk through everything you need to know to build financial management systems that keep you compliant, informed, and focused on your charitable mission.
Essential Bookkeeping Requirements for Canadian Charities
Canadian charities face specific bookkeeping requirements that go beyond basic business accounting. Understanding these requirements helps you build systems that support both compliance and effective operations.
Legal Foundation for Charity Bookkeeping
The Canada Revenue Agency requires all registered charities to maintain adequate books and records that:
Support all information reported on annual T3010 returns
Demonstrate compliance with charity law requirements
Track the use of charitable funds for intended purposes
Provide audit trails for all financial transactions
These aren’t just suggestions – they’re legal requirements backed by potential penalties for non-compliance.
What “Adequate Books and Records” Means
The CRA expects charity books and records to include:
Complete financial statements prepared according to accounting standards
Detailed general ledger with all transactions properly recorded
Supporting documentation for all revenues, expenses, and transfers
Donor records including receipting information and gift restrictions
Board minutes documenting financial decisions and oversight
Retention Requirements
Canadian charities must retain financial records for specific periods:
Books and records: Must be kept for six years from the end of the last tax year they relate to
Donation receipts: Duplicate copies must be kept for two years
Supporting documents: All invoices, contracts, and supporting materials for six years
Record Accessibility Requirements
Your financial records must be:
Kept in Canada (or accessible electronically from Canada)
Available for CRA inspection during business hours
Organized in a way that allows efficient review and audit
Maintained in English or French (translations may be required)
Electronic Records Considerations
If you maintain electronic records, ensure:
Backup systems prevent data loss
Security measures protect confidential information
Electronic signatures and approvals are properly documented
Paper documents are scanned and stored appropriately
Consequences of Inadequate Bookkeeping
Poor financial record-keeping can result in:
CRA compliance reviews and potential penalties
Difficulty preparing accurate T3010 returns
Problems with funding applications and grant reporting
Board governance issues and reduced oversight capability
Potential loss of charitable status in extreme cases
Chart of Accounts Setup for Nonprofits
A well-designed chart of accounts is the foundation of effective charity bookkeeping. Unlike business accounting, nonprofit charts of accounts must track fund restrictions, program activities, and compliance requirements.
Basic Structure for Charity Chart of Accounts
Your chart of accounts should include these major categories:
Assets:
Current assets (cash, accounts receivable, prepaid expenses)
Many charities need to track multiple funds within their accounting system:
General operating fund for unrestricted activities
Designated funds for board-designated purposes
Restricted funds for donor-specified purposes
Endowment funds for permanently restricted assets
Account Numbering Systems
Develop a logical numbering system that supports:
Easy identification of account types and purposes
Consistent reporting across accounting periods
Integration with grant reporting requirements
Efficient data entry and error reduction
Understanding proper chart of accounts setup becomes especially important when preparing annual T3010 filings that require detailed financial information organized by specific categories.
Donor Receipting and Revenue Recognition
Proper donor receipting and revenue recognition are crucial for maintaining charitable status and providing appropriate tax benefits to supporters.
Legal Requirements for Donation Receipts
All charitable tax receipts must include specific information:
Charity’s legal name and charitable registration number
Donor’s name and address
Date the donation was received (not pledged)
Amount of donation or description and fair market value of gift-in-kind
Statement indicating the receipt is for income tax purposes
When You Can Issue Tax Receipts
Tax receipts can only be issued for true charitable gifts where:
The transfer is voluntary with no expectation of return benefit
The donor receives no material advantage or benefit
The gift is made to support charitable purposes
The donor is eligible to receive charitable tax benefits
Revenue Recognition Timing
Record donation revenue when:
Cash gifts: When received and deposited
Pledges: Generally when received, not when pledged (unless legally enforceable)
Gift-in-kind: When received at fair market value
Securities: When received at fair market value on date of transfer
Restricted vs Unrestricted Donations
Properly classify and track donor restrictions:
Unrestricted donations: Can be used for any charitable purpose within your mandate
Temporarily restricted donations: Restricted by donors for specific:
Time periods (must be spent by certain date)
Purposes (must be used for specific programs)
Activities (can only be used for designated functions)
Permanently restricted donations: Endowment gifts where principal must be maintained permanently
Gift-in-Kind Donations
Special considerations apply to non-cash gifts:
Must obtain proper appraisals for gifts over $1,000
Issue receipts for fair market value, not original cost
Maintain documentation supporting valuation
Apply special rules for gifts of securities, real estate, or other property
Split Receipting for Benefit Events
When donors receive benefits (meals, tickets, auction items):
Calculate fair market value of benefits received
Issue receipt only for amount exceeding benefit value
Clearly document benefit calculation and methodology
Maintain records supporting benefit valuations
Understanding proper receipting becomes especially important when considering the broader costs of charity registration and ongoing compliance requirements.
Managing Restricted vs Unrestricted Funds
Effective fund management ensures donor intentions are respected while maintaining operational flexibility and compliance with charity law.
Understanding Fund Restrictions
Donor-imposed restrictions come from explicit donor instructions about how gifts must be used:
Purpose restrictions (funds must support specific programs)
Time restrictions (funds must be used by certain dates)
Geographic restrictions (funds must benefit specific communities)
Beneficiary restrictions (funds must serve particular populations)
Board-designated restrictions are internal decisions about fund use:
Board reserves for specific purposes
Quasi-endowment funds created by board action
Operating reserves for financial stability
Capital funds for future equipment or facility needs
Tracking Restricted Funds
Implement systems that clearly track:
Source and nature of each restriction
Current balance of restricted funds
Compliance with spending restrictions
Release of restrictions when conditions are met
Compliance with Fund Restrictions
Ensure restricted funds are used only for designated purposes:
Establish clear policies for fund management
Train staff on restriction requirements
Implement approval processes for restricted fund spending
Regular monitoring and reporting on fund balances and usage
Communication About Fund Restrictions
Clear communication prevents problems:
Acknowledge restrictions in donor communications
Report on restricted fund usage in annual reports
Provide regular updates to major donors about fund status
Maintain documentation of all donor communications about restrictions
Releasing Restrictions
Restrictions can be released when:
Purpose is accomplished or becomes impossible
Time restrictions expire
Donor agrees to modify restrictions
Legal process determines restrictions are no longer viable
Fund Balance Reporting
Financial statements must clearly show:
Unrestricted net assets available for general use
Temporarily restricted net assets and their purposes
Permanently restricted net assets (endowments)
Board-designated funds and their purposes
Financial Controls and Internal Auditing
Strong financial controls protect charitable assets and ensure resources are used appropriately for charitable purposes.
Segregation of Duties
Implement segregation of duties wherever possible:
Cash handling: Different people should collect, deposit, and record cash
Check signing: Multiple signatures required for significant amounts
Bank reconciliation: Performed by someone not involved in cash handling
Purchasing: Separate authorization, receiving, and payment functions
Authorization Levels and Limits
Establish clear authorization requirements:
Board approval for expenditures over specified amounts
Executive director approval limits
Program manager spending authority
Petty cash limits and controls
Monthly Financial Review Process
Implement monthly financial management routines:
Prepare and review monthly financial statements
Conduct bank reconciliations and investigate variances
Review accounts receivable and follow up on outstanding items
Analyze budget variances and investigate significant differences
Annual Internal Control Assessment
Regularly assess your control environment:
Review and update financial policies annually
Assess adequacy of current controls and procedures
Identify areas where additional controls are needed
Document control procedures and train staff appropriately
Board Financial Oversight
Ensure proper board involvement in financial oversight:
Regular financial reports to board with variance analysis
Board review and approval of annual budgets
Board oversight of significant financial decisions
Annual review of financial policies and procedures
External Audit Considerations
Many charities benefit from external financial review:
Review engagement: Limited assurance on financial statements
Audit engagement: Highest level of assurance and internal control assessment
The level of external review needed depends on your charity size, funding requirements, and board preferences. Many funders and insurance providers require specific levels of external financial review.
Preparing for CRA Financial Reviews
The CRA conducts financial reviews as part of compliance monitoring, and being prepared can make the difference between a smooth process and a stressful audit.
What CRA Financial Reviews Examine
CRA reviews typically focus on:
Compliance with charity law requirements
Proper use of charitable funds for stated purposes
Accuracy of T3010 annual return information
Adequacy of books, records, and internal controls
Compliance with receipting rules and donor stewardship
Documents CRA May Request
Be prepared to provide:
Complete financial statements and supporting schedules
General ledger and detailed transaction records
Bank statements and reconciliations
Donation records and receipting documentation
Board minutes and financial oversight documentation
Contracts, agreements, and supporting documentation for major transactions
Financial Areas of CRA Focus
Common areas of CRA attention include:
Fundraising expenses: Reasonable and properly allocated
Administrative costs: Appropriate for organization size and complexity
Related party transactions: Proper disclosure and arm’s length terms
Investment income: Proper reporting and use for charitable purposes
Grant-making: Proper due diligence and qualified donee status
Best Practices for Review Preparedness
Maintain ongoing preparedness by:
Keeping detailed, organized financial records
Documenting all significant financial decisions
Ensuring board oversight of financial activities
Regular review and update of financial policies
Annual assessment of compliance with charity law requirements
Legal counsel can assist with complex compliance issues
Professional representation can improve review outcomes
Ongoing professional relationships provide better preparation
Technology Solutions for Charity Bookkeeping
Modern technology can significantly improve the efficiency and accuracy of charity financial management while reducing costs and administrative burden.
Accounting Software Options for Nonprofits
Cloud-based nonprofit accounting software:
QuickBooks Nonprofit: Affordable with good nonprofit features
Sage Intacct: More sophisticated for larger organizations
NetSuite: Comprehensive but expensive enterprise solution
Blackbaud Financial Edge: Designed specifically for nonprofits
Key Features to Look For:
Fund accounting capabilities for restricted funds
Grant tracking and reporting functionality
Donation and pledge management
Integration with donor management systems
Built-in financial reporting templates
Donor Management Integration
Integrate accounting with donor management:
Automatic posting of donations to accounting system
Integrated tax receipt generation and tracking
Donor communication and stewardship tracking
Grant application and reporting management
Banking and Payment Processing
Modern payment processing options:
Online donation processing with automatic recording
ACH/electronic fund transfer capabilities
Mobile payment processing for events
Bank feed integration for automatic transaction import
Expense Management Systems
Streamline expense tracking and approval:
Mobile expense reporting apps
Automated receipt capture and coding
Approval workflows for different expense types
Integration with accounting systems for automatic posting
Financial Reporting and Analytics
Leverage technology for better financial insights:
Automated monthly financial statement generation
Budget vs actual reporting with variance analysis
Dashboard reporting for board and management
Grant compliance reporting and tracking
Security and Backup Considerations
Protect financial data with appropriate security:
Regular automated backups to secure locations
Multi-factor authentication for system access
Encryption of sensitive financial information
Regular security updates and system maintenance
Common Financial Management Mistakes
Learning from common mistakes helps you avoid problems that can affect compliance, operations, and organizational effectiveness.
Mistake #1: Inadequate Cash Flow Management
Many charities struggle with cash flow because they:
Don’t track restricted vs unrestricted cash balances
Fail to plan for seasonal revenue fluctuations
Spend restricted funds for general operations
Don’t maintain adequate operating reserves
Solution: Implement monthly cash flow forecasting and maintain clear segregation of restricted funds.
Mistake #2: Poor Grant Financial Management
Common grant-related financial problems:
Mixing grant funds with general operations
Inadequate tracking of grant expenditures
Missing grant reporting deadlines
Failing to comply with grant terms and restrictions
Solution: Establish separate tracking for each grant with clear policies for compliance and reporting.
Mistake #3: Weak Internal Controls
Many small charities have inadequate financial controls:
Single person handling all financial functions
Lack of proper authorization levels
Missing bank reconciliation procedures
Inadequate documentation of financial decisions
Solution: Implement appropriate controls even in small organizations, including board oversight and segregation of duties where possible.
Mistake #4: Compliance Violations
Common compliance mistakes include:
Issuing inappropriate tax receipts
Poor documentation of donor restrictions
Inadequate books and records maintenance
Missing filing deadlines or incomplete reports
Solution: Regular compliance training and professional support for complex requirements.
Mistake #5: Technology Problems
Technology-related financial management issues:
Using inappropriate software for nonprofit needs
Inadequate backup and security procedures
Poor integration between different systems
Lack of staff training on financial systems
Solution: Invest in appropriate technology and training to support your financial management needs.
Mistake #6: Board Financial Oversight Gaps
Many charity boards provide inadequate financial oversight:
Reviewing only summary financial information
Lack of financial expertise among board members
Infrequent financial reporting and review
Failure to understand restricted fund obligations
Solution: Provide regular, detailed financial reports and ensure board members understand their oversight responsibilities.
Effective charity bookkeeping and financial management provide the foundation for successful charitable operations. Whether you’re dealing with complex fund restrictions or compliance requirements, proper financial systems enable better decision-making and demonstrate accountability to stakeholders.
Good financial management also supports other aspects of charity operations, from annual reporting requirements to insurance and risk management. The investment in proper bookkeeping systems and procedures typically pays for itself through improved efficiency and reduced compliance problems.
Northfield & Associates works with charities to develop financial management systems that support both compliance and operational effectiveness. Professional guidance helps ensure your financial practices meet legal requirements while providing the information you need to pursue your charitable mission effectively.
Ready to strengthen your charity’s financial management and bookkeeping systems? Work with experienced professionals who understand both the technical requirements and practical realities of managing charitable finances in Canada.
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Disclaimer:
The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice. Readers should seek tailored legal advice in relation to their personal circumstances.
Northfield & Associates International Corporation is a global consulting firm serving private enterprises, public institutions, not-for-profit organizations, and institutional capital providers. Operating across Cambodia, Canada, and global markets, the firm supports capital deployment, regulatory navigation, and enterprise decision-making in complex economic and geopolitical environments. Northfield & Associates delivers customized, execution-focused advisory solutions that drive measurable transformation, strengthen competitiveness, and enhance long-term highest value opportunities. The firm incorporates consulting, legal, regulatory, financial, and risk expertise to enable disciplined capital allocation, strong governance, and operational resilience. Northfield & Associates upholds a culture of applied insight and innovation, supporting clients across digital transformation, growth strategy, and organizational capability building. The firm advises individual, leading global corporations, midsize enterprises, government agencies, and mission-driven organizations through long-term partnerships. Enterprise-wide risk management, professional ethics, and fiduciary standards are embedded across all operations. Northfield & Associates’ diverse, globally unified teams are committed to execution certainty and sustainable, risk-adjusted returns aligned with ESG and stakeholder objectives.
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NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Northfield & Associates professionals will be pleased to discuss resolutions to specific legal concerns you may have.
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