As a charitable organization, financial statements must be prepared annually which comply with the requirements of the Not-for-Profit Act, and in accordance with CPA requirements. The Canada Not-for-Profit Corporations Act (CNCA) classifies not-for-profit corporations into two categories – soliciting corporations or non-soliciting corporations. (A corporation is considered to be soliciting when it has received more than $10,000 in revenue from public sources in a single financial year.)
Understanding Your Reporting Responsibilities
A charity or not-for-profit can be selected for audit for any number of reasons, some of which may be public complaints, random selection, or stemming from information from the organization’s T3010 annual information return. There have been a number of changes drafted to legislation that affect the federal laws governing corporations without share capital, (not-for-profits), which charity law lawyers and nonprofit organizations had been asking for. The Ontario Not-for-Profit Corporations Act (ONCA) is scheduled to be proclaimed in early 2020.
Please contact us with respect to assistance with an audit or review of your small not-for-profit organization or charity. (We also may provide assistance with reviews of small to medium sized for profit organizations and audit/reviews for political candidates/campaigns; please contact our office to discuss scope and cost.)