A recent Toronto Star/Investigative Journalism Bureau article has revealed discrepancies between a Canadian cancer charity's claims about its charitable spending in its T3010 and its actual financial records. Mark Blumberg has shared his comments on the article, and offers further analysis on his website, CanadianCharityLaw.ca.
Blumberg notes that the Canada Revenue Agency (CRA) only audits a small fraction of charities each year—around 200—which limits the ability of the public to trust that issues are being effectively addressed. He also points out the CRA’s inability to publicly comment on its audits unless a charity faces penalties, suspension, or revocation. Even if the CRA audits a charity and finds no wrongdoing, they still cannot comment on the situation.
Blumberg urges charities to prioritize compliance and transparency to maintain public trust and avoid potential regulatory scrutiny.
Compliance and transparency arise from expertly managed internal systems that respond to regulatory requirements.
Young Associates’ bookkeeping and payroll professionals can assist your organization in navigating the complexities of financial reporting and CRA compliance while supporting you and your board of directors in achieving best practices. .
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