We recently blogged about our Financial Information Kit and have more news to share! We’ve added a new ‘additional resources’ section to the kit.
The first of these new resources is an article from LawNow Magazine called “We’re Calling to Set up a Time to do an Audit”.
Most people have the same reaction to audits as they do to getting a tooth pulled or getting their legs waxed: they cringe as a feeling of extreme anxiety sweeps over them.
But, at least in the case of Canada Revenue Agency (CRA) audits, it’s often an unnecessary reaction.  Most audits completed by a representative of CRA confirm that a charity is in compliance with the Income Tax Act and if not, it’s usually a case of correcting minor records transgressions. This article reviews what is covered in a CRA audit, why they occur, and what is required from a charity when an audit is done.  It also covers how an audit may be concluded.
We hope that with this information your organization will not live in fear of audits but embrace them; think of them as an opportunity to show how transparent your charity is.
(Ok, maybe embrace is a strong word, but you will know what to expect and will survive!)