What books and records does a registered charity have to keep for a CRA audit?
A registered charity has to keep adequate books and records that let the Canada Revenue Agency verify that donations were used for charitable purposes, that receipts were issued properly, and that the information reported on the charity's annual T3010 return is accurate. In practice, this generally means financial records (accounting ledgers, bank statements, invoices, and receipts for expenditures), governance records (minutes of directors' and members' meetings, the corporation's articles and by-laws), and copies of every official donation receipt issued, along with the donor information behind each one.
Records need to be kept in a form and for a period that satisfies CRA's requirements, and a charity should not assume that records can be discarded simply because a particular fiscal year's return has already been filed and accepted — CRA audits can, and do, look back at prior years.
Poor recordkeeping is one of the most common problems CRA finds on audit, and it can create serious difficulty even where the charity's actual conduct was proper, simply because the charity cannot document it. Charities should treat organized, complete recordkeeping as a core governance function, not an administrative afterthought handled only when an audit letter arrives.
Key takeaways
- Charities must keep financial, governance, and receipting records adequate for CRA to verify compliance.
- This includes accounting records, meeting minutes, governing documents, and every donation receipt issued.
- Records must be retained for a period that satisfies CRA, not discarded once a return is filed.
- Poor recordkeeping is a common audit finding even when the charity's actual conduct was proper.