BR15. What does the Canada Revenue Agency mean by “adequate” books and records?

BR15. What does the Canada Revenue Agency mean by “adequate” books and records?


Short answer

Your charity must keep books and records (located at the Canadian address that CRA has on file) adequate enough to verify official donation receipts issued, income received, and expenses made.

The CRA does not specify the records to be kept. According to subsection 230(3) of the Income Tax Act, however, the Minister of National Revenue may specify what records or books of account must be kept after a charity has been found to be keeping inadequate records and books of account.

Long answer

Also, the Income Tax Act requires charities to keep information in addition to their books and records so that the CRA can determine whether the activities of the charity continue to be charitable. This additional information will vary from charity to charity but should include, for example, copies of minutes of meetings, correspondence, publicity brochures or advertisements, and details of charitable program activities including program reports.

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For more specifics on the records that must be kept, visit CRA's Records to be kept