Books and records
A registered charity is required to keep adequate books and records. This not only makes it easier for you to complete your annual T3010 return but also helps demonstrate that your charity is using its resources for charitable purposes.
Books and records should be kept in either English or French. If they were originally created in a different language, a translated version must be available.
These records must allow us to:
- verify all revenue, including charitable donations received
- ensure resources are spent on charitable programs
- confirm that your charity's purposes and activities are charitable
- verify that your charity continues to meet the requirements to maintain its registration under the Income Tax Act
Examples of books and records
Here are some examples of books and records:
- accountant’s working papers
- annual reports
- bank statements
- cancelled cheques
- contracts
- copies of official donation receipts
- copies of T3010, Registered Charity Information Returns
- expense accounts
- financial statements
- fundraising materials
- governing documents
- internal trust documents
- inventories
- intermediary agreements
- investment agreements and prospectuses
- ledgers
- meeting minutes
- payroll records
- promotional materials
- source documents
- bank deposit slips
- delivery slips
- formal contracts
- invoices
- purchase orders
- vouchers
- work orders
- written agreements
Where to keep books and records
Books and records must be kept at the Canadian address that you have on file with us. This includes records related to any activity carried on outside Canada.
How to keep proper books and records
Here are general guidelines for keeping books and records:
- You should keep all your charity’s books and records in one area for easy access. This will make it easier for your charity in the case of an audit or when there is a change to your governing board.
- You can keep books and records in a paper format or electronically.
- You should also keep a copy of your books and records in another location for backup purposes. This copy can also be kept either on paper or electronically.
- You are responsible for making your books and records available to CRA officials. These officials are authorized to inspect, audit, copy, or examine a charity's records.
- If you hire a third party such as an accountant or bookkeeper to maintain your records, you are still responsible for meeting all requirements.
Guidelines for keeping electronic books and records
- Books and records that are created and maintained in electronic format must be kept in an electronically readable format, even if your charity has paper printouts of the electronic records. An electronically readable format means the information is supported by a system capable of producing an accessible and useable copy that would allow auditors to process and analyze the electronic records on CRA equipment.
- If any source documents are initially created, transmitted, or received electronically, they must be kept in an electronically readable format.
- Scanned images of paper documents, records, or books of account that are maintained in electronic format are acceptable if proper imaging practices are followed and documented.
Note
Books and records maintained outside Canada but accessible electronically in Canada do not meet the requirement of being kept in Canada.
How long to keep books and records
Duration | Type of records |
---|---|
Two-year retention
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Six-year retention
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Indefinite retention
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To destroy books and records before the required duration has passed, you must obtain the Minister of National Revenue’s written permission. To do so, fill out Form T137, Request for Destruction of Records and send it to:
Charities Directorate
Canada Revenue Agency
Ottawa ON K1A 0L5
Consequences of not keeping adequate books and records
Failure to keep adequate books and records may result in sanctions, such as monetary penalties, the suspension of your charity's tax-receipting privileges, and the loss of its registered status.
Related topics
References
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