In our 2025 survey of nearly 100 Canadian charities to date, 77.6% reported having an external audit. That high prevalence isn’t just a tick in the governance box—it signals a sector-wide commitment to trust, accountability, and financial stewardship. And it’s something we value when we review your charity.

Here’s why the majority of charities we analyzed chose to be audited by a third party:

1. Audits Communicate Trust

When donors and partners see audited financial statements, they see transparency—not just intentions. It’s a signal that your organization values integrity and is ready for scrutiny. While audits are common among larger organizations, mid-sized and smaller charities can also gain significant credibility, especially when pursuing major gifts or partnerships.

2. The CRA Recommends It

The Canada Revenue Agency (CRA) recommends that charities with income over $250,000 obtain professionally audited financial statements. For smaller organizations below this threshold, it’s acceptable for the treasurer or board to approve the statements.

This guidance helps charities plan ahead: as your organization grows, you can anticipate when an audit becomes not just best practice but CRA-recommended practice, ensuring smooth compliance and continued donor confidence.

A Practical Tip for Smaller Charities

If annual audit fees feel daunting, consider this trusted workaround: engage an auditor who believes in your mission and ask if they’d be willing to donate their professional services in exchange for a charitable tax receipt. While CRA rules specify you cannot issue a gift receipt directly for services, the solution—often referred to as a “cheque exchange”—is legitimate: your charity pays for the service, and the auditor gifts the equivalent amount back to you, creating a proper donation receipt trail.

Final Takeaway

An audit is more than a compliance exercise—it’s a powerful tool for governance, trust-building, and strategic growth. In the competitive and highly scrutinized landscape of Canadian charitable work, being audit-ready means being mission-ready.