CRA finds that a significant number of NPOs are pursuing profit contrary to its guidelines

CRA has completed its three-year review of randomly selected NPOs.  It found that "a significant portion would fall into a higher category of risk, which includes organizations earning profits that were not incidental or not related to their non-profit objectives; organizations with disproportionately large reserves, surpluses, or retained earnings; and organizations where income is payable or made available for the personal benefit of a proprietor, member, or shareholder."  For the time being, CRA it is using targeted outreach and educational activities to advise NPOs of their obligations rather than actively reassessing non-compliant NPOs.

Neal Armstrong.  Summary of Non-Profit Organization Risk Identification Project Report 17 February 2014 under s. 149(1)(l).