Standards Section B : Financial Accountability and Transparency


We've identified the best resources to help your organization prepare to meet each standard. For more information about the Standards, download the Standards Program Handbook.

Financial Responsibilities of Not-for-Profit Boards, a workbook from the Board Development Program of Alberta Culture and Community Spirit in collaboration with The Muttart Foundation, covers many of the specific standards in Section B. More targeted resources are listed below.

  • Standard B1: Completion of financial statements

    Organizations must complete annual financial statements in accordance with an acceptable accounting framework as identified by the Canadian Institute of Chartered Accountants (CICA).

  • Standard B2: Audit/review engagement

    Organizations with over $1 million in annual revenue must have their financial statements audited by an independent licensed public accountant. Other organizations may have a review engagement unless required by their governing legislation to have an audit.

  • Standard B3: Release of financial statements

    The organization’s financial statements must be received and approved by the board and released within 6 months of year end.

  • Standard B4: Tax filing

    CHARITIES : The board has a process to ensure that an accurate Registered Charity Information Return (T3010) is filed with the Canada Revenue Agency (CRA) within six months of year-end, as required by law.

    NONPROFITS : The board has a process to ensure that an accurate Corporate Income Tax Return (T2) is filed with the CRA within six months of year end, as required by law.

    REGISTERED CANADIAN AMATEUR ATHLETIC ASSOCIATIONS (RCAAAs): The board has a process to ensure that an accurate RCAAA Information Return (T2052) is filed with the CRA within six months of year end, as required by law.

  • Standard B5: Budget approval & oversight

    The board approves the annual budget and has a process to monitor the organization’s performance in relation to the annual budget. The board or a board committee reviews actual revenues and expenses versus budget at least twice a year.

  • Standard B6: Statutory remittances

    The board or a board committee receives from management, at least twice a year, assurance that all statutory remittances have been made.

  • Standard B7: Board oversight of fundraising & administrative costs

    The board regularly reviews the cost-effectiveness of the organization’s fundraising activities. No more will be spent on administration and fundraising than is required to ensure effective management and resource development.

  • Standard B8: Investment policy

    Organizations with investable assets over $100,000 must have an investment policy setting out asset allocation, procedures for investments, and asset protection issues.

  • Standard B10: Disclosure - general

    LEVEL 1 : The organization’s financial statements are publicly available. LEVEL 2 & 3 : The organization makes the following information available on its website:

    • their most recent three years of annual reports;
    • their most recent three years of financial statements including notes as approved by the board; and
    • the opinion of the independent licensed public accountant who conducted the audit or review engagement; and
    • the names of all board members.

    In addition to the above, CHARITIES and RCAAAs must make the following information available on their website:

    • their registration number (BN) assigned by the Canada Revenue Agency (CRA); and
    • the public portion of their most recent Registered Charity Information Return (form T3010) or RCAAA Information Return (T2052) as submitted to CRA or a direct link to it.
  • Standard B11: Disclosure - compensation

    The organization makes information on compensation accessible to its stakeholders to at least the same level as that required by CRA in the T3010.

  • Standard B12: Disclosure - payments to board members

    The organization discloses on its website details of the purpose and amount of payment for products or services to board members or companies in which a board member is an owner, partner or senior manager.

  • Standard B13: Disclosure - fundraising costs

    The organization accurately discloses all costs associated with its fundraising activities.