Quick Answer
A Canadian charity's audit obligation is set by the incorporation framework, bylaws, member resolutions, and funder agreements, not by the CRA. Federally incorporated charities under the CNCA must have an audit if gross annual revenue exceeds $250,000 (soliciting corporations); a review engagement is allowed in the $50,000 to $250,000 range if members pass the required resolution. Ontario public benefit corporations under ONCA generally require an audit at $500,000 or more in annual revenue, may use a review engagement when revenue is more than $100,000 and less than $500,000 if members pass the required extraordinary resolution, and may dispense with both audit and review at $100,000 or less if members pass the required extraordinary resolution. Other provinces vary — and any funder can impose its own audit requirement regardless of statute.
Three different sources can require an audit of a Canadian charity: the incorporation statute, the bylaws, and any funder.
Federal — CNCA
Federally incorporated not-for-profits under the Canada Not-for-Profit Corporations Act are categorized as soliciting or non-soliciting. Soliciting corporations are those that received more than $10,000 in publicly solicited revenue (donations, government grants, etc.) in any of the three preceding fiscal years. The thresholds for soliciting corporations:
- Audit required: gross annual revenue over $250,000.
- Review engagement allowed: gross annual revenue $50,000 to $250,000 (members elect a review instead of an audit by special resolution — two-thirds of the votes cast).
- Compilation/no engagement allowed: gross annual revenue under $50,000 (members may unanimously waive).
Non-soliciting corporations have higher thresholds and more flexibility but still need member resolution to waive.
Ontario — ONCA
The Ontario Not-for-Profit Corporations Act (proclaimed October 19, 2021) distinguishes public benefit corporations (PBCs) — which include charities — from non-PBCs.
For public benefit corporations:
- Audit generally required: annual revenue $500,000 or more.
- Review engagement allowed instead of audit: annual revenue more than $100,000 and less than $500,000, if members pass the required extraordinary resolution.
- Members may dispense with both audit and review: annual revenue $100,000 or less, if members pass the required extraordinary resolution.
ONCA also allows the bylaws to set higher requirements.
Alberta — Societies Act
The Alberta Societies Act requires audited financial statements to be presented at the annual meeting for societies, regardless of revenue size. Practical implementation often allows review-engagement-style work for very small societies, but the statutory expectation is an audit.
BC, MB, SK, NS, NB, NL, PE — varies
In several provinces — BC Societies Act, Manitoba Corporations Act Part XXII, Saskatchewan Not-for-profit Corporations Act, and the Atlantic provinces — there is no statutory revenue-based threshold. Audit obligations are driven by:
- Bylaws of the organization
- Funder agreements (federal grants, provincial grants, foundations)
- Member resolutions
Quebec — OBNL
Quebec OBNLs registered with the REQ work under the Quebec Companies Act, Part III, with audit obligations driven by funder requirements and bylaws.
Funders override statute
A funder agreement can require an audit even when the incorporation statute does not. A $50,000 federal grant might come with a clause requiring an audited use-of-funds report. A multi-year foundation grant might require annual audited financial statements as a condition of continued funding. Always check funder agreements before assuming statutory thresholds are the binding constraint.
See also
- The audit prep service page explains how we prepare your file for an independent auditor.
Sources
Last Updated: June 2026
Sources reviewed: June 27, 2026
General information only. This page is not legal, tax, assurance, or professional advice for any specific organization. Confirm decisions with the CRA, your CPA, and legal counsel for your facts.