Canadian Benevolent Organizations are regulated by Canada Revenue Agency and governed by the Income Tax Act. Once incorporated and registered, it is imperative that Benevolent Organizations complete all annual compliance requirements and maintain up-to-date and accurate corporate records in order to maintain good standing. Unfortunately, the regulatory environment in Canada is such that it is difficult for registered charities - especially those without trained full-time staff - to stay current, manage risks and meet constantly changing and increasingly complex compliance requirements.

The imposition of 'interim sanctions' and financial penalties by Canada Revenue Agency also make the operational environment for registered charities increasingly hostile and costly. These regulatory challenges decrease the operational and financial efficiency of Benevolent Organizations which can become so stessed worrying about Canada Revenue Agency's compliance requirements than they lose their focus on achieving charitable objectives. When Benevolent Organizations are comfortable that potential liabilities are understood and under control, they can carry out their operations with renewed confidence.