Overview

• In a report released Oct. 2 and obtained through access-to-information requests, NSIRA found the CRA’s Review and Analysis Division relied on unvalidated risk indicators to select charities for terrorism-related audits.
• The watchdog said it could not always determine why audits were launched and could not conclude whether the legal threshold for discrimination was met, finding the process introduced risks of bias and discrimination.
• Investigators reported that many audited organizations did not present credible risks of terrorist abuse despite public claims that only the highest-risk charities face such scrutiny.
• NSIRA issued six recommendations, including basing audit decisions on current, credible intelligence, developing evidence-based validation for risk indicators, and collecting demographic data to check for discriminatory impacts.
• Of charities with completed RAD audits from 2009 to 2022, 67% were discernibly Islamic and 19% were Sikh, while the CRA does not collect the demographic data needed to substantiate or refute discrimination claims.