It is very important that charities not only do “good work” but that they can show afterwards that they do good work.

In CRA’s Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” it notes:

“6. Keeping books and records
Under the Income Tax Act, a charity must keep adequate books and records. The CRA recommends that books and records be kept in either French or English.
Books and records must enable the CRA to check the following:
• whether a charity’s funds are being spent on its own activities or on gifts to qualified donees
• whether the charity is directing and controlling the use of its resources
• whether there are grounds to revoke the charity’s status
Also, books and records must contain enough information to allow the CRA to determine if the charity is operating in accordance with the Income Tax Act.
A charity that fails to keep adequate books and records may be subject to various sanctions under the Income Tax Act, including having its registration revoked.”

For more information on the CRA Guidance “Using an Intermediary to Carry out a Charity’s Activities within Canada” (Reference number CG-004) see:
https://www.canadiancharitylaw.ca/index.php/blog/category/using_intermediaries_in_canada/ or
http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/ntrmdry-eng.html