As mentioned earlier in this section, registered charities are permitted to issue tax receipts for gifts. The Federal Department of Finance drafts legislation (laws) and calls upon its enforcement arm known as Canada Revenue Agency (CRA) to ensure that registered charities in Canada comply with the law.

Compliance is monitored through use of a compulsory year-end report called the T-3010 with its mathematical formula called the Disbursement Quota (DQ) and very recently, a slate of tough new sanctions and financial penalties.