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No.  The CRA recognizes that many charities need to fundraise in order to be able to have the resources those charities need to fulfill their charitable mission. In the CRA’s Fundraising Guidance they note: “The Canada Revenue Agency (CRA) recognizes…

CRA has a fundraising guidance because the public is concerned with how charities fundraise and CRA wants Canadian charities to understand what CRA’s expectation are of Canadian charities. In the CRA’s Fundraising Guidance they note: “This [Guidance] provides information for…

Yes.  For most people it is obvious that CRA has jurisdiction over registered charities under the Income Tax Act.  However, a recent case International Pentecostal Ministry Fellowship of Toronto v. The Queen – (FCA)  makes it clear that the arguments…

Yes.  CRA advises in their Fundraising Guidance “This guidance applies to all registered charities.”  There is no exemption because a charity is small or for certain types of registered charities. To review the CRA Fundraising Guidance see “How do I…

CRA has a particular definition of fundraising in the guidance which includes certain elements and excludes certain elements. In the Fundraising Guidance CRA notes: “5. What is fundraising? As a general rule, fundraising is any activity that: • includes a…

Yes. In the Fundraising Guidance CRA notes: “Is donor stewardship a solicitation of support? Donor stewardship occurs when a charity invests resources in relationships with past donors to prompt additional gifts. This could include providing donors with access to information,…

Here are 6 definitions contained in the CRA Fundraising Guidance CRA states in its Fundraising Guidance: “6. Definitions For the purposes of this guidance, the following definitions apply: a. Ancillary and incidental purpose b. Arm’s length / non-arm’s length c.…

CRA sets out 4 categories of prohibited fundraising conduct. CRA in its Fundraising Guidance states: “7. Prohibited fundraising conduct Certain types of prohibited conduct related to fundraising may result in the revocation of a registered charity’s status, imposition of compliance…

Here is an excerpt from CRA’s Fundraising Guidance describing “Conduct that is illegal or contrary to public policy” CRA in its Fundraising Guidance notes: “a) Conduct that is illegal or contrary to public policy Fundraising activities that are illegal or…

In its Fundraising Guidance, CRA discusses when ” Conduct that results in more than an incidental or proportionate private benefit to individuals or corporations” “c) Conduct that results in more than an incidental or proportionate private benefit to individuals or…

The CRA discusses when fundraising activities are considered deceptive in its Fundraising Guidance. “d) Conduct that is deceptive Deceptive fundraising practices cause harm by deceiving donors or potential donors and by impairing the fundraising efforts of other charities. Because of…

CRA’s Guidance of Fundraising in section 8 deals extensively with why you need to allocate expenditures on the T3010 Registered Charity Information Return and sets outs various tests that can help determine whether an expenditure is fundraising, charitable or combination…

Many charities have employees who are doing lots of different jobs.  Even though someone may have a title like “Resource Development Coordinator” it does not mean that they are only fundraising.  Staff can allocate their time between fundraising, charitable activities,…

CRA is looking at many different matters when evaluating whether a charity fundraisng activities are compliant?  One of the methods is to look at the amount of fundraising expenditures to fundraising revenue.  Some people have fixated only on the ratio…

Yes.  CRA sets out in its Fundraising Guidance a number of factors that would make it more difficult to fundraise including the following:  1) smaller charities may be less efficient at fundraising 2) some causes have less appeal than others…

CRA in its Guidance on Fundraising sets out a number of best practices that Canadian charities should pay attention to when fundraising.  These include prudent planning processes, appropriate procurement processes, good staffing processes, ongoing management and supervision of fundraising practice,…

There are certain activities that are “prohibitied activities” such as illegal activities.  There are other activities that are not prohibited by CRA but CRA has some concerns when the fundraising activities of charities shows these “indicators of concern”.  Some of…

Here are a few questions that Canadian charities can ask themselves to understand their fundraising ratios. Is it an expenditure?  Yes or No Is it fundraising expenditure? Yes or No (otherwise charitable, social, business, political, core cost) Does it meet…

Here are some frequently asked questions about the CRA’s Fundraising Guidance. Is DQ and fundraising ratio the same? No Is gov funding and foundation funds included in fundraising revenue?  No Is funding from corporations and non-profit (non charity) included in…

The CRA Fundraising Guidance is an important document for boards of directors to understand and to ensure that their charity complies with the requirements of the fundraising guidance.  Here are some questions that a board of a Canadian charity may…

The Ontario Public Guardian and Trustee in its publication Charitable Fundraising: Tips for Directors and Trustees sets out a number factors for charities to consider before signing a fundraising contract.  If the fundraising contract is potentially large or you are…

Here is some thoughts on special purpose fundraising from the Ontario Public Guardian and Trustee. Special Purpose Fundraising Charities sometimes raise funds for a particular purpose or project and sometimes donors give money to charity for a special purpose. Donations…