Some Fundraising Basics: Fundraising is not an inherently charitable activity
- As a registered charity your day-to-day activities must be the delivery of your charitable programs (i.e. food bank, day care program, etc.)
- All resources (including volunteers) must primarily be used to deliver your programs.
- Fundraising can also have an impact on the Disbursement Quota (DQ)
- The DQ is the amount a charity must spend on charitable activities, it is based on the charity’s previous fiscal years’ activities
In addition to following CRA’s guidelines, registered charities should contact the relevant provincial, territorial, and municipal government departments before engaging in these activities, to obtain any necessary permissions, permits, or licenses.
A charity must be aware of their Registered Charity Information Return (T3010B) reporting requirements Fundraising committees can assist in meeting this requirement by tracking their activities and any compensation paid to fundraisers.
Registered Charities may also conduct fundraising through a Related Business. Provided that it is a commercial activity, i.e., revenue-generating; that is:
- related to a charity's purposes, and
- substantially run by volunteers.
Check out the links below for helpful hints and tips.
Go here for a great summary you can share with board colleagues. It summarizes important information on receipting gifts made to your charity.
