Background
Fundraising, Learning by Example offers learning resources to assist registered charities in understanding and complying with the Canada Revenue Agency’s Guidance on Fundraising by Registered Charities.
What is the Guidance on Fundraising by Registered Charities?
The Canada Revenue Agency (CRA) recognizes that registered charities in Canada often depend on charitable donations and other sources of revenue to carry out their charitable works. For many charities, this means that a proportion of their resources will be used for fundraising to support their charitable work. While recognizing the necessity of fundraising, the CRA expects charities to be transparent and to not devote excessive amounts of time and/or resources to fundraising as opposed to fulfilling their charitable purposes.
The document outlines policies and practices that the CRA uses when it reviews annual information returns filed by registered charities and explains the CRA’s views on issues relevant to fundraising expenditures. This information should help to ensure that registered charities are aware of the CRA’s perspective on fundraising in general and the appropriate treatment of fundraising expenditures. The CRA’s auditors use this guidance as a tool when they review Form T3010, or visit a registered charity for an audit. It also confirms to the public that fundraising expenditures are appropriate and in fact necessary for the sustainability of the sector.
Tools and resources
Guidance on Fundraising by Registered Charities
An Annotated Guidance on Fundraising by Registered Charities presents the guidance in an easier to read and searchable format. It includes a table of contents, annotations in the form of a brief overview of each section, links to additional resources and plain language definitions from the glossary.
A Portable Guidance on Fundraising By Registered Charities (without the annotations) has also been created to provide a resource to those who wish to view, search and print the guidance as-is. Additionally, any links to external documents have been replaced by embedded documents allowing the guidance to be viewed without the need of an internet connection.
Self-guided training
A PowerPoint presentation provides an overview of the Guidance on Fundraising by Registered Charities. It includes supporting notes and examples as well as introductory information on receipting. For more detailed information on receipting be sure to check out the Fundraiser’s Receipt Book.
Allocation of Fundraising Expenditures identifies methods for charities to determine how to allocate their fundraising expenditures, including the “Substantially All Test” and the “Four Part Test.”
Video
PowerPoint slides in PDF format
Best Fundraising Practices provides useful information and indicators of best practices to follow to help decrease the risk of non-compliant fundraising practices.
Video
PowerPoint slides in PDF format
List of Best vs. Prohibited practices
Prohibited Fundraising Conduct highlights examples and types of practices that run contrary to Canada Revenue Agency’s guidelines and discusses the repercussions of prohibited conduct.
Video
PowerPoint slides in PDF format
List of Best vs. Prohibited practices
The Fundraising Activity Planning Cycle is a module that provides charities with a tool to assist in planning and implementing fundraising activities to help ensure they comply with the Canada Revenue Agency’s Guidance on Fundraising by Registered Charities.
Video
PowerPoint slides in PDF format
Fundraising Activity Planning Cycle logic model
Tools
A set of seven scenarios to provide ‘real world’ examples of fundraising and receipting situations. Each scenario includes a quiz or exercise with an embedded answer sheet. The answer sheet also includes a justification for each answer if applicable.
Approaches from Private Fundraising Companies provides guidance on the next steps a charity needs to explore before accepting a proposal from a private fundraiser.
Prohibited or Questionable Conduct outlines a situation where a charity conducts prohibited or questionable fundraising conduct. The exercise requires the participant to review the scenario and provide 5 examples of prohibited or questionable conduct.
Best Practices presents a situation where a food bank needs to replace their existing vehicle. The exercise requires the participant to provide 5 examples of “Best Practices”.
Apply the Substantially All Test lists 4 mini-scenarios and requires the participant to determine whether they would meet the requirements of the Substantially All Test.
Eligible Amount of Gift provides guidance to calculate the eligible amount of the gift for receipting purposes, including determining the advantage to the donor.
Gift In Kind provides guidance to evaluate whether a given situation is a gift in kind, whether the gift qualifies for a receipt and whether the deemed fair market value rule applies.
Joint Fundraising Campaign outlines a situation where two charities will be conducting a joint fundraising campaign. A list of best fundraising practices is provided, and the participant is required to number the practices in the order they should be completed.
A Glossary of Plain Language Definitions provides examples of fundraising and receipting related terms and includes links to CRA’s website (when available).
The Receipting Logic Model helps to train staff and volunteers of registered charities to understand and apply the various rules related to issuing proper donation receipts. Sample receipts and a quick reference of related terms are also included.