The Canada Revenue Agency (CRA) recognizes that fundraising is necessary for many charities but expects that charities will not devote excessive resources to fundraising activities. CRA provides guidance on what it considers excessive.
It also provides guidance on what activities it considers to be fundraising and on how charities should determine fundraising costs.
- tests to apply
- use of employees, suppliers, volunteers
- soliciting cash, gifts-in-kind, and volunteers
- grants from others?
- business income?
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- what is the fundraising ratio
- how does CRA use the fundraising ratio?
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- illegal activities
- main purpose of charity
- private benefits
- misleading or deceptive practices
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- 'best practices' to reduce the risk of unacceptable fundraising
- areas of concern to CRA
- size of charity
- causes with limited appeal
- donor acquisition & planned giving activities
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- costs to be fully recorded
- costs that are partially fundraising
- items that are not fundraising
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