CRA Guidelines for Fundraising

Background

In 2009, after consultation with a number of sector organizations including CCVO, the Canada Revenue Agency (CRA) released a new guidance on fundraising by charities (CPS-028). The final guidance reflects many of the concerns voiced by the sector during the development of the Guidance. It also makes the point that fundraising expenses are appropriate and in many cases necessary for charities.

Executive directors, fundraisers, directors, accountants and board members of registered charities need to review the Guidance as there are implications for fundraising practices and documentation. The new guidelines indicate that most charities engage in fundraising to support their work, and communicates CRA's expectation that charities be transparent and not devote excessive amounts of time or resources to fundraising as opposed to fulfilling their charitable purposes. Under CRA rules, fundraising expenses are not considered charitable. CRA's auditors use this Guidance when reviewing T3010 forms or when they conduct an on-site audit.

The Guidance provides direction on the following:

• Distinguishing between fundraising and other expenditures.
• Allocating expenditures for the purposes of reporting them on Form T3010, Registered Charity Information Return.
• Dealing with activities that have more than one purpose.
• Understanding how the CRA assesses what is an acceptible fundraising activity, what might preclude registration, or what might result in a sanction, penalty or revocation.

Related Information

Fundraising by Registered Charities Guidance
Charity Village Fundraising Q&A Article (Note: some of the url links in the text have moved)

Questions?

Contact:
Senior Policy Analyst
Kim Mustard
403-261-6655 ext 231