When is fundraising considered to be deceptive by CRA in its fundraising guidance?

The CRA discusses when fundraising actvities 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 this harm, fundraising activities involving misrepresentations are prohibited even when the misrepresentation is not illegal or fraudulent. There is significant harm associated with a deceptive or misleading statement, regardless of whether the charity’s conduct is intentional or negligent. A registered charity should ensure representations made by it, and those acting on its behalf, are fair, truthful, accurate, and complete. [Footnote 6]
Misrepresentations have a negative impact on public trust and the integrity of the tax regime governing registered charities. The CRA takes the position that this negative impact outweighs the public benefit of the charitable work supported through a charity’s fundraising.

For example:
Registered charities must not misrepresent:
• which charity will receive the donation;
• the geographic area in which the charity operates, and the amount and type of its work; or
• the percentage of funds raised that will go to charitable work.”

To review the CRA Fundraising Guidance see “How do I find the CRA Guidance on Fundraising for Canadian charities?” at
http://www.canadiancharitylaw.ca/index.php/blog/comments/how_do_i_find_the_cra_guidance_on_fundraising_for_canadian_charities/