Some frequently asked questions about the fundraising guidance from the Canada Revenue Agency

May 01, 2010 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: Fundraising Guidance for Registered Charities

Here are some frequently asked questions about the CRA’s Fundraising Guidance.

Is DQ and fundraising ratio the same? No

Is gov funding and foundation funds included in fundraising revenue?  No

Is funding from corporations and non-profit (non charity) included in fundraising cost/revenue? Generally, yes.

Does this Guidance apply to non-profits that are not registered charities?  No. 

Do you need to track staff time by the minute? No.

Can pledges (non-enforceable) be counted as revenue?  No.

If a foundation fundraises for a charitable organization is the main purpose of the foundation then fundraising? No.

If our charity has one fundraising event that lost money will we lose our charitable status?  Generally no.  CRA is looking at all events together and all relevant surrounding circumstances.

Is there an exemption for small charities under $100,000 in revenue as discussed in the draft in 2008?  No, the guidance applies to all charities but it is specifically pointed out that small charities may have particular difficulty in meeting the ratios because of size.

Who do I go to ask questions about the guidance?  First read the document.  Then try CRA (1-800-267-2384), other knowledgeable fundraising professionals, legal professionals who are knowledgeable about the guidance.

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/

 

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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

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