Here are 6 definitions contained in the CRA Fundraising Guidance

CRA states in its Fundraising Guidance:

“6. Definitions
For the purposes of this guidance, the following definitions apply:
a. Ancillary and incidental purpose
b. Arm’s length / non-arm’s length
c. Cause-related marketing / social marketing
d. Disclosure
e. Fundraising activity
f. Resource(s)

a) Ancillary and incidental purpose
To be ancillary, a purpose must be subordinate or secondary to other purposes.  To be incidental, a purpose must arise out of, or depend on, the other purposes and be relatively modest in size.

b) Arm’s length / non-arm’s length
At arm’s length describes a relationship in which parties are acting independently of each other. Non-arm’s length includes individuals who are related to each other by blood, marriage, adoption, and common-law relationships. Non-arm’s length also covers people acting in concert without separate interests, such as those with close business ties.

c) Cause-related marketing / social marketing
Cause-related marketing (sometimes called social marketing) is a venture with a non-charitable partner to promote the sale of items or services on the basis that a portion of the revenues will be directed to a charity or charities.

d) Disclosure
For the purposes of this guidance, disclosure means sharing of information about a charity’s fundraising and/or finances.

e) Fundraising activity
For the purposes of this guidance, a fundraising activity may be a single action, such as an advertisement published in a newspaper, or a series of related actions, such as a capital campaign to fund a new building. The charity may decide what it considers a separate activity so long as it can reasonably be treated as discrete from other activities.

A health charity may have a month-long awareness campaign that consists partly of distributing information about preventing a disease and partly of raising funds for its work. It may treat each of these initiatives as separate activities, or it may group all the initiatives during the campaign as a single activity. The decision will affect what the charity must enter on line 5020 of its annual Form T3010, Registered Charity Information Return.
Fundraising activities may be external activities, such as soliciting donations through telemarketing, direct mail, or door-to-door canvassing, putting on events, or distributing information through the media or a charity’s own publications.
Fundraising activities may also be internal, such as researching prospective donors or hiring fundraisers, and includes activities carried out by contract, staff, or volunteers.

f) Resource(s)
The term resources is not defined in the Income Tax Act, but the CRA considers it to include the total of a charity’s financial assets, as well as everything the charity can use to further its purposes, such as its staff, volunteers, directors, premises, and equipment.”

To review the CRA Fundraising Guidance see “How do I find the CRA Guidance on Fundraising for Canadian charities?