CRA has a fundraising guidance because the public is concerned with how charities fundraise and CRA wants Canadian charities to understand what CRA’s expectation are of Canadian charities.

In the CRA’s Fundraising Guidance they note:

“This [Guidance] provides information for registered charities on the current treatment of fundraising under the Income Tax Act and under common law. This guidance offers direction on issues such as 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; and
  • understanding how the CRA assesses what is acceptable fundraising activity, what may preclude registration, or what may result in a sanction, penalty, or revocation.   “

“The document outlines policies and practices that the CRA uses when it reviews annual information returns filed by registered charities and explains the CRA’s views on issues relevant to fundraising expenditures. This information should help to ensure that registered charities are aware of the CRA’s perspective on fundraising in general and the appropriate treatment of fundraising expenditures. The CRA’s auditors use this guidance as a tool when they review Form T3010, or visit a registered charity for an audit. It also confirms to the public that fundraising expenditures are appropriate and in fact necessary for the sustainability of the sector.”

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