The Charitable Fund-raising Businesses Act
Information for Businesses who Solicit Funds on Behalf of a Charity
Requirement to be Licensed (section 5)
Charities who wish to provide tax deductible charitable donations must be registered with the Canada Revenue Agency, but do not have to be licensed with the Consumer Protection Division. However, a for-profit charitable -fund-raising businesses acting on behalf of a charity must be licensed with the Consumer Protection Division.
The above includes the scenario when a charity contracts with and remunerates a fund raising organization to coordinate or manage the charity’s volunteers in a solicitation drive. In such cases the fund raising organization must be licensed as a charitable fund-raising business, even if it does not manage or receive the receipted donations.
The sale of a “food” items, goods or services on behalf of a charity by a paid fundraising business requires that the associated fund-raising business be licensed.
Exemptions (section 3)
The Act does not apply to a … lottery scheme, authorized by section 207 of the Criminal Code, that is lawfully conducted by a charitable organization.
Licensing Conditions (sections 10-16 regulations 3-6)
Terms and conditions of a licence
(1) On issuing, renewing or reinstating a licence, the registrar may include any terms and conditions that the registrar considers appropriate.
Licence not transferable
Expiry and renewal of licence
Financial security may be required
(a) an applicant to file a bond with the registrar as part of the applicant’s application;
The bond is generally set at $25,000 (see licensing kit).
Licensee to notify registrar if circumstances change
Proof of registration
• Individuals or individual partnerships should use a registered a business name.
Note however, that in the case of a corporation, both the corporate name and the business name must appear and be used on any bond or sales contract [s. 267 of The Business Corporation Act, s. 9.1 of The Business Names Registration Act ]. Where there is a partnership of corporations, the entity can elect to use all corporate names of the partnership on the contract form or simply list the registered partnership name and the registered corporate name of the principle or managing partner.
The corporate name and/or the business name must be registered (generally pursuant to The Business Corporation Act or The Business Names Registration Act) with the Corporate Registry of the Information Services Corporation (ISC) . ISC may be contacted at 306 787-2962. There is a periodic fee required by ISC to keep this registration active.
Term and expiry of licence
Notification of any change in circumstances
(a) a licence;
Fund-raising Agreements with Charities (section 26 regulation 13)
All fund-raising businesses and the charities they represent must enter into written fund-raising agreements with each other. Copies of the agreements between the parties and solicitation scripts to be used must be provided to the Registrar of Charities, the Consumer Protection Division, at least 30 days before any solicitations begin.
The terms of the agreement must include:
• the duties and responsibilities of the parties, and the manner in which the agreement may be terminated;
Request for Accounting by the Charity (section 28)
Charities entering into agreements with fund-raising businesses are allowed to request accountings by the business. The Registrar and the Court of Queen's Bench may demand such accountings.
Agreements Contrary to Public Interest (section 27)
The Act provides that charities may apply to the Court to have agreements cancelled as contrary to the public interest, including contracts made before this Act came into force.
Donor Lists (section 25)
Any donor lists related to a solicitation drive remains the property of and under control of the charity, a clause in the contract (with the charity) contrary to that provision will not be accepted.
Information to be Provided to the Registrar Prior to a Campaign (sections 18, 26 regulation 7, 13)
Fund-raising businesses must provide the Registrar of Charities (at the Consumer Protection Division) with the following information at least 30 days before commencing a campaign:
(a) the name, address, telephone number, and, if applicable, the e-mail address of a contact person for the licensee with respect to the campaign;
Annual Reporting (sections 28, 29 regulation 14, 15)
Fund-raising businesses must file annual audited financial returns with the Registrar and must maintain records of their Saskatchewan operations for at least six years.
Telephone or Door to Door Solicitation Restrictions (sections 19, 20)
Charities and/or fund-raising businesses acting on behalf of a charity are not allowed to make telephone or door-to-door solicitations except between the hours of 8:00 a.m. and 9:00 p.m.
Identification Cards (section 20 regulation 8)
Door-to-door canvassers employed by a fund-raising business must wear an identification card. The identification card must contain the following information:
(a) the name of the representative of the licensee;
Regulation 8 states:
8(1) The identification card mentioned in section 20 of the Act must:
(a) be not less than 10.0 centimetres by 14.5 centimetres;
(2) Subject to subsection (3), the information in the identification card must be displayed in not less than 14 point bold type.
Information to be Provided to a Donor Other than a Telephone Solicitation (section 21 regulations 9, 10)
Prior to accepting a contribution, a representative of a fund-raising business making a solicitation (other than a telephone solicitation) on behalf of the registered charitable organization shall provide the donor with the following information:
• licensee's name and the name of the canvasser making the call;
Information to be provided to the Donor being Solicited on the Telephone (regulation 10)
Before accepting a contribution, a paid canvasser, calling a potential donor on the telephone must give the person who is being solicited certain information, including:
(a) the licensee’s (the for profit business) name;
(2) If a person who is being solicited by telephone requests it, the information mentioned in section 17 above, other than the name of the representative, shall be provided by the licensee or representative:
(a) in writing, using not less than 12 point type; and