The Charitable Fund-raising Businesses Act
Information for Charities When Using For-profit Fundraising Businesses
Telephone or Door to Door Solicitation Restrictions
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.
Requirement to be Registered with the Canada Revenue Agency
Charities who wish to provide charitable tax deductible receipts for donations must be registered with the Canada Revenue Agency. While these charities are not required to licensed with the Consumer Protection Division, if engaging a for-profit charitable fund-raising business, the charity is to ensure that the for-profit charitable -fund-raising businesses acting on behalf of the charity is licensed with the Consumer Protection Division.
The above requirement 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.
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 Branch, 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, and the Registrar and the Court of Queen's Bench may demand such accountings.
Agreements Contrary to Public Interest (section 27)
The Act further 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 Povided to the Registrar Prior to a Campaign Starting
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;
(i) the identification card to be worn by representatives who will be making door-to-door solicitations;