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Any fundraising activities an organization intends to do must be listed including how often these activities will be undertaken and the proportion of the organization’s volunteers that will be used. Organizations must also indicate if they will use a professional fundraiser, if they intend to receive non-cash gifts on a regular basis and if the organization will be involved with or associated with a tax shelter arrangement.
Fundraising is any activity that involves asking for donations of cash or gifts in-kind as well as any sale of goods or services to raise money. It includes soliciting donations directly as well as holding events such as auctions, dinners, or runs to raise money. It can be something as small as a loose-change collection box with the charity’s name on it or as large as a gala or direct mail campaign. Activates that support fundraising, such as developing fundraising strategies or hiring a fundraiser, are also considered fundraising activities.
Fundraising to support the work of the organization is not considered a charitable activity so there are strict limits on the fundraising activities a charity can engage in. Fundraising itself cannot be a purpose of an organization that wants to register as a charity. Fundraising must not provide a private benefit to anyone unless this is only incidental to the fundraising activity. Fundraising activities must not be illegal, against public policy or deceptive.
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