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CRA Extends Deadline for Comments on Fundraising Cost Guidelines

(June 2, 2008) The Canada Revenue Agency (CRA) has extended the deadline for comments from the charitable sector and the public about new guidelines on how charities should report fundraising costs and whether expenses can be considered charitable or fundraising.

The proposed policy statement, Policy on Fundraising, outlines how costs associated with fundraising activities, or activities undertaken for fundraising and one or more other purposes, should be reported on a registered charity's T3010A return. The policy statement also sets out guidance for registered charities on how the CRA assesses a charity's fundraising costs to determine if they are acceptable.

AFP’s original story on the proposed guidelines is here.

CRA Pushes Back Deadline

During a recent online presentation sponsored by AFP and Imagine Canada, the CRA announced that it has extended the deadline for comments to July 31, 2008. The original deadline was June 30. (This change in deadline has not been noted on the CRA website yet). 

The rationale for postponing the deadline stems from the CRA’s delay in completing and posting a detailed version of the fundraising guidelines. Only a summary is available at this time.

Comments from AFP and Others Forthcoming

AFP will submit comments to the CRA prior to the deadline.  Although AFP is supportive of parts of the policy statement, especially its consideration of the perils of percentage-based compensation, the association has serious concerns over the agency’s use of percentages when examining fundraising costs.

AFP and Imagine Canada have agreed to submit joint comments and organize a coalition to help the charitable sector respond to the proposed fundraising guidelines.

If you have comments, feedback or suggestions that you would like to forward to AFP for its submission, please contact Jason Lee, AFP’s director, government relations, at jlee@afpnet.org.

Those wishing to comment separately can submit those comments to the address or fax below or by email to consultation-policy-politique@cra-arc.gc.ca

The mailing address is:

Charities Directorate, CRA
Ottawa ON K1A 0L5
Fax: 613-948-1320

For a complete copy of the policy statement on fundraising costs, go to the CRA website.

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