Saskatchewan to Licence For-Profit Fundraising Companies
OTTAWA (AFP eWire - Nov. 8, 2002) - With the passage of the Charitable Fund-raising Businesses Act earlier this year, third-party, for-profit, fundraising companies doing business in Saskatchewan will be required to obtain licences and meet strict regulations for their operations.
The Act defines "fund-raising business" as a person or company that "for remuneration, manages or is responsible for a solicitation by or on behalf of a charitable organization and is not an employee of the charitable organization."
The new law requires companies to obtain a licence from the registrar of charities, providing proof of financial stability and meeting various other standards of reliability and integrity. A provision is made for licencees to maintain detailed financial and other records for six years, available to the charity for which they are working as well as the registrar.
The regulations also clearly state that the donor list is the direct property of a charity and may not be used by the licencee for any purpose other than that designated by the charity with which it has a fundraising agreement.
Other stipulations include:
Telephone and door-to-door solicitations are limited to the hours of 8 a.m. to 9 p.m.
Representatives of licencees who are conducting door-to-door canvasses must carry identification cards recording the name of the representative, the name, address, telephone number and licence number of the licencee, and the signature of an officer of the licencee.
No one shall represent to the public that the issuance of a licence to solicit funds constitutes any form of government endorsement or approval of the fundraising business itself or any charity on whose behalf it operates.
Charities must also adhere to some new standards contained in the Act. They are required to remove any person from their solicitation list at that person's request.
They must also provide upon request information such as a copy of the most recent financial statement, the portion of gross contributions received during the most recent fiscal year that was used directly for charitable purposes, an estimate of the portion of gross contributions received in the current fiscal year which will be used directly for charitable purposes, and reasonable details regarding where and how the contributions received as a result of the solicitations will be spent.
For more information, contact Andrea J. Seale, Crown Counsel, Legislative Services, Saskatchewan Justice, at (306) 787-8391. For the full text of the act, visit www.qp.gov.sk.ca.