Canada Revenue
Agency Releases Policy on Fundraising
Today, the Canada Revenue
Agency (CRA) released a revised and final version of its Policy
on Fundraising. This new version is quite different in tone and
substance from the original draft released last year.
The policy
can be found here.
AFP, as a member of
a broader coalition including Imagine Canada, Health Charities
Coalition of Canada and numerous other organizations, worked with
CRA staff throughout 2008 on this policy and is grateful that
the CRA accepted many of the suggestions raised by AFP and the
others. AFP appreciated the opportunity to work with the CRA,
as well as with other members in the nonprofit sector. It was
a valuable and effective process that resulted in a tangible positive
outcome.
AFP, the members of
the coalition and the CRA shared a strong desire to make the sector
more accountable while providing more consistent standards for
reporting, and we applaud the CRA for their responsiveness to
feedback from small and large stakeholders impacted by the policy.
Of particular significance is the policy's recognition of the
complex and varied nature of the nonprofit community and the impact
that this has on fundraising programmes.
Some areas of the
new policy will continue to require clarification, notably the
definition of fundraising, as well as the definition of revenue
generated through fundraising, which remains loosely defined and
does not fully take into consideration the diversity of the sector.
The complex challenge of presenting fundraising ratios in a transparent
and accurate way to stakeholders also remains a work in progress.
AFP welcomes the CRA's
expressed view of the new policy as a "live document"
subject to an ongoing process of review as we work to develop
a policy that is equitable for nonprofit fundraising while protecting
the public and allowing the government to address fraud and other
issues. AFP looks forward to working with the CRA on this and
other matters of importance to the nonprofit sector.
Below you will find
talking points to help educate your chapters and colleagues. Questions
and concerns can be directed to Jason Lee, director, government
affairs, at jlee@afpnet.org.
Sincerely,
Mark Climie-Elliott, CFRE
Chair, AFP Canada Council
Amanda Gellman
Chair, AFP Canadian Government Relations Committee
| Talking
Points - CRA Fundraising Guidelines |
•
Today, the Canada Revenue Agency (CRA) released a revised
and final version of its Policy on Fundraising. This new
version is quite different in tone and substance from the
original draft released last year. For the most part, AFP
is pleased with the new version.
• Last
year, the CRA published its initial draft policy. That version
contained an evaluation grid based almost solely upon fundraising
cost percentages. It also cast fundraising in a somewhat
negative light.
• Upon
releasing that initial draft, the CRA gave organizations
the opportunity to comment, and AFP submitted comments in
August 2008 urging the CRA to, among other things, reconsider
the evaluation grid and adjust the overall tone of the policy.
AFP called upon its members to submit their own comments
as well.
• In addition
to submitting written comments, AFP, as a member of a broader
coalition including Imagine Canada, Health Charities Coalition
of Canada and numerous other organizations, advised CRA
staff on potential revisions of the policy throughout 2008.
It was a valuable and effective process that resulted in
a tangible positive outcome, and AFP is pleased to see a
number of the coalition’s suggestions and recommendations
incorporated into the final version of the policy.
• Some
areas of the new policy will continue to require clarification
such as:
- the definition of fundraising
- the definition of revenue generated through fundraising
• The
complex challenge of presenting fundraising ratios in a
transparent and accurate way to stakeholders also remains
a work in progress.
• AFP
looks forward to continuing to work with the CRA on this
document, which all involved view as an ongoing process,
and AFP will offer suggestions to enhance the guidelines
when the CRA seeks comments 6 months from now. Chapters
and AFP members likely will have the opportunity to submit
comments as well at that time.
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