F16. I heard something about illegal fundraising. How can fundraising be illegal?

F16. I heard something about illegal fundraising. How can fundraising be illegal?


Short Answer

Registered charities are prohibited from engaging in anything illegal or contrary to public policy. Fundraising can be illegal if it contravenes the Income Tax Act or any other laws. It is also unacceptable for a registered charity to fundraise or otherwise make its resources available to support terrorism.

Fundraising activity would also be illegal if it were criminally fraudulent or violated federal or provincial statutes governing charitable fundraising, charitable gaming, the use of charitable property, or consumer protection.

Long answer

The CRA has published a guidance CG-013 Fundraising by Registered Charities. It contains a section on illegal fundraising activities.

You will want to make sure that any commercial or trading activities you carry out do not contravene the Income Tax Act.

More…

Details on illegal activities as part of prohibited activities listed in the CRA Guidance is available in the Fundraising- Prohibited Conduct Learning Module.

The CRA has published a checklist on Avoiding Terrorism