FA5. If our charitable organization uses the services of a fundraising business in Alberta, are there special rules that we need to follow?

FA5. If our charitable organization uses the services of a fundraising business in Alberta, are there special rules that we need to follow?


Short answer

Yes, if a fundraising business is used to solicit donations, a potential donor must be told (in addition to the information indicated in FA4):

  • the operating name and full legal name of the fundraising business
  • how the remuneration of the fundraising business is determined
Long answer

You are required to submit a copy of the solicitation materials or canvassing scripts that will be used to solicit funds. It is a serious offence to make a false statement of fact or to misrepresent any fact or circumstance in a solicitation for a charitable donation. (For further details download the instructions from Consumer InfoSheet; Charitable Organizations That Solicit Donations

Maintaining Records of Contributions
Every charitable organization that makes solicitations must maintain complete and accurate financial records of its operations in Alberta for at least three years after the solicitations are made. (See FA7 for details of these records.)

Preparing Financial Statements
A charitable organization must prepare and may be required to produce copies of its most recent audited financial statements (if it has raised $250,000 or more through solicitations) or a copy of its financial information return (if it has raised less than $250,000). See FA8 for notes on preparing financial statements.

More…

The Service Alberta site lists the Requirements for Charitable Organizations that Solicit Donations.