Third party fundraisers

Policy commentary

Release date
February 26, 2003

Reference number


Fundraising - Third-party fundraisers for the benefit of a particular registered charity


To clarify the Directorate's policy regarding fundraising events for the benefit of a particular registered charity.


Amount of advantage: The total value of all property, services, compensation or other benefits to which the donor of a property, or a person not dealing at arm's length with the donor, is entitled as partial consideration for, or in gratitude for, the gift.

Intention to give: The amount of the advantage that accrues to the donor does not exceed 80% of the fair market value of the property transferred.

Eligible amount of gift: The amount by which the fair market value of the property that is the subject of the gift exceeds the amount of the advantage, if any, in respect of a gift.


1. Under the Income Tax Act, registered charities can issue official donation receipts to donors for gifts. This tax-receipting privilege is not to be casually farmed out to third parties, even if some of the resulting funds will be flowing back to the charity. A charity that substantially relinquishes to a third party its receipt-issuing function or the control over the funds that are donated to it, can jeopardize its registered status.

2. A registered charity can enroll a third-party organization or retain a fundraiser or other contractor as an agent to organize a fundraising event. However, the charity should maintain control over all monies that are earned as part of the event, and over the receipts that are issued for part of those monies.

3. If the charity does not run the event substantially by itself, through its own employees or volunteers, it should:


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