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Back to listing of Laws & Regulations for Charities
September 1999
Alberta Charitable Fund-Raising Act
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This tipsheet is intended to provide general information and
is not a substitute for legal advice.
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The Charitable Fund-Raising Act lays out the rules that must be followed
when charities ask Albertan for donations. These rules make sure that
people who are asked to contribute to charities or for charitable causes:
- have enough information to decide whether or not to give, and
- are protected from fraudulent, misleading or confusing requests
for contributions.
The Act also has licensing and reporting requirements for charities
and includes eight Standards of Practice that all charitable organizations
and fund-raising businesses must follow.
This tipsheet will cover:
- when the Act does and does not apply;
- when and how a charity must register;
- dealing with a fund-raising business;
- donor fund-raisers;
- record requirements;
- general rules;
- information for donors; and
- Standards of Practice.
The Act applies to any incorporated or unincorporated organization
that is formed for a charitable purpose. It applies even if the organization
is incorporated under the Societies Act or is registered with Revenue
Canada. It also applies to any person asking for contributions to be
used for a charitable purpose or charitable organization, even if that
person is not connected to any charitable organization.
A charitable purpose includes any philanthropic, benevolent, educational,
health, humane, recreational, religious, cultural or artistic purpose.
The Act does not apply when:
- a charity asks for contributions from its members or their immediate
families;
- a charity asks for goods (e.g. furniture for an office, not for
resale) or services (e.g. volunteers) that it will use for its administration
or other non-charitable purpose;
- a charity raises funds through an event that is authorized by the
Alberta Gaming and Liquor Commission (such as a raffle, pull tickets,
a bingo or a casino).
To whom does the Act
apply?
The Act applies to any incorporated or unincorporated organization
that is formed for a charitable purpose. It applies even if the organization
is incorporated under the Societies Act or is registered with Revenue
Canada. It also applies to any person asking for contributions to be
used for a charitable purpose or charitable organization, even if that
person is not connected to any charitable organization.
A charitable purpose includes any philanthropic, benevolent, educational,
health, humane, recreational, religious, cultural or artistic purpose.
The Act does not apply when:
- a charity asks for contributions from its members or their immediate
families;
- a charity asks for goods (e.g. furniture for an office, not for
resale) or services (e.g. volunteers) that it will use for its administration
or other non-charitable purpose;
- a charity raises funds through an event that is authorized by the
Alberta Gaming and Liquor Commission (such as a raffle, pull tickets,
a bingo or a casino).
Information for Charities
Registration
A charitable organization must be registered if:
- it will use a fund-raising business, and/or
- it intends to raise more than $25,000 in gross contributions in
its financial year from solicitations (requests for contributions)
to individuals in Alberta.
If a charity has raised more than $25,000 without intending to do so,
it must register within 45 days after the contributions reach $25,000.
See the Charitable Fund-Raising Regulation for more information about
calculating gross contributions.
How to register
Application forms are available through all registry agents and must
be submitted through them together with the fee. The fee for registration
is $60.00, plus the registry agent's service charge (a maximum of $20.00
plus GST). If an affiliated Branch or Chapter wishes to fund-raise under
the same registration as their main organization there is an additional
fee of $10.00 per chapter.
The application form must include the following information:
- the name, address, and business phone number of the organization;
- the incorporation number, if any;
- the name, community, and address of each Branch or Chapter, if any;
- the organization’s objectives, or the purpose of the charitable
fund-raising;
- the financial year of the organization;
- answers to questions relating to the suitability of a person to
make solicitations or deal with contributions;
- the name, address, and title, of Officers, Directors, and Managers
of the organization; and
- dates of birth are also required for those individuals with signing
authority for the organization.
The completed application form must be signed by a person authorized
to sign on behalf of the organization. It must also be sworn before
a Commissioner for Oaths.
Registered charities must inform Alberta Government Services of any
changes to this information within 30 days of the change. Send this
information to Consumer Programs, Alberta Government Services, 16B,
10155 - 102 Street, Edmonton, Alberta T5J 4L4.
Under certain conditions a charitable organization may be refused registration.
An example is if a charitable organization or any of its principals,
directors or managers has, within the five years before the application
is made, been convicted of an offence that indicates that he or she
is unsuitable to deal with contributions or to ask for donations. Registration
may also be refused if there are reasonable grounds to believe that
the charity or any of its principals, directors or managers may not
follow the Charitable Fund-Raising Act, the Regulation and the Standards
of Practice.
Using a fund-raising business
A fund-raising business is one that is paid to ask for contributions
on behalf of a charity, or that manages or is responsible for solicitations
made by charities, or on their behalf. This includes contracted companies
who conduct door-to-door fund-raisers or provide telemarketing services.
Fund-raising businesses must be licensed and bonded. Check these are
in place with the Consumer Services Division before signing a contract
with a fund-raising business. You may also want to check the business'
reputation with other charities.
If a charity hires a fund-raising business to make requests for donations
or manage fund-raising, there must be a written agreement. The agreement
must include:
- all the terms and conditions both parties have agreed on, including
the duties and responsibilities of both,
- the estimated amount of the contributions expected, and an estimate
of the expenses and costs;
- the way contributions will be solicited;
- a description of any goods or services to be sold, and their specific
price;
- the location of the bank account where contributions of money will
be deposited;
- the charitable organization's business address and the name and
phone number of the contact person;
- the fund-raising business' address and the name and phone number
of the contact person.
The agreement must also establish how much the business will be paid.
This must be:
- a specific amount of money, or
- a specified percentage of the gross contributions, or
- a combination of 1 and 2.
Donor fund-raisers
A donor fund-raiser is a business that sells goods or services and
states that some, or all, of the price will be given to a charity or
used for a charitable purpose. A donor fund-raiser can't do this without
first getting written consent from any charity whose name, emblem, or
printed matter is used. The Act says that a donor fund-raiser must donate
the money as claimed, and account for it.
Maintaining records of contributions
Every charitable organization and fund-raising business who makes solicitations
must maintain the following records for at least three years:
- original copies of financial statements;
- records regarding solicitations;
- records of the deposit bank account used by the fund-raising business,
if any, and payments from that account;
- the names of the signing officers for the bank account;
- samples of the kinds of information given to potential donors, including
publications and phone scripts;
- copies of the fund-raising agreements and any amendments;
- copies of the cash receipts.
Information for Donors
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Specific rules
These rules apply only to solicitations made by fund-raising
businesses, and/or charities that intend to receive more than
$25,000 in contributions during their financial year from individuals
in Alberta.
Solicitations by phone
Anyone asking for contributions by phone may do so only between
8 a.m. and 9 p.m.
Inform donor before accepting a contribution
The person making the request for contributions must give a potential
donor the following information:
- the name of the charitable organization for which the donation
is being requested;
- the cost of fund-raising and how much the charity expects
to raise;
- the charitable purpose for which contributions will be used;
- the corporate and business address of the charity and the
place of incorporation, if any;
- the name and phone number of a contact person employed by
the charity whom the donor can call for further information.
If the charity is using a fund-raising business, a potential
donor must also be told
- the operating name and full legal name of the fund-raising
business, and
- if the business is being paid a specific amount or a specified
percentage of the contributions raised
This information may be given orally or in writing, and the potential
donor must be given enough time to review it.
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Information on request
Any charity or fund-raising business asking for contributions must
provide the following information to anyone that requests it.
- A copy of the most recent audited financial statement or financial
information return that the charitable organization is required to
prepare. The charity can charge a reasonable fee for photocopying
and mailing these documents.
- Information about how and where the money will be spent.
- Information on the percentage of the gross contributions that is
spent directly for charitable purposes (and not administration or
other purposes).
Receipts
Donors must receive receipts on request for all cash contributions.
General rules
The Act includes some general rules that apply regardless of the amount
being raised.
- Charities and fund-raising businesses must not imply that they are
endorsed by the Government of Alberta because they are registered
or licensed.
- Charities and fund-raising businesses must not claim that anyone
sponsors or approves of their cause without the written consent of
the parties involved.
- No one may ask for donations for any charitable purpose or charity,
or use their emblem or printed matter, without their written consent.
- If someone asks for their name to be removed from a donor list,
or that they stop receiving requests for donations, the charity and/or
fund-raising business involved must use their best efforts to do so.
- Anyone who has made a contribution to a charity can apply to the
Court of Queen's Bench for an order. The Court may require the charity
to:
- return the contribution, or amount equal to it;
- use the money for the purpose for which it was donated;
- make a public declaration about the use or misuse of contributions.
Standards of Practice
The following standards of practice were developed in consultation
with charities and fund-raising businesses. They came into effect April
1, 1999.
- Charitable organizations and fund-raising businesses must comply
with all relevant municipal, provincial, and federal laws.
- Charitable organizations and fund-raising businesses must advocate,
within the organization, adherence to all applicable laws and Standards
of Practice.
- The principals, directors, managers and employees of charitable
organizations and fund-raising businesses that must comply with these
Standards must effectively disclose to their organization all conflicts
of interest and all situations that might be perceived as a conflict
of interest.
- Charitable organizations and fund-raising businesses must give donors
the opportunity to have their names removed from lists that are sold,
rented, or exchanged with other organizations.
- Charitable organizations and fund-raising businesses must not disclose
any personal and confidential information about donors or prospective
donors outside the work environment, and within the work environment
only as appropriate.
- Charitable organizations must, to the best of their ability, ensure
that contributions are used in accordance with donors’ intentions
and obtain the explicit consent of a donor or the donor's representative
before altering conditions of a gift.
- Charitable organizations must use accurate and consistent accounting
methods that conform to the appropriate guidelines adopted by the
Canadian Institute of Chartered Accountants (CICA).
- Charitable organizations and fund-raising businesses must not take
unfair advantage of a donor or prospective donor for their own advantage
or benefit.
For More Information
Alberta Government Services
Consumer Services Division
Phone: Edmonton (780) 427-4088
Toll free in Alberta 1-877-427-4088
The Charitable Fund-Raising Act and the Charitable Fund-Raising Regulation
are available through the Queen’s Printer Bookstore or on its website
at www.gov.ab.ca/qp
Calgary
Phone (403) 297-6251
Fax (403) 297-8450
Edmonton
Phone (780) 427-4952
Fax (780) 452-0668
Outside Edmonton and Calgary call toll-free 310-0000 and ask the RITE
operator to connect you.
Registry agents
For a registry agent nearest you, look under "Licence and Registry
Services" in the Yellow Pages of the telephone directory, or go to the
Alberta Government Services website at www.gov.ab.ca/gs
and click on Registry Agent Network.
Registered charitable organizations and licensed fund-raising businesses
You can search registered charitable organizations and licensed fund-raising
businesses through the Alberta Government Services website at www.gov.ab.ca/gs
and clicking on Consumer Services. This information is also available
by calling the Alberta Government Services numbers above.
www.gov.ab.ca/gs
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