Older Uniform Acts

Charitable Fundraising Act



FUNDRAISING BUSINESSES

Licensing requirement, solicitations by fundraising businesses

23.  No fundraising business shall make a solicitation on behalf of a charity or manage, facilitate or be responsible for solicitations made by or on behalf of a charity unless the fundraising business is licensed under this Act.

Licensing

24.  A fundraising business that wishes to be licensed or to have its licence renewed shall provide the [enforcement authority] with,
(a)  an application in the prescribed form;
(b)  the prescribed information;
(c)  the prescribed fee; and
(d)  security that meets the prescribed requirements and is in an amount specified by the [enforcement authority].

Grounds for refusing a licence or renewal or imposing conditions

25.(1)  The [enforcement authority] may take a step described in subsection (3) with respect to a fundraising business if,
(a)  the fundraising business or any of its directors, officers or managers have, at any time,
  • (i)  been convicted of a relevant offence,
  • (ii)  failed to pay a fine imposed under a conviction for a relevant offence or failed to comply with an order made in relation to such a conviction,
  • (iii)  had the status of an undischarged bankrupt,
  • (iv)  been named in a certificate signed under the Charities Registration (Security Information) Act (Canada), or
  • (v)  been subject to an order described in subsection (2) the making of which, in the [enforcement authority]’s opinion, indicates that the person subject to the order is unsuitable to deal with contributions or to make solicitations;
(b)  in the [enforcement authority]’s opinion, the fundraising business or any of its directors, officers, managers or employees has contravened subsection 32 (1) or (2) or section 34; or
(c)  the [enforcement authority] has reasonable grounds to believe that the fundraising business or any of its directors, officers or managers is likely to contravene this Act.
(2)  Subclause (1) (a) (v) applies to orders made,
(a)  under this Act or under a similar Act in another jurisdiction in Canada; or
(b)  under the [consumer protection statute] or under a similar Act in another jurisdiction in Canada.
(3)  In the circumstances described in subsection (1), the [enforcement authority] may,
(a)  refuse to issue a licence to the fundraising business or to renew its licence; or
(b)  in issuing a licence to the fundraising business or in renewing its licence, impose conditions on the licence.
(4)  When the licence of a fundraising business is suspended or cancelled under section 51, the fundraising business continues to be required to comply with any conditions imposed on the licence, subject to any modifications made necessary by the suspension or cancellation.

Notice to applicant

26.(1)  Before refusing to issue a licence to a fundraising business, refusing to renew its licence or imposing a condition on the licence, the [enforcement authority] shall,
(a)  notify the fundraising business of the reasons why the licence or renewal may be refused, or of the proposed conditions and the reasons why they may be imposed; and
(b)  give the fundraising business an opportunity to make representations to the [enforcement authority]’s designate.
(2)  If, after subsection (1) has been complied with, the [enforcement authority] decides to refuse to issue a licence to the fundraising business, to refuse to renew its licence or to impose a condition on the licence, the [enforcement authority] shall give the fundraising business written reasons for the decision.

Expiry of licence

27.  A licence issued to a fundraising business is effective for the prescribed time period.
Changes in information
28.(1)  A fundraising business that has been issued a licence shall inform the [enforcement authority] of any change in the information provided under section 24, within 30 days after the change.
(2)  Subsection (1) also applies to changes in information that occur while the licence is suspended or within 30 days after the licence expires or is cancelled.
Effect of security not being in force
29.(1)  If the security that the fundraising business has provided to the [enforcement authority] under clause 24 (d) is no longer in force, the fundraising business’s licence is automatically suspended.
(2)  Section 51 does not apply to the suspension, but the [enforcement authority] shall give written notice of the suspension to the fundraising business within 15 days after becoming aware that the security is no longer in force.

Donor lists

30.(1)  A list that is compiled by a fundraising business and consists of names of persons who have given a contribution to a charity and other information about those persons,
(a)  is the charity’s property; and
(b)  is under the charity’s exclusive control.
(2)  No fundraising business that compiles a list described in subsection (1) for a charity shall use or deal with the list except with the charity’s written permission.
(3)  When an agreement between a charity and a fundraising business ceases to be in force,
(a)  any list described in subsection (1) to which the agreement relates and that is in the fundraising business’s possession or otherwise under its management shall be turned over to the charity and deleted from the fundraising business’s databases; and
(b)  the fundraising business shall ensure that any copies of the list that remain in its possession or otherwise under its management are destroyed.
(4)  Subsections (2) and (3) apply in respect of a list described in subsection (1) even if it has been combined with other lists relating to other charities or incorporated into another document.

Holding contributions in trust

31.(1)  Every fundraising business that receives contributions on behalf of a charity, and every employee of a fundraising business who does so, is a trustee and holds the contributions in trust for the charity.
(2)  The trustee has no power to invest monetary contributions received on behalf of a charity and shall, within three business days after receiving the monetary contributions, deposit them, without making any deductions, into an account held in a bank, trust corporation or credit union in Canada.

Comment: Each jurisdiction will have its preferred way of referring to financial institutions that take deposits.
(3)  The account shall be in the name of the charity that is the beneficiary and shall be under its sole control.
(4)  The trustee shall comply with the prescribed requirements.
(5)  The [statute governing trustees] does not apply to the trust.

Compliance with standards of practice

32.(1)  Every fundraising business and every employee of a fundraising business shall comply with the prescribed standards of practice.
(2)  The directors, officers and managers of a fundraising business shall,
(a)  comply with the prescribed standards of practice; and
(b)  take reasonable steps to ensure that the fundraising business and its employees comply with the prescribed standards of practice.

Comment: See s. 3 of appended model regulation.

Request to refrain from making solicitations, etc.


33.  A fundraising business shall use its best efforts to comply with a person’s request that the fundraising business,
(a)  refrain from making solicitations to the person on behalf of the charity specified in the request; or
(b)  remove the person’s name from a list of persons who may provide a contribution to the charity specified in the request.

Prohibition

34.  No fundraising business shall make a solicitation on behalf of, or manage, facilitate or be responsible for solicitations made by or on behalf of, a charity in which any of the following persons and other entities has an interest:
1.  The fundraising business or its associate.
2.  An officer or director of the fundraising business, or the spouse of an officer or director.
3.  An associate of a person described in paragraph 2.
Comment: Section 34 requires definitions of “interest”, “associate” and “spouse”. Each jurisdiction may wish to adopt definitions that correspond to the ones used elsewhere in its statutes.

Next Annual Meeting

2020 Annual Meeting

Place to be Announced

August 9 – 13, 2020