Older Uniform Acts

Charitable Fundraising Act



GENERAL

General prohibitions


52.(1)  No person shall,
(a)  use the fact that a charity is registered or deemed to be registered or that a fundraising business is licensed to lead any other person to believe that the registration, deemed registration or licence constitutes an endorsement or approval by the government of [jurisdiction], except to indicate that the charity or fundraising business is registered, deemed to be registered or licensed under this Act;
(b)  in a solicitation,
  • (i)  make a representation that an individual or corporation sponsors, endorses or approves of a charity or a charitable purpose, unless the individual or corporation has given written consent, in advance, allowing the use of the individual’s or corporation’s name for those purposes,
  • (ii)  use any thing that identifies a charity in a manner that indicates or implies an association between the person and the charity, unless the charity has given written consent to the use, in advance, or
  • (iii)  make a false or misleading statement; or
(c)  having made a representation that contributions will be used for a charitable purpose, fail to provide them to a charity formed for that charitable purpose or to use them for that charitable purpose within a reasonable time.
(2)  No charity or fundraising business and no director, officer, manager or employee of a charity or fundraising business shall give a person false or misleading information knowing that the person intends to use the information in a solicitation.

False statements

53.  No person shall make a false or misleading statement in any application or other document submitted to the [enforcement authority] under this Act.
Disclosure by [enforcement authority]
54.  The [enforcement authority] may disclose any information obtained under this Act for the purpose of assisting members of the public to decide whether they wish to make contributions to a particular person, charity, fundraising business or retail incentive donor.

Comment: Each jurisdiction will need to consider what complementary amendments, if any, may need to be made to its legislation governing protection of privacy and freedom of information, in order to authorize disclosure to the public and disclosure to governments and government agencies.

Appealing decision of [enforcement authority]

55.(1)  A person who is affected by a decision of the [enforcement authority] under this Act may appeal the decision on a question of law or jurisdiction to the [superior court].
(2)  An appeal under this section shall be commenced by filing a notice of appeal that sets out the grounds for the appeal within 30 days after receiving notice of the decision.
(3)  In the case of a decision under subsection 51(5), the charity or fundraising business may appeal the decision under subsection (1) only if it has requested an internal review under subsection 51(7), and the notice of appeal shall be filed within 30 days after receiving notice of the outcome of the internal review.
(4)  The [superior court] may confirm or reject the [enforcement authority]’s decision or make any other order it considers appropriate.

Order compelling proper use of contributions

56.(1)  A person who has made a contribution to a charity may apply to the [superior court] for an order described in subsection (2).
(2)  If the court is satisfied that a charity is not using the contributions it receives as a result of a solicitation for the charitable purpose stated or implied in the solicitation, the court may,
(a)  require the charity or any of its directors, officers or managers,
  • (i)  to pay the contributions to another charity formed for the same charitable purpose, or
  • (ii)  if the court considers it appropriate, to return the contributions to the persons who made them;
(b)  require the charity and its directors, officers and managers to use a contribution for the charitable purpose for which it was donated;
(c)  make a declaration respecting the use or misuse of contributions by the charity; or
(d)  make any other order that the court considers appropriate.
(3)  Before making an order under subsection (2), the court may require the charity or any of its directors, officers or managers to provide to the court the documents or information that the court specifies.
(4)  If the court dismisses an application made under subsection (1) and considers it to have been frivolous or vexatious, the court may require the applicant to pay costs as specified by the court.
(5)  Nothing in this Act affects any right at common law, in equity or under another Act that a person may have in respect of a charity, fundraising business or retail incentive donor.

Restriction on municipal powers

57.  Despite the [statute governing municipal powers], the council of a municipality shall not pass bylaws regulating or prohibiting solicitations made by charities or fundraising businesses.
Offences
58.(1)  A person who contravenes any of the following provisions of this Act is guilty of an offence:
1.  Sections 6 and 7, subsections 8(2) and (3), and section 9.
2.  Sections 11, 12 and 13.
3.  Sections 14 and 15.
4.  Sections 20, 21 and 22.
5.  Section 23.
6.  Sections 28 and 30 to 34.
7.  Section 35.
8.  Sections 37 to 39.
9.  Subsection 43(1).
10.  Sections 52 and 53.
(2)  A person who fails to comply with a direction of the [enforcement authority] under section 48 is guilty of an offence.
(3)  A person who is guilty of an offence is liable, on conviction, to one or both of the following:
1.  A fine that is not less than $1,000 and not more than the greater of,
  • i.  $100,000, and
  • ii.  three times the amount that the defendant obtained as a result of the offence.
2.  Imprisonment for not more than two years.
(4)  If a corporation is guilty of an offence, every director, officer, manager, employee and agent of the corporation who authorized the commission of the offence, assented to it, or acquiesced or participated in it is also guilty of an offence and is liable, on conviction, to the penalty provided for in subsection (3), whether or not the corporation has been convicted.
(5)  If a partner in a partnership that is a fundraising business is convicted of an offence, each partner in that partnership who authorized the commission of the offence, assented to it, or acquiesced or participated in it is also guilty of an offence and is liable, on conviction, to the penalty provided for in subsection (3).
(6)  In any prosecution under this Act relating to a solicitation there is a presumption, in the absence of evidence to the contrary, that this Act applies to the solicitation.
(7)  A prosecution under this Act shall not be commenced more than two years after the date on which evidence of the offence first came to the attention of the [enforcement authority].

Compensation for loss

59.(1)  The court that convicts a defendant of an offence may, on the application of an aggrieved person, at the time sentence is imposed, order the defendant to pay to the applicant an amount as compensation for loss suffered by the applicant as a result of the commission of the offence.
(2)  If an amount that is ordered to be paid under subsection (1) is not paid within the time ordered by the court, the applicant may file the order for payment in the [superior court], and the order may be enforced in the same way as a judgment of that court.

Regulations

60.(1)  The [enforcement authority] may make regulations,

Comment: It may not be appropriate for the enforcement authority to make regulations independently. The regulation-making power could be made subject to the approval of the Lieutenant Governor in Council. Or it could be conferred on the responsible minister.
(a)  exempting any person or other entity or class of persons or other entities from this Act and the regulations or from any provision of this Act or the regulations;
(b)  respecting the calculation of gross contributions;

Comment: See s. 1 of appended model regulation.
(c)  prescribing the manner and form in which information is to be provided under section 7 when a solicitation is made;
(d)  prescribing other information for the purposes of paragraph 5 of subsection 7(3);
(e)  prescribing an amount for the purposes of sections 10 and 14;

Comment: See s. 2 of appended model regulation.
(f)  prescribing the other records to be maintained by charities and fundraising businesses under section 11 and the period for which they shall be maintained;
(g)  prescribing, for the purposes of section 12,
  • (i)  the situations in which a charity is required to prepare either audited financial statements or financial information returns, and
  • (ii)  requirements for financial statements and information returns;
(h)  prescribing accounting standards for charities;
(i)  respecting the calculation of the portion or estimated portion of gross contributions used directly for charitable purposes under paragraphs 3 and 4 of subsection 13(2);
(j)  respecting the trust established under section 31;
(k)  prescribing the form of and the information required for the purposes of applications for registration, licences and renewals;
(l)  prescribing fees for registrations, licences and renewals;
(m)  prescribing the time periods during which a registration or a licence is effective;
(n)  prescribing requirements for security required under section 24;
(o)  respecting the conditions under which a security is forfeited and the procedures to be followed for claiming on a security that has been forfeited;
(p)  prescribing other matters that shall be included in fundraising agreements under clause 36(j);
(q)  prescribing standards of practice for the purposes of sections 21 and 32;

Comment: See s. 3 of appended model regulation.

(r)  prescribing the information to be provided by retail incentive donors under section 38 and the form in which it is to be provided.
(2)  A regulation made under clause (1)(b) may provide for different calculations for the purposes of different provisions of this Act.
(3)  A regulation made under clause (1)(c) may treat solicitations made by different means differently.

Protection from liability

61.  No action for damages may be commenced against the [enforcement authority], an inspector or any person acting under the authority of the [enforcement authority] for anything done or not done by that person in good faith while carrying out duties or exercising powers under this Act.
Comment: Each jurisdiction will need to consider any transitional issues that arise in connection with adopting this Act.

Next Annual Meeting

2020 Annual Meeting

Place to be Announced

August 9 – 13, 2020