Alberta’s Charitable Fund-raising Act
Written for the Nonprofit Chamber by Guest Blogger Consumer Services - Service Alberta and Red Tape Reduction
Did you know that if your organization raises more than $25,000 in donations per year that you need to be registered under Alberta’s Charitable Fund-raising Act (CFRA)? The CFRA applies to both incorporated and unincorporated organizations formed for charitable purposes, including those registered with the CRA or incorporated under the Societies Act. It also applies to anyone who solicits contributions for a charitable purpose, even if they are not directly connected to a charitable organization. A charitable purpose includes any philanthropic, benevolent, educational, health, humane, recreational, religious, cultural or artistic purpose. For more information, please see: Charitable fund-raising - Open Government
Registration under the CFRA is required if your organization raises or intends to raise $25,000 or more in donations from Albertans in your organization’s fiscal year. You also need to be registered if your organization hires a business to fundraise on your behalf. Organizations asking for donations for a nonprofit sports organization are included under the CFRA. If you have not registered your charitable organization but you receive $25,000 or more in contributions during your fiscal year, you have 45 days to submit your registration. Any business that makes solicitations on behalf of a charitable organization or manages or is responsible for solicitations on behalf of a charitable organization for remuneration must be licensed as a charitable fund-raising business.
Solicitations made to the members of your organization or their immediate families are exempt from the CFRA. Events authorized by Alberta Gaming, Liquor, and Cannabis, like raffles, pull tickets, bingos or casinos are exempt from the CFRA.
New charitable organizations must also submit a copy of the solicitation materials they intend to use to ask for donations. These materials will be reviewed to ensure they comply with the disclosure requirements of the CFRA. You can review what is to be disclosed in your solicitation materials by reading the Charitable Organizations that Solicit Donations Tipsheet developed by Service Alberta and Red Tape Reduction under the Charities tab here.
Solicitation materials and audited financial statements may be requested and reviewed during the registration process or during an inspection. The purpose of reviewing these materials is to ensure donors are receiving accurate information about the charity and the use of their donations. The CFRA also protects donors from fraudulent or misleading solicitations. Alberta has established standards for charitable organizations and fundraising businesses to ensure that donors have sufficient information to make informed decisions and so that they may more readily support worthwhile and legitimate charitable purposes.
More information about registration under the CFRA can be found here.
The licence status of a fundraising business or registration status of a charity can be checked at Licence and Registration Search.
If you are unsure if your organization needs to be registered or if you have any other questions, please call the Consumer Contact Centre at (780) 427-4088 or 1-877-427-4088.