Carters Professional Corporate just released their latest charity law update.

Here is an excerpt:  read more »

A CRA news release, issued on June 14, 2010, notes that 810 charities were selected for audit last year. As a result, the CRA revoked the charitable status of 40 charities for serious infractions of the law. Many additional charities also lost their charitable status for failure to file their annual return. 

Here is the lastest update on the charities have been de-listed and suspended by the Canada Revenue Agency.

Liberty Wellness Initiative http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m04/nr100419-eng.html

Destiny Health and Wellness Foundation http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m04/nr100419b-eng.html

Notice of Suspension to International Relief Fund for the Afflicted and Needy-Canada http://www.cra-arc.gc.ca/nwsrm/rlss/2010/m04/nr100413c-eng.html 

It's been a while since I posted something about the Ethical Code of Fundraising.  Attached to this blog post is a copy of Imagine Canada's Code and click here for how this information pertains to donors.

To date there are 180 organizations in Canada that subscribe to the code.  Have the organizations that you support adopted this code or something like it?

There are over 161,000 non-profits and charities in Canada with less than 1% of them formerly adopting Imagine Canada's code what does this say about the sector?  Or perhaps, what does it say about the role that Imagine Canada can play in strenthening the sector?  Should adopting the code be linked to the two year participation fee?  What role can donors play in encouraging their recipient organizations to adopt this code?  How can we encourage organizations to promote other similar ethical standards?

So you've identified your values, you'ver picked how you will give and you've set your philanthropic goals.  The goals that articulate the kind of social impact you want to make.  How will you find the charities that best fit your values and goals?

First, decide if your community investment goals are locally, nationally or internationally based.  Depending on how you decide to disburse your funds will also play into the type and geographic location of the recipient organizations.  Make sure you have checked with your tax accountant and lawyer about any financial and legal implications your decision will have.

For charities that are Canadian based it is easier to make sure your philanthropic investment will be used appropriately.  Canada Revenue Agency recently released its policy guidelines on fundraising for charitable organizations.  This document defines what "charitable objectives" are and how organizations can spend your philanthropic investment.  A copy of this policy can be found under Materials in the Resources section of this website.

Second, ask questions!

Some basic questions you will want to ask a charity before investing are:

1. Has the agency adopted the Code of Ethical Fundraising (see Resources on this site for a copy) developed by Imagine Canada?
2. Can the agency provide you with two years audited financial statements?  You want two years (preferably three) because you need to compare growth in both revenue and expenses.
3. Who is on the Board of Directors?  What are their terms?  Does the Executive Director have a vote? Are any of the Board Members financially compensated?
4. Where does the core funding come from?  How long is that funding in place?
5. Does the agency have a strategic plan?  How often is it reviewed?  How are is the organization measuring itself against the plan?
6. What percentage of the operating budget goes to the highest paid salary?  How many paid staff are there?
7. How much does it cost to raise a dollar?  You might want to take the following measurements into consideration: 40% of Executive Director's salary, 100% of Fund Development staff salary, 50% of marketing/communications budget and 5-7% of general overhead expenses (rent, phone, etc.).  Under the Donor Bill of Rights written by the Association of Fundraising Professionals, as a philanthropic investor you have the right to know this information.  A copy of the Donor Bill of Rights can be found in the Resources section of this website.
8. Finally, and probably the question you are most interested in knowing the answer to, how will this agency invest your money?  How many people will be helped, animals saved, programs delivered, etc.

If you need more clarification - ASK.  For the most part, charities want to be accountable to their donors.  If you are not satisfied with the answers do not make that charitable investment.