Information for Businesses who Solicit Funds on Behalf of a Charity

For information about businesses who solicit funds on behalf of a charity select from the options below.

 

• Requirement to be Licensed (section 5)
• Exemptions (section 3)
• Licensing Conditions (sections 10-16 regulations 3-6)
• Fund-raising Agreements with Charities (section 26 regulation 13)
• Request for Accounting by the Charity (section 28)
• Agreements Contrary to Public Interest (section 27)
• Donor Lists (section 25)
• Information to be Provided to the Registrar Prior to a Campaign (sections 18, 26 regulation 7, 13)
• Annual Reporting (sections 28, 29 regulation 14, 15)
• Telephone or Door to Door Solicitation Restrictions (sections 19, 20)
• Identification Cards (section 20 regulation 8)
• Information to be Provided to a Donor Other than a Telephone Solicitation (section 21 regulations 9, 10)
• Information to be provided to the Donor being Solicited on the Telephone (regulation 10)

 

Requirement to be Licensed (section 5)

A for-profit charitable fund-raising businesses acting on behalf of a charity registered with the Canada Revenue Agency must be licensed with the Consumer Protection Division. 

This includes the scenario when a charity contracts with and remunerates a fund-raising organization to coordinate or manage the charity’s volunteers in a solicitation drive. In such cases, the fund-raising organization must be licensed even if it does not manage or receive the receipted donations.

The sale of a “food” items, goods or services on behalf of a charity by a paid fund-raising business requires that the associated fund-raising business be licensed.
 

Exemptions (section 3)

The Act does not apply to a lottery scheme, authorized by section 207 of the Criminal Code, that is lawfully conducted by a charitable organization.

 

Licensing Conditions (sections 10-16 regulations 3-6)

Terms and conditions of a licence

Section 10:

(1) On issuing, renewing or reinstating a licence, the registrar may include any terms and conditions that the registrar considers appropriate.
(2) Subject to section 16 {the right to advance notification, appeal}, at any time after a licence is issued, renewed or reinstated, the registrar may amend the terms and conditions of the licence.
 

Licence not transferable

Section 11 A licence issued, renewed or reinstated pursuant to this Part is not transferable.
 

Expiry and renewal of licence

Section 12 Unless renewed or cancelled, a licence expires on the expiration of the prescribed period [regulation 5 prescribes a one year term].
 

Financial security may be required

Section 13(1) The registrar may require:

• an applicant to file a bond with the registrar as part of the applicant’s application;
• a fund-raising business whose licence has been suspended to file a bond with the registrar prior to reinstatement of the licence; or
• a licensee to file a bond with the registrar at any time during the term of a licence.

The bond is generally set at $25,000.
 

Licensee to notify registrar if circumstances change

15(1) Within 30 days after a prescribed change in circumstances, an applicant or licensee shall notify the registrar in writing.
 

Licensing fees

Regulation 3 Every applicant for a licence or a renewal of a licence shall pay a fee of $600.
 

Proof of registration

Regulation 4 For the purposes of clause 6(d) of the Act, a fund-raising business that wishes to obtain or renew a licence shall provide the registrar with evidence that it is registered as required by law to carry on business in Saskatchewan:

• Individuals or individual partnerships should use a registered a business name.
• A Corporation or a partnership of corporations may apply for a license under its corporate name(s) or under its registered business name.

Note however, that in the case of a corporation, both the corporate name and the business name must appear and be used on any bond or sales contract [s. 267 of The Business Corporation Act, s. 9.1 of The Business Names Registration Act ]. Where there is a partnership of corporations, the entity can elect to use all corporate names of the partnership on the contract form or simply list the registered partnership name and the registered corporate name of the principle or managing partner.

The corporate name and/or the business name must be registered (generally pursuant to The Business Corporation Act or The Business Names Registration Act) with the Corporate Registry of the Information Services Corporation (ISC) . ISC may be contacted at 1-866-275-4721. There is a periodic fee required by ISC to keep this registration active.
 

Term and expiry of licence

Regulation 5 “For the purposes of section 12 of the Act, a licence is valid for a period of one year and unless the licence is renewed pursuant to section 7 of the Act or cancelled pursuant to section 9 of the Act, it expires on the expiry date stated on the licence”.
 

Notification of any change in circumstances

Regulation 6 “For the purposes of subsection 15(1) of the Act, a prescribed change in circumstances consists of a material change in the information previously provided to the registrar in an application for:

(a) a licence;
(b) renewal of a licence; or
(c) reinstatement of a licence”

 

Fund-raising Agreements with Charities (section 26 regulation 13)

All fund-raising businesses and the charities they represent must enter into written fund-raising agreements with each other. Copies of the agreements between the parties and solicitation scripts to be used must be provided to the Registrar of Charities, the Consumer Protection Division, at least 30 days before any solicitations begin.

The terms of the agreement must include:

• the duties and responsibilities of the parties, and the manner in which the agreement may be terminated;
• a description of any goods or services being sold and the specific sale price;
• an estimate of the amount of contributions to be received and the expenses of the fund-raising;
• a clause indicating that should the fund-raising businesses billings (for the campaign) to the charity be greater than the gross charitable receipts of the campaign, those billings will be discounted so that the billings will not exceed the contribution received; and
• the methods to be used in soliciting.

 

Request for Accounting by the Charity (section 28)

Charities entering into agreements with fund-raising businesses are allowed to request accountings by the business. The Registrar and the Court of Queen's Bench may demand such accountings.

 

Agreements Contrary to Public Interest (section 27)

The Act provides that charities may apply to the Court to have agreements cancelled as contrary to the public interest, including contracts made before this Act came into force.

 

Donor Lists (section 25)

Any donor lists related to a solicitation drive remains the property of and under control of the charity, a clause in the contract (with the charity) contrary to that provision will not be accepted.

 

Information to be Provided to the Registrar Prior to a Campaign (sections 18, 26 regulation 7, 13)

Fund-raising businesses must provide the Registrar of Charities (at the Consumer Protection Division) with the following information at least 30 days before commencing a campaign:

• the name, address, telephone number, and, if applicable, the e-mail address of a contact person for the licensee with respect to the campaign;
• the name, address, telephone number, and, if applicable, the e-mail address and website address of the charitable organization on whose behalf solicitations are to be made;
• the charitable purpose for which contributions will be used;
• the jurisdiction in which contributions will be used;
• a list of locations in Saskatchewan where the campaign is to be carried out;
• the length of the campaign;
• a reasonable sample of:
• the identification card to be worn by representatives who will be making door-to-door solicitations;
  • any publication or other information that will be provided to persons
  • being solicited; and
  • any telephone script that will be used in making solicitations.

 

Annual Reporting (sections 28, 29 regulation 14, 15)

Fund-raising businesses must file annual audited financial returns with the Registrar and must maintain records of their Saskatchewan operations for at least six years.

 

Telephone or Door to Door Solicitation Restrictions (sections 19, 20)

Charities and/or fund-raising businesses acting on behalf of a charity are not allowed to make telephone or door-to-door solicitations except between the hours of 8:00 a.m. and 9:00 p.m.

 

Identification Cards (section 20 regulation 8)

Door-to-door canvassers employed by a fund-raising business must wear an identification card. The identification card must contain the following information:

• the name of the representative of the licensee;
• the name, address and telephone number of the licensee;
• the number on the licensee’s licence;
• the signature of an officer of the licensee;
• any other prescribed information (regulation 8)

Regulation 8 states:

8(1) The identification card mentioned in section 20 of the Act must:

(a) be not less than 10.0 centimetres by 14.5 centimetres;
(b) contain a picture of the representative’s face that is not less than 2.5 centimetres by 3.0 centimetres; and
(c) in addition to the requirements contained in subsection 20(2) of the Act, include:
(i) the name of the charitable organization on whose behalf solicitations
are being made; and
(ii) the words “PAID CANVASSER” in capital letters.

(2) Subject to subsection (3), the information in the identification card must be displayed in not less than 14 point bold type.
(3) The name of the licensee and the information mentioned in subclause (1)(c)(i) must be displayed in not less than 18 point bold type and the words “PAID CANVASSER” must be displayed in not less than 24 point bold type.
(4) The identification card must be easily visible and displayed on the chest area of the representative.

 

Information to be Provided to a Donor Other than a Telephone Solicitation (section 21 regulations 9, 10)

Prior to accepting a contribution, a representative of a fund-raising business making a solicitation (other than a telephone solicitation) on behalf of the registered charitable organization shall provide the donor with the following information:

• licensee's name and the name of the canvasser making the call;
• the name, e-mail, and website address of the fund-raising business they represent;
• the name, e-mail, and website address of the charitable organization on whose behalf solicitations are being made;
• the charitable purpose of which contributions will be used;
• the jurisdiction in which contributions will be used;
• the amount being paid to the fund-raising business and the canvasser; and
• upon request, the above information (except for the name of the canvasser) shall be provided in writing in no less than 12 point type within 30 days after the request.

 

Information to be provided to the Donor being Solicited on the Telephone (regulation 10)

Before accepting a contribution, a paid canvasser, calling a potential donor on the telephone must give the person who is being solicited certain information, including:

(a) the licensee’s (the for profit business) name;
(b) if a representative is making the solicitation, the fact that the representative is employed by the licensee for the purpose of making solicitations;
(c) the name of the charitable organization on whose behalf solicitations are being made;
(d) the charitable purpose for which contributions will be used;
(e) the jurisdiction in which contributions will be used.

(2) If a person who is being solicited by telephone requests it, the information mentioned in section 17 above, other than the name of the representative, shall be provided by the licensee or representative:

(a) in writing, using not less than 12 point type; and
(b) within 30 days after the request.