CRA Publishes New Page on Cause-Related Marketing

Authored by Philip A.S. Milley, Associate Director of Legal Affairs

On February 9, 2017 CRA published guidance on the issue of issuing receipts related to cause-related marketing. The new CRA webpage can be accessed here. According to CRA, cause-related marketing is a fundraising activity where a charity promotes the sale of a for-profit partner’s items or services on the basis that part of the revenues will go to the charity. 

In this guidance CRA addresses the common practice of receipting donations from a for-profit organization for donations a charity receives through this arrangement. According to CRA, a charity must be able to calculate the value of any advantage the donor receives in order for a donation receipt to be provided. Because it is difficult, and sometimes impossible, to calculate the advantage a donor has received in this type of arrangement, it is unlikely that a donation will be capable of being receipted appropriately.

It is important to note that this is not the only receipting issue that can arise when a charity engages in this type of arrangement (i.e., whether a gift was made or the de minimis threshold). It is important that charities familiarize themselves with the CRA rules on split-receipting.