CHARITABLE FUND‑RAISING ACT

Chapter C‑9

Table of Contents

                1       Interpretation

                2       Purposes

                3       Application

Part 1
Soliciting Contributions

                4       Application of Part 1

                5       Hours of solicitation

                6       Providing information during solicitation

                7       Duty to maintain records

                8       Financial statements and returns

                9       General information

              10       Receipts

              11       Holding contributions in trust

Part 2
Charitable Organizations
and Fund‑raising Businesses

Charitable Organizations

              12       Solicitations to individuals

              13       Use of fund‑raising businesses

              14       Registration

              15       Grounds for refusing registration, terms and conditions

              16       Notice to applicant

              17       Expiration of registration

              18       Changes in information

              19       Financial year

Fund‑raising Businesses

              20       Fund‑raising business

              21       Solicitations by fund‑raising businesses

              22       Licensing

              23       Grounds for refusing a licence, terms and conditions

              24       Notice to applicant

              25       Expiration of licence

              26       Changes in information

              27       Security

              28       Donor list

Fund‑raising Agreements

              29       Duty to enter into agreement

              30       Requirements

Standards of Practice

              31       Standards of practice

              32       Compliance with standards

Part 3
Donor Fund‑raisers

              33       Meaning of donor fund‑raiser

              34       Meaning of solicitation

              35       Duty

              36       Information

              37       Representations

Part 4
Enforcement

Inspections and Investigations

              38       Inspectors

              39       Inspection

              40       Inspection of s7 records

              41       Order allowing inspection

              42       Initiating investigation

              43       Order to assist investigation

Ministerial Powers

              44       Ministerial powers

              45       Injunction

Suspension, Cancellation and Terms and Conditions

              46       Grounds

Part 5
General

              47       General prohibitions

              48       False statements

              49       Complying with terms and conditions

              50       Refraining from making solicitations

              51       Disclosure by Minister

              52       Appealing decision of Minister

              53       Order compelling proper use of contributions

              54       Restriction on municipal powers

              55       Offence

              56       Compensation for loss

              57       Regulations

           57.1       Protection from liability

Part 6
Transitional

              58       Transitional

              59       Bonds

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Interpretation

1(1)  In this Act,

                                 (a)    “business” means

                                           (i)    an entity, including an individual carrying on business as a sole proprietorship or a partnership or corporation, that is formed to make a profit for its owners, members or shareholders, or

                                          (ii)    a corporation that is allowed under the law that applies to its formation to distribute any profits to its owners, members or shareholders during its existence;

                                 (b)    “charitable organization” means

                                           (i)    any incorporated or unincorporated organization that is formed for a charitable purpose, or

                                          (ii)    a person who makes solicitations for contributions to be used for a charitable purpose and who is not connected to any incorporated or unincorporated organization that is formed for the charitable purpose for which the solicitation is made;

                                 (c)    “charitable purpose” includes a philanthropic, benevolent, educational, health, humane, religious, cultural, artistic or recreational purpose, so long as the purpose is not part of a business;

                                 (d)    “contribution” means money, goods or services or a promise or pledge to give money, goods or services;

                                 (e)    “donor fund‑raiser” means a business described in section 33;

                                  (f)    “fund‑raising agreement” means an agreement between a charitable organization and a fund‑raising business described in section 30;

                                 (g)    “fund‑raising business” means a fund‑raising business described in section 20;

                                 (h)    “gross contributions” means gross contributions as calculated in accordance with the regulations;

                                  (i)    “licence” means a licence issued or renewed under this Act;

                                  (j)    “licensed” means holding a valid and subsisting licence;

                                 (k)    “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act;

                                  (l)    “registered” means holding a valid and subsisting registration under this Act;

                                (m)    “registration” means a registration made or renewed under this Act;

                                 (n)    “solicitation” means

                                           (i)    a direct or indirect request for a contribution in which it is stated or implied that the contribution will be used by a charitable organization or for a charitable purpose, or

                                          (ii)    a request for a contribution through a direct or indirect request to buy a good or service in which it is stated or implied that all or a portion of the purchase price will be used by a charitable organization or for a charitable purpose;

                                 (o)    “standards of practice” means the standards of practice established under section 31;

                                 (p)    “volunteer” means a person who offers their services in any capacity and does not receive remuneration.

(2)  In this Act,

                                 (a)    a reference to a solicitation made by a charitable organization means a solicitation made by the charitable organization or its employees or volunteers;

                                 (b)    a reference to a solicitation made on behalf of a charitable organization means a solicitation made by a fund‑raising business on behalf of the charitable organization;

                                 (c)    a reference to a solicitation made by a fund‑raising business means a solicitation made by a fund‑raising business or the employees or volunteers of the fund‑raising business.

1995 cC‑4.5 s1;1997 c19 s1(2)

Purposes

2   The purposes of this Act are

                                 (a)    to ensure that the public has sufficient information to make informed decisions when making contributions to a charitable organization or for a charitable purpose, and

                                 (b)    to protect the public from fraudulent, misleading or confusing solicitations and to establish standards for charitable organizations and fund‑raising businesses when making solicitations.

1995 cC‑4.5 s2;1997 c19 s1(26)

Application

3   This Act does not apply to

                                 (a)    a solicitation made by a charitable organization to a person or to a member of a person’s family if the person is a member of the organization when the solicitation is made,

                                 (b)    a solicitation made by a charitable organization for goods or services that are to be used by the charitable organization for its administration or some other non‑charitable purpose, or

                                 (c)    a solicitation made in respect of a gaming activity that is authorized by a licence under the Gaming and Liquor Act.

1995 cC‑4.5 s3;1996 cG‑0.5 s135

Part 1
Soliciting Contributions

Application of Part 1

4(1)  This Part applies only to the following solicitations and the solicitations described in subsection (2):

                                 (a)    solicitations made by a fund‑raising business;

                                 (b)    solicitations made by a charitable organization that uses a fund‑raising business to make solicitations on its behalf or to manage or be responsible for solicitations made by or on behalf of the charitable organization;

                                 (c)    solicitations made by a charitable organization in its financial year if the charitable organization intends to raise, as a result of those solicitations, gross contributions of $25 000 or more from persons in Alberta during that financial year.

(2)  Regardless of a charitable organization’s intent, if a charitable organization in its financial year raises, as a result of solicitations, gross contributions of $25 000 or more from persons in Alberta, this Part applies to solicitations made by the charitable organization from the time it reaches $25 000 in gross contributions until the end of that financial year.

1995 cC‑4.5 s4;1997 c19 s1(3)

Hours of solicitation

5   A person making solicitations by telephone may make them only between 8 a.m. and 9 p.m.

1995 cC‑4.5 s5

Providing information during solicitation

6(1)  A person who makes a solicitation in person must, before accepting a contribution, provide the person who is being
solicited with

                                 (a)    the information required by the regulations in the manner and form required by the regulations, and

                                 (b)    an adequate opportunity to review the information.

(2)  A person who makes a solicitation by telephone must provide each person who is being solicited and who gives a contribution with the information required by the regulations in the manner and form required by the regulations.

(3)  A person who makes a solicitation through printed material, television or other media must provide the information required by the regulations in the manner and form required by the regulations.

1995 cC‑4.5 s6;1997 c19 s1(4)

Duty to maintain records

7   A charitable organization or fund‑raising business that makes solicitations must maintain

                                 (a)    complete and accurate financial records of its operations in Alberta for at least 3 years after the solicitations are made,

                                 (b)    records regarding the solicitations made in Alberta for at least 3 years after the solicitations are made, and

                                 (c)    other records and documents described in the regulations for the period described in the regulations.

1995 cC‑4.5 s7;1997 c19 s1(5)

Financial statements and returns

8   If solicitations are made by or on behalf of a charitable organization in a financial year, the charitable organization must prepare for that financial year audited financial statements or financial information returns as specified by the regulations that meet the requirements of the regulations.

1995 cC‑4.5 s8

General information

9(1)  If solicitations are made by or on behalf of a charitable organization, the charitable organization must provide the following information to any person who requests it:

                                 (a)    a copy of the most recent audited financial statements or financial information return that the charitable organization is required to prepare under section 8;

                                 (b)    the portion of gross contributions received during the charitable organization’s last financial year that were used directly for charitable purposes and not for the administration of the charitable organization or other purposes and an estimate of the portion of gross contributions received in its current financial year that will be used directly for charitable purposes and not for the administration of the charitable organization or other purposes;

                                 (c)    reasonable detail about where and how the contributions received as a result of the solicitations will be spent;

                                 (d)    the information that must be provided under section 6.

(2)  Despite subsection (1)(a), a charitable organization may establish a reasonable fee for providing a copy of its audited financial statements or financial information return that is based on the cost of reproducing the documents, and postage if the documents are to be mailed, and the charitable organization may refuse to provide a copy of the documents unless the fee is paid.

1995 cC‑4.5 s9;1997 c19 s1(6)

Receipts

10(1)  A person who makes a solicitation must give a receipt to a person making a monetary contribution if the person making the contribution requests a receipt.

(2)  This section does not apply to a solicitation that involves a direct or indirect request to buy a good or service.

1995 cC‑4.5 s10

Holding contributions in trust

11(1)  Every fund‑raising business and every employee of a fund‑raising business who receives contributions on behalf of a charitable organization holds the contributions in trust for the charitable organization.

(2)  The trustee has no power to invest monetary contributions received on behalf of a charitable organization and must, within 3 days after receiving the monetary contributions, not including Saturdays and holidays, deposit the money, without making any deductions, into an account held in a bank, trust corporation, credit union or treasury branch in Alberta.

(3)  The account must be in the name of the charitable organization that is the beneficiary and be under the sole control of the charitable organization.

(4)  The trustee must comply with any requirements established for the trust by the regulations.

(5)  The Trustee Act does not apply to the trust.

1995 cC‑4.5 s11;1997 c19 s1(7)

Part 2
Charitable Organizations
and Fund‑raising Businesses

Charitable Organizations

Solicitations to individuals

12(1)  No charitable organization may make a solicitation to an individual unless the charitable organization is registered.

(2)  For the purposes of this section, a solicitation made to an individual

                                 (a)    includes a solicitation made to an individual who operates a sole proprietorship or is a partner in a partnership, and

                                 (b)    does not include a solicitation made to a corporation or a government.

(3)  Subject to subsection (4), this section does not apply to a charitable organization during its financial year if the solicitations it makes to individuals in Alberta or to individuals and others in Alberta are intended to raise gross contributions that have a value of less than $25 000 during that financial year.

(4)  Regardless of a charitable organization’s intent, if a charitable organization in its financial year raises, as a result of solicitations, gross contributions of $25 000 or more from individuals in Alberta or individuals and others in Alberta, the charitable organization must be registered within 45 days after the gross contributions reach $25 000.

(5)  This section does not apply to a charitable organization if, throughout its financial year,

                                 (a)    the charitable organization is not incorporated,

                                 (b)    the charitable organization is affiliated in some manner with another charitable organization, referred to in this subsection as the affiliated organization, and

                                 (c)    the affiliated organization controls the distribution of any contributions the charitable organization receives during its financial year as a result of solicitations made by the charitable organization.

1995 cC‑4.5 s12;1997 c19 s1(9)

Use of fund-raising businesses

13   No charitable organization may use a fund‑raising business

                                 (a)    to make solicitations on its behalf, or

                                 (b)    to manage or be responsible for solicitations made by or on behalf of the charitable organization

unless the charitable organization is registered.

1995 cC‑4.5 s13;1997 c19 s1(25)

Registration

14   A charitable organization that wishes to be registered or to have its registration renewed must provide the Minister with

                                 (a)    the information required under the regulations, and

                                 (b)    the fee established under the regulations.

1995 cC‑4.5 s14

Grounds for refusing registration, terms and conditions

15(1)  In this section, “conviction” means a conviction for

                                 (a)    an offence under this Act, or

                                 (b)    an offence under any criminal or other law in force in Alberta or elsewhere that, in the Minister’s opinion, indicates that the person convicted is unsuitable to deal with contributions or to make solicitations.

(2)  The Minister may refuse to register or renew the registration of a charitable organization and the Minister may impose terms and conditions on a registration when registering or renewing the registration of a charitable organization if the charitable organization or any of its principals, directors or managers, within the 5 years preceding the application for registration or renewal,

                                 (a)    is convicted of an offence referred to in subsection (1) or is serving a sentence imposed under a conviction,

                                 (b)    fails to pay a fine imposed under a conviction or fails to comply with an order made in relation to a conviction,

                              (b.1)    is named in a certificate signed under the Charities Registration (Security Information) Act (Canada), or

                                 (c)    is subject to an order made under the Fair Trading Act or a predecessor or successor of the Fair Trading Act, the making of which, in the Minister’s opinion, indicates that the person who is subject to the order is unsuitable to deal with contributions or to make solicitations.

(3)  The Minister may also refuse to register or renew the registration of a charitable organization if the Minister has reasonable grounds to believe that the charitable organization or any of its principals, directors or managers will contravene this Act.

(4)  The Minister may also refuse to register or renew the registration of a charitable organization and the Minister may impose terms and conditions on a registration when registering or renewing the registration of a charitable organization if, in the Minister’s opinion, any of the charitable organization’s principals, directors, managers or employees referred to in section 32(1) or (2) have contravened section 32(1) or (2).

RSA 2000 cC‑9 s15;2002 c32 s3

Notice to applicant

16(1)  Before refusing to register or renew the registration of a charitable organization or imposing a term or condition on the registration, the Minister must

                                 (a)    notify the charitable organization of the reasons why the registration may be refused or the proposed terms and conditions and the reasons why they may be imposed, and

                                 (b)    provide the charitable organization with an opportunity to make representations to the Minister’s designate.

(2)  If, after subsection (1) has been complied with, the Minister decides to refuse to register or renew the registration of a charitable organization, the Minister must give written reasons for the decision to the charitable organization.

1995 cC‑4.5 s16

Expiration of registration

17   The registration of a charitable organization is for the time period established under the regulations.

1995 cC‑4.5 s17

Changes in information

18(1)  A charitable organization must inform the Minister of any change in the information provided under section 14 within 30 days after the change.

(2)  This section applies to changes in information occurring when the charitable organization is registered or when the registration is suspended and within 30 days after the charitable organization’s registration expires or is cancelled.

1995 cC‑4.5 s18

Financial year

19   For the purposes of this Act, the financial year of a charitable organization that is not a corporation is

                                 (a)    the calendar year, or

                                 (b)    if the charitable organization requests the Minister to establish another time period, a period of 12 consecutive months specified by the Minister.

1995 cC‑4.5 s19

Fund‑raising Businesses

Fund-raising business

20(1)  A fund‑raising business is a business that

                                 (a)    makes solicitations on behalf of a charitable organization or manages or is responsible for solicitations made by or on behalf of a charitable organization,

                                 (b)    provides those services for remuneration, and

                                 (c)    is not an employee of the charitable organization.

(2)  A fund‑raising business includes a business that

                                 (a)    is hired by another business to make solicitations on behalf of a charitable organization or to manage or be responsible for solicitations made by or on behalf of a charitable organization, and

                                 (b)    is not an employee of the other business.

1995 cC‑4.5 s20;1997 c19 s1(12)

Solicitations by fund-raising businesses

21   No fund‑raising business may make a solicitation on behalf of a charitable organization or manage or be responsible for solicitations made by or on behalf of a charitable organization unless the fund‑raising business is licensed.

1995 cC‑4.5 s21;1997 c19 s1(25)

Licensing

22   A fund‑raising business that wishes to be licensed or to have its licence renewed must provide the Minister with

                                 (a)    the information required under the regulations,

                                 (b)    the fee established under the regulations, and

                                 (c)    a security that meets the requirements of the regulations and that is in an amount specified by the Minister.

1995 cC‑4.5 s22;1997 c19 s1(25)

Grounds for refusing a licence, terms and conditions

23(1)  In this section, “conviction” means a conviction for

                                 (a)    an offence under this Act, or

                                 (b)    an offence under any criminal or other law in force in Alberta or elsewhere that, in the Minister’s opinion, indicates that the person convicted is unsuitable to deal with contributions or to make solicitations.

(2)  The Minister may refuse to issue or renew a licence and the Minister may impose terms and conditions on a licence when issuing or renewing the licence if a fund‑raising business or any of its principals, directors or managers, within the 5 years preceding the application for the licence or renewal of the licence,

                                 (a)    is convicted of an offence referred to in subsection (1) or is serving a sentence imposed under a conviction,

                                 (b)    fails to pay a fine imposed under a conviction or fails to comply with an order made in relation to a conviction,

                              (b.1)    is named in a certificate signed under the Charities Registration (Security Information) Act (Canada), or

                                 (c)    is subject to an order made under the Fair Trading Act or a predecessor or successor of the Fair Trading Act, the making of which, in the Minister’s opinion, indicates that the person who is subject to the order is unsuitable to deal with contributions or to make solicitations.

(3)  The Minister may also refuse to issue or renew a licence if the Minister has reasonable grounds to believe that the fund‑raising business or any of its principals, directors or managers will contravene this Act.

(4)  The Minister may also refuse to issue or renew a licence and the Minister may impose terms and conditions on a licence when issuing or renewing the licence if, in the Minister’s opinion, the fund‑raising business or any of its principals, directors, managers or employees has contravened section 32(3).

RSA 2000 cC‑9 s23;2002 c32 s3

Notice to applicant

24(1)  Before refusing to issue or renew a licence of a fund‑raising business or imposing a term or condition on the licence, the Minister must

                                 (a)    notify the fund‑raising business of the reasons why the licence may be refused or the proposed terms and conditions and the reasons why they may be imposed, and

                                 (b)    provide the fund‑raising business with an opportunity to make representations to the Minister’s designate.

(2)  If, after subsection (1) has been complied with, the Minister decides to refuse to issue or renew a licence of a fund‑raising business, the Minister must give written reasons for the decision to the fund‑raising business.

1995 cC‑4.5 s24;1997 c19 s1(25)

Expiration of licence

25   A licence is issued for the time period established under the regulations.

1995 cC‑4.5 s25

Changes in information

26(1)  A fund‑raising business that has been issued a licence must inform the Minister of any change in the information provided under section 22 within 30 days after the change.

(2)  This section applies to changes in information occurring when the licence is in force or when it is suspended and within 30 days after the licence expires or is cancelled.

1995 cC‑4.5 s26;1997 c19 s1(25)

Security

27   A fund‑raising business must stop its activities for which it is required to be licensed if the security that the fund‑raising business has provided to the Minister under this Act is not in force.

1995 cC‑4.5 s27;1997 c19 s1(25)

Donor list

28(1)  A donor list, being a list of names of and other information about persons who have given a contribution to a charitable organization that is compiled by a fund‑raising business,

                                 (a)    is the property of the charitable organization, and

                                 (b)    is under the exclusive control of the charitable organization.

(2)  No fund‑raising business that compiles a donor list for a charitable organization may use or deal with the donor list except with the written permission of the charitable organization.

(3)  Where a fund‑raising agreement between a charitable organization and a fund‑raising business expires, is terminated or otherwise ceases to be in effect, any donor list to which that agreement relates and that is in the possession of or otherwise under the management of the fund‑raising business must be turned over to the charitable organization.

RSA 2000 cC‑9 s28;2003 cP‑6.5 s65

Fund‑raising Agreements

Duty to enter into agreement

29(1)  No charitable organization may use a fund‑raising business to make solicitations on its behalf or to manage or be responsible for solicitations made by or on behalf of the charitable organization unless the charitable organization and the fund‑raising business have entered into a fund‑raising agreement that meets the requirements of section 30 and the agreement is in force.

(2)  No fund‑raising business may make a solicitation on behalf of a charitable organization or manage or be responsible for solicitations made by or on behalf of a charitable organization unless the fund‑raising business and the charitable organization have entered into a fund‑raising agreement that meets the requirements of section 30 and the agreement is in force.

(3)  In this section, references to a fund‑raising business do not include a fund‑raising business under section 20(2).

1995 cC‑4.5 s28;1997 c19 s1(15)

Requirements

30(1)  A fund‑raising agreement must be in writing and must include

                                 (a)    all the terms and conditions between the parties respecting the fund‑raising, including the duties and responsibilities of both parties;

                                 (b)    the estimated amount of contributions to be received and an estimate of expenses and costs;

                                 (c)    the methods of soliciting contributions to be used;

                                 (d)    if the solicitations will involve selling goods or services, a description of the goods or services and the specific price for which the goods or services will be sold;

                                 (e)    the location of the account of the charitable organization into which monetary contributions are to be deposited;

                                  (f)    the charitable organization’s address and the name and telephone number of the contact person for the charitable organization;

                                 (g)    the fund‑raising business’s address and the name and telephone number of the contact person for the fund‑raising business;

                                 (h)    any matter provided for in the regulations.

(2)  A fund‑raising agreement must establish the remuneration of the fund‑raising business, and the remuneration must be

                                 (a)    a specific amount of money,

                                 (b)    a specified percentage of gross contributions, or

                                 (c)    a combination of a specific amount of money and a specified percentage of gross contributions.

1995 cC‑4.5 s29;1997 c19 s1(16)

Standards of Practice

Standards of practice

31(1)  The Minister may establish standards of practice relating to fund‑raising carried out by charitable organizations and fund‑raising businesses.

(2)  The Minister must ensure that the standards of practice are published in The Alberta Gazette.

(3)  The Regulations Act does not apply to the standards of practice.

1997 c19 s1(17)

Compliance with standards

32(1)  The principals, directors, managers and employees of a charitable organization whose main responsibility is to make solicitations for the charitable organization or to manage or be responsible for solicitations made by the charitable organization must comply with the standards of practice.

(2)  If a charitable organization has an employee described in subsection (1), the principals, directors and managers of the charitable organization must take reasonable steps to ensure that the employee complies with the standards of practice.

(3)  A fund‑raising business and its principals, directors, managers and employees must comply with the standards of practice.

1997 c19 s1(17)

Part 3
Donor Fund‑raisers

Meaning of donor fund-raiser

33   A donor fund‑raiser is a business that makes a direct or indirect request to buy a good or service normally produced or provided by the business in which it is stated or implied that all or a portion of the purchase price will be donated to a charitable organization or be used for a charitable purpose.

1995 cC‑4.5 s30;1997 c19 s1(18)

Meaning of solicitation

34   For the purposes of this Act, the request to buy the good or service referred to in section 33 is not a solicitation.

1995 cC‑4.5 s31

Duty

35   A donor fund‑raiser that makes a representation that all or a portion of the purchase price of the goods or services it sells will be donated to a charitable organization or be used for a charitable purpose must

                                 (a)    donate all or a portion of the purchase price, as the case may be, to the charitable organization, or

                                 (b)    use all or a portion of the purchase price, as the case may be, for the charitable purpose.

1995 cC‑4.5 s32

Information

36(1)  Subject to subsection (2), a donor fund‑raiser must provide on the request of any person the information required by the regulations relating to its donations to the charitable organization or the money it used for a charitable purpose.

(2)  A donor fund‑raiser may establish a reasonable fee for providing the information that is based on the cost of reproducing the information, and postage if the information is to be mailed, and the donor fund‑raiser may refuse to provide the information unless the fee is paid.

1995 cC‑4.5 s33

Representations

37   No donor fund‑raiser may

                                 (a)    make a representation that an individual or corporation sponsors, endorses or approves of a charitable organization or a charitable purpose unless the individual or corporation has given prior written consent allowing the use of the individual’s or corporation’s name for those purposes;

                                 (b)    make a representation that all or a portion of the purchase price of the goods or services it sells will be donated to a charitable organization or use any emblem or printed matter belonging to or associated with a charitable organization or substantively similar to such emblem or printed matter unless the charitable organization has given its prior written consent.

1995 cC‑4.5 s34

Part 4
Enforcement

Inspections and Investigations

Inspectors

38   The Minister may appoint one or more inspectors for the purposes of this Act and the regulations.

1995 cC‑4.5 s35

Inspection

39(1)  An inspector may enter and inspect the premises of a charitable organization or a fund‑raising business to ensure compliance with this Act and the regulations.

(2)  An inspection under subsection (1) may be conducted only if

                                 (a)    the charitable organization or