Standards for Canadian organizations

2020 Edition

Financial Management (CA-FIN) 7: Fundraising

An organization that raises funds by individual solicitation from the general public conducts fundraising activities in an ethical, fiscally-responsible manner.

Interpretation

This section is applicable to organizations that solicit or receive money from private individuals, through capital campaigns and contribution plans. This section is not applicable to organizations that apply for and/or receive private or public grants and contracts.
NA The organization does not raise funds through solicitations or general funding events.
2020 Edition

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Purpose

The organization's ability to achieve its mission is based on sound financial management practices that ensure efficient, data-informed use of its resources.
Examples: Organizations can reconcile fundraising practices with prevailing ethical practices of national bodies, such as the Association of Fundraising Professionals, Imagine Canada, or similar national, provincial/territorial fundraising bodies.
1
The organization's practices fully meet the standard, as indicated by full implementation of the practices outlined in the CA-FIN 7 Practice standards.
2
Practices are basically sound but there is room for improvement, as noted in the ratings for the CA-FIN 7 Practice standards.
3
Practice requires significant improvement, as noted in the ratings for the CA-FIN 7 Practice standards; e.g.,
  • Staff are unaware of the organization's fundraising policies and/or procedures; or
  • Fundraising practices may pose a risk to the organization.
4
Implementation of the standard is minimal or there is no evidence of implementation at all, as noted in the ratings for the CA-FIN 7 Practice standards.
Self-Study EvidenceOn-Site EvidenceOn-Site Activities
  • Fundraising policies 
  • Fundraising procedures
  • Analysis of costs and benefits for sample of fundraising activities
  • Financial statements/reports
  • Annual Report
  • Governing body meeting minutes where fundraising was discussed
  • Interviews may include:
    1. CEO
    2. CFO
    3. Relevant personnel

 
Fundamental Practice

CA-FIN 7.01

The organization:
  1. accurately describes the purpose for which solicitations are being made;
  2. spends funds for the purposes they were solicited, with the exception of reasonable costs for administration of the fundraising program;
  3. maintains accounting segregation for restricted funds; and
  4. respects donor confidentiality requests, and ensures that such donors’ names are not published in publicly available documents.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • One of the elements is not fully addressed, but the organization has taken steps to strengthen practice; or
  • The organization has a system of controls that may need strengthening; however, contributions are appropriately recorded and acknowledged.
3
Practice requires significant improvement; e.g.,
  • There have been some violations of donor requests for confidentiality; or
  • One of the elements is not addressed at all.
4
Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.,
  • Unethical or deceptive practices regarding costs in relation to funds raised exist; or
  • The organization does not accurately describe the uses of the funds; or
  • Two or more of the standards' elements have not been addressed.

 

CA-FIN 7.02

The organization collects and maintains data that supports sound fund-development decisions by its leadership and allows for the costs and benefits of each fundraising activity to be analyzed, including the reasonableness of fundraising costs in comparison to dollars raised.
Examples: Factors that may affect the reasonableness of fundraising costs to dollars raised include, but are not limited to: the differential costs of donor solicitation, donor renewal, large bequests, or donations that would obscure true fundraising costs.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • Some fundraising costs are not sufficiently reviewed for full analysis.
3
Practice requires significant improvement; e.g.,
  • The organization does not routinely analyze the costs and benefits of its separate fund-raising activities.
4
Implementation of the standard is minimal or there is no evidence of implementation at all.