This is an archive of news stories and research from the National Union of Public and General Employees. Please see our new site - https://nupge.ca - for the most current information.
Investigation shows that professional fundraisers grab huge share of money Canadians contribute to charitable causes.
Ottawa (23 Sept. 2010) - Canadian charities paid $762 million to third-party fundraisers between 2004 and 2008, all of it deducted from the amount retained for charitable causes, a CBC News investigation has found.
The entire amount is also underwritten by federal tax deductions, meaning that tax expenditures are indirectly enriching the professional fund-raisers. In effect, both Canadian donors and the government are being milked in the process.
In more than 200 cases, the investigation revealed, charities paid more than half of all the money they received from donors to external fundraisers. The information was contained in documents obtained from the Canada Revenue Agency (CRA), which regulates charities.
CRA guidelines recommend that no charity give up more than 35% of its revenue to fundraisers. It has the power to revoke the registered status of any organization whose expenses seem disproportionately high.
Yet CBC News found examples in nearly every province where local, provincial and national charities have spent upwards of 70% or even 80% of its revenues to pay companies hired to organize their fundraising drives. The list included:
- The Alzheimer Society of Saskatchewan, which paid $96,849 for a campaign that raised just $95,812.
- The Children's Leukemia Research Association Canada, which raised $4.2 million over the last four years but paid $3.2 million of that to its external fundraiser.
- Nova Scotia Crime Stoppers, which raised $2.8 million between 2003 and 2009, and spent $2.2 million (79%) to pay its fundraiser.
Canadians donate over $8.2 billion annually to charitable causes. The fundraising sector is worth an estimated $2.8-billion today — and growing. Ten years ago it was worth $800 million. More than 85,000 registered charities are listed on the CRA's website.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE