Legal Guidelines for Fundraising Events for Canadian Charities

Organizing a charity fundraising event in Canada involves more than planning a great guest experience. Canadian charities must comply with legal requirements from several different sources: the Canada Revenue Agency (CRA) for receipting and fundraising cost rules, provincial gaming authorities for lotteries and raffles, provincial privacy commissioners for donor data, and in some cases, provincial solicitation registration regimes before events can legally take place.

Failing to meet any one of these requirements can expose a charity to CRA penalties, loss of charitable status, or provincial fines — even when the intention is entirely charitable.

This guide covers the full legal framework for charity fundraising events in Canada, updated for 2026. Whether you are a charity director, staff member, or third-party event organizer, understanding these rules before your event is essential.

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Do Canadian Charities Need to Register Before Soliciting Donations at Events?

Most charity directors focus on CRA compliance and overlook the fact that several Canadian provinces have their own registration requirements for charities that solicit donations from the public — including at fundraising events.

Manitoba

Manitoba requires charities that solicit donations from Manitoba residents to register under the Charities Endorsement Act before soliciting. This includes Ontario-based or federally incorporated charities that hold events, mail campaigns, or online fundraisers targeting Manitoba donors. Registration is administered by the Manitoba Department of Finance.

Prince Edward Island

PEI requires charities soliciting donations in the province to register under the provincial Charities Act. Out-of-province charities planning events in PEI or targeting PEI donors should confirm their registration status before proceeding.

Other Provinces

New Brunswick and Nova Scotia have historically maintained registration frameworks for charitable solicitation. Charities operating nationally or holding multi-province events should conduct a province-by-province review with legal counsel before soliciting broadly.

Ontario

Ontario does not currently maintain a separate provincial charity solicitation registration regime beyond federal CRA registration. However, Ontario charities soliciting in other provinces must comply with those provinces' rules.

Why This Matters for Online and Multi-Province Events

Charities that hold virtual fundraising events, online auctions, or digital campaigns that reach donors across multiple provinces may trigger registration obligations in more than one jurisdiction simultaneously. This is one of the most commonly missed compliance issues in 2026.

If your charity solicits donations nationally — even from a single Ontario office — legal advice on provincial obligations is strongly recommended before launching any public-facing fundraising campaign or event.

Lottery and Gaming Licences for Charity Fundraising Events in Canada

Raffles, 50/50 draws, bingo events, and other games of chance at charity fundraising events are not regulated by the CRA. They are regulated by provincial gaming authorities, and charities must obtain the correct licence before running any lottery or gaming activity — regardless of how small the prize or how charitable the purpose.

Running an unlicensed raffle or 50/50 draw is illegal in Canada, even at a registered charity event.

Ontario

In Ontario, charitable gaming is regulated under the Gaming Control Act, 1992 and administered by the Alcohol and Gaming Commission of Ontario (AGCO). Charities must obtain a lottery licence before running:

• Raffles
• 50/50 draws
• Bingo events
• Break-open ticket sales
• Wheels of fortune

For prizes up to $50,000, municipalities issue lottery licences. For prizes exceeding $50,000, the AGCO issues the licence directly.

Online 50/50 draws in Ontario: Since 2022, iGaming Ontario has introduced a framework for online charitable gaming. Ontario charities wishing to run online 50/50 draws must comply with AGCO's online lottery licensing requirements — a significant change from pre-2022 practice. Charities that ran online draws during the pandemic without reviewing updated licensing rules should confirm their current compliance status.

British Columbia

BC Lottery Corporation (BCLC) oversees charitable gaming in BC. Charities must apply for a gaming licence through the Gaming Policy and Enforcement Branch (GPEB) before running raffles, bingo, or casino events. BC also operates licensed charitable gaming events through its Community Gaming Grants program.

Alberta and Quebec

Alberta Gaming, Liquor and Cannabis (AGLC) regulates charitable gaming in Alberta. Quebec's Act Respecting Lotteries, Publicity Contests and Amusement Machines governs charitable gaming in that province, administered by Revenu Québec and Régie des alcools, des courses et des jeux (RACJ).

Key Rules Across All Provinces

• Lottery licence applications must be submitted before the event — retroactive licensing is not available
• Prize values must be accurately stated in the licence application
• Gaming proceeds must be used for the charitable purposes described in the licence
• Records of ticket sales, proceeds, and prize distributions must be maintained for audit purposes
• Raffle ticket costs cannot receive a charitable tax receipt under CRA rules

Understanding Charity Tax Receipt Authority

Who Can Issue Tax Receipts?

Only registered charities have the legal authority to issue official tax receipts for donations. This applies to all fundraising events — dinners, golf tournaments, auctions, online events, or any other format.

As an event organizer, you cannot provide tax receipts yourself, even when you are organizing the event on behalf of a registered charity. This rule applies whether you are a staff member, volunteer, or external event management company.

Critical Warning: Never share a charity's CRA registration number with vendors, participants, venues, or any outside party for receipting purposes. This is a serious compliance breach that can result in the charity losing its registered status with the CRA.

Split Receipting: Calculating the Eligible Donation Amount

When an event provides benefits to participants — such as meals, entertainment, or prizes — the full ticket price or payment does not qualify for a tax receipt. The process of subtracting benefit values from the total payment to arrive at the eligible receipt amount is called split receipting.

Split receipting applies to all fundraising events where participants receive something of value in exchange for their payment. Accurate benefit valuation is not optional — it is a CRA compliance requirement.

The 80% Gift Intention Rule

Canadian tax law requires that a genuine gift intention exists before a charitable tax receipt can be issued. If the value of benefits received by a donor exceeds 80% of the total donation value, the CRA considers the intention to make a gift as not genuine, and no tax receipt can be issued for any portion of the payment.

Example: A donor pays $500 for a fundraising gala ticket. If the fair market value of the meal, entertainment, and prizes is $420 (84% of $500), no receipt can be issued at all — not even a partial one.

This threshold protects the integrity of charitable giving by ensuring participants are making genuine contributions rather than simply purchasing goods or services at charity prices.

Benefits That Must Be Deducted From Donations

Primary Event Benefits

These advantages form the main purpose of your fundraising event and must be subtracted from donation amounts:

Fundraising Dinners:

• Meal costs
• Entertainment value
• Venue access fees

Golf Tournaments:

• Green fees and course access
• Cart rental charges
• Meal and refreshment costs

General Events:

• Ticket value equivalent to similar commercial events
• Activity participation fees

Additional Benefits to Calculate

Unless the De Minimis rule applies, deduct these benefit values from gift amounts:

• Door prizes and giveaways
• Complimentary gifts (pens, keychains, branded items)
• Achievement prizes (closest-to-the-pin awards, contest winnings)

Benefits You Can Usually Ignore

Celebrity Appearances: The presence of celebrities at charity events typically doesn't count as a taxable benefit. However, if you charge extra fees for exclusive access or activities with specific individuals, those amounts cannot qualify for tax receipts.

Minimal Odds Prizes: Golf tournament closest-to-the-pin prizes can be excluded since the CRA considers winning odds nominal.

Charity Auction Receipt Rules

Receipts for Donated Auction Items

Contributors who donate items for charity auctions can receive tax receipts based on fair market value at the time of donation. However:

• Fair market value must be clearly determinable
• Items may be subject to deemed fair market value rules
• No receipt can be issued if value cannot be established

Receipts for Auction Purchases

Auction buyers can receive tax receipts only when specific conditions are met:

• Fair market value must be calculated and disclosed to all bidders before the auction
• Winning bids must stay under 80% of the posted item value
• The purchase must meet genuine gift intention requirements

Pro Tip: Set minimum bids at 125% of fair market value to ensure receipt eligibility for winning bidders.

Want to learn about broader fundraising compliance beyond events? Read our full guide on Nonprofit Fundraising Rules and Guidelines in Canada.

Fundraising dinners

Here are some general guidelines and examples for valuing various items at fundraising events:

• Meals should be valued at the price that a comparable facility would charge for a similar meal. This can be based on the restaurant's regular price, group or banquet rates, or similar factors.
• Complimentary items should be valued at their typical retail price.
• Door and achievement prizes should be valued based on their retail value, and the total value should be prorated per ticket sold.
• Entertainment should be valued at the typical and up-to-date ticket price.
• If raffle tickets are accounted for in the admission cost, the prizes will be considered as door prizes, and the value of the prizes must be included when calculating the amount of the advantage. However, if the raffle is performed separately, it will be deemed a lottery, and the cost of the raffle tickets will not be treated as a gift. The value of the different prizes that can be won should not be factored in when calculating the amount of the advantage.
• Generally, auctions at fundraising events are not considered an advantage.

Golf tournaments

Below are some general instructions and instances to assess the value of different items at golf events:

• The value of green fees for golf events is determined based on the standard cost charged to non-members using the course at the time of the event, whether it is an individual fee or a group fee. Members are not allocated an amount if they are not typically required to pay green fees.
• Cart rentals should be valued using their usual price.
• Meals are valued at the standard price charged for separate meal purchases at the course, either at the group or individual rate.
• Giveaways are valued at their typical retail cost.
• Door and accomplishment prizes are valued by their retail worth, totaled, and prorated per ticket sold.
• Closest-to-the-pin prizes can be excluded since the odds of winning are considered nominal by the CRA.
• Raffle tickets - If accounted for in the participation fee, the prizes are considered door prizes and are factored in to determine the sum of the advantage. Though, if the raffle is performed separately, it is deemed a lottery, and the price of the raffle tickets should not be treated as a gift. When calculating the amount of the advantage, you should not consider the value of the different prizes that could be won.

Note: According to the CRA, purchasing a lottery ticket is not considered a gift, and a receipt cannot be issued for the ticket's cost.

CRA Fundraising Cost Ratios: What Canadian Charities Need to Know

The CRA does not only review whether individual receipts were issued correctly. It also assesses whether a charity's overall fundraising costs are reasonable relative to the fundraising revenue those costs generate.

This assessment happens through the charity's annual T3010 return, where fundraising revenue and expenses are reported on Schedule 6. Charities that spend disproportionate amounts on fundraising risk CRA scrutiny, compliance letters, and in serious cases, loss of charitable status.

CRA's Fundraising Cost Guidelines

The CRA applies the following general benchmarks when reviewing fundraising cost ratios:

These ratios are assessed across a charity's fundraising activities as a whole — not just for one individual event. A single expensive event with a poor cost ratio may not trigger action if the charity's overall fundraising program is efficient. However, consistently high ratios will draw scrutiny.

What Counts as a Fundraising Cost?

The CRA considers the following to be fundraising costs for ratio purposes:

• Event venue, catering, and production costs
• Payments to third-party fundraising companies or event organizers
• Marketing and promotional materials for fundraising events
• Staff time allocated to fundraising activities
• Costs of prize items purchased by the charity for events (as opposed to donated items)

How to Protect Your Charity

Keep detailed, accurate records of all event costs and revenues. When a single event has high costs, document the charitable purpose rationale and the expected long-term donor relationship value. Charities that are building new donor relationships — especially through first-year events — may be able to justify higher initial ratios.

For more on T3010 compliance, see our guide on How to Avoid Common Mistakes When Filing T3010 Return.

Third-Party Fundraiser Agreements: What Canadian Charities Must Have in Writing

When an external party — a professional event management company, a corporate partner, or an individual organizer — runs a fundraising event on behalf of a registered charity, the CRA expects a written fundraising agreement to be in place before the event takes place.

Without this agreement, the charity remains legally and reputationally responsible for any compliance failures by the third party, including improper receipting, misuse of the charity's registration number, or failure to meet gaming licence requirements.

What the Agreement Must Cover

A compliant third-party fundraising agreement should address:

• How and when event proceeds will be transferred to the charity
• Who is responsible for calculating benefit values and eligible receipt amounts
• That the charity's registration number will not be shared or used without explicit written authorization
• How the charity's name, logo, and brand will be used in event marketing
• Who is responsible for obtaining gaming or lottery licences, if applicable
• How financial records will be maintained and shared with the charity for T3010 reporting
• What happens to unclaimed funds or event surpluses

Board Approval

The charity's board of directors should review and approve any third-party fundraising agreement before it is signed. This is consistent with sound governance under the Canada Not-for-profit Corporations Act (CNCA) and Ontario's Not-for-Profit Corporations Act, 2010 (ONCA).

Why This Matters in Practice

Third-party fundraisers sometimes pressure charities to allow them to issue receipts directly, share registration numbers with ticket platforms, or list the charity's name on event materials before the agreement is finalized. Charities should decline all of these requests until a signed agreement is in place and legal advice has been obtained.

Online and Virtual Charity Fundraising Events: Legal Compliance in 2026

Online and virtual fundraising events — including digital galas, livestream auctions, crowdfunding campaigns, and peer-to-peer fundraising — are now a permanent part of the Canadian charitable sector. All CRA receipting rules that apply to in-person events apply equally to online events.

CRA Receipting Rules Apply Online

Split receipting, the 80% gift intention rule, and benefit valuation all apply to virtual events. If an online gala provides a meal delivery box, merchandise kit, or other tangible benefit to participants, that benefit must be valued and deducted from the eligible receipt amount before a receipt is issued.

Online Auctions

Online charity auctions are subject to the same CRA auction rules as in-person auctions. Fair market value must be calculated and disclosed to all bidders before bidding begins. Minimum bids set at 125% of fair market value protect receipt eligibility for winning bidders.

Platforms such as Handbid, Charity Auction Organizer, and others used to run online charity auctions do not have authority to issue tax receipts. All receipting must be handled by the registered charity.

Crowdfunding Platforms

Charities using crowdfunding platforms to raise event-related funds should note the following:

• Only amounts that flow through and are controlled by the registered charity qualify for official tax receipts
• Personal crowdfunding campaigns run by individuals on behalf of a charity (for example, on GoFundMe) typically cannot generate official charitable tax receipts unless the platform has a formal agreement with the charity as a qualified donee
• CanadaHelps processes donations through its own registered charity structure and can issue receipts — but the charity must be registered with CanadaHelps to receive funds this way
• Platforms that simply collect money and send it to a charity do not automatically have receipting authority

Peer-to-Peer Fundraising

Individuals who fundraise on behalf of a charity — for example, by running a personal campaign page linked to a charity event — do not have any receipting authority. All funds raised must flow to the registered charity, and the charity issues all receipts. This includes social media fundraising campaigns run through Facebook Fundraisers or Instagram.

Online Lotteries and 50/50 Draws

As noted in the gaming licence section above, online 50/50 draws and virtual raffles require provincial lottery licences. Ontario's AGCO introduced updated online lottery licensing requirements in 2022. Charities that conducted online draws without reviewing post-2022 licensing requirements should seek legal advice to confirm their compliance status.

Multi-Province Considerations for Online Events

A virtual event hosted from Ontario that accepts registrations from across Canada reaches donors in every province. This can trigger provincial solicitation registration requirements, provincial gaming licence obligations, and provincial privacy law requirements simultaneously. National online fundraising events carry the highest multi-jurisdictional compliance complexity of any fundraising format.

Privacy Law Compliance at Charity Fundraising Events

Fundraising events collect significant amounts of personal information: names, addresses, email addresses, payment details, dietary restrictions, and sometimes health-related information. Canadian charities must handle this data in compliance with applicable federal and provincial privacy legislation.

PIPEDA and Its Provincial Equivalents

The federal Personal Information Protection and Electronic Documents Act (PIPEDA) applies to federally regulated organizations and to provinces without substantially similar legislation. Alberta, BC, and Quebec have their own substantially similar private-sector privacy laws that apply instead of PIPEDA in those provinces.

Key obligations for charity event organizers under PIPEDA and equivalent legislation include:

• Collecting only the personal information necessary for the event
• Obtaining informed consent before collecting personal information
• Keeping donor and attendee data secure
• Not sharing personal information with third parties (vendors, sponsors, partner organizations) without consent
• Providing individuals access to their information upon request

Quebec's Law 25: Key Changes Since 2023

Quebec's Act Respecting the Protection of Personal Information in the Private Sector (Law 25) is now fully in force. Its requirements are stricter than PIPEDA in several areas. Charities soliciting Quebec donors or involving Quebec residents in events must:

• Appoint a privacy officer
• Conduct privacy impact assessments for new data collection systems
• Report data breaches to the Commission d'accès à l'information (CAI) within 72 hours of becoming aware of a breach
• Obtain explicit consent for the use of personal information beyond the primary purpose of collection

Email Lists and Post-Event Communication

Charities may not automatically add event attendees to fundraising email lists without consent. Under Canada's Anti-Spam Legislation (CASL), explicit or implied consent must exist before sending commercial electronic messages — including fundraising solicitations — to individuals. A charitable registration in a ticketing form is not on its own sufficient to establish CASL consent for future email solicitations.

Donor Databases and CRM Systems

If a charity uses a donor relationship management (CRM) system to track event attendees and donors, that system must comply with applicable privacy law. Vendor contracts for CRM software should include data processing agreements confirming how data is stored, who can access it, and where it is held (particularly if servers are located outside Canada).

Bill C-27: What Charities Should Watch

The federal Consumer Privacy Protection Act (Bill C-27) has been proposed as PIPEDA's replacement. As of 2026, the legislative process is ongoing. If passed, Bill C-27 would introduce significant new requirements, including enhanced consent rules, data portability rights, and increased penalties for non-compliance. Charities should monitor its progress with legal counsel.

Corporate Sponsorship vs. Charitable Donations at Fundraising Events

One of the most misunderstood areas of charity fundraising event compliance is the distinction between a corporate charitable donation and a corporate sponsorship. These are not the same thing, and treating them the same way can result in improper receipting.

When a Corporate Payment Is a Charitable Donation

A corporation makes a charitable donation when it transfers money or property to a registered charity with no expectation of commercial benefit in return. In this case:

• The payment may qualify for a charitable donation tax receipt
• The corporation claims the receipt as a charitable donation deduction on its corporate tax return
• The gift must be voluntary and without expectation of return

When a Corporate Payment Is a Sponsorship

A corporation makes a sponsorship payment — not a donation — when it receives a commercial benefit in exchange for its payment. Commercial benefits at charity events include:

• Logo placement on event signage, programs, or websites
• Naming rights (for example, "Presented by [Company Name]")
• Advertising at the event venue
• Tickets or tables in exchange for payment
• Speaking time or exhibition space at the event
• Product placement or sampling opportunities

When a corporation receives these benefits, the payment is generally a business advertising or marketing expense, not a charitable donation. The charity cannot issue a tax receipt for a sponsorship payment.

Hybrid Arrangements: Split Receipting for Corporations

If a corporation pays an amount that is partly a genuine donation and partly a sponsorship, split receipting principles can apply. The fair market value of the commercial benefits received by the corporation must be calculated and subtracted from the total payment. Only the remainder qualifies for a receipt — and only if it clears the 80% gift intention threshold.

Practical Advice for Event Organizers

• Do not label all corporate payments as "donations" in event marketing materials or correspondence
• Design sponsorship packages and donation packages separately, with clearly different benefit structures
• Provide corporations with written documentation of the benefit values assigned to their sponsorship tier
• Obtain legal advice before issuing receipts to major corporate contributors who have received sponsorship benefits

How to Organize a Compliant and Successful Charity Fundraising Event

Before the Event: Legal Checklist

1. Confirm the charity's registration status. Verify that the charity is currently registered with the CRA and in good standing before promoting the event or collecting any funds.

2. Check provincial solicitation registration requirements. If the event targets donors outside Ontario, confirm whether provincial registration is required in those provinces before soliciting.

3. Obtain gaming licences before selling any tickets. If the event includes a raffle, 50/50 draw, or other lottery activity, apply for the appropriate provincial gaming licence before announcing or selling tickets. Retroactive licensing is not available.

4. Negotiate and sign a third-party fundraiser agreement. If an external organizer or event company is involved, have a written agreement reviewed and signed before the event is promoted. The charity's board should approve the agreement.

5. Value all benefits accurately. Calculate the fair market value of every benefit participants will receive — meals, entertainment, prizes, door gifts. Document the methodology used.

6. Set ticket prices that meet the 80% threshold. Ensure benefit values do not exceed 80% of ticket prices for receipt eligibility. Setting the gap at 25–30% above benefit value provides a reasonable buffer.

7. Establish auction fair market values. For auction events, obtain appraisals or credible fair market value estimates for all donated items before the event. Set minimum bids at 125% of fair market value.

8. Review privacy obligations. Confirm what personal information will be collected, how consent will be obtained, and how data will be stored and protected.

During the Event

• Display fair market values of all auction items prominently before bidding opens
• Keep the charity's registration number strictly confidential — do not display it on signage or share it with vendors
• Collect signed consent for any post-event email communications before or at registration
• Separate raffle ticket sales from general event admission to avoid benefit calculation complications
• Document all costs and revenues as they occur

After the Event

• Transfer all proceeds to the registered charity promptly and in accordance with the third-party agreement
• Provide the charity with complete financial records — itemized costs, gross revenues, benefit value calculations, and prize records — for T3010 reporting
• Allow the charity to handle all tax receipt issuance without involvement from organizers
• Retain all gaming licence records for the period required by the applicable provincial gaming authority
• Conduct a post-event compliance review to identify any issues before the next annual event

Common Compliance Mistakes to Avoid

• Issuing tax receipts as an event organizer rather than allowing the charity to do so
• Sharing the charity's registration number with vendors, ticketing platforms, or attendees
• Running a raffle or 50/50 draw without a gaming licence
• Failing to value and deduct benefits before issuing receipts
• Treating corporate sponsorships as charitable donations without split receipting analysis
• Adding attendees to email marketing lists without CASL-compliant consent
• Conducting online fundraising across multiple provinces without reviewing provincial solicitation obligations

How to Organize a Compliant and Successful Charity Fundraising Event

Before the Event: Legal Checklist

1. Confirm the charity's registration status. Verify that the charity is currently registered with the CRA and in good standing before promoting the event or collecting any funds.

2. Check provincial solicitation registration requirements. If the event targets donors outside Ontario, confirm whether provincial registration is required in those provinces before soliciting.

3. Obtain gaming licences before selling any tickets. If the event includes a raffle, 50/50 draw, or other lottery activity, apply for the appropriate provincial gaming licence before announcing or selling tickets. Retroactive licensing is not available.

4. Negotiate and sign a third-party fundraiser agreement. If an external organizer or event company is involved, have a written agreement reviewed and signed before the event is promoted. The charity's board should approve the agreement.

5. Value all benefits accurately. Calculate the fair market value of every benefit participants will receive — meals, entertainment, prizes, door gifts. Document the methodology used.

6. Set ticket prices that meet the 80% threshold. Ensure benefit values do not exceed 80% of ticket prices for receipt eligibility. Setting the gap at 25–30% above benefit value provides a reasonable buffer.

7. Establish auction fair market values. For auction events, obtain appraisals or credible fair market value estimates for all donated items before the event. Set minimum bids at 125% of fair market value.

8. Review privacy obligations. Confirm what personal information will be collected, how consent will be obtained, and how data will be stored and protected.

During the Event

• Display fair market values of all auction items prominently before bidding opens
• Keep the charity's registration number strictly confidential — do not display it on signage or share it with vendors
• Collect signed consent for any post-event email communications before or at registration
• Separate raffle ticket sales from general event admission to avoid benefit calculation complications
• Document all costs and revenues as they occur

After the Event

• Transfer all proceeds to the registered charity promptly and in accordance with the third-party agreement
• Provide the charity with complete financial records — itemized costs, gross revenues, benefit value calculations, and prize records — for T3010 reporting
• Allow the charity to handle all tax receipt issuance without involvement from organizers
• Retain all gaming licence records for the period required by the applicable provincial gaming authority
• Conduct a post-event compliance review to identify any issues before the next annual event

Common Compliance Mistakes to Avoid

• Issuing tax receipts as an event organizer rather than allowing the charity to do so
• Sharing the charity's registration number with vendors, ticketing platforms, or attendees
• Running a raffle or 50/50 draw without a gaming licence
• Failing to value and deduct benefits before issuing receipts
• Treating corporate sponsorships as charitable donations without split receipting analysis
• Adding attendees to email marketing lists without CASL-compliant consent
• Conducting online fundraising across multiple provinces without reviewing provincial solicitation obligations

How to Organize a Compliant and Successful Charity Fundraising Event

Before the Event: Legal Checklist

1. Confirm the charity's registration status. Verify that the charity is currently registered with the CRA and in good standing before promoting the event or collecting any funds.

2. Check provincial solicitation registration requirements. If the event targets donors outside Ontario, confirm whether provincial registration is required in those provinces before soliciting.

3. Obtain gaming licences before selling any tickets. If the event includes a raffle, 50/50 draw, or other lottery activity, apply for the appropriate provincial gaming licence before announcing or selling tickets. Retroactive licensing is not available.

4. Negotiate and sign a third-party fundraiser agreement. If an external organizer or event company is involved, have a written agreement reviewed and signed before the event is promoted. The charity's board should approve the agreement.

5. Value all benefits accurately. Calculate the fair market value of every benefit participants will receive — meals, entertainment, prizes, door gifts. Document the methodology used.

6. Set ticket prices that meet the 80% threshold. Ensure benefit values do not exceed 80% of ticket prices for receipt eligibility. Setting the gap at 25–30% above benefit value provides a reasonable buffer.

7. Establish auction fair market values. For auction events, obtain appraisals or credible fair market value estimates for all donated items before the event. Set minimum bids at 125% of fair market value.

8. Review privacy obligations. Confirm what personal information will be collected, how consent will be obtained, and how data will be stored and protected.

During the Event

• Display fair market values of all auction items prominently before bidding opens
• Keep the charity's registration number strictly confidential — do not display it on signage or share it with vendors
• Collect signed consent for any post-event email communications before or at registration
• Separate raffle ticket sales from general event admission to avoid benefit calculation complications
• Document all costs and revenues as they occur

After the Event

• Transfer all proceeds to the registered charity promptly and in accordance with the third-party agreement
• Provide the charity with complete financial records — itemized costs, gross revenues, benefit value calculations, and prize records — for T3010 reporting
• Allow the charity to handle all tax receipt issuance without involvement from organizers
• Retain all gaming licence records for the period required by the applicable provincial gaming authority
• Conduct a post-event compliance review to identify any issues before the next annual event

Common Compliance Mistakes to Avoid

• Issuing tax receipts as an event organizer rather than allowing the charity to do so
• Sharing the charity's registration number with vendors, ticketing platforms, or attendees
• Running a raffle or 50/50 draw without a gaming licence
• Failing to value and deduct benefits before issuing receipts
• Treating corporate sponsorships as charitable donations without split receipting analysis
• Adding attendees to email marketing lists without CASL-compliant consent
• Conducting online fundraising across multiple provinces without reviewing provincial solicitation obligations

How to Organize a Compliant and Successful Charity Fundraising Event

Before the Event: Legal Checklist

1. Confirm the charity's registration status. Verify that the charity is currently registered with the CRA and in good standing before promoting the event or collecting any funds.

2. Check provincial solicitation registration requirements. If the event targets donors outside Ontario, confirm whether provincial registration is required in those provinces before soliciting.

3. Obtain gaming licences before selling any tickets. If the event includes a raffle, 50/50 draw, or other lottery activity, apply for the appropriate provincial gaming licence before announcing or selling tickets. Retroactive licensing is not available.

4. Negotiate and sign a third-party fundraiser agreement. If an external organizer or event company is involved, have a written agreement reviewed and signed before the event is promoted. The charity's board should approve the agreement.

5. Value all benefits accurately. Calculate the fair market value of every benefit participants will receive — meals, entertainment, prizes, door gifts. Document the methodology used.

6. Set ticket prices that meet the 80% threshold. Ensure benefit values do not exceed 80% of ticket prices for receipt eligibility. Setting the gap at 25–30% above benefit value provides a reasonable buffer.

7. Establish auction fair market values. For auction events, obtain appraisals or credible fair market value estimates for all donated items before the event. Set minimum bids at 125% of fair market value.

8. Review privacy obligations. Confirm what personal information will be collected, how consent will be obtained, and how data will be stored and protected.

During the Event

• Display fair market values of all auction items prominently before bidding opens
• Keep the charity's registration number strictly confidential — do not display it on signage or share it with vendors
• Collect signed consent for any post-event email communications before or at registration
• Separate raffle ticket sales from general event admission to avoid benefit calculation complications
• Document all costs and revenues as they occur

After the Event

• Transfer all proceeds to the registered charity promptly and in accordance with the third-party agreement
• Provide the charity with complete financial records — itemized costs, gross revenues, benefit value calculations, and prize records — for T3010 reporting
• Allow the charity to handle all tax receipt issuance without involvement from organizers
• Retain all gaming licence records for the period required by the applicable provincial gaming authority
• Conduct a post-event compliance review to identify any issues before the next annual event

Common Compliance Mistakes to Avoid

• Issuing tax receipts as an event organizer rather than allowing the charity to do so
• Sharing the charity's registration number with vendors, ticketing platforms, or attendees
• Running a raffle or 50/50 draw without a gaming licence
• Failing to value and deduct benefits before issuing receipts
• Treating corporate sponsorships as charitable donations without split receipting analysis
• Adding attendees to email marketing lists without CASL-compliant consent
• Conducting online fundraising across multiple provinces without reviewing provincial solicitation obligations

How to Organize a Compliant and Successful Charity Fundraising Event

Before the Event: Legal Checklist

1. Confirm the charity's registration status. Verify that the charity is currently registered with the CRA and in good standing before promoting the event or collecting any funds.

2. Check provincial solicitation registration requirements. If the event targets donors outside Ontario, confirm whether provincial registration is required in those provinces before soliciting.

3. Obtain gaming licences before selling any tickets. If the event includes a raffle, 50/50 draw, or other lottery activity, apply for the appropriate provincial gaming licence before announcing or selling tickets. Retroactive licensing is not available.

4. Negotiate and sign a third-party fundraiser agreement. If an external organizer or event company is involved, have a written agreement reviewed and signed before the event is promoted. The charity's board should approve the agreement.

5. Value all benefits accurately. Calculate the fair market value of every benefit participants will receive — meals, entertainment, prizes, door gifts. Document the methodology used.

6. Set ticket prices that meet the 80% threshold. Ensure benefit values do not exceed 80% of ticket prices for receipt eligibility. Setting the gap at 25–30% above benefit value provides a reasonable buffer.

7. Establish auction fair market values. For auction events, obtain appraisals or credible fair market value estimates for all donated items before the event. Set minimum bids at 125% of fair market value.

8. Review privacy obligations. Confirm what personal information will be collected, how consent will be obtained, and how data will be stored and protected.

During the Event

• Display fair market values of all auction items prominently before bidding opens
• Keep the charity's registration number strictly confidential — do not display it on signage or share it with vendors
• Collect signed consent for any post-event email communications before or at registration
• Separate raffle ticket sales from general event admission to avoid benefit calculation complications
• Document all costs and revenues as they occur

After the Event

• Transfer all proceeds to the registered charity promptly and in accordance with the third-party agreement
• Provide the charity with complete financial records — itemized costs, gross revenues, benefit value calculations, and prize records — for T3010 reporting
• Allow the charity to handle all tax receipt issuance without involvement from organizers
• Retain all gaming licence records for the period required by the applicable provincial gaming authority
• Conduct a post-event compliance review to identify any issues before the next annual event

Common Compliance Mistakes to Avoid

• Issuing tax receipts as an event organizer rather than allowing the charity to do so
• Sharing the charity's registration number with vendors, ticketing platforms, or attendees
• Running a raffle or 50/50 draw without a gaming licence
• Failing to value and deduct benefits before issuing receipts
• Treating corporate sponsorships as charitable donations without split receipting analysis
• Adding attendees to email marketing lists without CASL-compliant consent
• Conducting online fundraising across multiple provinces without reviewing provincial solicitation obligations

How to Organize a Compliant and Successful Charity Fundraising Event

Before the Event: Legal Checklist

1. Confirm the charity's registration status. Verify that the charity is currently registered with the CRA and in good standing before promoting the event or collecting any funds.

2. Check provincial solicitation registration requirements. If the event targets donors outside Ontario, confirm whether provincial registration is required in those provinces before soliciting.

3. Obtain gaming licences before selling any tickets. If the event includes a raffle, 50/50 draw, or other lottery activity, apply for the appropriate provincial gaming licence before announcing or selling tickets. Retroactive licensing is not available.

4. Negotiate and sign a third-party fundraiser agreement. If an external organizer or event company is involved, have a written agreement reviewed and signed before the event is promoted. The charity's board should approve the agreement.

5. Value all benefits accurately. Calculate the fair market value of every benefit participants will receive — meals, entertainment, prizes, door gifts. Document the methodology used.

6. Set ticket prices that meet the 80% threshold. Ensure benefit values do not exceed 80% of ticket prices for receipt eligibility. Setting the gap at 25–30% above benefit value provides a reasonable buffer.

7. Establish auction fair market values. For auction events, obtain appraisals or credible fair market value estimates for all donated items before the event. Set minimum bids at 125% of fair market value.

8. Review privacy obligations. Confirm what personal information will be collected, how consent will be obtained, and how data will be stored and protected.

During the Event

• Display fair market values of all auction items prominently before bidding opens
• Keep the charity's registration number strictly confidential — do not display it on signage or share it with vendors
• Collect signed consent for any post-event email communications before or at registration
• Separate raffle ticket sales from general event admission to avoid benefit calculation complications
• Document all costs and revenues as they occur

After the Event

• Transfer all proceeds to the registered charity promptly and in accordance with the third-party agreement
• Provide the charity with complete financial records — itemized costs, gross revenues, benefit value calculations, and prize records — for T3010 reporting
• Allow the charity to handle all tax receipt issuance without involvement from organizers
• Retain all gaming licence records for the period required by the applicable provincial gaming authority
• Conduct a post-event compliance review to identify any issues before the next annual event

Common Compliance Mistakes to Avoid

• Issuing tax receipts as an event organizer rather than allowing the charity to do so
• Sharing the charity's registration number with vendors, ticketing platforms, or attendees
• Running a raffle or 50/50 draw without a gaming licence
• Failing to value and deduct benefits before issuing receipts
• Treating corporate sponsorships as charitable donations without split receipting analysis
• Adding attendees to email marketing lists without CASL-compliant consent
• Conducting online fundraising across multiple provinces without reviewing provincial solicitation obligations

Conclusion

Charity fundraising events in Canada operate within a layered legal framework. CRA receipting rules — split receipting, the 80% gift intention threshold, benefit valuation, and auction rules — are the foundation. But provincial gaming licences, provincial solicitation registration requirements, third-party fundraiser agreements, privacy law compliance, and the distinction between sponsorships and donations all carry equal legal weight.

Charities that focus only on receipting and overlook the broader compliance picture face real regulatory risk — not just CRA scrutiny, but provincial gaming violations, privacy law breaches, and governance failures.

The most effective way to manage this complexity is to work with qualified legal counsel before each major fundraising event — especially for new event formats, national campaigns, or events involving external organizers.

Need Expert Guidance on Charity Fundraising Compliance?

Navigating charity law and fundraising regulations can be complex. If you're planning a fundraising event or need clarity on tax receipt requirements, the experienced team at B.I.G. Charity Law Group is here to help. We specialize in Canadian charity law and can guide you through every aspect of compliant fundraising.

Contact B.I.G. Charity Law Group today for personalized legal advice on your charity fundraising initiatives. Reach us at dov.goldberg@charitylawgroup.ca, call 416-488-5888, or visit CharityLawGroup.ca to learn how we can support your charitable goals while ensuring full regulatory compliance.

Frequently Asked Questions

Here are quick answers to the most common questions about organizing charity fundraising events and understanding Canadian compliance requirements.

Do Canadian charities need a provincial licence to hold a raffle at a fundraising event?

Yes. Raffles, 50/50 draws, bingo events, and other lottery activities at charity fundraising events require a licence from the applicable provincial gaming authority — not the CRA. In Ontario, this means a lottery licence from your municipality (for prizes up to $50,000) or directly from the AGCO (for larger prizes). Running a raffle without the correct licence is illegal, even for a registered charity.

What is the 80% rule for charity fundraising receipts in Canada?

The 80% rule is a CRA threshold for genuine gift intention. If the fair market value of benefits a donor receives at a fundraising event exceeds 80% of their total payment, the CRA does not consider the payment to be a genuine gift. No tax receipt can be issued for any portion of that payment. Charities and event organisers must ensure benefit values stay below this threshold to preserve receipt eligibility.

What is split receipting and how does it work at fundraising events?

Split receipting is the process of subtracting the fair market value of all benefits received by a participant from their total payment to determine the eligible amount for a tax receipt. For example, if a fundraising dinner ticket costs $250 and the meal is valued at $60, the eligible receipt amount is $190 — provided this exceeds 20% of the total payment. Split receipting applies to dinners, golf tournaments, auctions, online events, and any other fundraising format where participants receive something of value.

Can a third party issue tax receipts on behalf of a charity?

No. Only registered charities have the legal authority to issue official CRA tax receipts. Third-party event organizers, external fundraising companies, and volunteers cannot issue receipts, even when organizing events exclusively on behalf of a registered charity. The charity must handle all receipt processing directly.

What happens if a charity shares its registration number with a fundraising organizer?

Sharing a charity's CRA registration number with external parties for receipting or promotional purposes is a serious compliance breach. The CRA may treat this as allowing an unauthorized party to issue receipts on the charity's behalf, which can result in compliance letters, penalties, or revocation of charitable status. The registration number should never appear on third-party event signage, vendor invoices, or ticketing platforms without explicit legal authorization.

How much can a charity spend on fundraising costs in Canada?

The CRA does not set a fixed legal maximum for fundraising costs, but it assesses whether costs are reasonable relative to fundraising revenue through the T3010 annual return. Fundraising costs below 35% of fundraising revenue are generally acceptable. Costs between 35% and 70% may attract CRA review. Costs above 70% are generally considered unacceptable. Charities should document the rationale for high-cost events, particularly in early years of new fundraising programs.

Are online charity auctions subject to the same CRA rules as in-person auctions?

Yes. CRA receipting rules apply equally to online and in-person charity auctions. Fair market value must be calculated and disclosed to all bidders before bidding opens, regardless of whether the auction is conducted in person or on a digital platform. Winning bids must clear the 80% gift intention threshold for a receipt to be issued. The online auction platform itself does not have receipting authority — all receipts must be issued by the registered charity.

Can a Canadian charity hold a virtual raffle or online 50/50 draw?

Yes, but a provincial gaming licence is required. In Ontario, online charity lotteries are subject to AGCO licensing requirements that were updated in 2022 through iGaming Ontario. Charities that ran online draws during the pandemic should confirm their current compliance status with the AGCO before running further online lotteries. Other provinces have their own online charitable gaming frameworks.

What is the difference between a corporate sponsorship and a charitable donation at a fundraising event?

A charitable donation is a voluntary transfer to a registered charity with no commercial benefit in return, and it may qualify for a tax receipt. A corporate sponsorship involves the payment of money in exchange for advertising, naming rights, logo placement, or other commercial benefits — this is a business expense, not a charitable donation, and cannot receive a charitable tax receipt. When a corporation receives both charitable giving recognition and commercial benefits, split receipting principles apply to determine the receiptable portion.

Does a charity need to register separately in each province where it holds fundraising events?

It depends on the province. Manitoba and PEI currently require charities to register before soliciting donations from residents of those provinces, including at fundraising events or through online campaigns. Other provinces have varying requirements. Charities planning multi-province events or national online campaigns should obtain legal advice on provincial solicitation registration obligations before proceeding.

What privacy rules apply to collecting donor information at charity fundraising events?

Charities collecting personal information at fundraising events must comply with PIPEDA (federally) or the applicable provincial privacy law. This includes obtaining consent before collecting information, using it only for the stated purpose, storing it securely, and not sharing it with third parties without consent. Quebec's Law 25 imposes stricter requirements, including mandatory data breach reporting within 72 hours. Charities may not add event attendees to fundraising email lists without CASL-compliant consent.

What is the difference between fundraising and direct donations for receipt purposes?

A direct donation is a voluntary gift with no benefits attached, and the full amount qualifies for a tax receipt. Fundraising events provide benefits — meals, entertainment, prizes, auction items — and only the portion of payment above the benefit value qualifies for a receipt. A $300 gala ticket with $100 in meal and entertainment value generates a $200 receiptable donation, assuming the benefit value does not exceed 80% of the total payment.

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