Legal Guidelines for Fundraising Events for Canadian Charities

TL;DR: Under Income Tax Act s. 248(30)–(31), a registered charity can receipt only the eligible amount of a fundraising payment. That is the payment minus the fair market value of everything the donor gets back, and there is no receipt at all if those benefits exceed 80% of the payment. Raffles and 50/50 draws need a provincial lottery licence under Criminal Code s. 207, and raffle tickets are never receiptable. In Ontario, total raffle prizes of $50,000 or less are licensed by the municipality; larger raffles and all online raffles are licensed by the AGCO.

This guide is for development staff and event committees at Ontario charities planning a gala, golf tournament, auction or 50/50 draw, including events going online or national for the first time.

For fundraising rules beyond events, see our guide to nonprofit fundraising rules in Canada.

What Are the Key Terms for Event Receipting?

Advantage: Anything of value the donor gets back, such as a meal, green fees, a prize or entertainment (ITA s. 248(32)).

Fair market value (FMV): The price the item or service would sell for between strangers in an open market.

Eligible amount: The payment minus the advantage. This is the only amount you may receipt.

Split receipting: Issuing a receipt for the eligible amount rather than the full payment. See CRA's page on split receipting.

80% threshold: If the advantage exceeds 80% of the payment, CRA treats it as no gift.

De minimis rule: You may ignore small items (pens, mugs, door prizes) if their total value is no more than the lesser of $75 or 10% of the payment.

How Do Event Rules Apply to Each Part of Your Event?

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Can You Issue a Tax Receipt for a Gala Ticket?

Yes, for the eligible amount only. A $250 ticket with a $60 meal produces a $190 receipt. A $500 ticket with $420 in benefits (84%) produces no receipt, because the advantage exceeds 80% of the payment. Under s. 248(30)(b), a receipt is possible above 80% only if the donor satisfies CRA that they intended a gift, so plan ticket prices to stay below the threshold.

How Do Charity Auction Receipts Work?

A buyer gets a receipt only if you posted the item's FMV before bidding opened and the FMV is no more than 80% of the winning bid. For an item posted at $400, a $500 bid produces a $100 receipt. A $450 bid produces none, because $400 is 89% of the bid. The donor of the item separately receives a receipt for its FMV at the time of donation.

Do You Need a Licence for a Raffle or 50/50 Draw?

Yes. Criminal Code s. 207(1)(b) allows lotteries only when a province licenses them, and unlicensed raffles are illegal even for a registered charity. In Ontario, municipalities license raffles with total prizes of $50,000 or less; the AGCO licenses larger raffles and every electronic raffle, including online 50/50s. You cannot get a licence after the event, so apply before announcing or selling tickets.

For eligibility and the application steps, see our guide on how to qualify for a charitable gaming licence in Ontario.

Other provinces use their own regulators. In BC it is the Independent Gambling Control Office (IGCO), which replaced GPEB on April 13, 2026. In Alberta it is AGLC, and in Quebec the Régie des alcools, des courses et des jeux.

Can an Event Company or Volunteer Issue Receipts for You?

No. Only the registered charity issues official receipts. CRA allows a third party to run an event as the charity's agent, but "the charity should maintain control over all the funds received from the event and over any receipts issued." Your registration number is public and appears on every receipt. The risk is losing control of receipting and funds, not disclosing the number.

Under CG-013, Fundraising by Registered Charities, your contract with an event company should:

• Require the company to comply with the law and CRA guidance
• Prohibit misrepresentation to donors
• Give the charity the right to review the company's financial records

Have the board approve the agreement before the event is promoted. Our charity governance and compliance team can review the agreement before it is signed.

How Much Can You Spend on a Fundraising Event?

CRA sets no fixed cap, but CG-013 uses your fundraising ratio. That is total fundraising expenses (T3010 line 5020) divided by fundraising revenue (lines 4500 + 4630).

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CRA calculates the ratio across all fundraising for the year, not per event. Keep itemized records of venue, catering, prizes you purchase, marketing and staff time.

If you need help allocating event costs on your return, our sister firm B.I.G. Charity Accounting Firm can review your figures.

Do You Need to Register in Other Provinces Before Soliciting There?

In most cases, no. Alberta is the main exception. Under the Charitable Fund-raising Act, a charity must register if it plans to raise more than $25,000 a year by soliciting Albertans, or if it uses a fundraising business. If you pass $25,000 mid-campaign, you must register within 45 days. Manitoba's former regime was repealed in 2013 and PEI's in 2020. Ontario has no separate solicitation registry.

For charities active in several provinces, see our guide to multi-jurisdictional compliance for Canadian charities.

What Privacy and Anti-Spam Rules Apply to Event Data?

CASL does not require consent for an electronic message whose primary purpose is raising funds for a registered charity. You can email past attendees about your next appeal. Messages selling unrelated goods or services still need consent, and every message should include an unsubscribe link.

PIPEDA applies to a charity's commercial activities, such as selling or renting donor lists. BC's privacy law covers non-profits fully. Quebec's private-sector privacy law, as amended by Law 25, requires you to notify the Commission d'accès à l'information promptly of any confidentiality incident that risks serious injury. Whatever law applies, collect only the data you need and store it securely. Federal reform is pending: Bill C-36, the Protecting Privacy and Consumer Data Act, was tabled on June 15, 2026.

What Should Your Event Checklist Include?

1. Confirm your charity is registered and in good standing on CRA's List of Charities.
2. Check Alberta registration if you will solicit Albertans.
3. Get the gaming licence before advertising any raffle or 50/50.
4. Sign and board-approve any third-party agreement.
5. Value every advantage and document your method.
6. Price tickets so benefits stay well under 80%.
7. Post auction FMVs and set minimum bids at 125%.
8. After the event, issue receipts from the charity only and keep licence records.

Frequently Asked Questions

Is a raffle ticket ever tax-receiptable?

No. CRA treats a lottery ticket as a purchase, not a gift. This applies even when the ticket is sold at a charity event.

Does the 80% rule apply to online events?

Yes. Meal kits, merchandise and other benefits from a virtual gala are advantages under s. 248(32) and must be deducted. The same applies to perks offered in social media fundraising campaigns.

Can a crowdfunding page issue receipts for us?

Not on its own. Only the charity, or an intermediary that is itself a registered charity (such as CanadaHelps), can issue an official receipt. The same goes for supporters running peer-to-peer fundraising pages.

Is a sponsor's logo in our program a benefit?

Simple recognition is generally nominal. Advertising, naming rights or exhibit space are advantages that make the payment a sponsorship.

Do we need a licence for a free-entry prize draw?

It depends on whether entry requires payment. Ask your licensing authority before promoting the draw.

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