Pros and Cons of Digital Fundraising for Canadian Charities

Fundraising has always been about bringing people together around a shared mission. Moving that fundraising online doesn't remove the compliance obligations that come with it — it adds new ones, particularly where digital revenue is later used to make grants. 

Going digital can make a lot of sense. It cuts costs, opens your donor base beyond your city or province, and makes it easier for more Canadians to participate. But it also comes with trade-offs that boards, executive directors, and fundraising teams need to think through carefully before committing to a digital-only approach.

What Is Digital-Only Fundraising?

Digital-only fundraising means running campaigns or events entirely through online channels — no in-person component at all.

Common formats include:

• Online donation pages and campaigns
• Virtual fundraising events (auctions, concerts, webinars)
• Peer-to-peer fundraising campaigns
• Email and social media donation drives
• Crowdfunding through platforms like CanadaHelps

Many charities use a mix of these tools across the year. But some organizations are going fully digital — cutting in-person events entirely. This guide looks at what that decision means in practice.

The Pros of Digital-Only Fundraising for Canadian Charities

Here are the main advantages.

Lower Costs and Better Use of Resources

The clearest benefit of digital fundraising is the reduction in overhead. There's no venue to book, no catering to arrange, and no event staff to coordinate.

For registered charities operating under CRA scrutiny, this matters. The Canada Revenue Agency expects charities to use their resources in ways that serve their charitable purpose. Reducing administrative and event costs means more money can flow toward programs and services.

Digital assets also have longer shelf lives. Social graphics, email templates, and donor messaging created for one campaign can often be reused or adapted for the next one — saving time and money across multiple initiatives.

Expanded Reach Across Canada

A virtual fundraiser isn't limited to the people who can physically show up. A charity based in Winnipeg can engage donors in Halifax, Calgary, or Vancouver just as easily as those next door.

This national reach is especially valuable for:

• Charities with a cross-Canada mandate
• Organizations serving diaspora communities
• Groups whose donors are geographically spread out

Multichannel outreach — pairing email with social media, newsletters, and community networks — amplifies this reach further. Peer-to-peer fundraising tools let volunteers and board members share campaigns with their own networks, multiplying your audience without multiplying your workload.

Improved Accessibility and Inclusivity

Removing the requirement to show up in person opens the door to more Canadians. People with disabilities, those with caregiving responsibilities, and those in rural or remote locations can all participate more easily in a digital campaign.

This aligns with the values many Canadian charities hold at the core of their missions. Building an inclusive fundraising experience strengthens community trust and reflects well on your organization.

For charities serving historically underserved populations, accessibility isn't just a nice-to-have — it's a reflection of organizational integrity.

Stronger Peer-to-Peer Potential

Digital campaigns are naturally built for sharing. Volunteers, community champions, and board members can extend your campaign's reach through their own social networks with minimal effort.

Platforms like CanadaHelps offer peer-to-peer fundraising tools that let supporters create personal fundraising pages on behalf of your charity. These work best when:

• Supporters are equipped with simple toolkits (sample messages, graphics, campaign links)
• Campaign goals and deadlines are clear and compelling
• Recognition and real-time progress tracking are built in

This creates a level of exposure that traditional in-person events struggle to match. 

Better Data and Donor Insights

Digital campaigns generate data that in-person events can't match. You can track open rates, click-through rates, conversion rates, average donation size, and more — in real time.

This information is useful for more than just measuring a campaign's success. It helps charities:

• Identify their most engaged donors
• Refine messaging for future campaigns
• Demonstrate impact to funders and grant-makers
• Support transparent reporting aligned with CRA expectations

The Cons of Digital-Only Fundraising for Canadian Charities

Digital fundraising isn't without its drawbacks. Here are the challenges charities need to plan for.

Funds Don't Stop Being Regulated Once They're Raised

Raising money digitally is only the first half of the compliance picture. If your charity uses digital fundraising revenue to make grants — to other charities, community partners, or non-qualified donees — those disbursements are governed by the Income Tax Act (ITA) s. 149.1(1) and CRA guidance CG-032 (Registered Charities Making Grants to Non-Qualified Donees).

A non-qualified donee is any organization that does not hold CRA-registered charity status, such as a foreign NGO or an unregistered community group. CRA requires charities to apply a risk-based due diligence process before making these grants, scaled to the size and risk of the disbursement.

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You must document this due diligence regardless of whether the funds came from a digital campaign, an in-person gala, or general revenue — CRA does not distinguish by fundraising channel.

Weaker Donor Relationships

In-person events create moments that are hard to replicate on a screen. The spontaneous conversation at a dinner table, the energy in a packed auditorium, the personal connection between a donor and a program recipient — these things matter, and they're harder to manufacture virtually.

Screen fatigue is real. Donors who might enthusiastically attend an annual gala may scroll past a virtual event invite. Over time, digital-only fundraising risks creating a more transactional donor relationship instead of a deeply loyal one.

Charities can mitigate this by:

• Using video calls or virtual breakout rooms for major donors
• Sending personalized follow-up messages — not just automated receipts
• Hosting smaller virtual touchpoints like Q&A sessions with leadership
• Incorporating gamified giving challenges to create shared experiences

Digital Barriers in Some Communities

Not all Canadians are equally comfortable — or equally connected — online. Older donors, donors in rural and remote areas, and communities with limited internet infrastructure may be effectively excluded from digital-only campaigns.

This is a significant concern for charities serving Indigenous communities, seniors, or low-income populations where reliable broadband access isn't guaranteed. A digital-only approach may inadvertently exclude the very communities your charity is trying to support or engage.

Where possible, consider supplementing digital campaigns with phone-in donation options or mailed materials for donors who need them.

CRA Receipting Requirements Still Apply Online

Going digital does not exempt your charity from receipting obligations. You must issue official donation receipts for all eligible gifts under the Income Tax Act (ITA), including those made through online platforms.

CRA requires the following on every official donation receipt:

• Your charity's legal name and Business Number (BN)
• The donor's full name and address
• The date of the donation
• The eligible amount of the gift
• The date the receipt was issued
• A sequential receipt number
• Your charity's website address (if applicable)

If your charity uses a third-party platform like CanadaHelps, Zeffy, or Givebutter, you must confirm how receipting is handled. Some platforms generate CRA-compliant receipts automatically; others transfer that responsibility back to the charity. Getting this wrong puts your registered status at risk.

Provincial Fundraising Regulations May Apply

Provincial fundraising requirements are not uniform across Canada, and treating them as one standard rule is a mistake charities can't afford to make. Ontario, British Columbia, and Manitoba all require charities to register with provincial authorities before soliciting funds from residents — even digitally — but the governing legislation, registration process, and thresholds differ by province. In Ontario, for example, charitable solicitation and administration fall under the Charities Accounting Act, which operates separately from federal CRA registration and carries its own compliance obligations.

"Online" does not mean "unregulated." Before launching a national digital campaign, you must verify your charity's specific registration status in every province where you intend to solicit donations — not assume that meeting the requirement in one province satisfies another. Consult with a charity law professional to confirm your obligations on a province-by-province basis.

Heavier Marketing Demands

A digital campaign doesn't promote itself. Without the built-in social experience of an in-person event, your charity needs a deliberate marketing strategy to generate awareness, build momentum, and convert interest into donations.

This typically means:

• Maintaining a strong email list with consistent engagement
• Building a social media presence before you need it
• Segmenting donors and personalizing outreach
• Creating campaign landing pages that are compelling and easy to use

For charities with small teams, this can be a significant resource drain. Starting with a smaller, focused digital campaign before scaling up is a practical approach for organizations building these capabilities for the first time.

Cybersecurity and Donor Privacy Risks

Online fundraising requires collecting and storing sensitive donor information. Your charity must comply with PIPEDA (the Personal Information Protection and Electronic Documents Act) — or applicable provincial privacy legislation in Alberta, British Columbia, and Quebec — when handling donor data. This obligation exists independently of CG-032 and applies regardless of how funds are later disbursed.

A data breach, a payment processing failure, or poor security practices can cause serious damage to donor trust. Your charity must:

• Use payment processors with strong security credentials (SSL, PCI-DSS compliance)
• Maintain a clear privacy policy explaining how donor data is used and stored
• Train staff on data security best practices
• Know who to contact and what to do if a breach occurs

At a Glance: Digital vs. In-Person Fundraising

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Score out of 5 — higher is better for each factor, except Regulatory Risk Exposure, where a lower score means lower legal complexity. Digital-only campaigns typically carry moderate exposure because they can trigger multi-provincial solicitation registration (Ontario, BC, Manitoba) and broader PIPEDA obligations from online data collection, whereas in-person fundraising is usually confined to a single jurisdiction with fewer data-handling touchpoints. Based on typical Canadian charity context.

Key Questions to Ask Before Going Digital-Only

Before committing to a fully digital fundraising strategy, your charity's leadership team should work through a few important questions.

About your donors:

• Are your current donors comfortable with online giving?
• Do any key donor segments lack reliable internet access?
• How have your donors responded to digital outreach in the past?

About your capacity:

• Does your team have the skills and time to run a digital campaign effectively?
• Do you have an email list and social media presence that's ready to support a campaign?
• Can you handle increased donor communication and follow-up online?

About compliance:

• Is your receipting process CRA-compliant for online donations?
• Have you reviewed provincial fundraising requirements for the provinces you'll be soliciting in?
• Does your privacy policy cover how you collect and store donor data digitally?

If the answer to several of these is "no" or "not sure," a hybrid approach — combining digital reach with some in-person touchpoints — may be a better fit while you build your capabilities.

Practical Tips for Running a Successful Digital Fundraising Campaign in Canada

If you decide to move forward with digital fundraising, here are the essentials:

• Choose a platform that handles CRA-compliant receipting. CanadaHelps is a popular and trusted option for Canadian charities. Confirm the receipting process before your campaign launches — not after.
• Set a clear goal and deadline. Campaigns with a specific, time-bound target perform better than open-ended asks.
• Lead with story, not statistics. Donors connect with people, not data. Use short videos, photos, and personal stories to communicate impact.
• Make the donation process mobile-friendly. A significant portion of online donations are made on smartphones. Test your donation page on mobile before launching.
• Leverage peer-to-peer sharing. Equip supporters with easy-to-share toolkits — a short message template, a social graphic, and a campaign link are often enough.
• Send a follow-up impact report. A brief thank-you email that shows donors what their gift made possible builds loyalty and increases the chance they'll give again.
• Review provincial rules. If your campaign targets donors in Ontario, BC, or Manitoba, check whether you need to register as a fundraiser in those provinces before soliciting.

Conclusion

Digital-only fundraising offers real advantages for Canadian registered charities — lower costs, broader reach across the country, and more inclusive access for donors who can't attend in-person events. But it comes with trade-offs that matter. Donor relationships can weaken without intentional effort, digital barriers can shut out some communities, and CRA compliance requirements don't disappear just because your campaign moved online.

Most successful charities avoid an "all-or-nothing" approach, instead choosing a hybrid model that maximizes both reach and relationship-building. Many charities get the best results from a hybrid approach — using digital tools to extend their reach while preserving meaningful in-person moments for their most committed donors. What works best depends on your mission, your donor base, and your team's capacity. 

If you have questions about the legal side of digital fundraising — receipting obligations, provincial fundraising registration, or how CRA rules apply to your online campaigns — our team at B.I.G. Charity Law Group is here to help. 

Contact us at dov.goldberg@charitylawgroup.ca or 416-488-5888, or visit CharityLawGroup.ca to learn more. Schedule a free consultation today.

Frequently Asked Questions

Do Canadian charities need to issue official donation receipts for online donations?

Yes. CRA requires registered charities to issue official donation receipts for all eligible gifts under the Income Tax Act (ITA), regardless of how the donation is made. Receipts must include the charity's Business Number, the donor's name and address, the eligible amount, and the date of the gift.

Are there provincial regulations that apply to online fundraising in Canada?

Yes. Ontario, British Columbia, and Manitoba all have charitable fundraising registration or licensing requirements that may apply to digital campaigns. Charities must review provincial rules before soliciting donations from residents of those provinces, even through digital channels.

What is a good online donation platform for Canadian registered charities?

CanadaHelps is one of the most widely used platforms because it handles CRA-compliant receipting directly. Other platforms such as Zeffy and Givebutter can also be used, but charities must confirm who is responsible for issuing receipts before choosing a platform.

Can a small Canadian charity run a successful digital fundraising campaign?

Yes, but success requires planning. A strong email list, a clear campaign message, and a realistic timeline are the essentials. Starting with a focused, smaller campaign is a practical way to build digital fundraising skills.

Does PIPEDA apply to charity donation pages?

Yes. Charities that collect personal information — names, addresses, payment details — through online donation pages are subject to PIPEDA, or applicable provincial privacy legislation in Alberta, BC, and Quebec. You must have a privacy policy in place and use a secure, PCI-DSS compliant payment processor.

What happens once digital fundraising revenue is used to make grants?

Disbursements are governed separately under ITA s. 149.1(1). If your charity grants to a non-qualified donee, CRA guidance CG-032 requires you to apply a risk-tiered due diligence process and document a written grant agreement, regardless of whether the funds originated from a digital or in-person campaign.

Does my charity need to do anything differently if a grant recipient is not a registered charity?

Yes. A grant to a non-qualified donee is treated as a qualifying disbursement under ITA s. 149.1(1) only if you meet the accountability standards in CG-032 — including confirming the grant furthers your charitable purpose and maintaining documented proof, scaled to the grant's risk tier.

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