What Do You Mean by Fundraising? A Complete Guide for Canadian Charities
If you're part of a charity or nonprofit in Canada, one of the most important things you'll do is fundraising. Whether you're running an animal shelter, supporting education, or helping the environment, you need money to do your work, and fundraising is how you get it.
But fundraising isn’t just about asking for donations. It’s a mix of planning, communication, relationship-building, and staying compliant with Canada Revenue Agency (CRA) rules.
So, what do you mean by fundraising? Let’s break it down step by step.
What Is Fundraising?
At its core, fundraising means raising money to support a charitable cause or mission. It could involve asking individuals, businesses, or governments to donate, or organizing events or campaigns to generate funds.
In simple terms, what is the meaning of raise funds? It means collecting money to support a goal—in this case, helping a cause that matters.
Fundraising can include:
- Writing donation appeals
- Hosting events like walk-a-thons or silent auctions
- Applying for grants
- Selling merchandise
- Running digital campaigns
What Is the Main Purpose of Fundraising?
The main purpose of fundraising is to help your charity continue doing its work. Most charities rely on fundraising to pay for services, staff, programs, supplies, and outreach. Without fundraising, many charities would not survive.
But it's not just about money; fundraising also spreads awareness, builds a community of supporters, and gets people involved.
What Is a Fundraising Campaign?
A fundraising campaign is a focused effort to raise money for a specific goal over a certain period of time. Think of it like a mission with a clear target.
For example:
- A campaign to raise $50,000 for new school computers
- A holiday food drive to collect donations before December 31
- A month-long challenge where supporters donate for every kilometre walked
Good campaigns include a clear message, a plan to reach donors, and updates along the way.
Tips for a Strong Campaign:
- Set a clear goal
- Share a compelling story
- Use social media, email, and community events
- Thank donors publicly and privately
What Is Peer-to-Peer Fundraising?
Peer-to-peer fundraising (sometimes called P2P) is when your supporters raise money for your cause by asking their friends, family, or coworkers to donate.
Example: A student runs a 5K and asks people to sponsor them by donating to your charity. That student becomes a mini-ambassador for your cause.
So, what is peer to peer fundraising? It’s when your community helps you fundraise by reaching out to their networks. It’s powerful because it spreads your message further and builds trust—people are more likely to give when someone they know asks.
What Is a Case for Support in Fundraising?
Your case for support is one of the most important tools in fundraising. It’s the main message you use to show potential donors:
- What your organization does
- Why it matters
- What impact will a donation make
- Why you need funds now
A strong case for support makes people want to give. It should be emotional, clear, and honest.
What is a case for support in fundraising? It’s the “why” behind your ask. It gives donors the information and inspiration they need to take action.
What Is Stewardship in Fundraising?
Stewardship is how you take care of your donors after they give. It includes:
- Saying thank you promptly
- Sending updates on how their gift is being used
- Inviting them to events or volunteer opportunities
- Making them feel part of the mission
What is stewardship in fundraising? It’s the ongoing relationship with donors, showing them their gifts matter. Good stewardship builds loyalty and increases the chances that they will give again.
What Is the CRA Definition of Fundraising?
The Canada Revenue Agency (CRA) has strict rules for registered charities when it comes to fundraising. According to the CRA:
“Fundraising is any activity that includes a solicitation of present or future donations of cash or non-cash gifts, or the sale of goods or services to raise funds.”
This includes:
- Asking for donations by phone, mail, or online
- Holding events like galas, raffles, or auctions
- Selling items (t-shirts, cookies, etc.) to raise money
The CRA wants to make sure your fundraising:
- Is legal and truthful
- Uses donations in a way that supports your mission
- Doesn’t spend too much on expenses
For example, if you spend $90 to raise $100, the CRA may question whether your fundraising is too costly.
You can read the full CRA guidelines here.
What Makes Fundraising in Canada Unique?
Fundraising in Canada comes with responsibilities. Unlike some other countries, registered charities in Canada must follow CRA rules closely. Some unique points include:
- Tax receipting: Only registered charities can issue official donation receipts for tax purposes.
- Transparency: CRA may review your fundraising spending, especially if your costs are high.
- Public trust: Canadians expect honesty and accountability. Being open about how donations are used builds long-term trust.
Best Practices for Successful Fundraising
- Start with a plan: Don’t wing it. Set goals, budgets, and timelines.
- Know your audience: Speak directly to the people most likely to care.
- Tell a good story: Use emotion and real examples to connect.
- Make it easy to give: Offer online donation options and clear instructions.
- Track everything: Use spreadsheets or software to stay organized.
- Say thank you: This is a must. Every donor should feel appreciated.
- Follow up: Share results and updates so people know their gift made a difference.
Final Thoughts
So, what is fundraising? It’s the heart of every successful Canadian charity or nonprofit. It's not just about raising money, it’s about inspiring people, building trust, and making real change.
With a strong case for support, good stewardship, creative campaigns like peer-to-peer fundraising, and full knowledge of CRA’s definition of fundraising, your organization can raise the funds you need to grow your impact across Canada.
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