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www.charitylaw.ca
Pro-rated
Allocation of Costs
In some cases a charity may be able to
pro-rate the allocation of costs of
an activity between fundraising expenditures
and charitable, management or administrative,
and political activity expenditures
But must be able to establish that less
than 90% of the total content of
the activity advances fundraising
If more than 90%, then all expenditures
must be allocated to fundraising
To determine if pro-rating is possible,
must separate the fundraising
content from other content
The onus is on the charity to produce
the necessary accounting records to
support the allocation
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