www.carters.ca
www.charitylaw.ca
–The fundraising ratio will place a
charity into one of three
categories
§Under 35%:
unlikely to generate questions or concerns by
CRA
§35% and above: CRA
will examine the average ratio over
recent years to determine if there is a
trend of high fundraising costs requiring a
more detailed assessment of expenditures
§Above 70%: this
level will raise concerns with CRA. The
charity must be able to provide an explanation
and rationale for this level of expenditure,
otherwise it will not be acceptable
–See logic chart on next page (not by CRA)
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