–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%: 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