Introduction

This Ethical Fundraising & Financial Accountability Code has been developed by Imagine Canada, in consultation with charity leaders throughout Canada. Its primary purpose is to assure donors of the integrity and accountability of charities that solicit and receive their financial support.

Charities that adopt this Ethical Fundraising & Financial Accountability Code commit to fundraising practices that respect donors’ rights to truthful information and to privacy. They also commit to manage responsibly the funds that donors entrust to them, and to report their financial affairs accurately and completely.

The following Motion and Code was adopted by the Board of Directors of Children's Health Foundation (then Children's Hospital of Western Ontario Foundation) on December 4, 2002.

THAT CHILDREN’S HEALTH FOUNDATION ADOPT THE CANADIAN CENTRE FOR PHILANTHROPY’S ETHICAL FUNDRAISING AND FINANCIAL ACCOUNTABILITY CODE AS ITS POLICY, AND, IN SO DOING, MEMBERS OF THE BOARD OF DIRECTORS COMMIT TO BEING RESPONSIBLE CUSTODIANS OF DONATED FUNDS, TO EXERCISE DUE CARE CONCERNING THE GOVERNANCE OF FUNDRAISING AND FINANCIAL REPORTING, AND TO ENSURE TO THE BEST OF THEIR ABILITY THAT THE ORGANIZATION ADHERES TO THE PROVISIONS OF THE CODE. IT IS HEREBY CONFIRMED THAT EACH MEMBER OF THE BOARD OF DIRECTORS AND COMMITTEE (S) RESPONSIBLE FOR FUNDRAISING ACTIVITIES HAS RECEIVED A COPY OF THE ETHICAL FUNDRAISING AND FINANCIAL ACCOUNTABILITY CODE AND THAT A COPY WILL ALSO BE PROVIDED TO EACH PERSON WHO IS SUBSEQUENTLY ELECTED TO THE BOARD OF DIRECTORS AND ITS COMMITTEE (S) RESPONSIBLE FOR FUNDRAISING ACTIVITIES.

A. Donors’ Rights

1. All donors (individuals, corporations, and foundations) are entitled to receive an official receipt for income tax purposes for the amount of the donation. Donors of non-monetary eligible gifts (or gifts-in-kind) are entitled to receive an official receipt that reflects the fair market value of the gift. (Note: “Eligible gifts” are defined in Revenue Canada Interpretation Bulletin IT-110R2 or its successor. Some common gifts, such as donations of volunteer time, services, food, inventory from a business, etc. are not eligible to receive official tax receipts.) Children’s Health Foundation (CHF) Board of Directors may establish a minimum amount for the automatic issuance of receipts, in which case smaller donations will be receipted only upon request.

2. All fundraising solicitations by or on behalf of CHF will disclose CHF’s name and the purpose for which funds are requested. Printed solicitations (however transmitted) will also include its address or other contact information.

3. Donors and prospective donors are entitled to the following, promptly upon request:

• CHF’s most recent annual report and financial statements as approved by the Board of Directors;
• CHF’s registration number (BN) as assigned by Revenue Canada;
• any information contained in the public portion of CHF most recent Charity Information Return (form T3010) as submitted to Revenue Canada;
• a list of the names of the members of CHF’s Board of Directors; and
• a copy of this Ethical Fundraising & Financial Accountability Code.

4. Donors and prospective donors are entitled to know, upon request, whether an individual soliciting funds on behalf of CHF is a volunteer, an employee, or a hired consultant.

5. Donors will be encouraged to seek independent advice if CHF has any reason to believe that a proposed gift might significantly affect the donor’s financial position, taxable income, or relationship with other family members.

6. Donors’ requests to remain anonymous will be respected

7. The privacy of donors will be respected. Any donor records that are maintained by CHF will be kept confidential to the greatest extent possible. Donors have the right to see their own donor record, and to challenge its accuracy.

8. If CHF exchanges, rents, or otherwise shares its fundraising list with other organizations, a donor’s request to be excluded from the list will be honoured.

9. Donors and prospective donors will be treated with respect. Every effort will be made to honour their requests to:

• limit the frequency of solicitations;
• not be solicited by telephone or other technology; and
• not receive printed material concerning CHF.

10. CHF will respond promptly to a complaint by a donor or prospective donor about any matter that is addressed in this Ethical Fundraising & Financial Accountability Code. The Development and Communications Director will attempt to satisfy the complainant’s concerns in the first instance. A complainant who remains dissatisfied will be informed that he/she may appeal in writing to CHF’s Board of Directors through the Executive Committee, and will be advised in writing of the disposition of the appeal.

B. Fundraising Practices

1. Fundraising solicitations on behalf of CHF will:

• be truthful;
• accurately describe CHF’s activities and the intended use of donated funds; and
• respect the dignity and privacy of those who benefit from Children’s Hospital of Western Ontario activities.

2. Volunteers, employees and consultants who solicit or receive funds on behalf of CHF shall:

• adhere to the provisions of this Ethical Fundraising & Financial Accountability Code;
• act with fairness, integrity, and in accordance with all applicable laws;
• adhere to the provisions of applicable professional codes of ethics, standards of practice, etc.
• cease solicitation of a prospective donor who identifies the solicitation as harassment or undue pressure;
• disclose immediately to CHF any actual or apparent conflict of interest; and
• not accept donations for purposes that are inconsistent with CHF’s objects or mission.

3. Paid fundraisers, whether staff or consultants, will be compensated by a salary, retainer or fee, and will not be paid finders’ fees, commissions or other payments based on either the number of gifts received or the value of funds raised. Compensation policies for fundraisers, including performance-based compensation practices (such as salary increases or bonuses) will be consistent with CHF’s policies and practices that apply to non-fundraising personnel.

4. CHF will not sell its donor list. If applicable, any rental, exchange or other sharing of CHF’s donor list will exclude the names of donors who have so requested (as provided in section A8, above). If a list of CHF’s donors is exchanged, rented or otherwise shared with another organization, such sharing will be for a specified period of time and a specified purpose.

5. CHF’s Board of Directors will be informed at least annually of the number, type and disposition of complaints received from donors or prospective donors about matters that are addressed in this Ethical Fundraising & Financial Accountability Code.

C. Financial Accountability

1. CHF’s financial affairs will be conducted in a responsible manner, consistent with the ethical obligations of stewardship and the legal requirements of provincial and federal regulators.

2. All donations will be used to support CHF’s objects, as registered with Revenue Canada.

3. All restricted or designated donations will be used for the purposes for which they are given. If necessary due to program or organizational changes, alternative uses will be discussed where possible with the donor or the donor’s legal designate. If no agreement can be reached with the donor or his/her legal designate about alternative uses for a restricted or designated donation, CHF will return the unexpended portion of the donation. If the donor is deceased or legally incompetent and CHF is unable to contact a legal designate, the donation will be used in a manner that is as consistent as possible with the donor’s original intent.

4. Annual financial reports will:

• be factual and accurate in all material respects;
• disclose:
  - the total amount of fundraising revenues (receipted and non-receipted)1;
  - the total amount of fundraising expenses (including salaries and overhead costs)2;
  - the total amount of donations that are receipted for income tax purposes (excluding bequests, endowed donations that cannot be expended for at least 10 years, and gifts from other charities)3;
  - the total amount of expenditures on charitable activities (including gifts to other charities)4;
• identify government grants and contributions separately from other donations; and
• be prepared in accordance with generally accepted accounting principles and standards established by the Canadian Institute of Chartered Accountants, in all material respects.

5. No more will be spent on administration and fundraising than is required to ensure effective management and resource development. In any event, CHF will meet or exceed Revenue Canada’s requirement for expenditures on charitable activities. (In general, section 149.1 of the Income Tax Act requires all charities to spend at least 80 percent of their receipted donations (excluding bequests, endowed donations that cannot be expended for at least 10 years, and gifts from other charities) on charitable activities; in addition, charitable foundations are required every year to expend 4.5 percent of the value of their assets in support of charitable programs.)

6. The cost-effectiveness of CHF’s fundraising program will be reviewed regularly by the Board of Directors.

Footnotes:

1. Total of amounts from lines 100, 102 and 113 of T3010 (Revenue Canada’s Registered Charity Information Return, 1998)
2. Amount from line 123 of T3010 (1998)
3. Amount from line 906 of T3010 (1998)
4. Total of amounts from lines 120 and 121 of T3010 (1998)

Donor Bill of Rights

Policy
Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights:

1. To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
2. To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgement in its stewardship responsibilities.
3. To have access to the organization's most recent financial statements.
4. To be assured their gifts will be used for the purposes for which they were given.
5. To receive appropriate acknowledgement and recognition.
6. To be assured that information about their donations is handled with respect and with confidentiality to the extent provided by law.
7. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
8. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.
9. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
10. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.

Developed by: American Association of Fund Raising Counsel (AAFC)
Association for Healthcare Philanthropy (AHP)
Council for Advancement and Support of Education (CASE)
Association of Fundraising Professionals (AFP)

Endorsed by: Independent Sector
National Catholic Development Conference (NCDC)
National Committee on Planned Giving (NCPG)
National Council for Resource Development (NCRD)
United Way of America