1. The Ethical Fundraising and Financial Accountability Code

2. Overview Introduction to the issue by Don McCreesh, Imagine Canada Board Chair A short review of the revised Ethical Code An update on our plans for the program An outline of the components of the new program Questions / Feedback

3. Ethical Fundraising Code Project Environment has evolved since Code was first developed Examined changes to regulatory context, new information on donors concerns and evolution in fundraising methods since original launch of the Code Researched what fundraising/financial accountability issues have drawn media and legal attention over the last several years Reviewed approaches in other jurisdictions

4. Ethical Fundraising Code project – outcomes Focus of media attention related to Code over the last five years has been the high costs of fundraising, transparency, fraud, misleading donors, etc. Six consultations held/one online survey – General agreement that Code should focus on aspirational standards; Education of the sector and public crucial to program; No consensus on controversial issues like how ‘costs of fundraising’ should be handled in code. Input from Accountability Reference Group (ARG)

5. Revised Ethical Code The Ethical Code content has been revised based on the results of the survey, consultations, research and input from the ARG. Overall focus on improving clarity Move towards setting out good practice rather than referencing government regulations Complementary to government regulations and the Association of Fundraising Professionals Code of Ethics.

6. New Standards Major changes include: New references to face-to-face solicitations including verification and security for street-side fundraising. New provision regarding online fundraising. New standard for misleading or exploitative marketing. Additional standard requiring charities to provide information on the costs of fundraising upon request. New clause added requiring charities to disclose how they benefit from cause-related marketing transactions.

7. New Standards (continued) The use of percentage-based fundraising continues to be banned. New text has been added to clarify that the ban does not apply to commercial fees (i.e. credit card fees), administrative fees charged by charities (i.e. United Ways), cause-related marketing and lotteries. Financial accountability section has not changed that significantly New requirements generally linked to fundraising revenue

8. Ethical Code Program – Next Steps Continue with Ethical Code licensing program in a revised format Phase out adherents program by the end of 2007 Why? –No way to ensure that charities are actually adhering to the Code once they sign up. –Difficult to remove charities from list as we have no legal relationship with them. Legal risk to removing them for poor practices. –No financial support for this portion of the program.

9. Revised Ethical Code Program Based on feedback from charities during consultations/through survey the program will focus more on ‘donor assurance’ through: –Greater accountability –Raising awareness of the program –Educating the public Code will continue to be a public document which charities may adopt at the organizational level.

10. How to Participate? Phase one of Ethical Code Program will be re- launched in January 2008. Charities will be required to commit to the following: –written commitment to the principles of the Code; –board of Directors’ approval of the charity’s compliance as demonstrated through a board resolution; –ability to demonstrate internal compliance procedures and ways of addressing complaints; and –annual fee to defer costs of administration (based on annual fundraising revenue). Annual renewal process

11. Promoting Compliance Compliance will monitored through a complaints- based process. There is no accreditation process but donors or the public can file complaints. Charities will be encouraged to settle complaints directly with donor. If this is not possible the complaint will ultimately be sent to the Ethical Code Committee.

12. Promoting Compliance cont ’ d The following steps will be taken when public concerns are raised regarding lack of compliance: –thorough review of the nature of complaint; –formal inquiry to complainant; –request for additional information from the charity; –attempt to settle complaint; and –sanctions ranging from education to removal of trustmark.

13. Governance & Oversight Ultimate oversight of program rests with Imagine Canada’s board They rely on two groups of experts for advice: –Accountability Reference Group –Ethical Code Committee – arms-length body that reviews complaints and provides interpretation

14. Next Steps Code officially released on Wednesday at event: Charitable Sector and the Media Discussion paper issued on standards Circulate information Updates on website in the coming weeks: www.imaginecanada.ca

15. Questions & Feedback?