Site MenuTranscript of Video on Non-ticketed Fundraising Events and Draws
In this module, we look at fundraising activities where the benefit's value is never deducted from the contribution amount.
Political entities may hold events where admission is free but guests are asked to make a contribution. Guests often receive a benefit like food, drinks or small gifts. But because they receive the benefit whether or not they make a contribution, the full amount they give is a contribution. It is not reduced by the value of the benefit.
Let's walk through an example. The association advertises a wine and cheese event on its website and social media accounts. The event is held in the association's office. The president and a representative from the registered party talk about community involvement and fundraising efforts planned for the year. Participants enjoy an opportunity to connect with each other while sampling local wine and cheese. Donation boxes are set up in the room, and an authorized electoral district agent is also present to accept contributions made by credit card. A benefit is not deducted from the contributions received during this event, because the guests enjoy the wine and cheese whether or not they make a contribution. The full amount an individual donates is a contribution.
During the same event, tickets are sold for a draw. The winning prize is a weekend getaway, and tickets are sold for $50. When selling tickets for a draw or lottery, the full ticket price is a contribution. No benefit is deducted because a value can't be attached to the hope of winning. The contribution is also not eligible for a tax receipt, though it is still subject to the contribution limit.
Please consult provincial or territorial regulations before organizing draws or lotteries.
To learn more, please take a look at our other modules and resources.