The ethical principles underlying this Standard are accountability and transparency. The budget allocation for fundraising is frequently subject to intense scrutiny by Canadians who believe that they are donating money to be used entirely for programs. Donors are often unaware of the costs associated with delivering an effective program or with raising funds. This lack of understanding is often exacerbated by the considerable differences in the way fundraising costs are reported.

• The governing body has approved and is monitoring policies concerning the Organization’s fundraising activities.
• Information is disclosed about the types and amounts of fundraising expenses.

• Are we able to justify how we allocate fundraising expenses?

• Having a defensible and publicly available policy for allocating fundraising expenses

• Hiding fundraising and/or administrative expenses within program allocations.
• Claiming an unrealistically low percentage of income for fundraising and administration costs.