Fundraising Commission Agreement Template for Canada

A Fundraising Commission Agreement is a legally binding contract that defines the relationship between an organization seeking funds and a professional fundraiser who will be compensated based on their success in securing donations or investments. Under Canadian law, this agreement must comply with federal and provincial regulations, including securities legislation, tax obligations, and charitable fundraising requirements that vary across jurisdictions.

When do you need this document?

You need a Fundraising Commission Agreement when your charitable organization, educational institution, or foundation engages external fundraising professionals or consultancy firms on a performance-based compensation model. This document is essential when hiring independent fundraising contractors who will receive a percentage of funds raised, when establishing partnerships with professional fundraising companies for capital campaigns, or when engaging consultants to secure grants or major donor contributions. The agreement is particularly important for organizations conducting multi-provincial fundraising activities or those involving securities-based fundraising where registration requirements under provincial Securities Acts may apply.

Key legal considerations

Your agreement must clearly define the commission structure, payment terms, and performance metrics to avoid disputes and ensure regulatory compliance. Key clauses should address territorial exclusivity or non-exclusivity, confidentiality obligations regarding donor information, and compliance with privacy legislation under PIPEDA. The contract must distinguish between contractor and employee relationships to meet Provincial Employment Standards Act requirements and determine proper tax treatment under the Income Tax Act. Commission payments may be subject to GST/HST under the Excise Tax Act, requiring clear documentation of tax obligations. If your fundraising activities involve securities, the agreement must ensure compliance with provincial Securities Act registration requirements and disclosure obligations.

Legal requirements in Canada

Canadian fundraising commission agreements must comply with both federal and provincial legislation that varies by jurisdiction. Under the Income Tax Act, commission income must be properly reported and taxed, with specific provisions applying to charitable donations. Provincial Securities Acts may require registration for fundraisers involved in securities-based fundraising activities. PIPEDA governs the collection and use of donor personal information, requiring explicit consent and security measures. Provincial charitable fundraising legislation often mandates disclosure of commission arrangements to donors and may restrict commission rates for certain types of charitable solicitation. Organizations must also ensure compliance with anti-money laundering requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act when processing large donations. Professional liability and errors and omissions insurance requirements may apply depending on the jurisdiction and nature of fundraising activities.