editorial
R
ecently I was contacted by a CBC investigative journalist who wanted to talk about the cost of fundraising. She was motivated to talk to me based on a review of tax returns for charitable organizations across Canada. Of interest to her was the cost of fundraising and, in particular, if we used thirdparty fundraisers—contracted service of a forprofit company. Our phone interview led to a live interview and a television interview which aired on the CBC’s morning show and the late night television broadcast. I believe the interviews left the listeners and viewers with a positive view of the practices employed by the Canadian Paraplegic Association (Alberta). The experience left me with the reflection that communication to all our stakeholders is important around the cost of raising a dollar. First of all, you may be interested to know the breakdown of our revenue sources: Federal Government Grant (6.6 per cent); Provincial Government Grants (22 per cent); Foundations (24 per cent); Fund Development (21 per cent); United Way Grants (24 per cent); Fee for Service for Workers’ Compensation Board (1.5 per cent); Publications and Advertisements (.75 per cent); and Management and Consulting fees (7 per cent). All of our revenue sources require time and energy to maintain relationships via grant contracts, sponsor, and donor relationships. The hardest work, however, is related to the 21 percent of our revenue that comes from fund development activities, such as special events (five across the province), and an annual mail appeal. In order for these activities to be successful, we rely on the cooperative work of countless volunteers along with support from our staff. These activities not only generate funds for CPA (Alberta), but also helps to raise awareness for the association and the services it provides. We also benefit from the sale of chocolate almonds. This last activity is the one that caught the interest of the investigative journalist because of the cost of raising a dollar. CPA (Alberta) reports to the Canada Revenue Agency that we receive 45 per cent of the net return on a box of chocolate almonds. For example, the base cost of a box of almonds and packaging is $2.30. If you stop at your local gas station and purchase a box for $3, the net profit is 70 cents. Of that, 32 cents come to CPA (Alberta) because the other 38 cents makes up the cost charged by the distribution company. They deliver the cartons of almonds across the province to local businesses. This is the only activity that we participate in that uses an external fundraising company. We have had the discussion at our board and at the level of senior staff many times around the ethics of this type of cause-related marketing of a product. At this point, our rationale for continuing our relationship with a for-profit fundraising company is simple. Consumers who purchase chocolate almonds are doing so for the primary reason that they enjoy eating chocolate almonds, and secondarily because there may be a benefit to an organization. Most consumers are aware that the return to the charitable organization is small. So for the time being, we will continue with this relationship unless you, our readers, advise us differently. Your thoughts are always welcome.
Teren Clarke
Executive Director
4s Spinal Columns
Canadian Paraplegic Association (Alberta) Toll Free: 1-888-654-5444 www.cpa-ab.org Find us on Facebook and become a fan! Watch videos on our Youtube channel: www.youtube.com/user/cpaalberta HEAD OFFICE #305, 11010 - 101 Street Edmonton, Alberta T5H 4B9 Telephone: (780) 424-6312 Fax: (780) 424-6313 E-mail: edmonton@cpa-ab.org Executive Director: Teren Clarke SOUTHERN DISTRICT OFFICE 5211 4 Street NE Calgary, AB T2K 6J5 Telephone: (403) 228-3001 Fax: (403) 229-4271 E-mail: calgary@cpa-ab.org RED DEER OFFICE #103, 4719 - 48th Avenue Red Deer, Alberta T4N 3T1 Telephone: (403) 341-5060 Fax: (403) 343-1630 E-mail: reddeer@cpa-ab.org GRANDE PRAIRIE OFFICE #104, 9715 - 105 Street Grande Prairie, Alberta T8V 7X7 Telephone: (780) 532-3305 Fax: (780) 539-3567 E-mail: grandeprairie@cpa-ab.org LETHBRIDGE OFFICE #360, 515 - 7th Street South Lethbridge, Alberta T1J 2G8 Telephone: (403) 327-7577 Fax: (403) 320-0269 E-mail: lethbridge@cpa-ab.org MEDICINE HAT OFFICE 26-419 3rd Street SE Medicine Hat, Alberta T1A 0G9 Telephone: (403) 504-4001 Fax: (403) 504-5172 E-mail: medicinehat@cpa-ab.org ST. PAUL OFFICE Box 653 St. Paul, AB T0A 3A0 Telephone: (780) 645-7147 Fax: (780) 645-5141 E-mail: stpaul@cpa-ab.org LLOYDMINSTER OFFICE 4419 52 Avenue, Lloydminster, AB T9V 0Y8 Tel & Fax: (780) 875-1046 E-mail: lloydminster@cpa-ab.org FORT McMURRAY Gregoire Park Centre 194 Grenfell Crescent Fort McMurray, AB T9H 2M6 Tel: (780) 743-0307 Fax: (780) 743-4563 E-mail: fortmcmurray@cpa-ab.org CPA (Alberta) BOARD OF DIRECTORS Dale Williams, Chair Aaron Miller, Vice Chair Martin Purvis, Past Chair Scott Sankey, Treasurer Lisa Crown Harvey J. DeCock Kent Hehr Bill Hendsbee Timothy Hill Ray Royer Ned Shillington Eleanor Sugarman