NPP Fundraising

Sponsorship is a collaborative agreement (contract) between NPP and an external entity, whereby funds, goods, facilities or services are provided to support a particular NPP or external Program/Event, in exchange for some appropriate non-monetary benefit of approximately equal value.

A donation is a monetary gift or a gift of property, made to NPP, with the aim of serving organizational objectives, by an individual, organization, company, corporation, or other body.

PIK is a donation or sponsorship in the form of real property, or goods, or services (for sponsorship only) in lieu of cash.

NPP Fundraising is any action, activity or ways/means that includes a request or the acceptance of solicited and/or un-solicited money (including near cash equivalents) and product-in-kind (products and/or services).

No. No form of lottery scheme (i.e. 50/50 draws, raffles, snowball draws, BINGO etc.) shall be conducted by a NPP Organization, unless the Provincial/Territorial authorities issue a license for an allowable purpose (such as conducting fundraising for the Government of Canada Workplace Charitable Campaign (GCWCC)).

Yes. Fundraising sales, such as a bake sale, are an acceptable means of raising money for your NPP entity/unit fund. Please note that sales tax will apply to the amount raised.

It is mandatory for both PAAs and AAs to take the following NPP Certification courses:

a.    NPP Fundraising Authorized Agent certification course; 
b.    NPP Contracting and Procurement (for PAAs /AAs who are entering into a Sponsor Support Agreement (SSA); and
c.    NPP Financial Delegated Authorities and Contracting Course or the Fundamentals of NPP (for PAAs/AAs who are accepting donations/sponsorships).

For more information, see the NPP Fundraising Guide.

Restricted contributions have stipulations imposed that specify how the contributions must be used while unrestricted contributions have no stipulations.

Restricted contributions received in a period prior to the activity or event, shall be deferred – initially recorded as unearned revenue upon receipt and subsequently recognized as revenue in the same future period or periods as the related expenses that they were intended to fund are recognized.

If restricted contributions are received in the same period as related expenses are recognized, revenue recognition is concurrent - there is no deferment.

Agreements covering multiple events are, for the purpose of approval thresholds and risk assessment, considered a Single Sponsorship. Accordingly, a single Bulk SSA shall be raised with Annexes created for each event listing the level of support, specific deliverables and responsibilities of both the sponsor and the recipient. 

Defence industry companies are businesses that are specifically involved in research, development, production, service and support of military materiel, equipment and facilities such as aircraft, ships, vehicles, related systems, as well as component parts and consumables.

Conversely, a Non-Defence Industry company includes businesses that provide products or services that could be purchased for personal use by the general Canadian public.

No. Sponsorship is considered “an exchange of goods/services” and is not a “gift” and thus does not qualify for an official income tax receipt. 

The local NPPAM or NPP Organization authorized by the Chief Financial Officer (CFO), may issue “Official Income Tax Receipts” (OITRs). The serial numbered OITRs are completed in two copies, the original provided to the donor and the second copy is retained for accounting record purposes. An OITR will be issued for an amount greater than $10.00. At a minimum, the NPP Accounting office (or the NPP Organization office that issued the OITR) must retain duplicate receipts for two years from the end of the calendar year in which the donations were received. 

Submit a formal request, via email, to the CFO through your local accounting office.

No. Official donation receipts are required for tax deduction or credit purposes only. Charities/foundations and other qualified donees do not pay income tax, therefore, acknowledgement for gifts received from these organizations shall be by way of a letter or ordinary receipt in lieu of issuing an official income tax receipt.

An advantage is generally the total value of any property, service, compensation, use or any other benefit that a donor is entitled to as partial consideration for, or in gratitude for, the donation (gift). 

For example, if a donation of $1,000 is made to Canadian Forces Base (CFB) Anywhere and in appreciation, CFB Anywhere gives the donor three tickets to a concert that are valued at a total of $150, the donor is considered to have received an advantage of $150. The official income tax receipt would reflect this advantage and deduct the advantage amount from the donated amount to arrive at the Eligible Amount. In this example, the eligible amount would be $850 ($1000 - $150).

Yes. Tax amounts and sponsorship fee amounts need to be reflected in the SSA so all parties are aware of the specific monetary amounts.

Sponsorship is considered a “service”; accordingly place of supply rules for services apply and the GST/HST rate is based on the customer’s address; e.g. if a BC company sponsors the Army Run in Ottawa, the applicable GST rate would be the BC GST rate of 5%.  For GST/HST rates see CRA’s webpage: GST/HST calculator (and rates).

Sponsorships are subject to GST/HST and QST but are not subject to PST. For more information, refer to the Tax Implications – NPP Donations and Sponsorship letter.

Donations and gifts given to any NPP activity (including donations or gifts to a Morale and Welfare event) do not attract any federal or provincial sales taxes.  For more information, refer to the Tax Implications – NPP Donations and Sponsorship letter.

On the accounting side, A-FN-105 Chapter 29 Accounting for NPP Fundraising.

On the administrative side, refer to the NPP Fundraising Policy and the NPP Fundraising Guide.