Although most fundraising activities are business activities, a fundraising event generally will not be considered to "recur with such regularity and frequency that it amounts to carrying on a business" (para. 12).
17. There are two kinds of related businesses:
1.businesses that are run substantially by volunteers; and
2.businesses that are linked to a charity's purpose and subordinate to that purpose.
A business will be considered to be linked to the charity's purposes where
- the quality of services delivered to charitable programs are improved (e.g., hospital parking lots, and cafeterias, and museum book shops)
- it is an off-shoot of a charitable program (e.g., the sale by a church of recordings of its Christmas concert)
- it utilizes excess capacity (e.g., university rentals in the summer months)
- it sells products which promote the charity (e.g., products with the charity's name or logo)
