Canadian Leapfrog: From Regulating Charitable Fundraising to Co-Regulating Good Governance

Abstract

The regulation of charitable fundraising is no longer just about the regulation of fundraising but about good governance, and increasingly involves co-regulatory regimes which blend elements of self- and state regulation. Canada’s charitable sector has undertaken a bold experiment in creating a comprehensive certification system for good governance, including fundraising, which reframes the target of regulation from the informed donor to the well-performing charity and has the ambitious goal of building a community of practice for self-improvement. At the same time, the federal government has introduced new guidance on fundraising that not only outlines accepted cost to revenue ratios but also specifies standards of good governance. It is an open question as to whether this new self- and state regulation will remain as dual systems or evolve into a hybrid co-regulatory regime in which government integrates sector certification into its own risk management.