Update on MADD Canada’s Public Awareness/Fundraising Campaigns
MADD Canada takes great pride in the contributions it has made in reducing the number of deaths and injuries caused by impaired driving in Canada. Our organization is made up of victims, volunteers and concerned citizens whose goal it is to minimize impaired driving and to support those impacted by this violent crime. MADD Canada depends on its volunteers, members and donors to carry out its mission. It is absolutely essential for MADD Canada to earn and maintain the trust of the Canadian public.
In September 2006, as part of a new Strategic Plan, the National Board of Directors resolved to reduce MADD Canada’s reliance on the use of third-party providers in conducting its public awareness and fundraising campaigns. We also made a commitment to reduce the level of the reserve funds by increasing the amount spent on programs. Our management team has been implementing these decisions.
Media reports in December 2006 questioned MADD Canada’s reliance on third-party providers for fundraising and the allocation of the public awareness portion of our telephone and direct mail programs as charitable expenditures. Following these media accounts, MADD Canada undertook a comprehensive internal review of its current practices and also obtained advice from external legal and accounting experts.
At the same time, as a result of the routine Canada Revenue Agency (CRA) audit process, MADD Canada met with the CRA and was advised that all activities conducted by third-party providers that contain an element of fundraising must be reported as fundraising expenses in our CRA filings, regardless of the public awareness elements of the messaging. MADD Canada has assured CRA that we will follow this direction. MADD Canada also confirmed that we have been reducing our reliance on third-party providers and that we will apply a significant portion of the current reserves to our charitable programs. MADD Canada will look to additional sources of funding from government grants, corporations and foundations, as well as the efforts of our 7500 volunteers across Canada, to ensure that our valuable programs and services work can be carried out.
As a result of these decisions, MADD Canada has made program and staff adjustments to ensure that the maximum level of service is provided with the available resources. A commonly expressed goal in the charitable sector is to expend at least 60% of total revenues on charitable activities. (It is important to distinguish between total revenues and revenues for which a charitable receipt is given. The law requires that 80% of revenues for which a charitable receipt is given (not total revenues) is to be spent on charitable purposes). MADD Canada expects to exceed the charitable sector target by spending 65% of its total revenues on charitable activities in its 2007-2008 budget, and we are committed to increasing the level to 70% in future budgets. In order to reach these goals, MADD Canada has significantly reduced its telephone campaigns. We will also ensure transparency in our internal budgets, audited statements and charitable filings. MADD Canada has also undertaken a review of our governance documents to ensure that they are current and reflect the role of our Chapters and volunteers.
MADD Canada would like to thank the Chapters and all the volunteers for their dedication and understanding over this past year. We are extremely grateful to the public for its continued support of MADD Canada’s vital mission. Going forward, MADD Canada will continue to focus its energies on the dual mandate of minimizing impaired driving and supporting victims.
Carolyn Swinson
Chairperson
National Board of Directors
MADD Canada
