ARTICLE
1 July 2014

"Primary Purpose Of Raising Funds" Under CASL – What Does It Mean?

MT
Miller Thomson LLP

Contributor

Miller Thomson LLP (“Miller Thomson”) is a national business law firm with approximately 525 lawyers working from 10 offices across Canada. The firm offers a complete range of business law and advocacy services. Miller Thomson works regularly with in-house legal departments and external counsel worldwide to facilitate cross-border and multinational transactions and business needs. Miller Thomson offices are located in Vancouver, Calgary, Edmonton, Regina, Saskatoon, London, Waterloo Region, Toronto, Vaughan and Montréal.
Since the CASL Regulations were released in December 2013, there has been considerable debate and uncertainty as to the precise scope of the exemptions.
Canada Corporate/Commercial Law

Since the CASL Regulations were released in December 2013, there has been considerable debate and uncertainty as to the precise scope of the exemption from the consent and content requirements under CASL for electronic messages sent by or on behalf of a registered charity that have a primary purpose of raising funds for the charity.

On June 5, 2014, Industry Canada was reported as having provided its interpretation of CASL's fundraising exemption.  Specifically, Industry Canada reportedly clarified that the phrase "primary purpose of raising funds" would apply to a number of activities engaged in by charities that extended beyond the Canada Revenue Agency's definition of "fundraising".  Over two weeks later, however, the Canadian Radio-television and Telecommunications Commission (CRTC) – the government agency responsible for the enforcement of CASL – has advised that there are inconsistencies in Industry Canada's reported interpretation of the exemption and that of the CRTC. However, the CRTC has provided little detail as to the specifics of the inconsistencies.

Differing interpretations as a result of fairly vague language is just one of the frustrating complications inherent to CASL – a piece of legislation which was drafted by Industry Canada, but is to be enforced by the CRTC.  Likely as a result of the relatively ambiguous application of CASL to registered charities, the CRTC has confirmed it will be releasing a FAQ document pertaining to registered charities in the coming weeks.  While any guidance will be welcomed in the industry, the release of such a document after CASL's in force date is decidedly unhelpful.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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