Performing Fee for Service Work

Step 1: Determine if the activity is eligible

According to the CRA, charitable organizations and public foundations can carry on related businesses that accomplish or promote their charitable objects. There are two kinds of related businesses:

  • Businesses that are run substantially by volunteers.
  • Businesses that are linked to a charity's purpose and subordinate to that purpose.

Running an unrelated business can result in loss of MakeWay’s charity status. Projects should consult with their Project Specialist before undertaking any new fee for service activity.

Step 2: Submit contract terms to the Project Specialist

Projects should sign a contract when engaging in fee for service work. At a minimum, the contract terms should include:

  • Deliverables to be completed and how this work relates to the Project's charitable purpose.
  • Total value including any expenses to be reimbursed.
  • Length of term.
  • Ownership of any materials created.
  • Termination clause.

Projects must submit the contract to their Project Specialist for review and sign off.

Projects are not an authorized signatory. As such they cannot sign any contracts to complete fee for service work. 

Step 3: Complete the work and invoice as required

Projects should not begin any fee for service work until the Project Specialist confirms that the contract has been signed. 

When the work is complete, or as outlined in the agreement, Projects can use the Invoice Request Form to request an invoice to send to the client. Projects must not create their own invoices. 

Payors should never make their payments through the Project’s online donation page as this would automatically generate a tax receipt. Fee for service payments are not eligible for tax receipts, as the payor is getting a benefit through the work completed on their behalf.