Rationale for new funding model for Docs on Ice 2019
No, you were a participant who got the t-shirt and drink, won a prize, walked around the track, but you did not pay out of your own pocket.
Rather, you leveraged your angelic face and good intentions and raised donations from your family, friends and neighbours for your favourite charity – far more than you would have been able to pay yourself.
And they received a charitable tax receipt for their kind donation on your behalf.
Through the suggestion of Dr. Andy Leung, DOI2019 was able to conference with hockey-playing accountants whose tournament raises almost 4 times more per capita than DOI does without paying anything out of their own pockets, by following this model.
Here is how they do it.
The way our tournament runs is that we get Sponsors to cover the costs for the day and then every dollar raised by the players goes to the Charity with every donation $20 and above generating a tax receipt. Each player is required to raise a certain amount in donations before they can participate. We find that by the time you send out an email to family and friends it is quite easy to raise the $500 in fact our average per player last year was close to $750.
In October 2017 we held our fourth annual tournament day with 225 players raising $210,000 for our charities. In terms of sponsorship, we were able to raise $125,000 to cover all the expenses for the day.
They raised over $900 per participant for their charity. Wow.
This is the model that we will be adopting for DocsOnIce 2019.
Why the change?
First, it will raise more funds for our charities, potentially much more, which is one of the primary objectives of Docs on Ice.
Secondly, by keeping the administrative cost to a minimum, more money goes to the charitable organizations. The percentage of your donation that CanadaHelps receives will be less than the cost to pay an individual to do both the registration data entry and the tax receipts.
Thirdly, in the past a team would be asked to pay a certain amount, for example $3000.00. If the team had 10 players this would cost each player $300.00. If the team had 15 players this would cost each $200.00. This would seem an unfair system. The new registration process makes it fair by making this an even playing field where everyone has to fundraise the same minimum amount, regardless of how may players there are on their team. Everyone gets the same from the tournament, everyone raises the same for the tournament.
Fourth, during the registration process you will be asked for your shirt size. This means that we will not be ordering too many shirts of the wrong size. This will once again help us be on target for your swag and for our budget, not wasting money on the wrong size shirts that you would not wear after the tournament.
Finally, it will cost you less, leaving you more money to spend on auctions, casinos and maybe an extra beverage, all of which contribute to our charities.
This model is legal, approved by our auditor, and commonly done, and the donors get a tax receipt, which is a new thing for Docs on Ice and reflects the societal value we create with our emphasis on charity.
Therefore, DOI2019 is working very hard to raise sufficient sponsorship to cover the hard costs of the tournament. And we are planning that the donations you raise will entirely go to charity.
How Registration Will Work
We request that rather than pay us yourselves directly via your captains, you ask others to donate, not to yourself, but to the charities we are supporting in this tournament, on your behalf. They are very worthy local charities as outlined on the website.
Any donation made by any non-participant in the tournament will receive a charitable tax receipt. This person could be your spouse, co-worker, family, friends, employees or community members.
It is our requirement that each individual raise a minimum of $300 before they can play.
There will be no team fee, only an individual fee. It will be the same for everyone in the tournament since everyone receives the same benefit. No one needs to subsidize residents or medical students any more.
We will also have exciting prizes and rewards for those who raise the most – both individuals and teams.
We know this is a change, but we believe it to be for the better. Any questions or comments are welcome.
Thank you for your willingness to come and have great fun together and raise even more funds than ever before for worthy local charities.
We are planning a really epic tournament. Your contribution will be a tremendous blessing to our community for a long time after our party finally quiets down.
Bob vanNoppen, Chair
Son of Lanarky
Play. Party. Repeat.
Q: Are you sure this is legal? Can coming to play in a hockey tournament and having a great time for free be legal?
A: We have consulted with hockey-tournament-organizing accountants, as well as our auditors. It is legal, and widely practised. Docs on Ice is a charity fundraising tournament. The participants’ purpose is to raise funds for charity. The really great time is a happy by-product of the charitable effort.
Q: Can my spouse donate on my behalf and get a charitable tax receipt?
A: Yes. Spouse, family members, employees, anyone who is not a tournament participant can donate on your behalf.
Q: What is the minimum amount a donor will have to donate to get a tax receipt?
A: Any donation will receive a tax receipt for the whole amount.
Q: Can one of my team-mates donate on behalf of me, if I am a tournament participant?
A: No. CRA does not deem it to be charitable if one is receiving benefit from the giving. Each participant from the tournament receives at least $300 in benefits (ice time, swag, food) and some prize winners may take home considerably more. Therefore DOI will not be able to issue charitable tax receipts to participants in the tournament.
Q: What does the CRA estimate the amount of the benefit of the tournament to each participant, how do they arrive at that figure and why is it important?
A: At least $300. They take the total funds raised from corporate sponsors and divide it by the total number of participants. It is important because they do not consider it charity if you give less than you receive. $300 is the least amount, and it is overly complicated to value how much a participant who wins prizes might take home, therefore DOI will not issue charitable tax receipts to any participants in the tournament.
Q: What happens to a participant who does not receive at least $300 in donations?
A: The participant cannot play in the tournament.
Q: Will people be donating to subsidize rich doctors?
A: No, they will be donating to an excellent cause, a group of charities that make a difference in the community. They will be supporting causes that physicians believe in. Docs on Ice is a charity fundraising tournament. The fundraising fees go directly to the charities.
Physicians will be leveraging their influence for the sake of an excellent cause, just as they do in many other situations.
And it leaves participants with more money to spend on auctions, casinos, or other charitable fund-raising at the tournament itself.
Q: If Player A donates $300 in the name of Player B, and then Player B donates $300 in the name of Player A, do they each get tax receipts?
A: No, they do not. Please do not donate on behalf of each other.
Q: But what if I really, really want to donate to the charity myself, as a tournament participant.
A: If you would personally like to give money to the charities, just bring it with you. There will be lots of opportunity for you to support the charities during the tournament ouside of the registration fee.
Q: Could one person on the team write a cheque for a large amount and get a charitable tax receipt and credit toward their donation amount?
A: No. Participants cannot donate on behalf of other participants nor do they get a charitable tax receipt.
Q: Can we just give our team fee of $4,000 the old way?
Q: Can we send our $4,000 in, and still fund-raise?
A: You can send us money if you would like, but it will not contribute to the $300 that each participant is required to fundraise in order to be permitted to play. And you will not get a charitable tax receipt for it. You can only play if you raise at least $300 in donations.
Q: Is there any incentive for our team to work to raise more for charity?
A: Wanna play with NHL Alumni? We’re issuing an exciting fundraising challenge to our DOI players. To launch the tournament, we’ll be hosting an NHL Alumni game in Smiths Falls on Thursday night where we’ll welcome some of the most iconic hockey players in history to the ice. And you could be playing against them. We’ll be giving top fundraising DOI teams and individual hockey players ice time with the NHLers. The top six teams who raise the most amount of money will lace up their skates and get a half period against the NHL squad. If you’re a top three individual who raised the most amount of money? You’re actually PLAYING with them. On their team. And that is just the start of what we have planned.
Q: How will we know what amount we have fundraised?
A: You can follow your totals via Canada Helps. We will be regularly publishing your totals on the website, along with prizes, so you can see what you might be able to win
Q: Why should we ask others to donate?
A: What we are trying to do is accomplish the most good we can with this tournament. Charity on one hand. Fun on the other. The twin blades of DOI. If you fundraise to $300, you get to play (the value of which is $300). If you fundraise even more, you might win even more. In the end, both the participants and the charities benefit.
Q: What are the charities for DOI2019?
We have several local, boots-on-the-ground charities that we personally support as the beneficiaries: PEP Seniors’ Therapeutic Centre, Lanark County Therapeutic Riding, Project Trauma Support, The Table Community Food Centre, The Perth FireDawgs Youth Program and more.
Every one of the charities is providing time, volunteers and effort to make this tournament fun for you. And they do great work in the community, very efficiently.
PEP is the base, they will receive the donations and issue receipts and distribute the funds and manage the tournament overall, but all our charities are small, local and focussed on meeting the needs of the local community.
Q: Do you believe that the entire the hard costs of the tournament will get funded by sponsors?
A: We hope to have the entire costs of the tournament covered by sponsors.
Q: Is there not going to be a team fee at all for the hockey aspect?
A: No. It will be a minimum of $300 in donations per player. No team fee.
Q: What if someone just hands me $20 in cash or writes me a cheque?
A: The best thing for them to do is donate via Canada Helps. You could accept their cash and then do a donation on their behalf, using their name on the Canada Helps site, as we have instructed on the Registration page.