In honor of Canada Day, July 1, the Apra Content Development Committee wanted to feature some of the differences that make prospect research in Canada so unique. I reached out to three prospect development professionals working with Canadian prospects — John Hermanns, executive director of prospect management and advancement research, University of Toronto; Tracey Church, principal, researcher and charitable sector consultant, Tracey Church & Associates; and Chris Mildner, prospect research analyst, The Nature Conservancy.

While the fundamental principles of prospect research are consistent across borders, there are unique legal and cultural differences to how this process is conducted in Canada versus the United States (U.S.). These differences can be attributed to variations in data availability, privacy laws, access to research tools and the landscape of nonprofit organizations.

Data Availability

Many don’t realize how fortunate U.S. prospect researchers are, with access to a wide variety of data in comparison to the rest of the world. Canada falls into the latter category, with access to public records being more limited compared to the U.S. For instance, property records, which are often used as the basis of estimating wealth in the US, are not as easily accessible in Canada. Canadian researchers often must use zip codes to extrapolate information that is available to US prospect researchers at the touch of a button.

Even beyond individual data, there is less information available about public foundations than there is in the U.S. Charities in Canada must file T3010 forms with the Canada Revenue Agency (CRA), which are publicly accessible, similar to the U.S. IRS Form 990. These forms provide information about the charity's financial health and donor information in aggregate, but do not include individual donor names and are not as in-depth as a 990.

Canadian prospect researchers learn to project data based on more limited sources and fill in blanks where necessary.

Privacy Laws

Data privacy is an ever-evolving goalpost worldwide. In Canada, privacy is no different, and it is governed by a combination of federal, provincial and even local laws. These laws are stringent and similar to privacy laws in Europe, which require explicit consent to collect and use personal data for fundraising purposes.

Two examples of Canadian privacy law are the Personal Information Protection and Electronic Documents Act (PIPEDA), which governs how organizations can collect, use and disclose personal information, and the Freedom of Information and Protection of Privacy Act (FIPPA) which applies to public sector, including government and educational institutions. Beyond typical prospecting limitations, this law can make it even more challenging to gather detailed demographic information needed for diversity, equity and inclusion (DEI) initiatives, creating yet another requirement for Canadian prospect researchers to use creativity in their work.

That isn’t to say there are no privacy laws in the U.S., an example would be the California Consumer Privacy Act (CCPA) which became effective in 2020, but this law and others tend to be less restrictive compared to Canada's PIPEDA or FIPPA. In general, there is more flexibility in using personal data for fundraising and research purposes in the U.S., but both countries are still mindful of ethical considerations and learn to work within the scope they have access to.

Research Tools

Because less individual data is available, linkages and any type of relationship mapping become more important in the Canadian prospect research process.

While some research tool names sound familiar and are used frequently in both countries, like iWave (which began in Canada) or Lexis University, there are other familiar tools like LinkedIn, which do not have the same userbase, or WhitePages, which is available but doesn’t have the same access to information so has a more limited scope.  

Other tools may be unfamiliar to those outside of Canada. CharityCAN is a Canadian-specific prospect research and relationship management tool. The platform integrates with major CRMs and provides relationship mapping features. The tool offers household data to include current year estimates of real estate values and donation amounts for every postal code in Canada. Other “go-to” tools mentioned include Environics and Imagine Canada’s Grant Connect.

Other tools closely align with those from the U.S. For example, SEDAR is the Canadian equivalent of the U.S. Securities and Exchange Commission’s (SEC) electronic data gathering, analysis and retrieval system (EDGAR), which allows users to look up similar fields. As previously mentioned, researchers can look up U.S. IRS Form 990 equivalents on the Canadian Revenue Agency’s website. Some provinces have land registry offices, which are similar to public records offices like the register of deeds in the US.

Additionally, many resources, like newspapers and other databases, are accessible through the public and university library systems, as in the U.S.

Nonprofit Landscape

While philanthropy in Canada is often seen as younger and smaller than in the U.S., there is a rich philanthropic tradition, especially among families and foundations. Canadian nonprofits have traditionally relied more on government funding and grants, with individual giving constituting a smaller portion of total revenue, though this is shifting as government spending decreases and philanthropy gains more traction.

Similar to the U.S., there are sectors that have more developed philanthropic backing than others. The environmental sector and climate change are both issues than that have gained traction more recently than in the U.S. and fundraising for these issues reflects that.

Canadians generally tend to be more private about their charitable activities, and donor reports are often unavailable. Major donors may not seek public recognition to the same extent as in the U.S., but there is a shift in attitude beginning. More major donors seek and receive public acknowledgment for their contributions, creating another avenue to gather data for prospect research. There is a recent tendency towards more collaboration between large organizations to create transformational gifts, and increased announcements of gifts in the news.

There is also less research into Canadian giving trends, which may contribute to the opaqueness of the philanthropic tradition. On the other hand, Canada has at least one master’s level course in prospect research.

If the differences above aren’t enough, a unique challenge can be the need to provide information in both French and English as many areas are bi-lingual and Quebec is predominately French speaking.

As Tracy Church put it, “the processes are the same, resources are different — it’s just a little harder.” Researchers must adapt their strategies to navigate the varying landscapes of data availability, privacy regulations and nonprofit environments, ensuring they can identify and engage potential donors effectively while adhering to legal and ethical standards. While the landscape may be different, our Canadian colleagues exemplify these skills as they support the nonprofit sector every day. Happy Canada Day!

Are you interested in learning more about prospecting in Canada or privacy laws? Visit the Apra Canada website to explore resources or get in contact with chapter leadership.