DAOD 7021-4, Solicitations, Sponsorships and Donations

1. Introduction

Date of Issue: 2000-07-07

Date of Last Modification: 2015-05-06

Application: This DAOD is a directive that applies to employees of the Department of National Defence (DND employees) and an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF members).

Supersession:

  • CPAO 7.10, Conflict of Interest
  • CFAO 19-7, Civil Employment – Military Personnel
  • CFAO 19-37, Conflict of Interest and Post-Employment Compliance Measures
  • NDHQ Policy Directive P5/89, Conflict of Interest Supplementary Compliance Measures
  • CANFORGEN 030/07, Sponsorships and Donations, Interim Guidelines

Approval Authority: Chief Review Services (CRS)

Enquiries: Director Defence Ethics Programme (DDEP)

2. Definitions

conflict of duties (tâches conflictuelles)

A conflict that arises, not because of a DND employee’s or CF member’s private interests, but as a result of one or more concurrent or competing official responsibilities. For example, responsibilities associated with their primary official duties compete with their responsibilities in a role outside of DND or the CF, such as an appointment to a board of directors, or other outside function, when that role is also part of his or her official duties. (Department of National Defence and Canadian Forces Code of Values and Ethics)

Defence Services Programme (Programme des services de la Défense)

The departmental programme that contains departmentally-approved activities and projects, in resource terms, over time, in satisfaction of government policy.

Note – In this context, departmentally-approved includes full departmental approval, approval-in-principle, and planning approval. (Defence Terminology Bank record number 488)

donation (don)

The disposal of Crown assets to a non-defence agency by the DND or the CAF in accordance with surplus Crown assets disposal legislation, or a monetary or non-monetary gift by an non-defence agency to the DND or the CAF for which there is no exchange of monetary or non-monetary benefit in return, other than possibly a tax receipt. (Defence Terminology Bank record number 693783)

non-defence agency (organisme externe)

An organization or individual outside Defence, including another government department, another level of government, the government and armed forces of other countries, institutions, commercial businesses, or non-profit organizations. (Defence Terminology Bank record number 46396)

organizational conflict of interest (conflit d’intérêts organisationnel)

A situation in which the action or decision of a DND employee or CF member calls into question the integrity, objectivity, impartiality or non-partisanship of the DND or the CF. As a result, the situation could be perceived by a reasonable observer as placing the DND or the CF in a conflict of interest with the public interest. A real organizational conflict of interest is defined as existing at the present time in a situation; an apparent organizational conflict of interest could be perceived by a reasonable person to exist in the situation, whether or not it is the case; and a potential organizational conflict of interest could reasonably be foreseen to exist in the future. An apparent organizational conflict of interest is just as serious as a real or potential organizational conflict of interest. (Department of National Defence and Canadian Forces Code of Values and Ethics)

personal conflict of interest (conflit d’intérêts personnel)

A situation in which a DND employee or CF member has private interests that are not an integral part of their public role and that could improperly influence the performance of his or her official duties and responsibilities or in which the DND employee or CF member uses his or her office for personal gain. A real conflict of interest is defined as existing at the present time in a situation; an apparent conflict of interest could be perceived by a reasonable observer to exist in a situation, whether or not it is the case; and a potential conflict of interest could reasonably be foreseen to exist in the future. Conflicts of interest may arise in the following circumstances: outside activities (including political activities); acceptance of gifts, hospitality and other benefits; post-employment activities; and any other activity or decision incompatible with the official duties and responsibilities of a DND employee or a CF member. An apparent PCOI is just as serious as a real or potential PCOI. (Department of National Defence and Canadian Forces Code of Values and Ethics)

sponsorship (parrainage)

An arrangement between the DND or the CAF and a non-defence agency under which, in exchange for public acknowledgement or other non-monetary benefit, the non-defence agency provides financial resources or in-kind assistance to the DND or the CAF in support of a particular DND or CAF event or initiative. (Defence Terminology Bank record number 693781)

3. Principles of Sponsorship and Donation Arrangements

Context

3.1 A non-defence agency may seek to enter into an arrangement with the DND or the CAF in order to sponsor a DND or CAF event or initiative. A non-defence agency may also wish to make a donation to the DND or the CAF, with or without a specified purpose.

3.2 The provision of services to a non-defence agency without the full recovery of costs for the defence resources used is only approved in limited circumstances and in a manner consistent with Government of Canada (GC) policy (see B-GS-055-000/AG-001, Provision of Services to Non-Defence Agencies and section 5 of this DAOD).

3.3 This DAOD does not apply to the administration of non-public property (NPP) or to the use of NPP resources. Sponsorships and donations relating to NPP morale and welfare programming are governed by sponsorship and donation policies issued by the Canadian Forces Morale and Welfare Services.

Aim

3.4 The aim of this DAOD is to maintain and enhance the integrity and impartiality of the DND and the CAF by preventing conflict of interest (COI) or potential for adverse public perception associated with the acceptance of any sponsorship or donation, as well as those associated with the provision of services to a non-defence agency.

Note – In this DAOD, a COI is an organizational COI, a personal COI or a conflict of duties, as applicable.

Requirements

3.5 A DND employee or CAF member must ensure, in any arrangement with a non-defence agency relating to a sponsorship or donation by or to the DND or the CAF, or the provision of services, that:

  1. there is compliance by the DND and the CAF with all federal laws, policies and guidelines as set out in section 8 of this DAOD;
  2. the benefits to the DND or the CAF outweigh any COI or adverse public perception;
  3. there is no expectation of preferential treatment in present or future DND or CAF dealings, nor any actual or implied endorsement of products or services of the sponsor or donor;
  4. transparency is demonstrated in accordance with established accounting and reporting procedures; and
  5. all commitments made on behalf of the DND or the CAF are honoured in good faith at all times.

3.6 Level one (L1) and level two (L2) advisors, DND managers and commanding officers (COs) must ensure that any sponsorship or donation by or to the DND or the CAF, and any provision of services to a non-defence agency:

  1. would not place the DND or the CAF in a COI that compromises or appears to compromise the integrity of the DND or the CAF, nor create potential for adverse public perception; and
  2. demonstrates:
    1. a broader GC, DND or CAF interest, such as the promotion of public support or a strategic alliance in support of the DND or the CAF, promotion of Canadian industry at an event hosted by an industry association or, in the case of an offer from a foreign source, the promotion of a strategic foreign alliance in support of the DND or the CAF; or
    2. a broader societal interest, for example, the donation of proceeds to a recognized charity.

3.7 The DND or the CAF, or a DND employee or CAF member acting on behalf of the DND or the CAF, must not accept a sponsorship from a non-defence agency in exchange for advertising the goods or services of the sponsor. Displaying the products or services of the sponsor at a DND or a CAF event constitutes advertising. Displaying a sponsor’s name or logo in communication materials, without promotional taglines, does not constitute advertising.

3.8 A sponsorship or donation for a DND or a CAF event or initiative must be applied for the intended purpose only. Unused resources must be returned to the sponsor or donor or, if this is not possible, disposed of in a manner consistent with applicable financial legislation.

4. Public Solicitation and Acceptance of Sponsorships and Donations

General

4.1 With the exception of fundraising for charitable organizations, DND employees and CAF members must not solicit gifts, hospitality, other benefits or transfers of economic value from a non-defence agency that has dealings with the government. When fundraising for charitable organizations, DND employees and CAF members in their public roles must ensure that they have the prior written consent of the Deputy Minister (DM) or the Chief of the Defence Staff (CDS), or their delegates, as applicable, in order to solicit donations, prizes or contributions in kind from a non-defence agency. If such consent is granted, for example, for the GC Workplace Charitable Campaign, the amounts to be solicited in such instances are subject to the limits imposed by the DM and the CDS, or their delegates, as applicable.

4.2 If a non-defence agency with which the DND or the CAF has past, present or potential official dealings offers a benefit to DND or the CAF, such as funding for an event (which constitutes a sponsorship) or a donation of goods or services, DND employees and CAF members must consider if a COI or potential for adverse public perception exists, and obtain the prior written consent of the DM or the CDS, or their delegates, as applicable. A request for written consent must be staffed through the chain of command of the relevant L1 advisor.

4.3 Similarly, if the DND or the CAF fund an event of, or donate materiel to, a non-defence agency with which the DND or the CAF has past, present or potential official dealings, DND employees and CAF members in their public roles must consider if any COI or potential for adverse public perception exists. If so, they must obtain the prior written consent of the DM or the CDS, or their delegates, as applicable. A request for written consent must be staffed through the chain of command of the relevant L1 advisor.

4.4 The DM or the CDS, or their delegates, may require that any activity described in paragraphs 4.1 to 4.3 be modified or terminated if it is determined that:

  1. there exists a COI or potential for adverse public perception;
  2. the activity could result in a contravention under paragraph 121(1)(c) of the Criminal Code; or
  3. there may be non-compliance with the Treasury Board (TB) Policy on Conflict of Interest and Post-Employment.

Acceptable Use of Resources

4.5 Under the TB Directive on Specified Purposes Accounts, funds provided to the Crown by a sponsorship or donation must not be used to:

  1. pay any part of the costs of contract personnel or temporary staff or other operating costs relating to the sponsorship or donation; or
  2. offset any other expenditures such as the salaries or benefits of DND employees or CAF members, or any other costs chargeable to a Defence Services Programme appropriation.

4.6 All fees, commissions and administrative expenses relating to the management by the DND and the CAF of any sponsorship or donation must not be funded through the use of the contribution of the sponsor or donor.

Authorities Who May Accept a Sponsorship or Donation

4.7 A sponsorship or donation may only be accepted by the DM or the CDS, or their delegates, as applicable. If in respect of a sponsorship or donation there is any doubt as to the existence of a COI or the potential for adverse public perception, a determination must first be made by the CRS.

Deposit and Recording of Donations

4.8 The following table specifies conditions associated with certain donations:

Any donation to the …must be …
Crown for a specified activity consistent with the DND and CAF mandate, for example, in support of a specific DND or CAF memorial fund,
  • deposited into a specified purpose account in the Consolidated Revenue Fund; and
  • recorded in the Defence Resource Management Information System.
DND or the CAF with no specific intent or designated purpose
  • treated as non-respendable non-tax revenue; and
  • deposited to the specific account directed by Director Budget 3 of the Assistant Deputy Minister (Finance and Corporate Services) group.

Real Property, Immovables, Goods and Services

4.9 Due to potential liability and other legal issues, an office of primary interest must consult with their legal and financial advisors before accepting any donation of real property, an immovable, goods or services.

5. Provision of Services to Non-Defence Agencies

General

5.1 B-GS-055-000/AG-001 governs any provision of services to a non-defence agency and requires a written agreement, liability disclaimer, calculation of recoverable costs and consultation with a legal advisor.

Written Authorization

5.2 In accordance with B-GS-055-000/AG-001, a DND employee or CAF member must not use DND or CAF resources in support of activities for the benefit of a non-defence agency, including fundraising, without the written authorization of the applicable approving authority.

CRS Determination

5.3 If there is any doubt as to the existence of a COI or potential for adverse public perception relating to the provision of services to a non-defence agency, an approving authority must refer the matter to the CRS for determination.

6. Consequences

Consequences of Non-Compliance

6.1 Non-compliance with this DAOD may have consequences for both the DND and the CAF as institutions, and for DND employees and CAF members as individuals. Suspected non-compliance will be investigated. The nature and severity of the consequences resulting from actual non-compliance will be commensurate with the circumstances of the non-compliance.

Note – In respect of the compliance of DND employees, see the TB Framework for the Management of Compliance for additional information.

Failure by a DND Employee to Comply

6.2 A DND employee who fails to comply with this DAOD, or the provisions in the Values and Ethics Code for the Public Sector or the Department of National Defence and Canadian Forces Code of Values and Ethics in respect of public solicitations, sponsorships and donations, may be subject to appropriate disciplinary action, up to and including termination of employment under DAOD 5016-0, Standards of Civilian Conduct and Discipline.

Failure by a CAF Member to Comply

6.3 A CAF member who fails to comply with this DAOD or the provisions in the Department of National Defence and Canadian Forces Code of Values and Ethics in respect of public solicitations, sponsorships and donations may be subject to one or more of the following:

  1. change of duties;
  2. release or other administrative action as set out in the Administrative Review (AR) Decisions paragraph of DAOD 5019-2, Administrative Review; or
  3. disciplinary action under the National Defence Act.

Recourse

6.4 Any DND employee or CAF member who disagrees with a decision on the appropriate arrangements necessary to achieve compliance with this DAOD, the Department of National Defence and Canadian Forces Code of Values and Ethics or, additionally in the case of a DND employee, the Values and Ethics Code for the Public Sector and the Policy on Conflict of Interest and Post-Employment, may have recourse by submitting a grievance in accordance with established processes.

7. Responsibilities

Responsibility Table

7.1 The following table identifies the responsibilities associated with this DAOD:

The …is or are responsible for …
L1 advisors
  • reviewing any proposed sponsorship or donation for COI or potential for adverse public perception, and consulting with the CRS as necessary; and
  • reporting any acceptance of a sponsorship or donation by the DM or the CDS, or their delegates, to the CRS for recording in its registry of sponsorship and donation activities.
CRS
  • keeping a registry of sponsorship and donation activities.
L2 advisors outside the National Capital Region
  • reviewing any proposed sponsorship or donation for COI or potential for adverse public perception, and consulting with the CRS as necessary; and
  • reporting any proposed sponsorship or donation to the relevant L1 advisor.
director or CO of a base, wing, Her Majesty's Canadian Ship or depot
  • reviewing any proposed sponsorship or donation for COI or potential for adverse public perception, and consulting with the CRS as necessary; and
  • reporting any proposed sponsorship or donation to the relevant L2 advisor.
CO of a station or unit
  • reviewing any proposed sponsorship or donation for COI or potential for adverse public perception, and consulting with the CRS as necessary; and
  • reporting any proposed sponsorship or donation to the relevant level three advisor.
DDEP
  • notifying the CRS of any non-compliance with this DAOD.

Note – The responsibilities in this Table do not apply to any sponsorship or donation relating to NPP morale and welfare programming.

8. References

Acts, Regulations, Central Agency Policies and Policy DAOD

Other References