Which statement describes how fundraising activities should be managed under the bylaws?

• A. They are exempt from reporting requirements.
• B. They must comply with financial controls, approvals, and reporting requirements.
• C. They can be conducted without oversight.
• D. They require approval by the external regulator only.

Answer: (B)

Fundraising should be governed by clear internal controls, required approvals, and regular reporting. By ensuring procedures for approving campaigns, handling funds, and keeping accurate records, the organization maintains accountability and transparency and uses funds only for authorized purposes. That’s why the statement about following financial controls, approvals, and reporting requirements best fits how fundraising activities are managed under the bylaws.

Exemption from reporting would undermine accountability, and conducting fundraising without oversight isn’t aligned with good governance. Relying solely on external regulator approval misses the essential internal checks and balances that bylaws typically establish.