Electioneering Again

By: Adam Aptowitzer

Given that we are now in our fourth federal election in seven years, many charities are likely familiar with the restrictions on participating in political activities. However, given that many charities will be tempted to use this election as an opportunity to lobby against the recent budget proposals some review of the rules is warranted. Charities are prohibited from participating in partisan political activities; doing so makes a charity liable to revocation of its registered charity status. Partisan political activities include not only a specific endorsement of a particular political party or candidate but also favouring a candidate or a party with space or with time which is not made available to other parties. Charities are not prohibited however from participating in the political process by contributing their special expertise to a general debate on a topic. For example, a charity which engages in feeding the poor would have special expertise in the area. Where the issue arises for public debate it may be appropriate for this particular charity to advocate or contribute its special expertise to the debate either through written articles or submissions to government. The charity may also want to illustrate which party has a platform most similar to the position it is advocating. If done with caution (i.e. not simply as a partisan endorsement), and in a way so as not to arouse the suspicions of a capricious revenue officer, the charity may succeed in its objective.

Even if the publication is non-partisan but does not relate to the charity's objects, the CRA restricts the amount of resources that can be expended in producing the publication. In the example above, where a charity is participating in a political debate by contributing its expertise in a specific field, the CRA would still restrict the amount of resources the charity can contribute to the debate to 10% of its financial, human, or capital resources. The obvious problem lies in the calculation of these amounts especially where the resources being donated are not simply financial but perhaps volunteer time. How does a charity decide that 10% of its volunteer resources are being donated to a political activity? A volunteer is still a private citizen able to give of their own time to pursue their own activities. Given these difficulties it is unclear in what circumstances the CRA would try to revoke a charities registration for engaging in non-partisan political activity. Nevertheless, a charity would be wise to avoid the problems that come with attracting the CRA's attention.

While we look forward to the case that makes it to court where a charity argues that the CRA is restricting the charity's right to freedom of expression, until then, charities should be cautious in their political activities. If you have any questions or comments please feel free to contact us..