{"id":32422,"date":"2021-08-20T14:46:46","date_gmt":"2021-08-20T18:46:46","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=32422"},"modified":"2021-08-23T14:32:00","modified_gmt":"2021-08-23T18:32:00","slug":"federal-election-2021-what-charities-need-to-know","status":"publish","type":"post","link":"https:\/\/www.cccc.org\/news_blogs\/legal\/2021\/08\/20\/federal-election-2021-what-charities-need-to-know\/","title":{"rendered":"Federal Election 2021: What Charities Need to Know"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Canadians will go to the polls in a federal election set for September 20. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WHY IT MATTERS<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Elections always matter, of course! Votes determine who represents Canadians in Parliament, and the party with the majority of successful candidates will <a href=\"https:\/\/lop.parl.ca\/About\/Parliament\/Education\/ourcountryourparliament\/html_booklet\/elections-e.html\" target=\"_blank\" rel=\"noreferrer noopener\">form the government<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But for charities, what matters right now is whether your activities are regulated under the <a href=\"https:\/\/canlii.ca\/t\/5553v\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Canada Elections Act<\/em><\/a><em>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the election period, any \u201cthird party\u201d (including charities) that spends $500 or more on certain activities has to register with Elections Canada. The election period starts on the day the election is called and ends on election day when the polls close. That means right now. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So your charity needs to ask: are any of our activities regulated under the <em>Canada Elections Act<\/em>?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WHAT IS REGULATED?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Naturally, the next question is, what activities are regulated? There are two types of regulated activity that apply to charities:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1.  <a href=\"https:\/\/www.canlii.org\/en\/ca\/laws\/stat\/sc-2000-c-9\/latest\/sc-2000-c-9.html#sec2subsec1\" target=\"_blank\" rel=\"noreferrer noopener\">Election advertising<\/a>: publicly sending messages that promote or oppose a political party or candidate <strong>including by taking a position on an issue<\/strong> with which the party or candidate is clearly associated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">How do you know if your issue is associated with a party or candidate?  It all depends on the context. The broader the advertising, the less likely there will be a clear association. <a href=\"https:\/\/www.elections.ca\/content.aspx?section=pol&amp;dir=thi\/ec20227&amp;document=p5&amp;lang=e\">Elections Canada explains<\/a> that where a candidate has championed or opposed a cause and it\u2019s a central part of that campaign, it would likely be regulated. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2.  <a href=\"https:\/\/www.canlii.org\/en\/ca\/laws\/stat\/sc-2000-c-9\/latest\/sc-2000-c-9.html#sec349\" target=\"_blank\" rel=\"noreferrer noopener\">Election surveys<\/a>: surveys that are used to decide whether or not you\u2019ll participate in election advertising or that are used to organize and carry out election advertising. Importantly, it includes surveys that are directed at your own members or employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">IMPORTANT! Charities are <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/charities-giving\/charities\/policies-guidance\/public-policy-dialogue-development-activities.html#toc6\" target=\"_blank\" rel=\"noreferrer noopener\">ALWAYS prohibited from supporting or opposing<\/a> political parties or candidates. Whether there is an election, or whether your charity registers as a third party under the <em>Canada Elections Act<\/em>, supporting or opposing parties or candidates is ALWAYS off limits. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">HOW IS IT REGULATED?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As soon as your charity conducts any regulated activity with expenses of $500 or more, you have to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.elections.ca\/content.aspx?section=pol&amp;dir=thi\/ec20227&amp;document=p2&amp;lang=e\" target=\"_blank\" rel=\"noreferrer noopener\">Register as a third party<\/a> with Elections Canada<\/li><li>Open a separate bank account for the sole purpose of your regulated activities<\/li><li>Appoint a financial agent to<ul><li>administer financial transactions related to your regulated activities<\/li><\/ul><ul><li>report them to Elections Canada<\/li><\/ul><ul><li>Note: this person has to consent to the role and must be identified in your initial registration form.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If your expenses are $10,000 or more, an auditor must be appointed. Depending on when the $10,000 threshold is reached, interim reporting may be required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Four months after election day, the financial agent must send a third party return and an auditor\u2019s report, if applicable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.elections.ca\/content.aspx?section=pol&amp;document=index&amp;dir=thi\/limits&amp;lang=e\" target=\"_blank\" rel=\"noreferrer noopener\">expense limit<\/a> on regulated activities is $525,700 overall and $4,506 in a given electoral district.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WHAT IS NOT REGULATED<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are activities that aren\u2019t regulated. <a href=\"https:\/\/www.canlii.org\/en\/ca\/laws\/stat\/sc-2000-c-9\/latest\/sc-2000-c-9.html#sec2subsec1\" target=\"_blank\" rel=\"noreferrer noopener\">These include<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Editorials, debates, speeches, interviews, columns, letters, commentary or news<\/li><li>Distributing a book for its commercial value if its release was planned regardless of the election<\/li><li>Sending a document directly to members, employees or shareholders<\/li><li>Individual, free, online communication about personal political views (charities need to be cautious here that the personal political views are clearly dissociated from the charity)<\/li><li>Calling electors only to encourage them to vote<\/li><li>A third party\u2019s own website content, and social media messages that <strong>do not <\/strong>have a placement cost<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1707\" height=\"2560\" src=\"https:\/\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2021\/08\/muhammad-daudy-4eeG4Mn0HVY-unsplash-edited-scaled.jpg\" alt=\"\" class=\"wp-image-32429\" srcset=\"https:\/\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2021\/08\/muhammad-daudy-4eeG4Mn0HVY-unsplash-edited-scaled.jpg 1707w, https:\/\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2021\/08\/muhammad-daudy-4eeG4Mn0HVY-unsplash-edited-200x300.jpg 200w, https:\/\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2021\/08\/muhammad-daudy-4eeG4Mn0HVY-unsplash-edited-683x1024.jpg 683w, https:\/\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2021\/08\/muhammad-daudy-4eeG4Mn0HVY-unsplash-edited-768x1152.jpg 768w, https:\/\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2021\/08\/muhammad-daudy-4eeG4Mn0HVY-unsplash-edited-1024x1536.jpg 1024w, https:\/\/www.cccc.org\/news_blogs\/wp-content\/uploads\/2021\/08\/muhammad-daudy-4eeG4Mn0HVY-unsplash-edited-1366x2048.jpg 1366w\" sizes=\"auto, (max-width: 1707px) 100vw, 1707px\" \/><figcaption>Photo by <a href=\"https:\/\/unsplash.com\/@ahsanjaya?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Muhammad Daudy<\/a> on <a href=\"https:\/\/unsplash.com\/s\/photos\/caution?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">IMPORTANT!<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <em>Canada Elections Act<\/em> registration requirements must be read along with two other important limits:<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li><em>Income Tax Act<\/em> limitations. Your charity can participate in <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/charities-giving\/charities\/policies-guidance\/public-policy-dialogue-development-activities.html\" target=\"_blank\" rel=\"noreferrer noopener\">public policy dialogue and development activities<\/a>, but can never support or oppose a political party or candidate.<\/li><li><em>Lobbying Act<\/em> requirements. If your charity communicates directly or indirectly with federal public office holders, you need to <a href=\"https:\/\/lobbycanada.gc.ca\/en\/rules\/lobbying-at-the-federal-level-at-a-glance\/\" target=\"_blank\" rel=\"noreferrer noopener\">be aware of the lobbying rules<\/a> and might need to register.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">CONCLUSION<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Charities can participate in the election process, and <a href=\"https:\/\/www.elections.ca\/content.aspx?section=pol&amp;dir=thi&amp;document=backgrounder&amp;lang=e#q12\" target=\"_blank\" rel=\"noreferrer noopener\">can register as third parties<\/a>. Just make sure you\u2019re aware of the expenses you\u2019re incurring, whether any of your advertising or survey activities fall within the scope of what is regulated, and ensure that you are not supporting or opposing any particular candidate or party.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">ADDITIONAL RESOURCES<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Elections Canada, <a href=\"https:\/\/www.elections.ca\/content.aspx?section=pol&amp;dir=thi\/ec20227&amp;document=index&amp;lang=e\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Political Financing Handbook for Third Parties, Financial Agents and Auditors<\/em><\/a> (June 2021)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Elections Canada, \u201c<a href=\"https:\/\/www.elections.ca\/content.aspx?section=pol&amp;dir=thi&amp;document=backgrounder&amp;lang=e\" target=\"_blank\" rel=\"noreferrer noopener\">Questions and Answers for Third Parties<\/a>\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CCCC, <a href=\"https:\/\/www.cccc.org\/kbm\/Content\/law\/ppdda-lobbying\/do-and-don't-charities-federal-election-part-1-577987825.htm\" target=\"_blank\" rel=\"noreferrer noopener\">Say What? Dos and Don\u2019ts for Charities During the Federal Election (Part I)<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CCCC, <a href=\"https:\/\/www.cccc.org\/kbm\/Content\/law\/ppdda-lobbying\/do-and-don't-charities-federal-election-part-2-577987797.htm\" target=\"_blank\" rel=\"noreferrer noopener\">Say What? Dos and Don\u2019t for Charities During the Federal Election (Part II)<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">DID YOU KNOW?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Although in practice the Prime Minister generally decides when an election is going to happen, there are formalities to the process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.gg.ca\/en\" target=\"_blank\" rel=\"noreferrer noopener\">Governor General<\/a> acts on the advice of the Prime Minister. When the Prime Minister recommends that Parliament be <a href=\"https:\/\/www.ourcommons.ca\/About\/OurProcedure\/ParliamentaryCycle\/c_g_parliamentarycycle-e.htm#5\" target=\"_blank\" rel=\"noreferrer noopener\">dissolved<\/a>, the Governor General will <a href=\"https:\/\/www.gazette.gc.ca\/rp-pr\/p2\/2021\/2021-08-16-x6\/html\/si-tr60-eng.html\" target=\"_blank\" rel=\"noreferrer noopener\">issue a proclamation<\/a> to dissolve Parliament.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Dissolving Parliament means that any bills that are still going through the process will \u201cdie\u201d \u2013 that is, the next <a href=\"https:\/\/www.ourcommons.ca\/About\/OurProcedure\/ParliamentaryCycle\/c_g_parliamentarycycle-e.htm#effect-d-house\" target=\"_blank\" rel=\"noreferrer noopener\">government has to re-introduce<\/a> the bills and the whole process starts over. Even if a bill has been through a committee process it will have to start at the beginning. It can\u2019t start at committee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can find out more about the <a href=\"https:\/\/www.ourcommons.ca\/About\/OurProcedure\/ParliamentaryCycle\/c_g_parliamentarycycle-e.htm\" target=\"_blank\" rel=\"noreferrer noopener\">Parliamentary cycle here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canadians will go to the polls in a federal election set for September 20.   WHY IT MATTERS Elections always matter, of course! Votes determine who represents Canadians in Parliament, and the party with the majority of successful candidates will form the government. But for charities, what matters right now&#8230; <a href=\"https:\/\/www.cccc.org\/news_blogs\/legal\/2021\/08\/20\/federal-election-2021-what-charities-need-to-know\/\" class=\"linkbutton\">More<\/a><\/p>\n","protected":false},"author":10,"featured_media":32427,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ts_fic_featured_image_caption":"Cropped image of person placing ballot into box","footnotes":""},"categories":[137],"tags":[437,152,240,533,534],"series":[],"class_list":["post-32422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-advocacy","tag-canada","tag-charities","tag-election","tag-ppdda"],"_links":{"self":[{"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/32422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/comments?post=32422"}],"version-history":[{"count":0,"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/posts\/32422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/media\/32427"}],"wp:attachment":[{"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/media?parent=32422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/categories?post=32422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/tags?post=32422"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/www.cccc.org\/news_blogs\/wp-json\/wp\/v2\/series?post=32422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}