Feb 2019 Charity & NFP Law Update
Federal Budget to be Tabled on March 2019
In a news release published by the Department of Finance on February 20, 2019, Finance Minister Bill Morneau announced that the Federal Budget of 2019 (“Budget 2019”) will be tabled on March 19, 2019. Federal budgets in previous years have usually contained proposals for legislative and policy amendments that have impacted charities and not-for-profits, and Budget 2019 will likely be no different. Of particular interest to charities and not-for-profits are possible legislative and policy changes arising out of the 2018 Fall Economic Statement (“Economic Statement”). In this regard, the Economic Statement proposed new initiatives to support non-profit journalism and news organizations (which were previously proposed in the 2018 Federal Budget), establishing a permanent Advisory Committee on the Charitable Sector, as well as a Social Finance Fund to benefit charitable, non-profit and other social purpose organizations. See Charity & NFP Law Bulletin No. 435 for more details.
Royal Assent Received for Alberta Bill 23, An Act to Renew Local Democracy in Alberta
On December 11, 2018, Royal Assent was given for Alberta’s Bill 23, An Act to Renew Local Democracy in Alberta (“Bill 23”), which updates the legislation in Alberta that governs local elections, the Local Authorities Election Act. As explained by the Alberta government, Bill 23 introduces new rules that “will limit campaign contributions, ban corporate and union donations and improve transparency and accountability.”
Of relevance to charities are the provisions setting out the circumstances under which a candidate, defined as an individual “who has been nominated to run for election in a local jurisdiction as a councillor or school board trustee,” may direct such contributions or other funds to a registered charity. For example, Bill 23 requires a candidate to direct the local jurisdiction to donate any campaign surplus amounts to a registered charity if the candidate does not file nomination papers before the next general election. Further, unauthorized contributions may be donated to a registered charity as one of several options provided under Bill 23 in certain circumstances, such as when unauthorized contributions are made by an unidentifiable contributor or if there are unauthorized contributions that were made during the transitional period between Bill 23’s first reading and the day it received Royal Assent. Additionally, advertising account funds of registered third parties in certain situations may be donated to a charity with respect to contributions made to the campaign. Bill 23 also expressly prohibits charities from being listed in a register of third parties who engage in election or political advertising and from making any election advertising contributions.