Aug 2019 Charity & NFP Law Update
Recent legislative changes to the Income Tax Act (Canada) (“ITA”) have opened the door for registered charities and registered Canadian amateur athletic associations (“RCAAAs”) to engage in “public policy dialogue and development activities” (“PPDDAs”). These changes, which were introduced through Bill C-86, Budget Implementation Act, 2018, No. 2 and received Royal Assent on December 13, 2018, removed all reference to “political activities,” and now permit charities (and RCAAAs) to engage in PPDDAs to the extent that PPDDAs further their charitable purpose. To this end, charities and RCAAAs may devote 100% of their resources to PPDDAs, which may include lobbying, as opposed to the previous 10% limit on permitted political activities.
With the upcoming Federal election, and recent amendments to the Canada Elections Act, which are meant “to increase transparency regarding the participation of third parties in the electoral process,” it is important that charities, RCAAAs, as well as other not-for-profits (“NFPs”) intending to carry out lobbying activities understand the legislation for which these activities are subject. In this regard, the lobbying activities carried out by charities and RCAAAs are subject to restrictions under the ITA. In addition, charities, RCAAAs, and other NFPs are subject to federal, provincial, and municipal elections and lobbying legislation. This Bulletin provides a very brief introduction to the federal and provincial lobbying legislation (collectively, “Lobbying Legislation”) and its impact on charities, RCAAAs and NFPs. This Bulletin also provides a very brief introduction to the recent legislative changes to the Canada Elections Act. As Lobbying Legislation is complicated in nature, it is beyond the scope of this Bulletin to discuss lobbying legislation as it applies to municipalities (including municipal by-laws), or to provide an in-depth analysis of Lobbying Legislation. As such, this Bulletin does not provide a detailed explanation of the law in this regard and the reader will therefore want to refer to the resources cited herein for further details.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 453.