Charity Village® Research: Charities and politics don't mix (background info)

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Charities and politics don't mix
By Adam Aptowitzer
April 16, 2007

General Rule

1. Charities must be primarily engaged in charitable activities.
2. As a matter of law, politics cannot be charitable.
But, charities can engage in political activities that are subordinate and connected to their charitable objects.
Political Purposes:
- To further the interests of a particular political party
- To procure changes in the laws of this country or another country.
- To procure changes in government policy or decisions of governmental authority in Canada or elsewhere.
Prohibited Activities
- Partisan Campaigning
-Activities unconnected to the charitable objects
-Activities which are not subordinate to the charitable objects
Partisan Campaigning
Examples of Partisan Campaigning:

- Inviting a candidate of one party to speak but not all candidates.
- Ensuring one candidate has more time to speak than another or a bigger audience.
- Explicitly communicates a call to political action. Likely does not include:
- A sitting MP on your board of directors
- Holding the same position on an issue as a vocal MP
- Distributing voting record sheets of ALL Parliamentarians

Connected Activities
Connected: An activity that relates to and supports a charity's purpose and represents a reasonable way to achieve them.

- Position must be 'well-reasoned'

Examples
1) An AIDS hospice involved in lobbying re: AIDS medications.
2) A foundation to support education lobbies for more school funding.
Subordinate:
Activities that are subservient to a charity's dominant charitable purpose or are a minor focus of the charity.

The CRA considers an activity subordinate if less than 10% of a charity's resources are dedicated to the activity. (Resources includes financial, human and physical).

N.B. Spending on political activities is not counted toward the disbursement quota.
Grey Areas

Communication with an elected representative Lobbying/or presenting?
Public awareness campaigns
Appearances at political events
Apparently one sided campaign activities
Political activities which consume more than 10% of a charity's resources.
'Educating' the public
Advancing Education is Charitable

Advancing Politics Is Not
To be considered charitable, an educational activity must be reasonably objective and based on a well-reasoned position.
Must be based on factual information and present an opinion that is well reasoned and address contrary arguments and facts.
The degree of bias in an activity will determine if it can still be considered educational.
Click here to listen to the audiocast about charities and political activity.
External Resources:
Canada Revenue Agency - Registered charities and political activities

CharityTax.com - Adam Aptowitzer's Online Office

Drache Charity Insights Newsletter

This presentation does not constitute legal advice or establish a solicitor/client relationship by way of any information contained herein. The contents are intended for general information only and under no circumstances can it be relied upon as legal advice. This presentation is current only as of the date above and does not reflect any subsequent changes in the law. Readers are advised to consult with a qualified lawyer and obtain a written opinion concerning the specifics of their particular situation.