Important Advisory on Partisan Political Activities

Over the past year, the Canada Revenue Agency (CRA) has received a number of inquiries from Canadians and charities on the issue of partisan political activities.

Inquiries generally focused on whether the activity of certain charities could be considered partisan. In the past, the CRA, has, at different times, issued advisories, intended to clarify some of the uncertainty surrounding the issue.

In light of the recent election call, the CRA is once again issuing an advisory to remind registered charities that there are limitations on certain types of political activities. This advisory should be read in conjunction with our more detailed guidance on Political Activities, CPS-022.

Partisan political activities are those that involve direct or indirect support of, or opposition to, any political party or candidate for public office. Registered charities are prohibited from partisan political activity, because supporting or opposing a political party or candidate for public office is not a charitable purpose at law. There are two aspects to the prohibition: the first restricts the involvement of charities with political parties; the second restricts the involvement of charities through the support or opposition to a candidate for public office. Charities engaging in partisan political activities, which are clearly not in compliance with the law, risk deregistration.

What constitutes partisan political activity has not changed in any way over the years, as the limitation on this type of activity is contained in the Income Tax Act at subsections 149.1(6.1) and (6.2).

A registered charity is prohibited from directly or indirectly supporting or opposing a candidate for public office as well as a political party. In deciding whether a charity is engaged in prohibited activity, we generally consider whether the activity can reasonably be construed as intending to influence the outcome of the election. This may include but is not limited to situations where a registered charity:

• Provides financial or material contributions to a political party or candidate;
• Makes public statements (oral or written) that endorse or denounce a candidate or political party;
• Hosts an all-candidates meeting or public forum in a partisan manner;
• Invites candidates to speak at different dates or different events in a manner that favours a candidate or political party;
• Publishes or otherwise discloses the voting record of only one candidate or political party on an issue;
• Posts signs in support of, or opposition to, a particular candidate or political party;
• Distributes literature or voters’ guides that promote or oppose a candidate or political party explicitly or by implication;
• Explicitly connects its position on an issue to the position taken on the same issue, by a candidate or political party.

Registered charities jeopardize their charitable status if they engage in partisan political activity and should consult Political Activities, CPS-022 to ascertain whether, and to what extent, the activities they seek to be involved in are permitted. Section 6.1 of the guidance provides a general outline of the prohibition on partisan political activities.

For further information, please contact our Client Assistance section by calling toll-free 1-800-267-2384.