Backgrounders
Contributions and Expenses
at a Federal Election or By-election:
Candidates and Registered Parties
The Canada Elections Act includes financial provisions designed to ensure openness, fairness and accessibility in our electoral system.
Contributions
Candidates and registered political parties may accept contributions from individuals who are Canadian citizens or permanent residents of Canada. Contributions from foreign sources are prohibited.
In addition, candidates may accept contributions from:
- a corporation that carries on business in Canada, other than a Crown corporation or a corporation that receives more than 50% of its funding from the federal government
- a union that holds bargaining rights for employees in Canada
- an "unincorporated association" that raises money from eligible individual contributors for the purpose of making a contribution
The source of each contribution and the name and address of each contributor of more than $200 to a registered political party in a single year or to a candidate during an election must be disclosed by the party's chief agent or the candidate's official agent. When a numbered corporation makes a donation over $200 to a candidate, the official agent must disclose the name of its chief executive officer or president. Names and addresses of all contributors who contribute through unincorporated associations must be disclosed as well as names and addresses of contributors who make contributions to a leadership contestant through a registered party.
Limits on contributions by individuals
Any individual who is a Canadian citizen or permanent resident of Canada may make these contributions:
- up to $5,000* in total in a calendar year to each particular registered political party and its registered electoral district associations, nomination contestants and candidates
- up to $5,100* in total per election to each candidate for a particular election who is not the candidate of a registered political party
- up to $5,100* in total to the leadership contestants in a particular leadership contest
Contribution limits are adjusted annually for inflation*.
A candidate or nomination contestant may also contribute an additional $5,000* out of his or her own funds to his or her own election or nomination campaign.
Limits on contributions by corporations and trade unions
A corporation or trade union may contribute:
- up to $1,000* in total in any calendar year to the registered associations, nomination contestants and candidates of each particular registered party
- up to $1,000* in total per election to each candidate for a particular election who is not the candidate of a registered party
Contribution limits are adjusted annually for inflation*.
Certain corporations and trade unions are not eligible to make a contribution:
- a corporation that does not carry on business in Canada
- a trade union that does not hold bargaining rights for employees in Canada
- a Crown corporation, or
- a corporation that receives more than 50% of its funding from the federal government
A special provision applies if two elections are held in an electoral district in a single calendar year, and a corporation or trade union has already made a contribution to the nomination contestants, the registered electoral district association or the candidate of a registered party in that electoral district before the first election day. In that case, the corporation or trade union may make further contributions of up to $1,000* in total to the candidate, the nomination contestants or the registered electoral district association of the registered party in the same electoral district during the election period for the second election. Those contributions to the candidate, the nomination contestants or the registered association of a particular registered party are allowed in only one electoral district in any calendar year.
Another special provision concerns a contribution to an unsuccessful nomination contestant. A corporation or trade union may have made a contribution to a nomination contestant in an electoral district, but the contestant was not endorsed by the registered party as its candidate. In that case, during the same year the corporation or trade union may make contributions not exceeding $1,000* in total to the endorsed candidate after he or she is endorsed. Those contributions to the candidate of a registered party are allowed only for one election in one electoral district in any calendar year.
Indirect contributions
A candidate must not normally receive an indirect contribution – one that comes from the money, property or services of another person or entity (including companies, unions and organizations), if that other person or entity gave it to the contributor to make a contribution to the candidate.
Nevertheless under certain circumstances, an unincorporated association is allowed to make contributions to a candidate that come from money provided by an individual who is a Canadian citizen or permanent resident of Canada and given to the association for the purpose of making a political contribution. The contributions must not exceed:
- $1,000* in total in any calendar year to the registered associations, the nomination contestants and the candidates of each particular registered party
- $1,000* in total per election to each candidate for a particular election who is not the candidate of a registered party
Contribution limits are adjusted annually for inflation*.
With each contribution, the organization must also provide a statement containing the following information:
- the name and address of the individual who is responsible for the organization
- the amount of the contribution
- the name and address of each individual whose money forms part of the contribution, the amount of money provided by that individual included in the contribution, and the date on which it was provided
A special provision applies if two elections are held in an electoral district in a single calendar year, and an unincorporated association has already made an indirect contribution to the nomination contestants, the registered electoral district association or the candidate of a registered party in that electoral district before the first election day. In that case, the organization may make further contributions of up to $1,000* in total to the nomination contestants, the registered electoral district association or the candidate of the registered party in the same electoral district during the election period for the second election. Those contributions to the nomination contestants, the registered electoral district association or the candidate of a particular registered party are allowed only in one electoral district in any calendar year.
Another special provision concerns a contribution to an unsuccessful nomination contestant. An unincorporated association may have made a contribution to a nomination contestant in an electoral district, but the contestant is not endorsed by the registered party as its candidate. In that case, during the same year the unincorporated organization may make contributions not exceeding $1,000* in total to the endorsed candidate after he or she is endorsed. Those contributions to the candidate of a registered party are allowed only for one election in one electoral district in any calendar year.
Prohibited contributions
It is illegal for anyone (including a company or other organization) to solicit or accept a contribution on behalf of a registered party, registered association or candidate if the person or entity made a representation to the contributor or potential contributor that any part of the contribution would be transferred to a person or entity other than the registered party, a candidate, leadership contestant or electoral district association. It is also illegal for anyone to collude with someone else (including a company or other organization) to circumvent this prohibition.
Election expenses
Only persons authorized by the Act may incur election expenses. Candidates and registered parties are subject to indexed election expenses limits based on the higher of:
- the number of electors registered on the preliminary lists of electors in the applicable ridings, or
- the number of electors registered on the revised lists of electors in the applicable ridings
For candidates only, this limit is adjusted in certain circumstances:
- In a general election, if the number of electors on the preliminary or revised lists of electors in any riding is less than the average number on all preliminary or revised lists of electors in that general election, then the number of electors used for the calculation of the limit is deemed to be halfway between the number on the lists in that riding and the average number on all preliminary or revised lists of electors, as the case may be.
- In a by-election, if the number of electors on the preliminary or revised lists in the riding is less than the average number on all revised lists of electors in the preceding general election, then the number of electors used for the calculation of the limit is deemed to be halfway between the number on the lists in the riding and that average number.
- If the number of electors per square kilometre is less than 10, based on the preliminary or revised lists of electors in a riding, the dollar amount per elector is increased according to a formula set out in the Act.
- If a candidate endorsed by a registered political party dies between 2:00 p.m. on the fifth day before nominations close and election day, the election is postponed; at the postponed election all candidates are entitled to 150% of the normal base election expenses limit.
Registered political parties and candidates must not exceed the election expenses limits calculated by the Chief Electoral Officer under the formulas provided in the Act.
Reimbursements
If a candidate is elected or receives at least 10% of the valid votes cast in his or her riding at an election, the Chief Electoral Officer will authorize the Receiver General to send the candidate's official agent, or a person designated by him or her, a reimbursement of 15% of the expenses limit for that riding shortly after the return of the writs. If the candidate also complies with all the post-election requirements of the Act, he or she will qualify for a second instalment representing a reimbursement of 60% of actual election and personal expenses paid, minus the amount already received. The total reimbursement may not exceed 60% of the election expenses limit for the riding.
All candidates are entitled to full refunds of their $1,000 deposits, provided they comply with the reporting requirements of the Act and return unused official receipts within certain deadlines.
Registered political parties that obtain at least 2% of the total valid votes cast in a general election, or 5% of the valid votes cast in the ridings where they have endorsed candidates, are entitled to a reimbursement of 50% of their actual election expenses paid. For the first general election held after January 1, 2004, the reimbursement amount is 60%.
Election advertising restrictions
Section 323 of the Canada Elections Act does not permit individuals to knowingly transmit election advertising to the public on election day.
Participation in the electoral process
Voting is not the only way to take part in the electoral process. Political parties and candidates can accept volunteer work as well as goods or services and financial contributions.
Volunteer work means any service provided free of charge by a person outside of that person's working hours. Volunteer work is not considered a contribution and is not subject to the eligibility rules respecting contributions or contribution caps. It does not include a service provided by a person who is self-employed, if the service is one that is normally sold or otherwise charged for by that person; in this case, the services provided are considered contributions and are subject to the rules respecting contributions, including the requirement to be disclosed.
Income tax credits
Although contributions may be made in the form of money, goods or services, only a monetary contribution qualifies for an income tax credit. The Income Tax Act provides the following tax credits for eligible contributions to candidates and registered political parties in any one calendar year:
| Contribution amount | Corresponding tax credit |
|---|---|
| $0.01 to $400.00 | 75% of the contribution |
| $400.01 to $750.00 | $300 plus 50% of the contribution over $400 |
| $750.01 to $1,275.00 | $475 plus 33.3% of the contribution over $750 |
| $1,275.01 or more | maximum credit of $650 |
To obtain an income tax credit, a contributor must obtain an official receipt and submit it when filing his or her tax return. Only the official agent of a confirmed candidate or a registered agent of a registered political party can issue official receipts for eligible contributions.
Public disclosure
Through their official agents, candidates must submit an audited electoral campaign return to the Chief Electoral Officer within four months of election day. Among other information, the candidate's return must show all electoral campaign expenses incurred, the amounts and sources of all contributions, and the names, addresses and dates the contributions were provided of all those whose aggregate contributions exceeded $200. The names and addresses of all contributors who contributed through an unincorporated association must be disclosed.
Following a general election, every registered political party is required to submit an audited return of its election expenses to the Chief Electoral Officer within six months of election day. Registered parties are also required to submit an annual fiscal period return, disclosing (among other information) any by-election expenses, the expenditures of the party during the fiscal period, the amount and source of all contributions, and the names, addresses and dates the contributions were provided of those whose aggregate contributions exceeded $200. This return must be submitted to the Chief Electoral Officer within six months after the end of the fiscal period to which the return relates.
The Chief Electoral Officer publishes a summary of each candidate's return in whatever media he or she deems appropriate. Returning officers keep all candidates' returns for six months, so that anyone who wishes to consult them or to obtain extracts may do so. After that initial period, the returns may be examined at Elections Canada in Ottawa.
The Chief Electoral Officer also publishes the financial returns of registered political parties and candidates in whatever form and media he or she deems appropriate.
The Elections Canada Web site includes a searchable database of:
- the contributions received and the election expenses incurred by candidates for all elections since the general election of June 1997
- the election expenses incurred by registered political parties at the last general election and their receipts and expenses by fiscal period from 1993 on
* Click here to access the limit in effect.
For more information, please contact:
Elections Canada
257 Slater Street
Ottawa, Ontario
K1A 0M6
Telephone
1 800 463-6868
toll-free in Canada and the United States
001 800 514-6868
toll-free in Mexico
(613) 993-2975
from anywhere in the world
For people who are deaf or hard of hearing:
TTY 1 800 361-8935
toll-free in Canada and the United States
Fax
(613) 954-8584
1 888 524-1444
toll-free in Canada and the United States
This publication is available in alternative formats.
May 2004