If your charity is not taking positive political action, you are missing a strategic opportunity to influence change according to Mark Blumberg at the recent Canadian Charity Law Boot Camp.
“If your charity is not involved in political activities, you may be just treating the symptoms,” said Blumberg. The root causes of many social challenges can be better addressed by including political solutions.
The results of political activities by a relatively small number of charities have made an impact. Recently the federal government directed $500 million towards cancer research in response to the political activities of cancer-related charities. With regard to international development, millions have been directed towards improving maternal and newborn health, in part because a coalition of six charities worked in consultation with the government.
Political activity may seem like a moot point if you are thinking that your charity has its mission clearly defined and making political noise is not on the agenda. After all, why bother getting involved in something that can be controversial with your community and your donors? But there are good reasons for you to reexamine why charities should be active politically. Here are three:
1. Governments recognize that charities have expertise and knowledge. They want charities to use their resources for the benefit of our citizenry and participate in the political arena. That is why they recognize and allow for charities to have political activities.
2. Other groups are pressing their interests at the table. Industry, resource companies, and a myriad of other groups lobby the government all the time. Charity experts in the fields of environment, aid distribution, human rights, health and so much more, need to make their voices heard as well.
As an example of the challenges some charities face, consider the findings in the report entitled “Big Oil’s Oily Grasp - The making of Canada as a Petro-State and how oil money is corrupting Canadian politics”
“Six main oil industry players… met with federal cabinet ministers 53 times between September 2011 and September 2012, the period when the business-friendly Bill C-38 – which guts environmental legislation - was being designed. During this same time period, only one meeting between a federal cabinet minister and an environmental organization took place (Greenpeace met with Joe Oliver in March, 2012).
3. Political activities can be a vital way for your charity to serve your beneficiaries and achieve your charity’s objectives. For example, if your goal is to eradicate extreme poverty, at the very least you need to participate in political conversations such as minimum wage, affordable housing, access to social services, and education.
Even though many charities recognize the value of contributing to political dialogues, the fact is, they are not.
Only half of one percent of all charities in Canada admits to participating in political activities. Out of the 84,521 registered Canadian charities that filed their T3010 in 2014, only 550 reported they carried on political activities. That works out to one out of every 154 charities.
The actual amount charities spent on political activities in 2014 was $24.2 million (see Blumberg’s Snapshot on Political Activities in the Canadian Charity Sector 2014). That may sound immense. However, when compared to the total expenditure of all charities, $228 billion, it is a tiny fraction. As a sector, charities spent a miniscule one hundredth of one percent (0.01%) on political activities, or $1 of every $10,000. Given that the CRA allows charities to direct 10% of their expenditures towards political activities, the sector is greatly underperforming because it could be spending a thousand times more than it does.
For positive change to happen, Canadian charities need to be intentionally involved in the political arena. There is room for improvement.
This first part of this article focuses on why charities should carry on political activities and revealed that relatively few do. The second part of this article will look at the rules governing political activities for Canadian charities and explore a few ethical and practical considerations.
This article is meant to encourage charities to examine their political activities or lack of, so that our political system benefits from their participation. It is not intended to be legal advice. You should always consult with a legal professional regarding your political activities.
Noel Draper, CFRE, is Director, Marketing and Sales for Charity eNews and knows how to stretch your budget for maximum ROI. He will tailor a package deal for you so your new marketing reaches key decision makers in the charitable sector. Contact him via noel@hilborn.com or @DraperNoel.
