Prime Minister Carney has announced that a Federal election will be held on April 28, 2025.

It is important that Canadian nonprofits and registered charities are aware of what is going on politically in Canada and also engage in appropriate and relevant political activities, as allowed by law. Unfortunately, for NPOs and charities, it is far more complicated than one may think.

Keep this simplistic scenario in mind: When dealing with political activities, a Canadian registered charity based in Toronto that deals with improving food security in Ontario currently has to be aware of—

• the Income Tax Act and PPDDAs, (only applies to registered charities, not NPOs)
• potentially lobbyist registries on three different levels of government (Canada, Ontario, Toronto), (applies to both registered charities and NPOs)
• a Canada Elections Act requirement to register if certain advertising is done over $500 during a Federal election (also third party advertising requirements when Ontario election) (applies to both registered charities and NPOs); and
• a new “Foreign Influence Transparency Registry” that has not yet been implemented. (will have far-reaching consequences and will apply to both registered charities and NPOs)

Each regime has different rationales, definitions, rules, limitations, regulators and requirements. When there is an election, there are not only more regulatory requirements that apply but also greater scrutiny.

There are many activities that a charity can do during an election that are compliant with the ITA requirements, don’t require registration under the Canada Elections Act as a third party, and don’t involve lobbying. However, if (as an example) a charity wants to boost social media posts or pay for other advertising on an election issue during the election period, and if you are going to spend more than $500, then such charity will have to register under the Canada Elections Act.

The “regulated activities” under the Canada Elections Act cover a number of different types of activities, including -

1) partisan activities,
2) election surveys,
3) partisan advertising, and
4) election advertising carried out by third parties.

Some of these activities a registered charity cannot undertake at all, but others they can do. The most common area a registered charity may be involved in, is #4 election advertising—specifically the part which includes taking a position on an issue with which a political party or candidate is associated.

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