Charities and Public Policy: New Rules and Opportunities

1. P2D2A – Charities and Public Policy Presented by Susan Manwaring and Bill Schaper

2. The old rules – “political activities” • Political activities were not considered charitable • Charities were limited to using (in general) 10% of their resources on these activities • Annual T3010 return required explanation and quantification • Political activities did not encompass all of what we think of as “public policy” work • In theory, limited to activities that engaged the public or expressed views in public • e.g. letter-writing campaigns, petitions, op-eds • Requirement to be nonpartisan

3. Political activities – what was the problem? • Rules were unclear to many charities – tendency to interpret “political” as something different • CRA unable to provide clear advice on certain aspects • e.g. how to treat research, how to quantify resources • Inconsistent application of rules by auditors • Unclear definitions of “partisan” activities

4. Milestones • 2012-2013 • Political activity audit program • Changes to Income Tax Act affecting foundations • 2015 • Election platform • Mandate letters • 2016-17 • Consultation Panel • 2018 • Canada Without Poverty decision • Income Tax Act amended

5. 2018 Income Tax Act changes • “Political activity” removed from the ITA • Public Policy Dialogue and Development • More encompassing definition • Now deemed charitable • Can be carried out without limits as long as they are • Related to the charity’s purpose • Strictly nonpartisan • Responds to Consultation Panel recommendation

6. P2D2A – What does it include? • Research on an issue or problem • Development of proposals, or responses to proposals made by governments • Direct interaction with decision-makers • Committee appearances, tribunals, meetings • Engaging the public

7. What do we need to keep in mind? • Your organization’s charitable purpose – any public policy work you do must be related to that • Nonpartisan • “directly” – endorsing candidates or parties • “indirectly” – proposed definition is narrower but still relevant • Other legal requirements • Lobbying legislation – federal, provincial, municipal • Elections legislation – at all levels • e.g. registration as a third party

8. Outstanding issues • Guidance from Charities Directorate • Comments being accepted until April 23 • Updates to T3010 form • Existing questions “no longer relevant” • Reporting? • Not clear if there will be new requirements

9. Susan Manwaring Bill Schapersmanwaring@millerthomson.combschaper@imaginecanada.ca