CRA Review of Charities’ Political Activities

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The government has listened!

Thanks to the sector for making your voices heard. The Ministry received nearly 20,000 submissions from the sector and the public!

ONN is proud to have supported the national call to action with Environmental Defence and Imagine Canada.


Charities and nonprofits play a critical role in Canadian society to address issues that face communities across the country. Child welfare services, the integration of people with disabilities into community life, hospices for end-of-life care and reductions in acid rain are some of the many services, laws and regulations provided by government today that were shaped by local charitable organizations with their perspectives and on-the-ground knowledge.

This role requires the charitable sector to engage in “political activities” to help shape the policy and laws that have an impact on their work with the people and the communities they serve. The Government of Canada committed to review the regulation of political activity by charities.

The report and recommendations by the Consultation Panel on Political Activity has been released by Minister Lebouthillier. All audits of charities have been suspended.

Hon. Diane Lebouthillier, Minister of National Revenue, said, “The Government of Canada recognizes the vast experience they [charities] bring to public debate and to the formulation of public policy.”

The recommendations include:
– revision of the CRA’s administrative position and policy to enable charities to fully participate in public policy dialogue and development
– administrative changes that the CRA could undertake immediately – for example, removing the requirement to separately account for political activity on T3010 reports
– legislative change to remove references to political activity from the Income Tax Act
– modernization of the legislative framework governing the charitable sector

Imagine Canada said, “The panel’s recommendations were very much in line with what our working group came up with to inform Imagine Canada’s submission to the consultations.”  It also noted that “in the coming days, we’ll be writing to all MPs, urging them to support the panel’s recommendations.”

Imagine Canada has issued a statement, available in English and French.


ONN supported Imagine Canada’s recommendation that “…the Income Tax Act be amended to restore an emphasis on charitable purposes, rather than regulating how charities achieve those purposes,” in its position on political activities.

Canadians and charities seek changes to federal charity law – Joint news release by ONN, Imagine Canada and Environmental Defence, December 14, 2016.

ONN’s submission to the CRA, November 16, 2016


The CRA Political Activity Consultations: Context and Recommendations for Charities and Nonprofits – Resetting the definition of charities’ work in public policy with Bill Schaper (Imagine Canada), Richard Keith (Environmental Defence), and Cathy Taylor (ONN): webinar recording; webinar slide deck

Imagine Canada submission to the CRA: Political activities by registered charities

Imagine Canada’s Call to Action on CRA’s political activities consultation

Canada Revenue Agency: Consultation on charities’ political activities

Imagine Canada report: How Has the Advocacy Chill Affected Charities?

Infographic – Nonprofits Step Up: The role of nonprofits in democracy

ONN’s Leadership in Changing Times: An Overview and Trend Analysis for Volunteer Boards of Directors of Community Organizations in Canada

Charities and nonprofits play a critical role in Canadian society to address issues that face communities across the country. Child welfare services, the integration of people with disabilities into community life, hospices for end-of-life care and reductions in acid rain are some of the many services, laws and regulations provided by government today that were shaped by local charitable organizations with their perspectives and on-the-ground knowledge.

This role requires the charitable sector to engage in “political activities” to help shape the policy and laws that have an impact on their work with the people and the communities they serve.

The Government of Canada has committed to review the regulation of political activity by charities. It conducted a public consultation to which many responded.

Imagine Canada developed a position on political activities. ONN supports its recommendation that:

The Income Tax Act be amended to restore an emphasis on charitable purposes, rather than regulating how charities achieve those purposes.

The focus on activities, including political activities, in the Income Tax Act should be removed. The prohibition on partisan political activity would remain.

We echo all of Imagine Canada’s recommendations about clarifying definitions and scope regarding partisan political activity so that we can be more confident in engaging in our work.

Changing the Income Tax Act to focus on purposes, rather than activities, could have spillover effects beyond charities’ public policy work. For example, it would likely mean a rethinking of the regulations that govern charities’ business activities. We are committed to working with the CRA to ensure that such changes benefit the sector’s work.

More background:

Amending the Income Tax Act to focus on charitable purposes rather than activities would not grant charities the right to engage in partisan activity. Indeed, we strongly support the prohibition on partisan activity by charities.

Amending the Income Tax Act would also not facilitate the rise of “single issue” organizations, set up for the sole purpose of proposing or opposing a law or policy. The common law already prohibits those organizations from becoming charities; changing the Income Tax Act would have no effect on that common law provision.

There is a troubling discrepancy between charities’ ability to engage the public on policy matters and the ability of the private sector to do so. As included in Imagine Canada’s brief (page 3):

“In recent public discourse, some of these restrictions have been justified based on the unique tax treatment that charities receive. This is not an adequate rationale for restricting charities in comparison to other types of organization.

Other organizations face no limits on the resources they can devote to “political activity.” This is despite the fact that:

– Other sectors also benefit from substantial tax expenditures and direct public funding.

– Charities are the only sector required, by law, to act in the public interest.

– Charities are the only sector required, by law, to use well-reasoned and truthful arguments when discussing public policy.

Limiting charities’ ability to engage the public is bad for democratic dialogue, particularly when our organizations are constituted for and required to act in the public benefit.”