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

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

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

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

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

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

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

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

Susan Manwaring. Bill Schaper smanwaring@millerthomson. com Susan Manwaring Bill Schaper smanwaring@millerthomson.com bschaper@imaginecanada.ca