Can Canadian Charities Legally Engage in Political Advocacy?

Many charities in Canada want to raise awareness about important social issues and advocate for changes that align with their missions. However, the rules around political advocacy can be confusing. Charities must follow strict guidelines set by the Canada Revenue Agency (CRA) to maintain their registered status.

This article will explain:

• What political activities mean for charities
• What is allowed and what is prohibited
• The impact of recent legal changes on charity advocacy

If your charity is considering engaging in political advocacy, understanding these rules is essential to staying compliant while effectively championing your cause.

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What Is Political Advocacy for Charities?

Political advocacy refers to efforts aimed at influencing laws, policies, or government decisions. This can include:

• Speaking publicly on government policies
• Encouraging the public to contact their elected officials
• Submitting policy recommendations to government bodies
• Participating in public campaigns related to legislative changes

While advocacy is important for many charities, they must be cautious about how they engage in political activities to avoid jeopardizing their charitable status.

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What Political Activities Can Charities in Canada Legally Do?

Charities in Canada are allowed to:

Educate the public on policy issues that relate to their charitable purposes

Conduct research and publish reports on social issues

Work with government officials to propose policy changes

Take part in discussions on legislative matters

Support or oppose laws that directly impact their mission

However, these activities must be non-partisan. This means charities cannot align themselves with or support a specific political party or candidate.

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What Political Activities Are Prohibited?

Canadian charities cannot:

Endorse or financially support a political party or candidate

Engage in partisan activities, such as campaigning for a politician

Distribute materials that promote a specific political party

If a charity is found engaging in partisan activities, the CRA may revoke its charitable status.

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How Have the Rules Changed?

Before 2018, Canadian charities were only allowed to spend up to 10% of their resources on political activities. However, in 2018, the Income Tax Act was amended, removing this restriction. Now, charities can engage in unlimited public policy dialogue and development activities (PPDDA) as long as they support their charitable purpose.

This change has allowed charities more freedom to advocate for causes they support. However, they still must remain non-partisan and ensure their advocacy is directly connected to their mission.

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Best Practices for Charities Engaging in Advocacy

To ensure compliance with CRA regulations, charities should follow these best practices:

1. Stay Focused on Your Mission – Any advocacy work should be clearly tied to your charity’s purpose.

2. Remain Non-Partisan – Do not support or oppose political parties or candidates.

3. Keep Records – Document advocacy activities to demonstrate compliance if reviewed by the CRA.

4. Be Transparent – Clearly explain your charity’s stance on issues and avoid misleading claims.

5. Educate Rather Than Campaign – Advocacy should be based on research, education, and public awareness rather than direct political campaigning.

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Final Thoughts

Political advocacy can be an effective tool for Canadian charities to bring attention to important issues and influence positive change. Thanks to recent legal changes, charities now have greater freedom to engage in policy discussions, provided they remain non-partisan and stay aligned with their charitable objectives.

If your charity is considering advocacy work, ensure you follow CRA guidelines to maintain compliance while making an impact.

Would you like professional guidance on structuring your advocacy efforts? Contact a Canadian charity lawyer to ensure your activities follow the law.

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