Charity and NFP Legislation

Some people might say that political parties engage in activities that are largely for the greater good. Most do, to a greater or lesser extent, albeit with their own goals in mind. But when it comes to charities, largely is not good enough. There are clear, well defined rules when it comes to charities being involved in politics (and vice versa) and it’s a good idea to know them before you start a charitable organization.

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A Legal Issue

The definition of a charity is a little vague in Canada. Which might be why some people aren’t entirely sure what’s allowed and what’s not. However, while they don’t quite spell out exactly what you can do, they are transparent about some of the things you can’t. Political activity falls squarely into the latter category.

According to Canadian law, any organization that is founded for political purposes cannot be a charity. The definition of political purposes includes supporting or furthering a political party or candidate, or to be involved in an attempt to change, retain, or alter any laws or legal policies, whether inside or outside of the borders of Canada.

Even if these goals might benefit society, they require a charity to choose a side, and that, according to Canadian law, is not allowed. So, while you might pursue a charity that helps people, animals or even religious organizations that are affected by those kinds of laws, a charity cannot seek to change the law itself.

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Who Decides What Is Allowed and What Is Not?

As you might have already gathered from the above-mentioned legal issue, there’s quite a lot of room for interpretation when it comes to charities, what they do, and what they are allowed to do.

However, in the Canadian system, there is a noticeably clear distinction between politics, which takes place in parliament and legislatures, and the law, which always happens in the court system. Neither wants to get involved in the other’s activities, so courts will usually be quick to act when there’s some overlap between politics and charity.

Subordinate and Primary Purposes

As if things weren’t already murky enough when it comes to the line between politics and charity, there are also some rules that might seem to override everything you’ve read to this point. Politics is one of these areas.

Of course, it’s almost impossible to completely divorce politics and charity in every way, since many of the social ills charities choose to address are the result of political actions or inactions. However, charities are required to have a stated purpose, and while there may be some opposition to political ideology in that purpose, it’s important to keep them separate.

When, according to to the law, a charity’s “collateral” political activities become too much of a focus, there may be a legal question about whether they are still pursuing their stated purpose.

In other words, while a charity may seek to help uplift persecuted women in a particular country, for instance, they can’t shift their focus to changing the laws of that country to better protect those women.

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What Does It All Mean?

As with so many things related to the law, there are quite a lot of ifs, ands and buts involved when you are talking about politics and law. There is some leeway, but since you won’t really know where you fall on the scale until you find yourself on the wrong side of the line, it’s best to avoid the issue altogether.

The safest way to ensure that your charity does not get involved in a legal battle about allowable activities is to just to focus on your mission and leave the activism and politics to others.

Structure your activities and focus on things that you know are not related to politics. Stay neutral and don’t support or condemn any political party or figure. Never try to change the laws, even if they might create the situation that you are trying to fix. Very often, that is exactly what does happen, but try to remember that if you lose your charitable status, you will also lose your ability to help.

When it comes to running a charity, political neutrality is the safest and easiest way to avoid trouble, and it’s the one we recommend. Stay focused on your mission, and trust that with time, the politics will correct itself.