There are limits to what you can give

What you should know about political donations and other changes to the Canada Elections Act

Bill C-2, the new Federal Accountability Act, has made some important changes to the Canada Elections Act.

Among them are changes to the rules for political contributions – who can make contributions, how much and to whom. For detailed information on these and other important changes, visit www.elections.ca and click on General Information > Backgrounders.

As of January 1, 2007, new rules for political contributions under the Canada Elections Act come into force:

• You can make a political donation to registered political entities only if you are a citizen or permanent resident of Canada.
  
  
• You can give no more than $1,100* in each calendar year to each registered political party.
  
  
• You can give no more than $1,100* in total in any calendar year to the various entities of each registered political party (registered associations, nomination contestants and candidates).
  
  
• You can give no more than $1,100* to each independent candidate for a particular election.
  
  
• You can give no more than $1,100* in total to the leadership contestants in a particular leadership contest.
  
  
• You can no longer make a cash contribution of more than $20 to registered political entities.
  
  
• You cannot make a political contribution with money, property or services that were given to you for that purpose.
  
  
• Corporations, trade unions, associations and groups can no longer make political contributions. However, your employer can give you a paid leave of absence during an election period to allow you to be a nomination contestant or a candidate without that leave being considered a contribution.
  
  
• If you are running as a nomination contestant or a candidate, you can make an additional contribution up to $1,000 in total per election from your own funds to your own campaign. You can divide this amount between your nomination and candidate campaigns as you wish.
  
  
• If you are running as a party leadership contestant, you can make an additional contribution of up to $1,000 in total per contest from your own funds to your own campaign.

Tax credits

• Income tax credits for monetary contributions are available as follows: 75 percent of the first $400, 50 percent of the next $350 and 33⅓ percent of an amount over $750.
  
  
• A registered party can issue tax receipts and authorize its registered electoral district associations to issue tax receipts for eligible monetary contributions.
  
  
• Tax credits are also available for donations to confirmed candidates.
  
  
• Tax credits are not available for donations to leadership or nomination contestants, or to unregistered parties and their electoral district associations.

Disclosure

• All contributions over $20 must be receipted and reported.
  
  
• Contributions totalling more than $200 made to registered parties, registered electoral district associations, leadership contestants and candidates will be reported to Elections Canada by the recipient and become matters of public record. Financial reports include the name and address of each contributor who contributes a total of more than $200, the total amount received, the amount of each contribution and the date it was received.
  
  
• Contributions totalling more than $200 made to nomination contestants will be reported and become a matter of public record if the contestant receives contributions of $1,000 or more, or incurs expenses of $1,000 or more. Financial reports include the name and address of each contributor, the total amount, the amount of each contribution and the date it was received.
  
  
• These reports are made available to the public on the Elections Canada Web site at www.elections.ca.
  
  
• It is an offence to try to avoid the rules for ineligible contributors or for contribution limits, or to try to conceal a contributor’s identity. Check the Elections Canada Web site for details of this and other offences relating to contributions.

New rules about gifts to candidates

• Candidates cannot accept any gift that might influence them as eventual members of Parliament.
  
  
• This rule applies from the day you become a candidate until the day you withdraw or become a member of Parliament, or until election day (if you are not elected).
  
  
• You become a candidate on the day you are selected in a nomination contest, or on the day when the writ is issued for the election, whichever comes first.
  
  
• Candidates may accept a gift from a relative or as a normal expression of courtesy or protocol.
  
  
• Contributions or transfers made in accordance with the Canada Elections Act are not considered gifts.
  
  
• However, you must send the Chief Electoral Officer a statement with the name and address of every person or organization from whom you receive a gift worth more than $500 while you are a candidate. You must also report the nature of the gift and the circumstances under which it was given. This statement is confidential, but may be examined by the authorities that prosecute offences under the Canada Elections Act.

New rules for transfers within a party

• Registered parties and registered electoral district associations can no longer transfer trust funds to candidates of the party.

This flyer summarizes the rules for making political contributions and is not a complete outline of all the related provisions in the Canada Elections Act. This flyer is not law and is not intended to give legal advice. It is published only to help you understand the Canada Elections Act. To be sure about the law, always refer to the Canada Elections Act itself.

For more information, contact us:

www.elections.ca
1-800-463-6868

For people who are deaf or hard of hearing:
TTY 1-800-361-8935

*The Act provides for maximum contribution limits of $1,000, subject to an inflation adjustment on April 1 of each year. On January 1, 2007, these limits are $1,100. For more information on contribution limits, go to www.elections.ca > Election Financing > General Information on Election Financing > Limits on Contributions > New limits for contributions received as of January 1, 2007.