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

2. 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

3. 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

4. Milestones
Political activity audit program
Changes to Income Tax Act affecting foundations
2015
Election platform
Mandate letters
Consultation Panel
2018
Canada Without Poverty decision
Income Tax Act amended

5. 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

6. 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

7. 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

8. 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

9. Susan Manwaring. Bill Schaper smanwaring@millerthomson. com
Susan Manwaring Bill Schaper