Learn the Rules of Engagement

Know the policy advocacy rules to ensure proper record-keeping and prevent your organization from getting in trouble.

There are 3 relevant areas to understand:

  1. Canada Revenue Agency Regulation

  2. Lobbying in Alberta

  3. Third-Party Advertising in Alberta

These areas may or may not apply to your nonprofit depending on whether you are a registered charity, have paid staff, and how much you spend on election-related activities.

Canada Revenue Agency Regulations

Registered charities must adhere to the Income Tax Act (ITA) regulations, as interpreted and applied by the Canada Revenue Agency (CRA).

Under these regulations, charities can engage in unlimited public policy dialogue and development activities (PPDDAs), so long as these activities are:

  • related to and support the organization’s stated charitable purpose(s) and,

  • nonpartisan (this includes a ban on both direct and indirect partisanship).

PPDDAs can seek to influence the laws, policies or decisions of a government, whether in Canada or a foreign country.

Direct and Indirect Partisanship

A charity can publicly agree or disagree with a decision or position of government, but cannot directly or indirectly support or oppose any political party or candidate for public office. Thus, a charity’s communications should focus on policy issues and should not refer to any candidate or political party. The ability to engage in nonpartisan advocacy can be viewed as a strength for organizations, as it can work to:

  • Allows your organization to have a diversity of political opinion and creates an environment of respect for differences in opinions among staff, volunteers and people who your charity serves.

  • Give you access to diverse community leaders and funding sources.

  • Reaffirm charities’ position as trusted sources that can engage with and give voice to underserved populations and topics, beyond party lines.

When staff and volunteers are not acting in their official capacities and representing their organization, they are not bound to nonpartisan dialogue. Check with your organization regarding any conflict of interest policies that may exist.

To avoid partisan engagement during your advocacy efforts, consider the following:

Do:

  • focus on the charitable purposes that your PPDDAs are meant to achieve.

  • keep records that demonstrate your primary consideration in carrying on PPDDAs is to further your charitable purpose and provide a public benefit.[16]

  • review legal requirements of other legislation such as Alberta Elections Act and Lobbying Act.

  • give all political candidates and parties an equal opportunity to present their views and answer questions.

Don’t:

  • focus on, promote or oppose a political candidate or party publicly or internally.

  • instruct or influence constituents to vote for a specific candidate or party.

  • work with or coordinate with campaigns, political candidates or parties.

  • transfer resources (ex. financial, human, or physical resources) to support or oppose a political party or candidate directly or through a third party, or allow a political party or candidate to use your charity's resources without compensation.

  • refer to or identify a political party or candidate when supporting or opposing a law, policy, or decision of government.

See Canada Revenue Agency’s Guidance for Charities participating in Public policy dialogue and development activities here. Only nonprofit organizations that are registered charities need to adhere to these regulations.

Lobbying in Alberta

Lobbyist regulations are meant to balance free and open access to government with public transparency as to who is accessing and seeking to influence government.

The Alberta Government defines lobbying as communication with a public office holder in an attempt to influence matters relating to:

  • Legislation (including legislative proposals, bills, resolutions, regulations and orders in council).

  • Programs, policies, directives, or guidelines.

  • The awarding of any grant or financial benefit.

  • Decisions by the Executive Council to transfer assets from the Crown or to privatize goods and services.

  • In the case of consultant lobbyists, arranging a meeting between a public office holder and any other individual; or communicating with a public office holder in an attempt to influence the awarding of a contract.[19]

Nonprofits are exempt from the Alberta Lobbyists Act and therefore are not required to register as lobbyists, except for:

  • Nonprofits that are constituted to serve management, union or professional interests.

  • Nonprofits that have a majority of members that are profit-seeking enterprises or representatives of profit-seeking enterprises.

By definition, lobbyists are paid staff. Nonprofits that fall under the exceptions above must only register if they have reached the 50-hour annual lobbyist threshold, which includes both time spent lobbying and time spent preparing for lobbying. You can register as a lobbyist and check whether you need to register here.

Third-Party Advertizing in Alberta

Third-party advertising rules are meant to ensure that the public is aware of who is placing and paying for political and election advertising.

In Alberta, “election advertising” refers to advertising that promotes or opposes a registered party or a registered candidate during an election advertising period (The election advertising period starts on December 1st, or from the issue of a writ for the election, until the end of polling day).

Advertising issues that are mentioned on a candidate or party’s platform can be considered third-party election advertising in Alberta. If nonprofits are not registered charities and spend $1,000 or more on third-party election advertising or accept $1,000 for election advertising they will need to register as a third-party advertiser with Elections Alberta. Registered charities cannot register as a third-part advertiser. Advertising expenses are limited to $150,000 during the election advertising period. There are no limits on accepting donations.

See the full Elections Alberta Third-Party Advertiser Guide here.[22] In addition find some general information about Third-Party advertising here [23].

Provincial Rules of Engagement for Policy Advocacy

Alberta Lobbyist Act

Regulation
Must register if 50 hours of lobbying has been reached.

Applies to
Nonprofits that serve management, union or professional interests, or that have a majority of members or representatives that are profit-seeking enterprises.

Does not apply to
All other nonprofits (not among the two listed exceptions).

Canada Revenue Agency Regulations

Regulation
Charities can engage in unlimited public policy dialogue and development activities, so long as these activities further their charitable purpose(s) and do not involve the direct or indirect support of, or opposition to, any political party or candidate for public office.

Applies to
Registered charities

Does not apply to
All other nonprofits (not registered charities)

Alberta Third Party Act

Regulation
Charities can engage in unlimited public policy dialogue and development activities, so long as these activities further their charitable purpose(s) and do not involve the direct or indirect support of, or opposition to, any political party or candidate for public office.

Applies to
All other nonprofits (not registered charities).

Does not apply to
Registered charities

References

[16] Government of Canada. (2019). Guidelines for registering a charity: Meeting the public benefit test. https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/policies-guidance/policy-statement-024-guidelines-registering-a-charity-meeting-public-benefit-test.

[17] Government of Canada. (2019). Public Policy Dialogue and Development Activities by Charities.https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/policies-guidance/public-policy-dialogue-development-activities.html

[18] Freeland, C. (2022). Explanatory Notes Relating to the Income Tax Act and Other Legislation. Department of Finance Canada. Retrieved from: https://fin.canada.ca/drlegapl/2022/nwmm-amvm-0422-n-eng.pdf

[19] Office of the Ethics Commissioner. (2018). Am I a Lobbyist and What is Lobbying? https://www.albertalobbyistregistry.ca/i/themes/itrac_theme/ext/Am_I_a_Lobbyist_2018_v5.pdf

[20] Office of the Ethics Commissioner. (2016). Alberta Lobbyist Registry. https://www.albertalobbyistregistry.ca

[21] Elections Alberta. (2022). Guide for Political and Third Party Advertisers. Retrieved from: https://www.elections.ab.ca/uploads/Political-and-Election-TPA-Guide-to-the-EFCDA.pdf

[22] Ibid.

[23] Elections Alberta. (2023). Third Party Advertisers. Retrieved from: https://www.elections.ab.ca/political-participants/third-party-advertisers/

[24] CCVO. (2018). Lighting the Way: The State of the Alberta Nonprofit Sector 2018. https://www.calgarycvo.org/state-of-the-alberta-nonprofit-sector