Charities and Lobbying
If the government is considering new tobacco legislation, cigarette maker
Philip Morris and the Canadian Cancer Society are naturally going to have something
to say about it. But do they have equal access to the decision makers?
When you're trying to influence government, the difference for
corporations and charities is how much time and money each can spend talking.
According to the Canada Revenue Agency's interpretation of the tax
laws, an organization deemed charitable cannot be political
in nature, and cannot spend more than 10 per cent of its revenue advocating
or lobbying for a particular policy
position. If it does, it could lose its charitable status and ability
to issue tax receipts for donations.
If the government calls them in to
report for "information purposes," however, it isn't
usually considered advocacy, and so isn't restricted by the 10 per
cent rule.
At the same time, a business that spends money on lobbying government
can deduct that expense from its income. It can also deduct the money
spent advertising (advocating) its position.
The charities argue that this system gives businesses an unfair advantage,
and the Canadian Centre for Philanthropy and the Institute for Media,
Policy and Civil Society have gotten charities together to talk
about how to get the rules changed.
Information on one of their websites points out that: "As it is, those who work for a food
bank can hand out cans of soup but may get in trouble with the [CRA] if
they hold a public forum to discuss policies to change the need for food
banks. If you work on behalf of people with disabilities, you can hand
out wheelchairs and crutches, but your ability to address safe driving
laws or workplace safety is limited."
The two organizations would like to organize charities to advocate for a
change to the rules.
But, of course, they can't spend more than 10 per
cent of their resources doing that.
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