Wednesday, April 22, 2015

Political Contributions

Elections Canada has very stringent rules for the treating of political contributions.  These are largely intended to prevent the laundering of funds through political campaigns and to limit the role of large donors in our Canadian democracy.  By and large, it works.

Firstly there are limits to how much you can contribute, and secondly there are limits to how much you can claim for income tax credit purposes.  In addition there are strict rules on how you can make a contribution.


Contribution limits are the following.  In any one civil year you can contribute:

  1. up to $1,500 to either, an electoral district association (EDA), or in an election year, the campaign of a candidate for election, or to a leadership contestant when a leadership contest occurs; and
  2. up to $1,500 to a federally registered party.
for a total legal contribution limit of $3,000 in any one year.

There is no limit to how many EDAs or political parties to which you can contribute, but the totals cannot exceed the $1,500 amounts, nor the $3,000 overall limit.

Also note that contributions of $200 and more are made public following the annual financial return by the EDA.  The public record can be found on Elections Canada's web site

For income tax purposes, there are different limits:  a non-refundable tax credit is provided on contributions up to $1,275, in total.  The sliding scale of tax credit is as follows:
  • On the first $400, at 75%
  • On the next $350, at 50%
  • On the balance to $1,275, at 1/3 (33.33%)
The credit is applied against any taxes you are due to pay.  If you are not due to pay taxes, sadly there is no benefit!  Contributions in excess of $1,275 do not produce a further tax credit benefit either.

As examples of what this means,
  • a donation of $100 will cost you $25, and give a tax credit of $75
  • a donation of $400 will cost you $100, and give you a tax credit of $300
  • a donation of $900 will cost you $370, and give a tax credit of $525, and
  • a donation of $1,500 will cost you $850, and give a tax credit of $650.
Contributions must be made in a specific manner:

1.  Cash donations cannot exceed $20
2.  Donations in excess of $20 can only be made by cheque or credit card
3.  We will need to know your full name, address and phone number
4.  Until the election is called your donation has to be made out to: The Pontiac Federal Green Party Association; after the election call to: The Pontiac Green Party Campaign.
5.  You have to be a resident of Canada, not necessarily of the riding
6.  You will receive a political contribution tax credit receipt early in 2016

The Pontiac EDA is able to accept donations by credit card over the phone.

Also, you can mail your cheque to us, or you can visit the Green Party Web site, and contribute using a credit card.  When you visit the web site make sure to contribute using the riding contribution page, unless you want your contribution to benefit the national party organisation.

If not already a member of the Green Party of Canada, your contribution can qualify as a membership if you wish.

To mail it to the EDA, please mail to:  Suzanne Lacourcière, Pontiac Riding Financial Agent, 254 rue de Cannes, Gatineau, QC  J8T 7A5

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