I sit on a charity board where some of the staff are very worried about some potential legislation harmful to our cause, and want to lobby against it. Is this ethical for a charity? Is it legal?
It is quite legal for a Canadian (or a US) charity to do advocacy, subject to some restrictions, which I will get to later in the article. However, it may not be legal in every country.
Not only is it ethical to advocate against such legislation, it might well be deemed unethical to stay quiet and let your cause be harmed. Silence can be wrongly understood to mean consent.
Because of their close connection to communities and the people they serve, charities often have significant information not otherwise available to public policy makers. Whether politicians or bureaucrats, these people are often juggling numerous issues and learning as they go. As a public servant, I was sometimes expected to become an expert on an issue I had never heard of before, and quickly develop a Cabinet submission with well-thought out options and recommendations. When stakeholders in the issue provided reports, statistics, human stories or other data, it was wonderful!
The consequences of withholding information can mean poorer public policy, poorer legislation (with long waiting periods before it can be fixed) and unintended harm. It is much better when the policy makers hear from all stakeholders, and know where the disagreements, if any, are.
Business is almost always at the table providing input, through public affairs specialists or well-paid lobbyists. Most businesses belong to at least one industry or trade association with advocacy as one of its top two priorities. They can, therefore, speak with a strong, cohesive voice.
Learn from them – belong to, support and volunteer with umbrella organizations for the charitable sector. Public policy makers see a submission from umbrella groups such as the Canadian Land Trust Alliance as more persuasive and authoritative than uncoordinated efforts from individual nonprofits. If there is no organized group for this issue, start a temporary collaboration.
If you are not at the table (metaphorically at least), then the business viewpoint or other loud and squeaky wheels will carry the day. If you are there, the policy changes you dread may still happen, but may be tempered by the information you provide. Or it may be stopped, delayed, reversed…who knows? Once legislation reaches first reading, it is often too late to make good changes, but it might die on the Order Paper if you put doubt in the minds of the politicians. Or an election may be called. Or the horse may learn to sing (a very useful fable – Google it).
It is also worth remembering that legislation often contains few details, and you can still influence the regulations that will have more impact. If you provide the precise wording you want, using reasonable language that is consistent with the Act, Legislative Counsels may kiss you.
Now, about the legality (in Canada). This is from the Canada Revenue Agency site as of August 30, 2007:
“Under the Income Tax Act, a registered charity can be involved in non-partisan political activities as long as it devotes substantially all of its resources to charitable activities. Any political activities have to help accomplish the charity’s purposes and remain incidental in scope.
A registered charity cannot be involved in partisan political activities. A political activity is considered partisan if it involves direct or indirect support of, or opposition to, a political party or candidate for public office.”
Much more information is contained in the Political Activities – CPS022 Policy Statement.
Since your organization is dealing with a matter currently under consideration by the government, it falls within this clause:
“When a registered charity makes a representation, whether by invitation or not, to an elected representative or public official, the activity is considered to be charitable. Even if the charity explicitly advocates that the law, policy, or decision of any level of government in Canada or a foreign country ought to be retained, opposed, or changed, the activity is considered to fall within the general scope of charitable activities. However, such activity should be subordinate to the charity’s purposes and all representations should:
- relate to an issue that is connected to the charity’s purposes;
- be well-reasoned…”
You should still keep good records to show that the majority of your financial resources are used for charitable purposes during years where you conduct such advocacy. Be particularly careful of any action taken in the time leading up to an election; even normal public awareness material can be problematic. The Policy Statement provides guidance.
You still have many choices to make. Will you use staff, volunteers or a fee-based public affairs firm? Will you take to the streets with picket signs, or send long briefs? Appear at Standing Committees to make your point in public or arrange private meetings? Try to be seen as the voice of reason, or get more media attention as the voice on the edge?
These decisions relate to your desired long-term reputation, and how you want to be treated in future. Your organization will be invited to the table earlier and more often if you provide detailed information and useful suggestions. But quiet action does not generate a march on Ottawa, a flow of donations or front-page photos. And either way, you will not always be successful; do not burn bridges or be seen as too closely allied with a single party.
Decide on your advocacy position and actions in light of what your community needs and what will best help create the desired community of the future. Good luck.
Since 1992, Jane Garthson has dedicated her consulting and training business to creating better futures for our communities and organizations through values-based leadership. She is a respected international voice on governance, strategic thinking and ethics. Jane can be reached at jane@garthsonleadership.ca.
To submit a dilemma for a future column, or to comment on a previous one, please contact editor@charityvillage.com. For paid professional advice about an urgent or complex situation, contact Jane directly.
Disclaimer: Advice and recommendations are based on limited information provided and should be used as a guideline only. Neither the author nor CharityVillage.com make any warranty, express or implied, or assume any legal liability for accuracy, completeness, or usefulness of any information provided in whole or in part within this article.
