If you’re a nonprofit or charitable organization with a mandate that frequently requires you to dialogue with government officials, you’re likely already aware of the Federal Accountability Act (FAA). If you’re not aware, you should read this.

Last December, in an effort to make government more transparent and eliminate the negative perception of politicians in the public eye following events like the sponsorship scandal, the Conservative government’s Bill C-2 (the FAA) was granted Royal Assent, positioning it one step away from becoming law. And while not all of the rules and regulations therein are in force, there’s one section that has the voluntary sector concerned: The Lobbying Act.

Colonel Mustard. In the Lobby. With the report.

Briefly put, the Lobbying Act exists to ensure that politicians and registered lobbyists stay on the up-and-up when it comes to discussing policy, and that any temptation by lobbyists to bribe ministerial officials, or be bribed or manipulated, is significantly dampened. That’s paraphrasing it a bit, but in essence that’s the picture.

The federal government makes their new positioning on the reasons for this act very clear on their FAA website (which is run under the auspices of the Treasury Board and its president, Vic Toews).

In fact, they title the section Toughening the Lobbyists Registration Act. “It will require lobbyists to record registrable activities with senior public-office holders, including with whom they met, when, and on what specific subject, plus any other information that may be prescribed in regulation,” the site states. It continues, “Canadians will have easy access, through the Internet, to information about lobbying activities. They will be reassured that former senior public-office holders do not use their personal connections to obtain special favours from government once they leave office, and that conflict of interest situations do not arise while they hold office. These changes will ensure that recipients of taxpayer money do not use it to reward lobbyists, and that unregistered lobbyists are effectively investigated and prosecuted.”

All laudable goals…except there’s a potential problem. In its zealousness to put an end to shady backroom dealings, the government may have cast its net a little too wide and could end up burdening many voluntary sector organizations when this policy comes into effect – likely toward the end of this year or early in 2008.

Voluntary sector organizations will need to file reports with the new Commissioner of Lobbying on a monthly basis, by the 15th of the month following any “reportable” communication with any “Designated Public Office Holders” (DPOH). And by DPOHs the government means: ministers, ministerial political staff, deputy ministers, associate deputy ministers, and assistant deputy ministers. The definition of what constitutes a “reportable communication” is yet to be precisely defined.

Minority report

The burning issue for many in the voluntary sector is whether changes to the FAA’s Lobbying Act will further burden an already overloaded sector with yet another layer of red tape. Georgina Steinsky-Schwartz, executive director of Imagine Canada, has been reaching out to Imagine’s members and the government to try and prepare nonprofits for what she believes is the inevitable.

“We’re plugged into the government and the Treasury Board Secretariat. It’s at the stage now where they’re putting regulations in place. The government isn’t very optimistic that they can change the laws for reporting requirements,” she says. “And we believe the key area is the question of reporting requirements [in the Act], and to what extent these additional requirements will impact the sector. Monthly reporting requirements will be quite burdensome.”

It should be noted however, that only “registered” lobbyists will come under the Act’s stringent reporting requirements.

In Imagine’s Ottawa Reports newsletter from May this year, Teri Kirk, Imagine’s vice president of government relations and public policy, cautions readers to be prepared.

“While few tend to think of employees of charities and nonprofits as ‘lobbyists’, the fact is that our communications with elected and government officials bring many of us within the scope of the Act,” she writes. “Indeed, the Lobbyist Registrar reports that, as of April 2007, almost 50% — 2548 of Canada’s 5316 registered lobbyists — are ‘in-house organization lobbyists’, many of whom are employees of charities and nonprofit organizations.”

Under the FAA, the obligation to register as a lobbyist remains the same as before, writes Kirk. “The Act recognizes two broad categories of lobbyists – consultant (or Tier A) lobbyists and in-house (or Tier B) lobbyists. The latter category also distinguishes between corporate and organization lobbyists. Organizations that employ one or more individuals whose duties include, in significant part, communications with public office holders about legislation, policy or public funding, must register their organization and name any such individuals, who thereby become ‘registered lobbyists’.”

Hi ho, hi ho, it’s off to report we go

The Canadian Society of Association Executives (CSAE), another organization that has been very involved in talks with the government over the last year to try and soften the Act, also recently wrote to its membership, warning them to get ready for this new method of dealing with the government.

“It is becoming clear that the reporting requirements will be somewhat onerous and will require time to complete each reporting period,” states a recent CSAE newsletter. “Accountability with the Act will rest with the most senior staff person in an association, i.e. the chief staff officer… Do your homework. Familiarize yourself with the FAA and the new laws that apply to not-for-profits.” Sound advice.

The folks at Imagine concur. Kirk writes, “Fifty-nine percent of Canada’s registered charities have zero or one paid staff. They rely heavily on volunteers to do their important work in the community. They tend to look to their paid staff person to carry out information and communications with governments, which often necessitates registration as a lobbyist and, now, as many as 12 new reports to government each year.”

Possible solutions

Given the limited room to wiggle now that the FAA is solidly in place, according to Imagine’s literature, they, along with a combined 1,100 members and sister organizations, have petitioned the government with the following three requests for slight amendments to the Act:

• Less detailed monthly reporting obligations by in-house lobbyists.
• Limiting the definition of reportable communications to oral communications, arranged communications, and communications initiated by the lobbyist; and
• Not expanding the definition of DPOHs, which currently includes ADMs, DMs, Ministers and political staff.

Another year, another pile of paperwork

Despite pleas from the sector, Steinsky-Schwartz remains pragmatic about the chances of these suggestions coming into force. “Government wanted more transparency and this is how it chose to implement it. This is an unintended consequence,” she says. However, she adds that Imagine Canada’s consultations with government will continue, as will its communication with members and colleague organizations, encouraging all to be prepared.

Nonprofit organizations should plan accordingly…and be ready to invest in many new sheaves of printer paper.

Andy Levy-Ajzenkopf is president of WordLaunch professional writing services in Toronto. He can be reached at andy@wordlaunch.com.