Decoding: The Funding of Political Parties

by Apathy is Boring — March 31, 2010

Ever wonder how political parties finance themselves? The travelling and advertising during election campaigns, the day-to-day activities; where does the money come from to pay for all this? It comes from us. There are, however, detailed laws governing these contributions which fund political parties.

Who Can Give and How Much Can They Give?

The Canada Elections Act  is the law that governs political financing. This law basically states that individual Canadian citizens or permanent residents over 18-years old can contribute a maxiumum yearly contribution, currently $1,100,  (or the equivalent in professional services)  which can be given to:

• a registered political party.
   
• registered associations, nomination contestants and candidates of a registered political party.
   
• an independent candidate for a particular election.
   
• a leadership contestants in a particular leadership contest.

However, a party can not accept contributions from a business, union or any other organization. As well, they are forbidden from taking donations above the legal maximum. In all these cases, the contribution must be returned or the alternative steps detailled in the Canada Elections Act followed.

The Tracking of Political Financing

Reciepts must be issued for all amounts greater than $20. As well, not everyone in a party is authorized to deal with finances and funding; an official or financial agent  must manage the accounts of a candidate, leadership or nomination contestants. These fiunding activities must be carefully recorded and reports submitted to Elections Canada using specific guidelines, forms and online tools. This information is then made accessible to the public.  However, a registered party may benefit from filing these documents by receiving an annual allowance from the federal government. Electoral candidates, in some cases, can have their deposit returned and, in some cases, part of their expenses paid.

Why Regulate Political Funding?

The goal of this process and the laws governing political financing is to  enable "freedom of expression for all citizens while providing a level playing field compatible with  democratic principles" as well as "embodying the principles of transparency,  accountability, accessibility and fairness in order to promote citizens’ participation and trust in  electoral democracy" (Davidson, 2007, p. 2). This means any individual, organization or business is prevented from overly controlling the election process through funding and helps to ensure that information on party's financing is transparent and available to the public.

Find Out More

There are many more people and regulations involved in ensuring fair political party financing than can be mentioned here. If you would like to find out more, why not check out Election Canada's website or search the mass media for stories connected to election financing? This will give you a greater understanding of this essential element of our political process.

Sources:

Elections Canada On-Line | Political Financing
Heard, Andrew. "Canadian Election Law & Policies"
Paltiel, Khayyam Z. "Party Financing." The Canadian Encyclopedia
Davidson, Diane. "Political Financing in Canada: Achieving a Balance." Proc. of International Conference Law and Society in the 21st Century, Berlin, Germany. Washington D.C.: IFES White Paper Series, 2007