By Theresa L.M. Man

3.1.  Public policy dialogue and development activities by registered charities

The Canada Revenue Agency (“CRA”) hosted a webinar on public policy dialogue and development activities (“PPDDAs”) on October 22, and 24, 2024, and has subsequently posted it in late November 2024 for replay. The webinar is timely with a federal and Ontario election on the horizon for Canada, charities engaging in PPDDAs may wish to become familiar with CRA’s guidance, CG-027, Public policy dialogue and development activities by charities (“PPDDAs Guidance”). Charities can also view the webinar as an educational tool to understand the rules involving PPDDAs.

According to the PPDDAs Guidance, registered charities are required to be constituted and operated exclusively for charitable purposes, and all the charities’ resources must be devoted to charitable activities carried on by the charity itself. In that regard, the PPDDAs Guidance explains that charitable activities include PPDDAs that further a charitable purpose. PPDDAs generally involve seeking to influence the laws, policies, or decisions of government, whether in Canada or a foreign country. 

As long as a charity’s PPDDAs are carried on in furtherance of its stated charitable purpose(s), the Income Tax Act places no limits on the amount of PPDDAs a charity can engage in. In this context, a charity may devote up to 100% of its total resources to PPDDAs that further its stated charitable purpose(s). 

​Read the January 2025 Charity & NFP Law Update