This Guideline outlines what we generally refer to as "the 10% rule" by defining political activity and indicating how much of it a charity can do in a given year.

Here are the highlights of the Guideline (the links go directly to that section of the Guideline on the CRA website). These highlights are general, and you should refer to the Guideline itself for specific direction.

Three types of activities by charities
For the purposes of this guideline, there are three types of activities a charity can undertake: prohibited, political, and charitable.

Definition of prohibited activities
A charity is prohibited from illegal or partisan political activities. "A partisan political activity is one that involves direct or indirect support of, or opposition to, any political party or candidate for public office."

Definition of political activity
CRA considers these activities to be political and therefore counted in a charity's 10%:
"We presume an activity to be political if a charity:

1. explicitly communicates a call to political action (i.e., encourages the public to contact an elected representative or public official and urges them to retain, oppose, or change the law, policy, or decision of any level of government in Canada or a foreign country);
2. explicitly communicates to the public that the law, policy, or decision of any level of government in Canada or a foreign country should be retained (if the retention of the law, policy or decision is being reconsidered by a government), opposed, or changed; or
3. explicitly indicates in its materials (whether internal or external) that the intention of the activity is to incite, or organize to put pressure on, an elected representative or public official to retain, oppose, or change the law, policy, or decision of any level of government in Canada or a foreign country."

Charitable activities
Some activities used to be considered political under a previous version of these guidelines; these activities are now considered charitable and do not count in a charity's 10%:

Public awareness campaigns
Campaigns designed to raise awareness and help people learn about a charity or an issue that it deals with are considered charitable activity. Campaigns should be connected and subordinate to a charity's purpose and should be based on well-reasoned positions.

Meetings with elected representatives and public officials
Meetings with city councillors, MLAs, MPPs, MPs, and public officials are all considered charitable activity, whether the meeting is by invitation or not. In these meetings you can make a call to political action (i.e. urge them to retain, oppose, or change the law, policy, or decision of any level of government in Canada or a foreign country) and the activity is still considered charitable. Make sure that your meetings are about issues or topics that are connected and subordinate to your charity's purpose.

Releasing the text of a representation
Often in meetings with elected representatives and public officials you will present a brief or a proposal, usually in a hard copy document. CRA calls this document a representation. Releasing the text of a representation to the public in your newsletter or on your website is considered charitable activity. However you must release the full text of the representation, and you must remove any call to political action that might have been in the text when you delivered it to the elected representative or public official.

Expenditure limits
Generally, a charity is limited to expending no more than 10% of its resources on political activities. CRA considers "resources" to include "the total of a charity's financial assets, as well as everything the charity can use to further its purposes, such as its staff, volunteers, directors, and its premises and equipment". However for charities with very small budgets, the percentage is higher:

• "Registered charities with less than $50,000 annual income in the previous year can devote up to 20% of their resources to political activities in the current year.
• "Registered charities whose annual income in the previous year was between $50,000 and $100,000 can devote up to 15% of their resources to political activities in the current year.
• "Registered charities whose annual income in the previous year was between $100,000 and $200,000 can devote up to 12% of their resources to political activities in the current year.

Averaging over three years
If a charity needs to do a great deal of political activity in a given year and it appears that it will exceed the 10% limit, the charity can "reach back" and use any unexpended portion of their 10% in up to two previous years.

These highlights are general, and don't cover all of the sections of the Guideline. Please refer to the guideline itself for specific direction.