CONTRIBUTION LIMITS

The Canada Elections Act imposes three separate limits for federal political contribution from individuals:

• 2023 Contribution Limits
• Max $1725 to the Liberal party of Canada (national) per year
• Max $1725 to registered riding associations, nomination contestants and candidates, combined per year
• Max $1725 to all LPC leadership contestants

ELIGIBLE CONTRIBUTIONS

• Only individuals who are Canadian citizens or permanent residents can make a contribution to a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant.
• Sole-Proprietorship: A donor who is the sole-proprietor of a business that is not incorporated, can make a contribution from the proprietorship. The Tax receipt will be issued to the sole-proprietor. Please include this form with the contribution documentation.
• Partnerships: A partnership may act as a delivery agent for contributions made by an individual partner. The partnership must receive written instructions from each partner contributing funds in the aggregate contribution, and these contributions will be subject to each individual’s contribution limit. Please use this form to identify a contribution form a partnership.

ELIGIBLE CONTRIBUTIONS

You do not need to take any action to receive or receipt contributions made online or through the Victory Fund. Any contributions received by the riding directly or at events (by cheque or mone order) need to be submitted to LPC so that receipts can be issued. For one-time gifts, the following is required:

• Photocopies of teller endorsed deposit slips
• Photocopies of cheques attached to the related deposit slip
• A completed and signed Batch Authorization Form (BAF)

Receipting for contributions made through e-Transfers

The following documents need to be submitted to LPC so that receipts for contributions made through e-Transfers can be issued.

• Copy of the email indicating the name of the donor and the amount transferred
• The coordinates of the donor, that include the full name of the donor, the mailing address and the email address
• A copy of the bank statement from the EDA bank account demonstrating the funds received
• A completed and signed Batch Authorization Form (BAF)

Non-monetary Contributions

A non-monetary contribution is the value of a good or service provided free of charge. For example, a tablet being given to an association to use for canvassing would be a non-monetary contribution from whoever gave the item.

• Non-monetary contributions should be recorded on the Non-Monetary Contribution Form.
• A person usually in the business of providing this good or service cannot provide it free of charge. For example, a self-employed web designer cannot donate his time to build the association microsite.
• The commercial value of goods or services with a value of $200 or less that are provided free of charge by a person who does not supply these goods or services commercially is deemed to be nil – it is neither a contribution nor an expense.
• Non-monetary contributions are subject to the contribution limits.
• Non-monetary contributions are not eligible for a receipt for income tax purposes.

Fundraising Events

In addition to the forms above, a completed Event Report must be submitted for each fundraising event. Event tickets should be sold using the events tool. To submit an event, click here. Additionally, if selling tickets at the door, you can collect credit card information and either submit these through the event link or send the forms to LPC for processing. Please make copies of any cheques or money orders used to purchase tickets and submit them to LPC along with a Batch Authorization form and the Event Report. An effective way of raising additional funds during meetings or events is to “pass the hat’”. Please note, these contributions cannot exceed $20 from any individual. Please submit a completed Pass the Hat form along with your event report.

CALCULATING THE PERSONAL BENEFIT FOR FUNDRAISING EVENTS

Determining the inflow amount to be recorded for a ticketed fundraisers requires a determination of the fair market value* of the significant benefit received by the ticket purchaser. To calculate the benefit received by the donor, you must distinguish the significant benefits from the non-significant benefits. A benefit is considered significant when it is central to the fundraising activity. The significant benefit received by the ticket purchaser could include things like costs for food and beverages (excluding gratuities and taxes). This could also include hall rental, green fees, boat rental, etc. A benefit is not considered significant when it is not central to the fundraising activity and its value does not exceed 10% of the amount given or $75, which ever less. Do keep in mind the 10% threshold applies to the cumulative of benefits non-central to the event. Note that if the central benefit of the fundraising activity is not commercially available, such as access to a party leader, it has no fair market value. The value of this benefit is deemed nil and is not deducted from the contribution given. The amount of a ticket purchaser’s monetary contribution is the ticket price less the fair market value of the significant benefits that the bearer is entitled to receive. The contribution amount is the amount contributed, minus the significant benefit received. *It should be noted that all expenses incurred by a political entity should be at fair market value, therefore the calculation of the personal benefit should be based on the expenses incurred towards the fundraising event.

Examples:

Kerry purchased a ticket to a fundraising dinner for $100. The cost of food per person, excluding gratuities and taxes, was $20, therefore her contribution is only $80. Only $80 will be counted against her contribution limit. Jim purchased a ticket to a fundraising dinner for $100. The cost of food per person, excluding gratuities and taxes, was $20. Jim also receives a bag valued at $5. Since the value of the bag is below 10% of the ticket price, it will not be considered as a significant benefit. Jim’s contribution will be $80. Only $80 will be counted against his contribution limit. Elaine purchased a ticket to a fundraising dinner for $100. The cost of food per person, excluding gratuities and taxes, was $20. Elaine also receives a bag valued at $7 and a pen valued at $5. Since the combined value of the bag and the pen are above 10% of the ticket price, they will be considered as a significant benefit. Elaine’s contribution will be $68. Only $68 will be counted against her contribution limit. Kim purchased a ticket to a corn roast for $50. The cost of food per person, excluding gratuities and taxes, was $4. Although the benefit received is below 10% of the ticket price, since the meal was central to the fundraiser, it must be considered as significant. Kim’s contribution will be $46. Only $46 will be counted against her contribution limit. Jerry purchases a ticket at $50 to see a speech from the party leader. Since this service is not commercially available, we cannot attribute a fair market value to it, therefore it is deemed nil. Jerry’s contribution will be $50. $50 will be counted against his contribution limit.

Auctions

If you are holding an auction, please note the following:

• All items given for auction are non-monetary contributions and must be recorded as such
• These items are classified as either having no value or with value:
  • A no value item could be a personal item like a hockey sweater from a hockey celebrity. Form LPC-7020 would be used to identify this item.
  • A value item would be its commercial value. Form LPC-7019 would be used to identify this item.
• The individual purchasing the item is making a contribution for the amount that exceeds the commercial value of the item, and is subject to contribution limits. These contributions will not receive a receipt for income tax purposes.
• • If a value cannot be assigned to the item purchased at the auction, the entirety of the winning bid will count against the donors annual contribution limit but will not be eligible for an income tax receipt.
  • If you can attribute a commercial value to the item purchased. The amount of the winning bid will determine if a portion of the contribution is eligible for an income tax receipt. If the value of the item is equivalent or lower to 80% of the amount of the winning bid, the difference between the winning bid and the value of the item will count against the donor’s annual limit and will also be eligible for an income tax receipt.
  • If the value of the item exceeds 80% of the amount of the winning bid, the difference between the winning bid and the value of the item will count against the donor’s annual limit and will not be eligible for an income tax receipt.

Example: Three items are up for auction: a signed baseball from the local team, a new mp3 player and a handbag. The baseball is a no value item as its value is not determinable. The mp3 player is valued at $210.00. The handbag is valued at $300.00. George wins the baseball with a $400 bid. He has made a $400 contribution. $400 will count against his contribution limit and he will not receive an income tax receipt (as the advantage is not determinable). Mary wins the mp3 player with a $240 bid. She has made a $30 contribution. $30 will count against her contribution limit and she will not receive an income tax receipt (as the total advantage is greater than 80% of the bid, i.e. 80% x $240 = $192). Jack wins the handbag with a $500 bid. He has made a $200 contribution. $200 will count against his contribution limit and he will receive an income tax receipt for $200.