Question.

What is the 10% Rule?

Answer.

Under the Income Tax Act, a charity must devote substantially all its resources to charitable activities before it can engage in any political activities. Revenue Canada considers this to mean 90 per cent or more of a charity's resources. Thus, a charity can apply no more than about 10% of its resources to political activities.


 

These Not-For-Profit and Charity Law Pages (http://www.law-nonprofit.org)
are copyright to LawNow, but may be copied for educational use by not-for-profit and charitable groups.

LawNow Magazine Legal Studies Program Canadian Legal FAQs Access to Justice Network Not-for-Profit Pages