Donating to a Political Party

If you don’t have the time or inclination to participate actively in the provincial political process, you might want to consider making a monetary contribution to the registered political party, constituency association or candidate of your choice. Your contribution will serve as a tangible expression of support, and you will recoup a big chunk of that contribution when you file your income taxes.

“There’s no question that you need funds to run a political campaign and to run a political party, and no amount is too small,” says Laurie Blakeman, house leader of the official Opposition and MLA for Edmonton-Centre. “Some people go, ‘I can’t donate $5,000, so it’s not worth me donating at all.’ Twenty-five dollars is good. That’s five lawn signs.”

Blakeman points out that individual contributions democratize the political process. “If we don’t have individuals donating in support of political parties and/or individual candidates, then one tends to look to corporations,” she says. “It’s important to me as an individual that I’m raising money from my fellow constituents and that the money that I go into a campaign with is really reflective of the people I’m representing. It’s the little guy supporting the little guy.”

The amount of your contribution is up to you, but in the unlikely event that you are independently wealthy, you should know that you cannot donate more than $15,000 in a non-election year and $30,000 in an election year to a registered party. Contributions to registered candidates are limited to $2,000 per candidate and $10,000 in total to candidates of each registered party. You should also know that the chief electoral officer must make available to the public the names and addresses of all contributors who donate more than $375.

If you don’t want to make a huge dent in your bank account, you might want to take advantage of the preauthorized withdrawal plans offered by some registered parties. You can arrange to have a predetermined amount withdrawn from your account at the same time each month and receive a tax receipt at the end of the year for the total of your monthly contributions.

Blakeman highlights the importance of enrolling in the plans. “It saves wear and tear on everybody,” she says. The contributions also add up. “If you do $20 a month, by the next election you would have contributed $1,000 to a candidate’s campaign. Now that is serious money.”

Political contributions are a boon at income tax time. You are eligible for a tax credit equal to 75% of the first $400 you contribute, 50% of any amount between $400 and $750, and 33.5% of amounts over $750. The maximum amount of the credit is capped at $650. For example, a $400 contribution would yield a $300 credit, reducing your Alberta tax payable by $300.

While the membership fees you pay to belong to a registered party are usually not tax deductible, the cost of the ticket you purchase to attend a political fundraiser can be. For tickets costing $50 or less, you can receive a tax receipt upon request for half the price. For tickets costing more than $50, you will automatically receive a tax receipt for the amount over $25.

If you are interested in contributing to a registered provincial political party, constituency association or candidate, contact information is available from Elections Alberta, 100 11510 Kingsway Avenue NW, Edmonton AB, T5G 2Y5, tel: 427-7191 (in Edmonton) or 310-0000 (from elsewhere in Alberta), fax: (780) 422-2900, e-mail: info@elections.ab.ca , website: www.elections.ab.ca .

FAQs About Making a Political Contribution

1. How much money can I contribute to a registered provincial political party, constituency association or candidate?

Alberta’s Election Finances and Contributions Disclosure Act governs contributions to registered provincial political parties, constituency associations and candidates.

An individual may not contribute more than $15,000 per calendar year to each registered political party. Additional contributions are allowed during a year in which there is a general election or a by-election, provided that total contributions for that year do not exceed $30,000 to each registered party.

Contributions to registered constituency associations are limited to $1,000 per calendar year per association and $5,000 in total to associations of each registered party. However, associations cannot accept contributions during a campaign period. During that three-month period, contributions to registered candidates cannot exceed $2,000 per candidate and $10,000 in total to candidates of each registered party.

2. How little money can I contribute to a registered provincial political party, constituency association or candidate?

You can contribute as little money as you like. However, if your total contribution is $50 or less, you will not receive a receipt for income tax purposes unless you specifically request one.

3. Can I make monthly contributions to a registered provincial political party to spread them over the year?

Some registered provincial political parties offer preauthorized withdrawal plans. You can arrange to have a predetermined amount withdrawn from your bank account at the same time each month and receive a tax receipt at the end of the year for the total of your monthly contributions.

4. Will my contributions be anonymous?

Registered provincial political parties, constituency associations and candidates cannot accept anonymous contributions over $50. However, if your total contributions are between $50.01 and $375, your name and address will remain in the custody of the chief financial officer of the party, association or candidate to whom you contributed. Only if you contribute more than $375 will the chief electoral officer make available to the public your name and address and the amount of your contribution.

5. What percentage of my contributions can I expect to recoup when I file my income taxes?

You are eligible for a tax credit equal to 75 percent of the first $200 you contribute to a registered provincial political party, constituency association or candidate; 50 percent of the next $900; and 33⅓ percent of the next $1,200. The maximum credit of $1,000 is reached when contributions total $2,300. Your Alberta tax payable is reduced by the amount of the credit.

6. Are the membership fees I pay to belong to a registered provincial political party and/or constituency association considered a contribution?

Membership fees are not considered a contribution unless they exceed $50.

7. Is the cost of a ticket to a fundraiser organized by a registered provincial political party, constituency association or candidate considered a contribution?

If the ticket costs $50 or less, it is not considered a contribution unless you so request, in which case half of the cost will be designated as a contribution. If the ticket costs more than $50, the amount above $25 will be designated as a contribution.

8. Can the ATA or its locals make political contributions on my behalf?

Because ATA policy prohibits the organization and its locals from aligning themselves with political parties, they cannot make political contributions on your behalf.

9. How can I find out if a provincial political party, constituency association or candidate is “registered”?

The chief electoral officer is responsible under the Election Finances and Contributions Disclosure Act for registering and deregistering provincial political parties, constituency associations and candidates. Information on registered parties, associations and, during a campaign period, candidates is available from Elections Alberta, 100 11510 Kingsway Avenue NW, Edmonton AB, T5G 2Y5, tel: 427-7191 (in Edmonton) or 310-0000 (from elsewhere in Alberta), fax: (780) 422-2900, e-mail: info@elections.ab.ca , website: www.elections.ab.ca .

10. How do I contribute to a registered provincial political party, constituency association or candidate?

Get out your cheque book or credit card and contact the registered provincial political party, constituency association or candidate of your choice. Contact information is available from Elections Alberta, 100 11510 Kingsway Avenue NW, Edmonton AB, T5G 2Y5, tel: 427-7191 (in Edmonton) or 310-0000 (from elsewhere in Alberta), fax: (780) 422-2900, e-mail: info@elections.ab.ca, website: www.elections.ab.ca .