2006 Candidate's Guide for City Council

Sections 66 and 68 to 75 of the Municipal Elections Act, 1996, as amended

Contributions cannot be accepted until a nomination paper has been filed with the Clerk's Office. Any contributions accepted outside the campaign period must be returned to the contributor, or if this is not possible, the amount must be turned over to the Clerk.

The value of all contributions must be reflected on the financial statement that is filed with the Clerk. In addition, a candidate must list on the financial statement the names and addresses of those contributors donating more than $100.

10.1 Campaign contributions

Volunteer unpaid labour is not a contribution

Money, goods or services given to a candidate for their campaign are contributions.

Contributions include:

• The ticket price for a fund-raising event.
• The difference of the amount paid and the market value of a good or service sold at a fund-raising event.
• The difference between the amount paid and the market value of a good or service purchased for the campaign.
• Any unpaid but guaranteed balance of a campaign loan.

The following are not contributions:

• Voluntary unpaid labour.
• Services provided voluntarily by employees provided they do not receive any additional compensation from their employer.
• $10 or less that is donated at a fund-raising event.
• Free political advertising (see 4.6).
• The amount of a campaign loan obtained by the candidate or spouse.

10.2 Contribution limit

The limit on contributions from a single contributor in money, goods or services is:

• $2,500 for mayoralty candidates
• $750 for councillor candidates

An individual, corporation or trade union may make a large single contribution or multiple contributions. It is advisable that the candidate records the name and address of each contribution to ensure that they do not accept more than the allowable limit.

10.3 Accepting campaign contributions

Only the candidate and those persons authorized by the candidate may accept campaign contributions. Contributions of money up to $25 may be accepted in cash. Any contributions over $25 must be made by cheque, money order or credit card.

10.4 Receipts for contributions

Candidates must decide prior to issuing receipts whether they will be filing manually or electronically.

A candidate must issue a receipt for every contribution they receive whether it is in the form of money, goods or services.

Candidates participating in the contribution rebate program:

• Must determine whether they will use a manual or electronic method before issuing receipts.

1. Manual - candidates can pick up paper copies of the receipts at Elections and Registry Services, City Hall, 1st floor, North. Candidates will be required to sign for the receipts and will be responsible for accounting of all the receipts.
2. Electronic -candidates will be able to enter all contributions on line and print the receipts.

• Surpluses from candidates participating in the contribution rebate program become the property of the City of Toronto.

Candidates not participating in electronic filing or the contribution rebate program may use any type of receipt as long as it shows the name and address of the contributor and the amount contributed. These receipts should be numbered and have duplicate copies so both the candidate and the contributor receive a copy of the receipt.

If a candidate receives a contribution on the last day of the campaign period and it cannot be deposited, the candidate must record in their records an outstanding bank deposit and a receipt issued as of that date. Each outstanding deposit should be deposited the next banking day.

If it is necessary to issue a replacement receipt, cross-reference the two receipts. Candidates participating in the rebate program must attach a copy of both the voided and replacement receipt to the financial statement.

10.5 Acceptable contribution sources

Only individuals are eligible for a contribution rebate.

Contributions to candidates may only be made by:

• Individuals living in Ontario.
• Corporations carrying on business in Ontario.
• Trade unions holding bargaining rights for employees in Ontario.
• The candidate or their spouse.

A contribution may only be made from the contributor's own funds. If a chequeis from a joint personal bank account the receipt must have the name of the person signing the cheque. If both people sign the cheque, the candidate must determine how much each person contributed and issue separate receipts to each person.

10.6 Corporations

Check to see if the corporation has associated companies. If so, it is deemed to be a single corporation.

To be eligible to make a contribution, a corporation must carry on business in Ontario. Prior to accepting a corporate donation, the candidate must satisfy themselves that the corporation does carry on business in Ontario.

Corporations that are associated with one another, as defined by section 256 of the Income Tax Act (Canada), are considered to be a single corporation for the purpose of campaign contributions. Many corporations carry on business through subsidiaries and affiliated companies. Such corporations are deemed to be a single corporation and may only make a maximum contribution of $750 to a councillor candidate or $2,500 to a mayoralty candidate.

10.7 Unincorporated groups

Corporations or Trade Unions are no longer eligible for a contribution rebate.

If an unincorporated group, such as a law partnership or ratepayers' group, makes a campaign contribution, the candidate must request a list of the names and addresses of the individual contributors who shared in the contribution and the amount contributed by each individual. The receipts must be issued to the individual contributors, not the unincorporated group. The individual's portion of the group's contribution counts towards that individual's campaign contribution limit of $750 (councillor candidate) or $2,500 (mayoralty candidate).

10.8 Ineligible contributors

The following may not make contributions:

• A federal political party, constituency association or a registered candidate at a federal election.
• A provincial political party, constituency association or a registered candidate or leadership contestant.
• The Crown in right of Canada or Ontario, a municipality or local board.
• Charitable organizations or corporations that have been established for charitable purposes and public corporations such as public hospitals, crown agencies, boards or commissions, which are, in general, prohibited by statute or common law from making political donations.

10.9 Candidate's own funds

A person who wishes to run for office must not contribute to his or her own campaign until they are a nominated candidate. There is no limit on the contributions from the candidate or their spouse to the candidate's campaign, but it must be reported as a contribution and a receipt must be issued.

10.10 Contributions of goods and services

Contributions of goods and services are no longer eligible for a contribution rebate.

All contributions of money, goods or services are subject to the contribution limit of $750 to a councillor candidate or $2,500 to a mayoralty candidate.

Services donated by people acting on a volunteer basis are not considered contributions. If an employer makes employees available (who have volunteered their time) to work on a campaign and does not pay them extra for this work, this does not count as a contribution. However, if the employer pays them in addition to their regular wage, the amount of the extra wages is a contribution and is subject to the contribution limits.

Free political advertising provided by a broadcaster is not deemed to be a contribution, provided it is done in accordance with the provisions, regulations and guidelines of the Broadcasting Act (Canada) and is available equally to all candidates.

All other donations of goods or services are contributions and should be supported by an invoice from the contributor. The contribution must be valued at current market value and a receipt issued for that value. This includes materials the candidate brings into the campaign from a previous campaign, such as brochures, signs and stakes.

If part of the cost of the purchase of a good or service is considered by the supplier to be a contribution, the supplier should provide an invoice for the total amount and indicate the amount he or she is donating as a contribution.

If a supplier charges a candidate less than market value for the purchase of a good or service, the difference between the amount charged and the market value is considered a contribution. For example, if a candidate is billed $150 for printing brochures, but the lowest market price available to other customers is $275, then the difference of $125 is a contribution from the printer to the candidate, and a receipt must be issued for the $125.

If a supplier of goods or services is not paid or has agreed not to accept payment, the value of the good or service is a contribution and receipt must be issued. All suppliers should be paid promptly within the normal credit terms as provided by the supplier.

10.11 Anonymous contributions

An anonymous contribution cannot be accepted; it must be turned over to the Clerk. The only exception to this rule is an anonymous contribution received at a fund-raising event, i.e., "pass the hat". Each of these contributions must be $10 or less and the total amount collected must be reported on the candidate's financial statement.

10.12 Refund of contributions

A candidate is required to refund contributions when they are:

• Received outside the candidate's campaign period.
• From an anonymous contributor (except "pass the hat" contributions).
• From ineligible sources (see 10.8).
• Over the $750 (councillor candidate) or $2,500 (mayoralty candidate) limit.
• Cash contributions over $25.
• Funds not belonging to the contributor.

If an official receipt has already been issued, the candidate should not refund the contribution until the contributor's copy has been recovered. If the candidate is participating in the campaign contribution rebate program and cannot recover the contributor's copy of the receipt, the candidate must attach a letter to the financial statement providing information regarding the contribution that has been refunded and the "voided" copy of the receipt. The candidate must also reflect the refund in their records.

10.13 Fund-raising events

Fund-raising events are held for the purpose of raising money for a candidate. Such events include dinners, dances, garden parties, etc. for which there is an admission charge, as well as events for which there is no admission charge such as auctions, button sales, etc.

The price of the ticket to a fund-raising event is a campaign contribution and a receipt must be issued for the full amount. For example, if a ticket cost $50, a receipt for $50 must be issued and a contribution of $50 must be recorded, regardless of the costs of organizing and holding the event. If the price of the ticket exceeds $100, the name and address of the contributor must be recorded in the financial statement. If the ticket price is over $25, the amount must be paid by cheque, money order or credit card.

10.14 Borrowing and lending

A candidate may not loan money to their campaign with the intention of getting it back through future contributions or fund-raising events. A candidate or their spouse may borrow money for campaign purposes only from a chartered bank or other recognized lending institution. The full amount of the loan must be paid directly into the campaign account. Only a candidate and their spouse may guarantee a loan for campaign purposes. Any unpaid but guaranteed balance of a loan is considered to be a contribution.