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Political Financing Handbook for Candidates and Official Agents (EC 20155) – November 2019 – Archived content

This document is Elections Canada's archived guideline OGI 2019-09 and is no longer in effect.

Click on the link for the latest Political Financing Handbook for Candidates and Official Agents.

8. Election Expenses

This chapter explains what election expenses are, describes how limits are calculated and applied, and gives examples of typical election expenses. It covers the following topics:

  • What are election expenses?
  • Who can incur and pay election expenses?
  • Limits on election expenses
  • Typical election expenses (election advertising, websites and web content, voter contact calling services, other outreach, expenses related to the campaign office and workers)
  • Use of existing resources (websites, signs and parliamentary resources)

What are election expenses?

An election expense is:

  • any cost incurred or non-monetary contribution received by a candidate to the extent that the property or service that the cost was incurred for, or that was received as a non-monetary contribution, is used to directly promote or oppose a candidate during an election period
  • any non-monetary transfer received from a registered party or a registered association of the registered party to the extent that the property or services are used to directly promote or oppose a candidate during an election period

The concept of "directly promoting or opposing a candidate" is not limited to election advertising. It is to be understood broadly and includes expenses for running a campaign, such as office rental, telecommunication services, etc.

This means that most expenses reasonably incurred for property or a service used during the election period are election expenses, unless they:

The election period starts on the day the election is called and ends on election day when the
polls close.

Election expenses may be eligible for partial reimbursement. See Chapter 16, Reimbursements and Subsidies, for more information.

Who can incur and pay election expenses?

The official agent or a person authorized in writing by the official agent can incur election expenses. Candidates also need written authorization from their official agent to incur election expenses and can only incur the expenses in accordance with that authorization.

Only the official agent is allowed to pay election expenses, other than petty expenses paid from the petty cash with the official agent's written authorization.

Limits on election expenses

The Canada Elections Act imposes a limit on election expenses to facilitate a level playing field among candidates.

The limit applies to each candidate's election expenses in the electoral district where they are seeking election. The limit applies to the total of all election expenses, whether paid, unpaid, or accepted as non-monetary contributions or transfers.

The official agent and any person authorized in writing by the official agent to incur expenses all have to respect the election expenses limit. They cannot enter into contracts or incur election expenses that exceed the limit.

The campaign will need an expense approval process to help ensure that the official agent and any authorized persons, including the candidate, are informed and co-operate when incurring expenses. An expense approval process and a campaign budget created at the beginning of the campaign help to manage finances effectively.

Note: A campaign that exceeds its election expenses limit will have its reimbursement reduced based on a sliding scale. See Chapter 16, Reimbursements and subsidies, for details.

How are the limits calculated?

The limit amount varies from one electoral district to another. Elections Canada calculates the limit for each electoral district as follows:

  1. Expenses limits are based on the number of names appearing on the preliminary lists of electors or on the revised lists of electors for the electoral district, whichever is greater.
  2. The Canada Elections Act provides for an adjustment for candidates running in electoral districts where there are fewer electors than the national average. In these districts the limit is increased.
  3. The Canada Elections Act also provides for an adjustment for geographically large electoral districts. If the number of electors per square kilometre of the electoral district is less than 10, the candidate's expenses limit is increased.
  4. The limit is then adjusted by the inflation adjustment factor in effect on the day the election
    is called.

Notification of election expenses limits

Shortly after an election is called, Elections Canada notifies each returning officer of the preliminary election expenses limit. The returning officer advises each campaign of the preliminary limit.

Approximately one week before election day, Elections Canada notifies the candidates directly of their final election expenses limit. The final election expenses limit may be higher but not lower than the preliminary limit.

Note: During an election, expenses limits are published on the Elections Canada website in the Political Participants section.

Typical election expenses

The following are examples of typical election expenses.

Traditional election advertising

What is election advertising?

Election advertising is the transmission to the public of an advertising message promoting or opposing the election of a candidate during the election period.

Promoting or opposing the election of a candidate may include but is not limited to:

  • naming the candidate
  • showing a photograph, cartoon or drawing of the candidate
  • identifying the candidate, including by political affiliation or by a logo
  • providing a link to a web page that does any of the above

Expenses incurred for advertising conducted during the election period, including the expenses for production and distribution, are to be reported as election expenses.

Tagline

Advertisements distributed through traditional means such as signs, billboards, flyers, pamphlets, radio, television, newspapers or magazines during an election period are election advertising and have to be authorized by the official agent.

This authorization has to be mentioned in or on the message—for example, "Authorized by the official agent of John Smith."

Blackout period

The Canada Elections Act prohibits the transmission of election advertising to the public in an electoral district on election day before the close of all polling stations in the electoral district.

The blackout does not apply to distributing pamphlets or posting messages on signs, posters or banners during that period. Nor does it apply to transmitting a notice of an event that the party leader will attend or an invitation to meet or hear the party leader.

Examples
  1. In anticipation of an upcoming election, the official agent purchases flyers before the election is called and distributes them during the election period to promote the candidate. The expense for the flyers—including their design, printing and distribution—is an election expense. The flyers are election advertising and have to include an authorization statement from the official agent.
  2. The official agent purchases an advertisement that is broadcast during the election period on the local radio station, promoting the candidate. The expense for the advertisement—including its design, recording and transmission—is an election expense. The advertisement is election advertising and has to include an authorization statement from the official agent.

Election signs

Election signs are election advertising and are subject to the tagline and blackout requirements mentioned above for traditional election advertising. Signs installed before election day do not need to be removed as part of the blackout requirements.

Expenses incurred to obtain election signs for the candidate's campaign are election expenses. Even if some signs are never installed, the expense to obtain the signs counts toward the election expenses limit.

Sometimes election signs are vandalized or stolen. If the campaign has many affected signs, it may want to report the expense to replace vandalized or stolen signs as an other electoral campaign expense instead of an election expense. This can be done if the campaign:

  • replaces the vandalized or stolen signs with signs of the same cost (or, if the signs are more expensive, reports the increase in cost as an election expense)
  • files a police report that includes a description of the signs, their location and costs
  • keeps the police report and evidence of the vandalism or theft in its records (for example, photographs or a statement from the property owner)

Signs are often used for more than one election. For details, see the Use of existing resources section below.

Note: Because uninstalled signs count toward the election expenses limit, a campaign should be mindful to purchase only the quantity of signs that it intends to install.

Election advertising on the Internet

What qualifies as election advertising on the Internet?

Election messages communicated over the Internet are election advertising only if:

  • they meet the general criteria for election advertising (see What is election advertising? above), and
  • they have, or would normally have, a placement cost (such as sponsored or boosted content)

For greater certainty, the following are not election advertising:

  • messages sent or posted for free on social media platforms such as Twitter and Facebook
  • messages sent by email or through other messaging services (including texts sent through a cellular or mobile network)
  • videos posted for free on social media platforms such as YouTube and Instagram
  • content posted on the candidate's website (the ongoing expenses for creating and maintaining a website are not placement costs)

However, any associated expenses are election expenses. See the Websites and web content section below.

Tagline

The official agent has to authorize any election advertising, and this authorization must be mentioned in or on the advertisement. Where the authorization statement cannot be included on the advertising message because of its size, this is acceptable if the statement is made immediately apparent to the viewer by following the link in the advertising message.

Information to be held in an online registry

Regulated online platforms (that is, websites or applications that meet certain criteria for monthly visitors or users) have to maintain a registry of political advertising.

When a candidate's campaign purchases election advertising online, to make sure it complies with the law, it should:

  • inform the platform that it is conducting political advertising
  • ask if the platform is regulated by the rules in the Canada Elections Act and needs information for its registry (unless the platform has already made this clear)

If the platform is regulated, the campaign must provide it with:

  • an electronic copy of the advertisement
  • the name of the official agent who authorized its distribution on the platform

The platform must publish this information in its registry from the day the ad runs until two years after election day.

Note: These rules also apply to partisan advertising conducted by a candidate's campaign in the pre-election period.

Blackout period

The Canada Elections Act prohibits the transmission of election advertising to the public in an electoral district on election day before the close of all polling stations in the electoral district.

The blackout does not apply to the transmission of a message on the Internet that was placed before the blackout period began and was not changed during that period—for example, an advertisement placed in a weekly online magazine.

However, if an Internet advertisement is actively transmitted to different users daily and the campaign is able to control the transmission date—for example, a paid social media or search engine advertisement—the blackout must be respected.

The blackout also does not apply to transmitting a notice of an event that the party leader will attend or an invitation to meet or hear the party leader.

Examples
  1. The candidate's campaign hires a media firm to place banners on social media platforms during the election period, directing users to a video posted on YouTube. Because the banners have a placement cost and promote the candidate, they are election advertising and have to be authorized by the official agent. They are subject to the blackout on election day. Because there is no placement cost to post the video, it is not election advertising, but all expenses related to designing and developing the video are election expenses.
  2. A group page has been created for the candidate on a free social networking site. Volunteers manage the page and post articles related to the candidate's campaign. This is not election advertising. As long as the volunteers are helping outside their regular working hours and are not self-employed in the business of managing social media, the volunteer labour is not an expense.
  3. The official agent hires a media firm to post content on the candidate's website during an election, promoting the campaign. The content is not election advertising, but all expenses related to designing, developing and posting the content are election expenses.

OGI reference

For a detailed discussion of this topic, please refer to Elections Canada's interpretation note 2015-04, Election Advertising on the Internet, on the Elections Canada website.

Websites and web content

Candidates often create websites and social media accounts specifically for their campaigns, either during or in the lead up to an election. Pre-existing websites and social media accounts might also be used to promote the candidate during the election period.

The following table shows when a website or web content that remains online during the election period is an election expense of the candidate, taking into account the purpose of the material.

Type of website or web content Candidate's election expense
Campaign's website and social media accounts The expenses incurred for the campaign website itself—including its design, hosting and maintenance—are election expenses.

Expenses to produce and distribute content on the website or social media accounts are also election expenses. Because the site and accounts exist for the purpose of the campaign, all content that is online during the election period counts as an expense, regardless of when it was posted.

If content was produced entirely or in part using volunteer labour, only the actual expense incurred by the candidate is an election expense. This may include materials, equipment rental or paid labour.
Registered association's website and social media accounts If the registered association's website promotes the candidate and stays online during the election period, it is an election expense of the candidate. Elections Canada will accept the current commercial value of an equivalent website as the commercial value of a pre-existing website.

The official agent must approve this transfer from the association to the campaign. If the official agent does not wish to have this expense count toward the limit, the website must go offline during the election period.

Expenses to produce and distribute content on the website or social media accounts for the purpose of the campaign are also election expenses. Pre-existing content is only an expense if it was posted for the purpose of the campaign or promoted during the campaign.
Candidate's personal website and social media accounts A candidate's pre-existing personal website is an election expense if it is used for the purpose of the campaign. Elections Canada will accept the current commercial value of an equivalent website as the commercial value of a pre-existing website.

Expenses to produce and distribute content on the website or social media accounts for the purpose of the campaign are also election expenses. Pre-existing content is only an expense if it was posted for the purpose of the campaign or promoted during the campaign.

The expenses are also non-monetary contributions from the candidate. However, if the candidate did not incur any expenses for the website or web content, there is no expense or contribution to report.
Parliamentarian's website and social media accounts See the Use of parliamentary and other existing resources section below.

Note: The official agent has to report as election expenses all the expenses related to the design, development and distribution of online communications used during an election period, regardless of whether or not they are election advertising.

Examples
  1. The candidate's campaign launches a website two months before the election period. The campaign posts content such as the candidate's biography, blogs and videos. The election expense to report is the expense to create the website; to maintain and host it during the election period; and to produce all content, whether it was posted before or during the election period.
  2. The candidate has a personal Twitter account and continues to tweet from that account during the election period. Sometimes she tweets about her campaign. If the candidate is tweeting for free on her own time, there is no expense to report.

OGI reference

For a detailed discussion of a similar topic, please refer to Elections Canada's interpretation note 2018-04, Pre-existing Web Content of Registered Parties in an Election, on the Elections Canada website.

Voter contact calling services

Voter contact calling services are services involving the making of calls during an election period for any purpose related to an election, including:

  • promoting or opposing a candidate or any position on an issue with which a candidate is associated
  • encouraging electors to vote or to refrain from voting
  • providing information about the election, including information about voting hours and the location of polling stations
  • gathering information about how electors voted in past elections, or will vote in the election, or their view on a candidate or on any issue with which a candidate is associated
  • raising funds for a candidate

Expenses incurred for voter calls conducted during the election period, including their production and distribution, are election expenses.

Note: The candidate's campaign must register with the Canadian Radio-television and Telecommunications Commission (CRTC) if it uses a calling service provider or automatic dialing-announcing device to make voter calls during an election period. Refer to the CRTC's Voter Contact Registry web page for details.

OGI reference

For a detailed discussion of this topic, please refer to Elections Canada's interpretation note 2015-11, Application of Election Advertising Rules to Telephone Calls, on the Elections Canada website.

Surveys

Expenses related to surveys or research conducted during the election period are election
expenses. Expenses related to surveys or research conducted outside the election period are not election expenses, even if the results of the survey are used during the election.

Example

After the election was called, the official agent engaged Election Polling Inc. for $1,500 to conduct a survey. Once the survey was completed, the official agent issued a cheque from the campaign bank account to pay Election Polling Inc., recorded the amount as an election expense and kept the invoice to submit later with the candidate's return.

Capital assets

Under the Canada Elections Act, a capital asset is any property with a commercial value of more than $200 that is normally used outside an election period other than for the purposes of an election (for example, computers, software, printing equipment and furniture).

If the candidate's campaign purchases a capital asset and uses it during the election period, the election expense is the lower of the commercial value of renting a similar asset for the same period or the purchase price.

For non-capital assets such as office supplies, the purchase price must be recorded as an election expense.

Capital assets might be received in the form of a contribution from an individual or a transfer from the registered party or a registered association of the party. In that case, the commercial value of the asset is a non­monetary contribution or transfer. If the asset was used during the election period, the election expense is the lower of the commercial value of renting a similar asset for the same period or the purchase price. The remaining amount, if any, is an other electoral campaign expense.

Note: Amortization may not be used as a method of calculating the commercial value of the use of the asset.

Note: Capital assets acquired during the campaign must be disposed of at the end of the campaign. They must be sold at fair market value, or else transferred to the party or to the registered association in the candidate's electoral district.

Examples
  1. The candidate's campaign rents two computers from a local office supplier for $500 on the day the election is called. The rental agreement is for two months (61 days), and the election period is 37 days. The cost of renting the computers during the election period is an election expense, and it is calculated as follows: $500 / 61 x 37 = $303.30. The remaining amount, $196.70, is recorded as an other electoral campaign expense.
  2. On the day the election is called, the official agent pays $100 at a garage sale for the purchase of a printer for the campaign. The commercial value of renting a similar printer during the election period would have been $150. The official agent records $100 as an election expense since the purchase price, $100, is lower than the rental rate.
  3. A volunteer uses his personal laptop to do work for the campaign during the election period. The commercial value of renting a similar laptop for the 37-day period would be $80. This is a non-monetary contribution from the volunteer. However, because the amount is $200 or less and the volunteer is not in the business of providing electronics, the non­monetary contribution is deemed to be nil and there is no expense to report.

Rental of a campaign office

The campaign may rent an office for the candidate's campaign. The portion of the rent incurred before and after the election period is an other electoral campaign expense. Only the portion of the rent used during the election period is an election expense.

Example

The campaign rents an office on March 1, a month before the election is called. The rental agreement is for three months and the rent is $300 a month. The election period is 37 days.

The election expense to be recorded is the rent for the month of April, plus the rent for 7 days in May: $300 + (7 / 31 x $300) = $367.74. The remaining amount, $532.26, has to be recorded as an other electoral campaign expense.

Installation and other office expenses

The expense incurred to install items used during the election period is an election expense even if the installation takes place before the election is called, as long as the item itself is an election expense. Installation expenses cannot be prorated.

Other office expenses include the cost of buying office supplies, such as paper or toner cartridges, or supplying refreshments during meetings.

Example

The expense to install any equipment (telephones, computers, fax machines, etc.) is an election expense and cannot be prorated between pre- and post-election periods regardless of when the installation takes place.

The expense for telephone usage, however, will have to be reported as an other electoral campaign expense for the time before and after the election period, while the portion of usage during the election period is an election expense.

Compensation paid to the official agent or other campaign workers

The campaign may choose to pay compensation to the official agent or other campaign workers. In that case, the compensation related to work performed during the election period is an election expense, while the compensation related to work performed after the election period is an other electoral campaign expense.

Note that work performed prior to the election period may also be an election expense if the output of that work is used during the election period. For example, if signs are installed by campaign workers prior to the election being called, any compensation paid would be an election expense.

Compensation may include travel and living expenses. If the candidate's campaign is paying to relocate workers to the electoral district and return them home after the election, the travel costs incurred are other electoral campaign expenses—not election expenses—no matter when the travel occurs. Per diems or lodging paid by the campaign for days during the election period are election expenses.

It is advisable to include a written contract or other documentation with the candidate’s return about any compensation paid, including for travel and living. In the absence of evidence, the payments may be considered an inappropriate use of campaign funds that would need to be returned.

Note: Any amount paid up to $5,000 for the compensation of candidate's representatives at the polls or at the office of the returning officer when electors receive special ballots is to be reported as a personal expense of the candidate.

Examples
  1. The candidate decides to pay a salary of $800 to her official agent for work during the election period. This amount has to be recorded as an election expense.
  2. The candidate decides to pay $50 compensation to each of her six representatives at the polls on election day. The total amount paid, $300, has to be recorded as the candidate's personal expense.

Expenses of volunteers

Unpaid campaign workers are generally providing volunteer labour, which is not an election expense. But expenses for items used by volunteers during the election period (for example, the costs of refreshments, lodging or transportation related to the campaign) are election expenses.

If a volunteer pays for an expense incurred as an incidence of the election, the amount is a non­monetary contribution and an expense. However, if the amount is $200 or less and the individual is not in the business of providing the service, the non­monetary contribution is deemed to be nil and no expense has to be reported.

Examples
  1. Late one night during the election period, volunteers help in the campaign office to prepare hundreds of flyers for mailing. The official agent orders pizza and pays $83.50 to the pizza delivery person. The amount of $83.50 is an election expense.
  2. A volunteer is driving around in her own car to deliver flyers during the election period. She pays $30 to fill up her car. If the amount is not reimbursed by the campaign, the volunteer made a non-monetary contribution. However, because the amount is $200 or less, the non­monetary contribution is deemed to be nil and no expense has to be reported.

Holiday greeting cards and receptions

Candidates might choose to distribute greeting cards during a holiday season. If the greeting cards are distributed during the election period, they are election advertising and have to be reported as election expenses. If these expenses are not paid by the campaign, then they could be either non-monetary contributions if paid by an individual, or non-monetary transfers if paid by the registered party or a registered association.

If the greeting cards are in transit on the day the election is called and the candidate does not have the ability to stop their delivery, they will not be considered an election expense even though the actual delivery will take place during the election period. However, any greeting cards distributed in the 36 days preceding a fixed-date election will be considered an election expense.

Holiday season receptions held during the election period are election expenses. If these expenses are not paid by the campaign, then they could be either non­monetary contributions if paid by an individual, or non­monetary transfers if paid by the registered party or a registered association.

Use of parliamentary resources and other existing resources

Candidates' campaigns commonly make use of existing resources such as signs and office staff. These resources often come from a registered association, and sometimes from a member of Parliament's office. Their use during the election period is an election expense.

If a member of Parliament uses parliamentary resources during their election campaign, and these resources are not paid by the campaign, their use is a non monetary contribution from the member and is subject to the contribution limit.

Note: The use of parliamentary resources is governed by other rules as well, including the Members By-law of the House of Commons (available on the Parliament of Canada website).

OGI reference

For a detailed discussion of a related topic, please refer to Elections Canada's interpretation note
2014-02, The Use of Member of Parliament Resources Outside of an Election Period, on the Elections Canada website.

For details on shared transactions, such as subletting the registered association's office space, see Chapter 14, Working with Other Entities.

Website and social media accounts of a parliamentarian

Candidates may have websites and social media accounts that are designed and maintained using parliamentary resources.

If the candidate uses the website for the purpose of their campaign, its commercial value—including design, maintenance and hosting—is an election expense. Elections Canada will accept the current commercial value of an equivalent website as the commercial value of a pre-existing website.

Expenses to produce and distribute content on the website or social media accounts for the purpose of the campaign are also election expenses. Pre-existing content is only an expense if it was posted for the purpose of the campaign or promoted during the campaign.

Used signs

If a campaign uses signs in a subsequent election, the amount of the election expense to be recorded is the current commercial value of equivalent signs.

Reused signs also have to be recorded as a non-monetary transfer or contribution received from the entity or individual that had possession of the signs. Generally this is the registered association or the candidate. Keep in mind that contribution and transfer rules apply to these transactions.

Billboards

The commercial value, including design, production and installation, of any pre-existing billboards that remain in place during the election period are election expenses. Billboards include the sign and the supporting structure. Elections Canada will accept the commercial value of an equivalent sign (that is, the same size and design) that would be temporarily installed just for the election period.

Similarly, with respect to the supporting structure, Elections Canada will accept the commercial value of an equivalent structure that would typically be used for an election period rather than the commercial value of a structure designed to be more permanent in nature. Note that the commercial value of the structure is the lower of its purchase price or its rental cost for the length of the election period.

Staff of a parliamentarian

If employees on the staff of a parliamentarian engage in political activities to support the parliamentarian as a candidate during the election period, the salaries of these persons are election expenses of the candidate and, if not paid by the campaign, are non­monetary contributions from the parliamentarian.

However, if the employees work on the candidate's campaign outside their normal business hours or are on leave, their involvement is volunteer labour and is therefore neither an election expense nor a non­monetary contribution.

Householders issued by members of Parliament

A member of Parliament who is running as a candidate in an election might issue a householder during the election period. This is an election expense and, if not paid by the campaign, a non­monetary contribution from the member.

If a householder is in transit on the day the election is called and the candidate does not have the ability to stop the delivery, it will not be considered an election expense even though the actual delivery will take place during the election period. However, any householder distributed in the 36 days preceding a fixed date election will be considered an election expense.