Site MenuPolitical Financing Handbook for Leadership Contestants and Financial Agents – December 2019 – draft guideline OGI 2020-01
This document is Elections Canada's draft guideline OGI 2020-01.
4. Transfers
This chapter explains the rules and procedures for accepting and sending transfers. It covers the following topics:
- What is a transfer?
- Transfers sent to the leadership contestant
- Transfers sent by the leadership contestant
What is a transfer?
A transfer is a provision of funds, property or services between specified political entities of the same political affiliation. Where specifically permitted under the Canada Elections Act, a transfer is not considered to be a contribution, and contribution rules therefore do not apply.
| Monetary transfer | Non-monetary transfer |
|---|---|
| A monetary transfer is a transfer of funds. | A non-monetary transfer is a transfer of property or services. The amount of a non-monetary transfer is the commercial value of the property or service. Unlike non-monetary contributions, a non-monetary transfer has to be reported even if its commercial value is $200 or less. |
Transfers are permitted only between related political entities (registered party, electoral district association, candidate and leadership or nomination contestant) of the same political affiliation.
However, not all types of entities are authorized to provide all types of transfers. For a quick reference guide to eligible and ineligible transfers, see the Transfers—types and rules table in Chapter 1, Reference Tables and Timelines.
Note: If an invoice requiring payment is prepared by one political entity and sent to its related political entity, together with the original supplier invoice representing the commercial value of the goods or services provided, this is not a transfer but a sale of goods or services from one entity to another.
Transfers sent to the leadership contestant's campaign
Only the financial agent or leadership campaign agents can accept transfers on the campaign's behalf. The following transfers may be accepted by the leadership contestant's campaign:
- property or services from the registered party or from any registered association of the registered party, as long as it is offered equally to all contestants
- funds in the form of directed contributions from the registered party
Example
The registered party creates a web page on its site for each leadership contestant for use during the contest period. The commercial value of creating the web pages is $150 per contestant. The party sends each contestant a copy of the original supplier invoice for $150 and reports a non-monetary transfer of $150 to each contestant. Each contestant reports a non-monetary transfer from the party and a leadership contest expense of $150.
Note: Transfers may not be accepted from provincial parties or electoral district associations of provincial parties. Transfers from a registered provincial division of a federal registered party are considered transfers from the registered party.
Transfers sent by the leadership contestant's campaign
Only the financial agent or leadership campaign agents can send transfers on the campaign's behalf.
The following transfers may be sent by the leadership contestant's campaign:
- funds to the registered party
- funds to a registered association of the party
Example
After contest day, the financial agent pays all campaign expenses and calculates $3,000 in surplus funds. The financial agent transfers $3,000 to a registered association of the party to dispose of the surplus.