Sources of financing

In Québec, political financing and the control of election expenses are subject to the principles of fairness and transparency. To learn more about this subject, consult the text Characteristics of the financing system.

• Contributions
• Allowance
• Membership revenue
• Entrance fee to a political activity or rally
• Loan

Contributions

A contribution is a donation in cash made to an authorized entity, a service or good provided free for political ends. It must be made by the elector himself and out of his own property. It is thus forbidden for legal persons (companies, unions, etc.) to make a contribution.

Contributions in money of $100 or more must be made by means of a cheque or other order of payment signed by the elector and drawn on his account or a credit card and paid to the DGE for the benefit of an authorized entity.

Every contribution must be accompanied with a contribution slip. This slip notably contains a declaration by the elector that his contribution is made out of his own property, voluntarily, without compensation or consideration, and that it was not and will not be reimbursed in any way.

Since January 1, 2011, the total that can be contributed by an elector in one calendar year is limited to $1,000 per party, authorized independent Member and independent candidate. For every contribution made, the elector obtains a receipt and his cash contribution can give rise to a maximum tax credit of $310 (85% of the first installment of $100 and 75% of the second installment of $300).

Soliciting contributions cannot be undertaken except under the responsibility of the official representative. This person can however designate in writing any other person to act as a canvasser. The canvasser will then be able collect contributions, fill out the contribution forms to this effect and get the declaration signed by the elector.

Allowance

The Chief Electoral Officer stipulates that the allowance is paid to the parties by the Directeur général des élections so that they can reimburse the expenses incurred for their current administration, the propagation of their political programs and the coordination of the political activities of their members.

The Chief Electoral Officer determines on an annual basis the amount of the allowance to be paid. This amount represents $0.85 (considering the indexation of January 1, 2012) per elector registered on the lists of electors and is paid to the parties in proportion to the valid votes obtained at the time of the last general election.

The allowance is only paid if the expenses in question were actually incurred and paid. The official representative must complete and send the Directeur général des élections the required forms ("Application for payment – Allowance to political parties" and "Itemized statement of the expenses incurred and paid"), along with the relevant vouchers.

Membership revenue

Memberships and membership cards are another source of financing. On this subject, the Election Act stipulates that they represent an annual sum not exceeding $50, paid by a natural person to a political party.

Any sum exceeding this limit must be considered a contribution. This person must thus be a qualified elector and a contribution slip must be filled out.

Entrance fee to a political activity or rally

A political activity (e.g.: dinner, golf tournament, cocktail, etc.) is an activity organized in order to collect funds through the sale of tickets for the benefit of a party, a candidate or an authorized independent candidate.

Admission that exceeds $60 per day (contribution income)

In this situation, the official representative must consider this entrance price as contribution income. He must fill out a contribution slip and get the declaration signed by the elector for the amount of the entrance price and ensure that the payment is made by a qualified elector.

Admission of $60 or less per day (contribution income or activity)

In this case, two choices are available to the official representative. He can choose to consider the entrance price as contribution income or not, but his choice must be applied uniformly to all participants. If the official representative chooses to consider the entrance price as a contribution income, this sum must be paid by an elector and a contribution slip must be filled out and signed for the amount of the entrance price. If the official representative chooses to not consider the entrance price as contribution income, it will then be activities income.

Anyone can pay the entrance price, whether they be a qualified elector or not, one admission per person. However, if a person wishes to pay for more than one admission, the amount exceeding the admission price for one person will be considered as contribution income and a contribution slip must be filled out and be signed. That means that only people who are qualified electors can purchase more than one admission.

Loan

The loan is taken out by the official representative of a party, a party authority, a candidate or an authorized independent member.

The loan must be contracted with an elector or a financial institution. In addition, it must be ascertained in writing by means of a loan document and be granted at the prevailing market interest rate.

Finally, only an elector can stand surety for a loan contracted by an official representative.