The federal government has dropped an appeal of a court ruling that freed charitable organizations to engage in unlimited political activity as long as it's not directly supporting a party. Last July, an Ontario judge quashed the Canada Revenue Agency's long-standing rule that charities could devote no more than 10 per cent of their resources to political activities or risk losing their charitable status.
The law continues to prohibit charities from promoting or opposing specific parties or politicians but they may now spend as much of their resources as they choose on non-partisan political activities, such as pressuring governments to adopt certain public policies.
Without charitable status, a group would no longer be able to issue tax receipts and its donors would no longer be eligible for a charitable tax credit.
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