Mandatory Funding Transparency for Advocacy Groups

Summary#

This bill would require advocacy groups in B.C. to be more open about where their money comes from. It focuses on money from the B.C. government, the federal government, and foreign sources. It also lets B.C. residents ask the court to enforce these rules and allows strong fines for breaking them.

• Applies to for‑profit and non‑profit groups that do public advocacy or try to influence government in B.C., if they receive $10,000 or more in a year from B.C., federal, or foreign sources.
• Groups must post an annual report within 60 days after each fiscal year with financial statements and totals of B.C., federal, and foreign funding. For foreign money, they must list each source. The report must also include total compensation paid.
• If a covered group received B.C., federal, or foreign money in the past five fiscal years, it must display a clear notice on its website and social media (e.g., “THIS ORGANIZATION HAS RECEIVED FUNDING FROM FOREIGN SOURCES”) with a link to its reports.
• Groups must keep the last five years of reports online for free and disclose their legal and business names, their affiliates (related entities), and who controls whom. Updates are due within 30 days of changes.
• Any Canadian citizen who lives in B.C. can apply to the B.C. Supreme Court (after 30 days’ notice to the Attorney General) to enforce the Act. The court can order compliance and penalties, and may award the applicant up to 30% of the penalty if their information helped.
• Penalties can include paying an amount equal to any undisclosed funding plus up to $10 million. Directors, officers, or agents who knowingly allowed a breach can be fined up to $750,000. A group that violates the Act cannot get more B.C. public funding until it complies.
• The Act would take effect on a date set later by regulation.

What it means for you#

• Advocacy organizations, charities, and companies that do advocacy:

  • If you receive $10,000 or more in a year from B.C., federal, or foreign sources, plan to file an annual report within 60 days after year‑end.
  • Be ready to post clear website and social media notices for five years after receiving B.C., federal, or foreign money, with links to your reports.
  • Keep five years of reports online for free. Disclose your legal and business names, your affiliates, and control relationships. Update within 30 days of any change.
  • Track foreign sources in detail, including the specific funders.
  • Non‑compliance risks large fines and a pause on receiving B.C. public funding until you comply.

• Directors, officers, and senior staff:

  • You can face personal penalties up to $750,000 if you knowingly allow a violation.
  • Strong internal controls, accurate records, and timely web updates will be important.

• Donors and members:

  • You will be able to see if a group receives B.C., federal, or foreign money and view their recent financial information online.
  • If you are a non‑Canadian donor, your support may be identified as a foreign source.

• General public:

  • You will see plain notices on group websites and social media stating if they received B.C., federal, or foreign funding, with links to reports you can read for free.

• B.C. residents (Canadian citizens):

  • You may apply to the court to enforce the Act after giving 30 days’ notice to the Attorney General.
  • If the court orders a penalty and your information helped, you could receive up to 30% of that penalty.

Expenses#

Estimated public cost: No publicly available information.

Proponents' View#

• Improves transparency so people can see who funds advocacy, including taxpayer money and foreign sources.
• Helps the public and media judge potential bias or conflicts when groups speak on issues.
• Uniform website and social media notices make disclosures hard to miss and easy to access.
• Strong penalties deter hiding funding; a potential award encourages whistleblowers to come forward.
• Uses the courts and citizen applications instead of creating a new enforcement agency.

Opponents' View#

• Adds administrative costs and tight timelines, which may strain small non‑profits and charities.
• Prominent labels could stigmatize groups and discourage free expression or fundraising.
• Allowing private lawsuits may invite harassment or strategic litigation, diverting resources from program work.
• Large fines and personal liability may be disproportionate and could scare off legitimate foreign grants or partnerships.
• May duplicate or conflict with existing federal charity disclosures and B.C. lobbyist rules, creating confusion.
• Tracing “affiliates” and all foreign sources can be complex, especially when funds pass through intermediaries.