Ontario’s 2025 provincial election: Political contributions – what businesses need to know

Ontario’s 44^th general election will take place on February 27. Individuals, corporations and other entities that are considering engaging in the political process during this time must know the law and understand how to navigate the rules and restrictions imposed by Ontario’s Election Finances Act¹ (EFA). 

This update is the second in a series providing an overview of key political law issues in Ontario and federally. It addresses the rules surrounding political contributions in Ontario.

Political contributions in Ontario

The EFA limits who may make political contributions and how and how much individuals are allowed to contribute to registered parties, constituency associations, nomination contestants, candidates and leadership contestants. Contributions from corporations are prohibited. 

As contributions can be both monetary and in-kind, and contributions from corporations are prohibited, businesses should be careful to ensure their resources are not being used to provide an in-kind contribution or reimburse a monetary contribution. 

Who may contribute

Under the EFA, contributions can only be made by persons individually, who are normally resident in Ontario. Corporations, non-profits and other such entities are not allowed to contribute. Group contributions through unincorporated associations and trade unions have been precluded since January 1, 2017.²  Anonymous contributions are also banned as the source of funds cannot be known.

Monetary contributions must come from funds that actually belong to a person. Making a contribution from funds provided by another person or entity to  make a political contribution is strictly prohibited. Businesses reimbursing contributions made by employees is also illegal. 

Goods and services as contribution

Goods and services valued at over $100 provided to a political party, constituency association, nomination contestant, candidate or leadership contestant are considered contributions under the EFA.

As only individuals are allowed to make contributions, businesses and other entities should be mindful not to provide goods and services to a political party, constituency association, nomination contestant, candidate or leadership contestant without compensation as that may constitute a breach of the EFA.

The value of goods and services supplied is deemed to be fair market value for similar goods or services at the time of their provision even where goods and services were provided at less than fair market value.

However, any goods produced, or services performed by voluntary labour does not constitute a contribution. Voluntary labour means any service provided free of charge by persons outside of their working hours but does not include such a service provided by a person who is self-employed if the service is one that is normally charged for by that person.

Advertising as contribution

A political advertisement valued at more than $100 that promotes a registered party, the nomination of a registered nomination contestant, the election of a registered candidate or the leadership of a registered leadership contestant and is provided or arranged for by a person, organization or entity in coordination with the party, contestant or candidate, or the registered constituency association of the candidate is a contribution for the purposes of the EFA.

As entities are prohibited from making contributions, if an entity wishes to make political advertisements during the election period, it must ensure not to do so in coordination with the party, contestant, candidate, or registered constituency association of the candidate it is promoting. More information on political advertising rules can be found in our previous legal update in this series here.

The authors would like to thank Ian Chesney, articling student, for his contribution to preparing this legal update.