Q&A on Limiting Fundraising Expenses
Why should fundraising expenses be limited?At present, fundraising expenses and thank-you parties are amongst the expenses not subject to expense limitations. So, essentially unlimited spending on fundraising and parties is permitted under the current regulations. As a consequence, some candidates are spending huge amounts on these types of events.
The following table shows four of the biggest spenders on City Council. Each councillor spent more than twice their spending limit on costs not subject to the limit.
Because fundraising expenses are not subject to spending limits, classifying campaign materials and events as fundraisers has emerged as a loophole to the limits. So, candidates who raise more money can spend beyond their ward expense limits by including some fundraising component to events or publications, and not be penalized.
Under the proposed changes, fundraising and thank-you parties would be included under the ward expense limits, which would then be raised by 25% + inflation. This will force councillors to limit extravagant spending, while closing the loopholes present in the current system.
Toronto City Council
Corp Donations Q&A