Snap Elections: Subsequent Effects on Nonprofits and Grants (A Summary)

Written by: Karo Daro

Elections, whether federal or provincial, can cause delays or disruptions in the funding process for charities, non-profits, and other organizations relying on government grants. During election periods, the government enters a “caretaker mode,” which often pauses grant approvals and decision-making until a new government is formed. This can affect both new applications and ongoing funding decisions. Charities and non-profits need to be aware of how election cycles might impact their funding and prepare for possible delays. Additionally, there are rules around election-related activities that organizations need to follow to avoid penalties. Below, we provide a clear overview of how elections affect grant funding, key planning tips, and important compliance information for organizations during election times.

Grant Funding During Provincial and Federal Election Cycles

Source: https://www.canadiancharitylaw.ca/blog/2025-federal-election-and-canadian-charities/

• During snap elections, all provincially or federally funded grant programs that require government or ministerial sign-off are typically paused.
• While applications may still be submitted, decisions are deferred until after the election concludes and a new government is formed.
• This delay affects both new applications and the continuation of previously approved funding.

Election Readiness: What Charities and Non-Profits Need to Know

Source: JN Clarke Consulting

• The Canadian government enters a “caretaker mode” during snap elections, suspending most policy and spending decisions.
• Non-profits should expect delays on grant approvals and should avoid assuming continuation of funding during this time.
• Strategic planning is crucial—charities and non-profits are encouraged to prepare by understanding potential risks and developing contingency plans.

How the Canadian 2021 Election Impacts Funding

Source:https://www.canadiancharitylaw.ca/blog/2024-fall-economic-statement-and-its-impact-on-canadian-charities-and-non-profit-organizations-npos/

• Grant programs that do not require active ministerial decisions may continue normally during elections.
• Programs requiring higher-level approvals are suspended until the post-election period.
• Delays vary based on election outcomes: a returning government leads to quicker resumptions, while a change in leadership can lead to months-long delays.

What Happens to Government Grants When an Election Is Called?

Source: https://www.canadiancharitylaw.ca/blog/2025-federal-election-and-canadian-charities/

https://funding.ryan.com/blog/government-funding/new-governement-effect-on-canadian-government-funding/?utm_source=mentorworks.ca&utm_medium=referral&utm_campaign=redirect

• If the grant program is already budget-approved, it continues during an election.
• Applications are accepted and processed unless they require direct ministerial approval.
• Decision-making pauses once the writ is dropped, resuming only after a new cabinet is formed.
• The federal government was prorogued until March 2025; until the writ is dropped (anticipated April 28, 2025), intake continues.
• Organizations are encouraged to apply before the writ is dropped to minimize disruption.

How Elections Affect Grant Timelines and Funding in Canada

• Snap or regular elections delay federal funding decisions, especially those needing ministerial sign-off.
• Provincial programs (e.g., SWODF, RED, NOHFC) are generally unaffected.
• Joint federal-provincial programs often continue due to multi-year agreements and provincial administration.
• Federal programs like FedDev Ontario pause approvals but not intake or review.

Impact of Elections on Grants: How a New Government Can Change Funding Priorities

• Grant programs are vulnerable to change post-election based on the incoming party’s platform.
• Liberal win: Existing programs likely continue and may expand.
• Conservative win: Restructuring, delays, or cancellations of programs likely.
• NDP win: Shift toward individual-focused programs and socially conscious business models.
• Community organizations must stay aware of platform changes to align grant strategies accordingly.

4. Election Activity Rules for Canadian Charities and Nonprofits

Source:https://www.canadiancharitylaw.ca/blog/2024-fall-economic-statement-and-its-impact-on-canadian-charities-and-non-profit-organizations-npos/

• Under the Canada Elections Act, charities/NPOs spending over $500 on election-related activities must register as third-party advertisers.
• These activities include partisan communications, election surveys, and advertising about issues linked to candidates or parties.
• CRA confirms registration doesn’t affect charitable status, but organizations must remain non-partisan.
• Important: Many nonprofits may cross the $500 threshold unintentionally via boosted social media or issue-based campaigns.

Non-Profit Reporting Changes Introduced in the Fall Economic Statement 2024

• New reporting requirements introduced:
  • NPOs earning more than $50,000 must file the T1044 NPO Information Return.
  • Smaller NPOs will file a simplified short-form return.
• This increases fiscal transparency in anticipation of the 2026 FATF audit.
• Compliance will become a more prominent expectation for all NPOs regardless of size.

Community Guidance: What You Need to Know During Snap Elections

• Expect Delays: All government grants needing ministerial or cabinet sign-off will likely be put on hold. Submit your applications early and plan for decision delays.
• Understand Party Platforms: Stay informed on political platforms that may influence grant funding and priorities.
• Plan Ahead: Build buffer time into your programming and budget planning in case of funding interruptions.
• Register as a Third-Party Advertiser (if applicable): If engaging in public messaging during elections, especially on social or policy issues, register to avoid penalties.
• Stay Informed: Monitor federal and provincial differences. Updates from Elections Canada and relevant ministries to track developments affecting your sector.
• Adapt Strategically: Tailor grant applications to align with potential shifts in government priorities and be ready to revise plans post-election.