Many citizens are wondering about this. It’s not a simple matter. One thing is certain: if the donor wishes to obtain a donation receipt, he or she must present himself or herself as a legal or physical person in order to obtain it. In fact, the municipality cannot issue donation receipts to “anonymous” donors for tax purposes.
The Government of Canada states
The Income Tax Act specifies that an official donation receipt must include the name and address of the donor, including, in the case of an individual, his or her first name and initial.
However, the Canada Revenue Agency has made an administrative ruling to allow registered charities to issue official donation receipts for anonymous donations when the following procedure is followed:
- the donor draws up a contract or trust agreement for the anonymous donation
- the donor appoints a proxy to make the donation on his behalf
- the agent agrees to hold the funds in trust for the donor
- the donor asks the agent to make a donation to a registered charity in the donor’s name
- the mandatary agrees to ask the registered charity to issue a receipt for the amount of the donation on his or her behalf
- the agent agrees to provide the donor with a receipt detailing the donation
It’s natural to wonder, since donations to municipalities could influence political decisions in favor of the donor(s). However, under the Act respecting ethics and professional conduct in municipal affairs, this must not be the case.
The Act respecting ethics and professional conduct in municipal affairs specifies the following:
The Code of Ethics and Professional Conduct sets out the municipality’s main ethical values, including the following:
1° the integrity of the members of any municipal council;
2° the honour of being a member of a municipal council;
3° prudence in the pursuit of the public interest;
4° respect and civility towards other municipal council members, employees and citizens;
5° loyalty to the municipality;
6° the quest for fairness.
The values set out in the Code must guide the members of every municipal council in their assessment of the ethical rules applicable to them.
Reference : https://www.legisquebec.gouv.qc.ca/fr/document/lc/E-15.1.0.1
The code of ethics and professional conduct also states:
1° the rules that must guide the conduct of a person as a member of a council, committee or commission of the municipality or, in his or her capacity as a member of a council of the municipality, of another body;
2° the rules that must guide the conduct of this person after the end of his or her mandate as a member of a municipal council.
One of the aims of these rules is to prevent:
1° any situation in which the Board member’s personal interest may influence his or her independent judgment in the performance of his or her duties;
2° (paragraph repealed);
3° favoritism, embezzlement, breach of trust or other misconduct.
Reference : https://www.legisquebec.gouv.qc.ca/fr/document/lc/E-15.1.0.1
And finally, the Code of Ethics and Deontology states:
Les règles prévues au code d’éthique et de déontologie doivent notamment interdire à tout membre d’un conseil de la municipalité:
0.1° de se comporter de façon irrespectueuse envers les autres membres du conseil municipal, les employés municipaux ou les citoyens par l’emploi, notamment, de paroles, d’écrits ou de gestes vexatoires, dénigrants ou intimidants ou de toute forme d’incivilité de nature vexatoire;
0.2° to engage in conduct detrimental to the honour and dignity of the elected office;
1° act, attempt to act or omit to act in such a way as to favour, in the performance of his duties, his personal interests or, in an abusive manner, those of any other person;
2° using his or her position to influence or attempt to influence the decision of another person in such a way as to further his or her personal interests or, in an abusive manner, those of any other person;
2.1° contravene sections 304 and 361 of the Act respecting elections and referendums in municipalities (chapter E-2.2);
3° soliciting, inducing, accepting or receiving, for himself or for another person, any advantage whatsoever in exchange for taking a position on an issue.n dont un conseil, un comité ou une commission dont il est membre peut être saisi;
4° accept any gift, hospitality or other benefit, regardless of its value, that is offered by a supplier of goods or services or that may influence his or her independence of judgment in the performance of his or her duties or that may compromise his or her integrity;
5° use the resources of the municipality or of any other organization referred to in subparagraph 1 of the first paragraph of article 5 for personal purposes or for purposes other than activities related to the performance of his duties;
Reference : https://www.legisquebec.gouv.qc.ca/fr/document/lc/E-15.1.0.1
Obviously, I’m not a municipal lawyer, so I invite you to do your own research and draw your own conclusions. However, as you know, that I like to question artificial intelligence on the subject, I asked Chatgpt :
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Is it legal to make a completely anonymous donation to a municipality?
No, making a completely anonymous donation to a municipality is generally not legal in Quebec or in most Canadian jurisdictions.
Here’s why:
- Transparency obligation of municipalities
Municipalities are public institutions subject to strict rules of management and financial transparency. All funds received must :
- be accounted for in public finances;
- faire l’objet d’une résolution du conseil municipal;
- be recorded in the minutes and financial statements;
- can be justified in the event of an audit (e.g. by the MAMH or the Auditor G
A completely anonymous donation (whose origin is not even known to the municipal administration) runs counter to these obligations.
2. Fighting corruption and money laundering
The Québec government, notably through the Act respecting ethics and professional conduct in municipal matters and the Act respecting elections and referendums in municipalities, imposes mechanisms to avoid :
- disguised donations;
- contributions in exchange for favors;
- hidden financing of municipal activities;
- money laundering.
- These laws explicitly prohibit untraceable donations.
3. Permitted donations: yes, but with traceability
A municipality may accept an unrequited donation (money, land, goods, services), but it must know where it comes from.
In some cases, the name of the donor may not be made public (e.g., a request for discretion), but it must be known to the municipality and recorded in its internal documents.
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In conclusion, the answer to the question remains unclear. However, it seems that the answer is moving towards an obligation of transparency and traceability of an anonymous donation to protect the use of an anonymous donation to influence decisions that could benefit the anonymous donor.vantager le donateur anonyme.
On that note, feel free to make a public donation to your municipality to contribute to the public good.
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