Algoma-Manitoulin-Kapuskasing MP, Carol Hughes writes a regular column about provincial initiatives and issues impacting our community.
Our democracy is founded on the core concept that every citizen should have a voice and support causes near and dear to their heart, as long as it does not promote hatred or violence. These beliefs are codified in our laws, especially when it comes to donating money or gifts to causes we support. They ensure that donations to registered charities, not-for-profit organizations, and political candidates are legitimate and are properly receipted.
However, as technology has evolved, the explosion of online crowdfunding that has grown over the years is an issue that the federal government has yet to codify in legislation.
Most of what occurs in online crowdfunding is relatively innocuous and can often be quite helpful. A small donation to a friend who needs financial assistance as he goes through cancer treatment; a series of small investments for a person that’s trying to get a startup business off the ground; a young video game designer trying to get his work out there, etc.
However, unlike registered charities or not-for-profit groups, the regulation of crowdfunding is limited to nonexistent, and as we’ve seen recently, has become a way for foreign actors to interfere in our democracy.
GoFundMe and other crowdfunding organizations have been the focus of much of the debate surrounding the Freedom Convoy protests in Ottawa, and for good reason. Anyone can start a GoFundMe page, and donations can be made using your name, anonymously, or using pseudonyms, and donations can often go unverified.
GoFundMe states that it is a violation of their terms of service for people to donate anonymously. However, as a result of inquiries about questionable donations, the Freedom Convoy GoFundMe page was pulled for violating their terms of service.
A CBC News analysis noted that approximately one-third of donations to this account were made either anonymously, or with aliases, and that many of the donations were made from outside of Canada.
In addition, last week Ottawa Police Chief Peter Sloly stated “We are now aware of a significant element from the US that have been involved in the funding, the organizing, and the demonstrating” of these protests.
While there’s nothing wrong with donating to a cause you believe in, when it comes to donating to political movements, Canada has clear laws in place designed to prevent foreign funding and donations, and these same mechanisms need to be applied to crowdfunding organizations.
We don’t allow funds from the U.S., or other countries for that matter, to fund our political activities through any other legal avenue. Donations to political candidates or parties are audited by Elections Canada, as they should be.
Donation limits are in place to ensure that corporations, unions, and charitable organizations cannot apply undue influence on candidates and politicians. We should apply that same standard to organizations that allow individuals to donate to political movements through crowdfunding to ensure that any dollars collected are from Canadians and only Canadians
Given recent revelations, New Democrats tabled a motion, which passed unanimously, to have GoFundMe appear before the House of Commons Committee on Public Safety and National Security.
Additionally, an amendment was added to call on officials from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) which is Canada's money laundering and financing watchdog, to also provide testimony at the committee.
Efforts are already being made to push for other crowdfunding entities to appear before committee. And while this may give us some answers as to how their funding mechanisms work, and why they accept anonymous donations, this will provide insight as to how to prevent foreign funding from interfering with our nation’s political discourse.
The internet age has created a dynamic shift in the way we do business, the way we learn, and the way we engage with others. Our laws need to keep up with this shift.