This paper argues that Canadian tax law should be reformed in order to encourage engagement by the third sector in the political arena, both domestically and internationally, and, specifically, that: (1) the deduction for contributions to third sector organizations should be limited to the deduction that is allowed, if any, for contributions to political parties; (2) any government funding for services provided by third sector organizations should be transparent; and (3) the income tax exemption should be available to third sector organizations engaged in non-partisan political activities, both domestically and internationally; but (4) income from directly-conducted business activities of third sector organizations should (as in the United States, but not as proposed in the U.K.) be taxed.