Finance Committee Recommends Support for Nonprofit Sector in Budget 2021

FRANÇAIS

The House of Commons Standing Committee on Finance recently released its pre-budget consultation report, which included the following that are specific to the nonprofit and charitable sector:

• Recommendation 56: Eliminate the capital gains tax on donations of shares in private corporations or real property to charities.
• Recommendation 57: Establish a fund to provide bridge operating grants for up to 12 months to essential community service organizations. Funding should be flexible to allow organizations to maintain operations and respond to emerging needs. This support should be made available for a three to six-month period as organizations recover from the impacts of COVID-19. Applications should outline need or financial duress, and what other programs have been accessed (or are unavailable), such as wage and rent relief. Support could be differentiated by subsector or relevant need – as immediate humanitarian support may be gauged differently than longer-term institutional goals that can be addressed at a later time.
• Recommendation 58: Review existing tax measures available to both individual and corporate donors and make appropriate amendments to encourage giving to, and supporting the recovery of, the health charities sector.

“Since the pandemic was declared, almost a year ago, the charitable sector in Canada has been advocating for federal government support,” said Juniper Locilento, MPNL, CFRE, Chair of the AFP Canada Government Relations Committee. “The inclusion of charities and nonprofits in CEWS has been impactful across the sector, and targeted support for community organizations has enabled some charities to respond to increased demand. The Finance Committee’s recommendation to include three measures in the upcoming federal budget is a positive sign that government recognizes the essential role of charities and nonprofits in Canada, both in addressing immediate needs and in building back better. Thanks to our members for their grassroots advocacy efforts, as well as to our sector allies for continuing to advocate for the millions of Canadians who rely on charitable programs and services every day.”

While it is not guaranteed that these measures will be included in the 2021 federal budget, the recommendations showcase an important step in ensuring the voice of the sector is being heard.

• A copy of recommendations can be found here. 
• To learn more about AFP Canada’s advocacy efforts on behalf of the sector click here.