Consultation: Boosting charitable spending in our communities

Join in: Open until September 30, 2021

Supporting Canada's charities, non-profits, social enterprises, and other organizations to provide vital services to our communities, including to the most vulnerable members of society, is a key priority of the federal government. Charitable organizations work constantly to address hunger, improve socioeconomic outcomes for diverse Canadians, and keep communities connected and informed, while facing immense financial pressures.

Every year, charities are required to spend a minimum amount on their charitable programs or on gifts to qualified donees. This is known as the "disbursement quota" and it ensures that charitable donations are being invested into our communities. Budget 2021 announced the government's intention to potentially increase the disbursement quota, which could boost support for the charitable sector, benefitting those that rely on its services.

Our objective

Through this consultation process, the Department of Finance is seeking feedback on potentially increasing the disbursement quota and updating the tools at the Canada Revenue Agency (CRA)'s disposal in order to enforce the disbursement quota rules, beginning in 2022.

Key considerations

To inform discussions, the government is issuing a background paper that outlines the existing approach and raises points for consideration on whether it continues to be appropriate. Specifically, feedback is being sought on the following:

Who is the focus of this consultation?

The department is seeking the views of stakeholders in the charitable sector. Tax practitioners, legal experts, researchers/academics and interested members of the public are also invited to provide input.

In submitting your comments, please include:

Concurrently, the department will engage with the Advisory Committee on the Charitable Sector, an advisory body made up of representatives from the charitable sector that provides advice to the government on important and emerging issues facing registered charities.

Participate through email

Due to COVID-19 public health considerations, email submissions are preferred. Send us your comments at charity-bienfaisance@fin.gc.ca with "Charities Consultation" as the subject line.

Should you wish to provide comments by mail, please direct your submission to the attention of the Tax Policy Branch.

Treatment of confidential information

Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Those providing comments are asked to indicate clearly the name of the individual or the organization that should be identified as having made the submission. In order to respect privacy and confidentiality, please advise when providing your comments whether you:

Should you indicate that your comments, or any portions thereof, be considered confidential, the department will make all reasonable efforts to protect this information.

What's next?

Feedback received through this consultation will be considered alongside input from the Advisory Committee on the Charitable Sector to help inform decisions on potentially increasing the disbursement quota and updating enforcement tools.

Related links

Get in touch

charity-bienfaisance@fin.gc.ca

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