Bringing Philanthropic Capital to protect Canada’s Sovereignty and Economy

Canada is in an extraordinary economic and political moment. On behalf of all Canadians, our Federal Government is trying to protect our sovereignty and strengthen the country’s economic resilience with an ambitious investment agenda.

Canadian philanthropy has a role to play in this nation building endeavor.

PFC recently submitted recommendations for the upcoming federal budget focused on how government can create better conditions for foundations to put more of the $135 billion capital they steward to work for social and economic impact.

Canadian foundations are significant grantmakers, but they are also investors. Many are interested in doing more impact investing, including in areas such as housing, community infrastructure, climate and energy solutions, and other investments that can generate financial returns alongside positive social and environmental outcomes.

What our Submission Recommends

Our submission aims to create the necessary conditions for foundations to responsibly invest in Canadian communities across the country:

First, PFC is proposing that the federal government work – using its balance sheet – with foundations, charities and financial experts to develop an arms-length Canada Community Investment Facility. Foundations have different investment strategies, liquidity needs and appetites for risk, so no single structure will work for all of them. A flexible mix of co-investment, guarantees, subordinated capital and other tools could create more investable opportunities across that spectrum.

Second, PFC is recommending a targeted change to the Income Tax Act to give charities, including foundations, clearer authority to make social investments. It would give boards a firmer legal basis for weighing charitable benefit alongside financial return, including where a below-market return may be appropriate, in discharging their fiduciary obligations. Just as importantly, putting that authority in law would help normalize social investment as a legitimate part of charitable governance and give boards and investment committees greater confidence to consider it.

Finally, PFC is also reiterating our call on government to proceed with the public, evidence-based review of the disbursement quota promised for 2027.

These recommendations are part of broader efforts with our partners in the philanthropic and social finance space to mobilize capital responsibly.

Why? No single organization sees the full picture, and strong public policy is more likely to emerge when foundations, charities, social finance practitioners and other sector leaders collaborate together.

We need to hear what PFC members think.

PFC federal budget submission is a first step, developed with the support of many in our network including our Philanthropic Impact Taskforce and our board. These proposals need to be developed fully and tested with the contributions on our members.

At the end of August, with support from PFC member Vancity Community Foundation, we brought together members in Vancouver to begin a national series of conversations on PFC’s policy and advocacy priorities.

This engagement will continue through the fall, including a closed-door, member CEO policy consultation breakfast at our conference in Winnipeg, followed by sessions in Calgary, Montreal and Toronto. Save-the-date and registration details of these member-only meetings will be shared with the network in the coming days. PFC leadership will also continue meeting with members one-on-one and in small groups to surface emerging issues, hear different perspectives and stay responsive as new opportunities arise.

These conversations are part of a broader effort that will need to be adjusted in light of the 2026 Federal Budget expected this November.

Before and after the budget, it is critical that PFC hear what foundations are seeing, where policy and regulation are helping or getting in the way, what government needs to understand about philanthropic investment, and where better policy or partnership could strengthen philanthropy’s contribution.

For PFC, representing the sector well means grounding our positions in the experience of foundations and in the realities of the communities and issues they support. Our role is to create space for those perspectives, turn them into credible policy ideas, and work with members and partners to bring them into the places where decisions are being made.