PFC News Evolving the regulation of charities to meet community needs is a good thing Jean-Marc Mangin PFC News 3 mins read May 23, 2025 News & Insights PFC News Evolving the regulation of charities to meet community needs is a good thing By Jean-Marc Mangin, President & CEO, Philanthropic Foundations Canada On May 22, La Presse published an article critical of the federal government for reducing numbers of charity audits in favour of charity education and capacity-building, and modernizing rules for charity partnerships. My organization, Philanthropic Foundations Canada, a registered charity that works to strength philanthropy for greater impact in serving the common good, supports these evolutions – and for good reason. Every person in Quebec is positively affected by the work of charities and non-profits in some way. Whether they are food banks, youth programs, senior supports, climate-change action, arts, or a whole host of other programs and services, charities and not-for-profits are at the centre of ensuring our quality of life. This is true whether or not they have been bestowed charitable status by the CRA. Until recently, direction and control, was the only option for charity partnerships with not-for-profits. This resulted in paternalistic relationships here and abroad that did not recognize that not-for-profits also bring leadership, knowledge and resources to the table. Direction and control can be very problematic in partnerships with Indigenous, racialized and other groups that are underrepresented and underfunded in philanthropy. That’s why rules that allow charities to support non-qualified donees is imperative to advancing equity and justice. On-the-ground initiatives are often the most nimble and best equipped to identify and advance solutions for their own communities. Direction and control rules can hamper genuine partnerships because they necessarily assert that the charity must possess decision making authority over these organizations. The new rules create a pathway for real and equal partnerships that must serve the public good. Improvements to the compulsory annual reports made by all charities will also ensure that transparency is improved. The government isn’t the only institution in our democratic society providing services and benefits to citizens. Charities are an essential element of civil society, and it’s imperative the government works in partnership to ensure a modernized, effective, regulatory framework that advances real and meaningful impact. Educational and compliance supports coupled with modernized rules to support foundations and other charities in Canada in their partnerships with organizations that do not have charitable status but that provide a significant public benefit are important steps forward. The vast majority of charities are run by well-intentioned volunteers and stretched-staff who are driven by good-will. Organizations make mistakes, sometimes fall short of their compliance on existing regulations. The best initial remedy is for the CRA to provide guidance and support to help charities build the knowledge and capacity needed to operate ethically and efficiently. This is the best way to ultimately benefit the communities we all care about and serve. Education promotes long-term compliance and strengthens the sector. Punitive approaches are best reserved for those who run afoul of compliance repeatedly or -on purpose- do not abide by their approved charitable purpose and do not provide public benefits. Share This Article Facebook Twitter LinkedIn Email
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