Sector News & Trends PFC Documents Policy & Regulation Submissions

Submission in advance of the 2023 Federal Budget to the House of Commons of Canada Standing Committee on Finance

As PFC shared publicly in April 2022, we were very pleased and energized by the Government of Canada’s announcements in Budget 2022 to modernize aspects of the regulatory framework for the non-profit and charitable sector – most notably with an increase to the disbursement quota rate for charities with assets over $1M, improving data collection from charities, including whether charities are meeting their disbursement quotas, and on investments and donor-advised funds, as well as its interest in supporting the important partnerships that charities have with organizations that advance social issues and deliver programs but are not qualified donees (“non-qualified donees” or NQDs).

The work already undertaken by government to implement those promises has also been noted and commended. PFC was pleased and relieved that the government worked with the sector to revise aspects of the initial language in the Budget Implementation Bill 1, avoiding an inflexible and prescriptive regulatory framework for charities to work with NQDs. However, we were disappointed that a key amendment concerning directed giving did not pass.

We are at a watershed moment in Canada’s history to take meaningful steps towards ensuring the realization of fairness, equity and equality of opportunity for all Canadians. PFC applauds the many new and expanded government funding programs that have been made available to our sector and to new initiatives to support underserved demographic. Dedicated, abundant and continued funding is imperative.

At the same time, far-reaching regulatory change is also fundamental to ensure that the non-profit and charitable sector can continue to provide vital services to Canadians during what is turning out to be a protracted pandemic and recover post-crisis. Principles of equity and inclusivity continue to be undermined by shortcomings in the current policy regime itself, despite the advances and investments.

For these reasons, PFC urges the Government to consider our recommendations for Budget 2023. We stress that the government must continue working with the sector on modernizing the regulatory regime.