Previously Announced Measures
The Budget confirms certain tax measures previously announced by the Government. Where appropriate, the measures have been modified to take into account consultations and deliberations since their release. Previously announced measures relating to income tax include the following: legislative proposals...
Budget Introduces New Rules Regarding Political Activities by Registered Charities
The Budget proposes new rules impacting the ability of charities to engage in political activities and requiring new disclosure rules on political activities. Current rules re political activities Charities in Canada advocate regularly on many issues of public policy. Much...
Gifts to Foreign Charitable Organizations
The Budget also proposes changes to the process by which foreign organizations that have received a grant from the Federal Government will be considered qualified donees under the Income Tax Act. Current rules Generally, non-Canadian organizations are not qualified donees...
GST Rebate for Acquisition of Books for Free Distribution
The Budget proposes a new incentive to encourage the promotion of literacy by registered charities and certain non-profit organizations. Current rules The Excise Tax Act currently provides for a rebate of the GST (and the federal portion of the HST)...
New Promoter Penalties Related to Charitable Donation Tax Shelters
The Budget proposes various new rules and penalties related to tax shelters generally, as well as some changes specific to charitable donation tax shelters. Current rules The Income Tax Act requires that all tax shelters be registered and obtain a...
No New Donation Incentives
Unfortunately for the sector, the Budget does not include any new measures to increase incentives for charitable giving notwithstanding that the 2011 Federal Budget confirmed that the Standing Committee on Finance study how current incentives for charitable giving might be...
Voluntary Sector Spending Initiatives
The Budget contains a number of spending initiatives relevant to the voluntary sector. Some of the more interesting include the following. Innovation The Budget puts significant emphasis on innovation as an economic engine. One important area of innovation in the...
Non Profit Tax Exempt Entities
Absent from the Budget is any proposal to alter the current regime that exempts non-profit organizations that are not charities, from tax on their income. Organizations that do not otherwise qualify as charitable but are otherwise organized for social welfare,...
Penny Donations Encouraged
The Budget indicates that the Federal Government will cease distributing new pennies, given that each penny costs 1.6 cents to produce. While existing pennies will continue to have value indefinitely, the Budget suggests that the Federal Government will work with...
US Non-Profits Funding Advocacy in Canada
There have been a number of recent public statements criticizing “foreign” funding of environmental advocacy by Canadian charities and non profit organizations. This public discussion arises in the context of US and Canadian organizations engaged in environmental education and advocacy...
