Apr 2025 Year Charity & NFP Law Update
In a recent publication entitled, “Position on the federal government’s proposed legislation to require more transparency from charities providing pregnancy counselling”, Imagine Canada has expressed strong concern over the federal government’s proposal to amend the ITA to require greater public disclosure by registered charities whose main activity involves reproductive health services. As reported in the October 2024 Charity & NFP Law Update, the federal government issued a backgrounder titled Protecting reproductive freedom by preventing abuse of charitable status on October 29, 2024. The federal government also introduced draft legislation to amend the Income Tax Act (ITA) through a Notice of Ways and Means Motion.
The proposed legislation would compel such charities to state publicly whether they provide abortion or birth control services and impose similar obligations on charities that refer to or promote others that do. Failure to comply could result in the revocation of charitable status. While this proposal directly affects only a small number of charities, Imagine Canada warns that it sets a troubling precedent for viewpoint-based regulation of the broader charitable sector.
Imagine Canada argues that Canadian charities already operate under stringent accountability measures, including CRA regulations that require health information to be factual and unbiased, and that existing tools are sufficient to address concerns about misinformation or non-compliance. Imagine Canada cites prior instances of politically motivated interference – such as CRA audits of environmental charities, Senate recommendations targeting seal-harvest opponents, and calls to deny charitable status to anti-abortion organizations – as evidence of the risks posed by legislation tied to ideological viewpoints. Imagine Canada is urging the federal government to consult the charitable sector before proceeding, in order to preserve public trust and avoid unintended consequences.
Carters has written extensively on the legal and policy issues raised by Imagine Canada in several publications, including:
- Mandate Letters Issued to Amend ITA Concerning the Charitable Status of Certain Organizations in January 2022, which addresses two mandate letters from the then Prime Minister Justin Trudeau requesting amendments to the ITA on reproductive freedom/abortion counselling,
- Senate Committee Report on Sealing Recommends Revoking ‘Tax-Exempt Status’ for Producing or Promoting ‘Misinformation and/or Disinformation’ in May, 2024 which addresses the harmful impacts of Recommendation 4 from the Report of the Standing Senate Committee on Fisheries and Oceans,
- Department of Finance Proposes New Requirements for Reproductive Service Charities in October 2024 which addresses the Department of Finance’s backgrounder on disclosure requirements for reproductive health charities with anti-abortion/pro-life views, and
- Requirements for Reproductive Service Charities Would Impact Related Organizations in November 2024, which addresses the potential politicization of charitable status and the risks it poses to maintaining an effective charitable sector and civil society in Canada.
Charities should assess the potential implications of these amendments beyond the immediate scope of reproductive health. This includes understanding how legislative trends may shape future regulatory risks and emphasizing sector-wide advocacy to safeguard operational independence. Charities may also wish to review their public communications policies to ensure consistency with CRA guidance on health information and public policy dialogue. Now is the time for charities to remain vigilant, informed, and engaged in legislative consultations to ensure their voices help shape fair and balanced policy.