Apr 2019 Charity & NFP Law Update
In April, the Special Senate Committee on the Charitable Sector (the “Committee”) continued to hear from witnesses on the impact of laws and policies on the charitable and not-for-profit sector and the impact of the voluntary sector in Canada. Videos of the hearings are available on the Committee website and transcripts are normally made available a couple weeks after the meeting.
On April 1, 2019, the Committee heard from various departments of the government, including the CRA, Public Services and Procurement Canada, Department of Finance, as well as Innovation, Science, and Economic Development Canada, amongst others. Other witnesses included the chief economist of Imagine Canada, the senior community planning consultant from the Social Planning Network of Ontario, and a professor in the department of politics and public administration at Ryerson University. A selection of topics discussed included government initiatives, such as the CRA’s IT Modernization Project (“CHAMP”), and attracting individuals to the non-profit sector. Employment and human resources in the non-profit sector were identified as being of particular significance and recommendations were made, for example, to implement a federal student loan forgiveness program for those working in the non-profit sector.
On April 8, 2019 the Committee heard witnesses from the volunteer sector, including representatives from United Way Canada, Association of Fundraising Professionals, Imagine Canada, and the Muttart Foundation. Topics discussed focused on adapting the understanding of volunteerism to include the contribution of the younger generation, issues of funding, and strategies to improve employment in the sector such as improving job stability.
The Committee also held a round table discussion with legal experts to discuss various matters relating to the regulation of charities. Amongst the topics discussed were: the types of registered charities; the “destination of funds” test; the 3.5% disbursement quota; and an “expenditure responsibility test” compared to the test for direction and control and donations of private shares and real estate.
The April 1 and April 8, 2019 meetings were the last series of meetings held by the Committee, which will now begin to prepare its report, which is expected to be released in September 2019.