In November, 2018, the Special Senate Committee on the Charitable Sector (the “Committee”) continued its study of the impact of laws and policies on the charitable and not-for-profit sector and the impact of the voluntary sector in Canada. During November, the Committee met on November 5, 19, and 26 (“November Meetings”) to hear from witnesses with respect to the study. Videos of each meeting are available on the Committee website and minutes of each meeting are normally made available a few days after the meeting, although delays can occur.
Terrance S. Carter Presents on Bill C-86 on November 26, 2018
Among the two witnesses who presented on November 26, 2018, Terrance S. Carter spoke with respect to the support of Bill C-86 and the ability of charities to engage in public policy dialogue and development activities without limitation, which is discussed in the November 2018 Charity & NFP Law Bulletin No. 434. The written text of Mr. Carter’s presentation, along with an unofficial transcript of his submission and the question and answer session with the Committee are available on the Carters website. While official transcripts will be posted to the Committee’s website at a later time, a video link to Mr. Carter’s testimony before the Special Senate Committee is currently available at the Committee’s website, with Mr. Carter’s testimony beginning at 21:13:12.
Summary of other Testimonies from November Meetings
The meeting of the Committee on November 5, 2018 focused on definitions as they pertained to charities and non-profit organizations. The witnesses discussed issues such as: the need to codify the Canadian definition of charity and other matters involving charities with legislation in order to supplement the existing common law that applies to charities; amending the appeal process to permit tax court appeals for CRA decisions on registration and revocation; implementing a process that provides for regular legislative review of the ITA provisions that relate to charities; and the need to facilitate broader cultural funding as well as increased tax incentives to donors to promote donations to smaller charities.
The November 19, 2018 meeting focused on the practical challenges for charities and non-profit organizations. In this meeting, witnesses highlighted issues including: the obstacles that prevent many charities from fully serving the needs of their communities; the suggestion that non-profit organizations that are member-focused organizations (such as private clubs and condominiums) be distinguished from public benefit organizations (such as non-profit housing organizations) in the ITA so that Canadian public policy regarding all organizations to further the public good can be developed accordingly; allowing registered charities and public benefit non-profit organizations to work together and replacing the CRA’s existing requirement that charities must exercise modify direction and control with an expenditure responsibility test; and the need to review the Canada Not-for-profit Corporations Act to remove impractical provisions that impede the governance and operations of charities.