January 2024: Unpacking Charitable Law Modernization

18 January 2024

In June 2022, the Government of Canada adopted a new version of the Income Tax Act (ITA). Two relatively significant modifications were at the heart of the changes: an increase in the disbursement quota from 3.5% to 5% for grant-making foundations with assets in excess of $1 million; and a significant relaxation of the rules concerning the allocation of philanthropic resources to non-qualified donees. 

These changes were made following extensive consultation by the Canadian government with key stakeholders. The Senate Special Committee on the Charitable Sector conducted a comprehensive study of the sector. Their ensuing recommendations are collected in the report entitled “Catalyst for Change : A roadmap for a stronger charitable sector“.  

How else is charitable law being modernized and what impacts does this have on the sector? 

In this special edition, PhiLab aims to cover the modernization of charitable law, both in Canada and abroad by focusing on the following important themes and questions: 

  • Collective policies for social and environmental justice 
  • Innovative approaches and policies for the philanthropic sector 
  • What are the impacts of the adopted changes on the charitable sector (the increase in the disbursement quota and the relaxation of rules concerning the allocation of funds to non-qualified donees)? 
  • What is happening with the projects that are still pending and not currently covered by the new version of the ITA?  

The special report we’ve put together brings together content in several forms (articles, podcasts, video) with the aim of providing some answers to these questions. It is intended to contribute to ongoing reflection and debate on current and future changes to the Canadian charity system. 

Happy Reading! 


Podcasts

 

 

 

Lois faites maison ou modernisation? | Gia Mieu Tran

 

 

 

 

 

 

 

 

Philanthropy in Action | Hilary Pearson

 

 

 

 


Video

 

Prendre du recul avec Hilary Pearson: Qu’est-ce qui a changé dans la réglementation de bienfaisance? Avec Hilary Pearson