There has been a lot of speculation and inaccurate information circulating about whether recommendation 430 would be part of the federal budget to be released later today. Recommendation 430 proposed to “remove the privileged status of advancement of religion as a charitable purpose.”
On October 31, the government confirmed that it
“is not considering amending the Income Tax Act to remove the advancement of religion as a qualifying charitable purpose, nor is it actively developing policy on this issue.”
The Minister’s confirmation aligns with everything CCCC has heard from our own sources and those shared with CCCC by other stakeholders.
The Minister of Finance and National Revenue affirmed the government’s position in response to Petition e-6585. Below is the full response (emphasis added):
Response by the Minister of Finance and National Revenue
Signed by The Honourable François-Philippe Champagne
The Government of Canada recognizes the vital role that charities, including religious charities, play in delivering essential services to some of the most vulnerable in Canadian society. To support their important work, registered charities are granted significant tax benefits and privileges, including the ability to issue official donation receipts for the gifts they receive.
Under the Income Tax Act, an organization may only qualify for charitable registration where it is established exclusively for charitable purposes and devotes all its resources to achieving those purposes. The legal interpretation of “charitable purposes” has developed over time to include the relief of poverty, the advancement of religion, the advancement of education, and other purposes recognized as charitable, such as the promotion of health or the protection of the environment.
Today, Canada is home to over 85,000 registered charities, representing a wide variety of causes, beliefs, and interests. Registration as a charity does not indicate government endorsement of an organization’s specific goals or views. Instead, it confirms that the organization meets certain conditions, including that it is constituted and operated exclusively for charitable purposes. These benefits are extended to a broad range of organizations providing socially beneficial activities to the public, from educational institutions to religious organizations, as long as they meet the legal requirements for registration.
The Government of Canada is not considering amending the Income Tax Act to remove the advancement of religion as a qualifying charitable purpose, nor is it actively developing policy on this issue.
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For more information about CCCC advocacy work around recommendation 430, see CCCC Signs Lawyers Letters Concerning Charitable Status, CCCC Response to Troubling Recommendations on Charitable Status, Staying Informed About Charitable Status and CCCC 2025 Federal Pre-Budget Submissions.
The content provided in this blog is for general information purposes and does not constitute legal or professional advice. Every organization’s circumstances are unique. Before acting on the basis of information contained in this blog, readers should consult with a qualified lawyer for advice specific to their situation.