Federal Budget 2025: Follow Up

After the federal Budget is tabled and approved, legislation to implement the Budget follows. This is where we learn the specifics of how the government plans to move forward with its Budget proposals.

Bill C-15, Budget 2025 Implementation Act, No. 1 includes some, but not all, items specific to charities that were in Budget 2025. Often the government introduces two “BIA” bills, so Budget 2025 proposals not included in Bill C-15 may come in other legislation.

Amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Bill C-15 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related Regulations to clarify that certain sections apply to donations that are not charitable donations. For example, a not-for-profit that is not a registered charity may accept donations, but because it cannot issue official charitable donation receipts, those gifts are not considered charitable donations.

But these changes do not relate to the proposed prohibition on cash donations over $10,000. Bill C-15 will only change s. 36(3.01)(b) of the Act, which governs disclosure of information to the CRA when money is seized and may relate to financing terrorist activities. Bill C-15 will also change s 138(5)(b) of the Regulations, which relates to those with a responsibility to verify an entity’s identity (e.g., life insurance companies, credit unions, real estate brokers, securities dealers, financing entities) in the course of financial transactions.

Amends Customs Tarriff – Duty Drawback for Surplus Imported Goods Donated to Charities

Bill C-15 amends the Customs Tariff to amend the definition of “obsolete or surplus goods” to allow for the refund of duties paid in respect of certain goods that are donated to a registered charity. It specifies that the Governor in Council can make regulations listing the goods or classes of goods that can be donated.

Amends Income Tax Act – Charitable Donations Deadline Extension

Bill C-15 extends the deadline for making certain charitable donations eligible for tax support in the 2024 tax year.

If a taxpayer made a gift before March 2025 and after a tax year that ended between November 14, 2024-December 31, 2024, it can be allocated to the 2024 tax year if it would otherwise be deductible, is deducted under the new Income Tax Act section for this purpose (110.1(18)), and it was in the form of cash, cheque, credit card, money order or electronic payment. In other words, gifts in-kind and gifts of securities aren’t eligible.

Amends Canada Not-for-Profit Corporations Act – Federally Incorporated Charities that are Listed Terrorist Entities will be Dissolved

Bill C-15 amends the Canada Not-for-profit Corporations Act (CNCA)to add that a corporation can be dissolved when the Director is notified that it is a “listed entity” as defined in subsection 83.‍01(1) of the Criminal Code. The Director in this context is the person appointed by the Minister to carry out the duties of the CNCA.