Government of Canada Responds to the Report of the Consultation Panel on the Political Activities of Charities

On March 7, the Minister of National Revenue officially responded to the Report of the Consultation Panel on the Political Activities of Charities. Below is a brief summary of the response to the recommendations made by the Panel.  

Recommendation 1

Revise Canada Revenue Agency’s (CRA) administrative position and policy.

Response: CRA developed a draft guidance for public consultation on the new rules on public policy dialogue.

Click here to see CCVO’s response to the draft guidance. Click here to view Imagine Canada’s response.

Recommendation 2

Implement changes to CRA’s administration of the Income Tax Act.

Response: The Government is providing up to $5.3 million over the next 5 years for CRA to enhance sector outreach and education, including the Charities Education Program. CRA will also strengthen its internal training for employees to ensure policies are implemented consistently.

Recommendation 3

Amend the Income Tax Act by deleting any reference to nonpartisan political activities to explicitly allow charities to fully engage without limitation in public policy dialogue and development activities.

Response: The Income Tax Act changes allow charities to fully engage without limitation in public policy dialogue. The Government discontinued its appeal against Canada Without Poverty, and lifted the remaining audits and objections that were part of the Political Activities Audit Program.  

Recommendation 4

Modernize the legislative framework governing the charitable sector.

Response: The Government is establishing the permanent Advisory Committee on the Charitable Sector to provide recommendations to the Minister of National Revenue and the Commissioner of CRA on important and emerging issues facing charities.  

To read the full response, see the Government of Canada’s website.