After months of communication, consultation and advocacy, the federal budget presented to Parliament on March 22 contained some nuggets and nods for the charitable sector. Three days later, the federal government fell. The budget tumbled with it.
But Imagine Canada CEO Marcel Lauzière is confident that the influence and impact of his organization and other sector advocates will continue no matter who forms the next government. They work hard to educate not only politicians, but civil servants at all levels - and those bureaucrats stay on board when the government changes.
The election gives Lauzière's team an opening for obvious, nonpartisan activity. They'll work to inform sitting MPs and candidates from all parties, emphasizing the need to preserve the limited recognition of the charitable sector included in the March 22 budget and incorporate other measures that didn't make the cut.
Stretch Tax Credit on hold
"We're very disappointed to see nothing around the Stretch Tax Credit," Lauzière comments. "We'll continue to push for it. It's an innovative, relatively inexpensive measure that sends the message that everyone can be a philanthropist." He clearly believes that in the near term, it's the measure with the most potential to build sustainability for charities.
The Stretch Tax Credit would have created a higher tax credit for the amount by which individuals increased their charitable donations compared to the previous year. Lauzière says there's a lot of interest in such a credit from all parties - hence the Finance Committee's unanimous recommendation of the measure. Since then, though, it's been incorporated in a proposed overall review of charitable giving incentives - a time-consuming process that may delay the credit's implementation.
Progress on transparency
Lauzière fully expects the next government to reintroduce measures that would expand the governance control of the Canada Revenue Agency. And he supports giving CRA the power to refuse registration or revoke existing registration if a charity's slate of officers includes someone who was convicted of a relevant crime, implicated in regulatory offences, served on the board of another charity revoked for cause, or promoted a donation tax shelter that led to a charity's revocation.
"Canada needs a strong and fair regulator to defend the integrity of the system," he states. "Abuse by a few organizations can tarnish the reputations of charities across the country."
Bill C-470 no loss
Bill C-470, which in its amended form would have required charities to disclose the names and compensation of all employees earning over $100,000 in total salary and benefits, will die on the order paper if normal procedure is followed.
The legislation would not be missed, Lauzière comments. "Transparency is a good thing. But we already have legislation that discloses top salary ranges without attaching names to the figures. What CRA has had in place since 2009 gets the balance right."
"If they [parliamentarians] want to make a real difference," he continues, "they should look at the much more common issue of low salaries, insufficient benefits and inadequate pensions for so many in the sector."
To Lauzière, the election is an opportunity for the entire sector to engage with more politicians locally and nationally on core issues that would recognize the productivity, contributions to society, and need for sustainability common to charities and nonprofits. He's confident that the March budget's acknowledgement of the sector's "essential role in the Canadian economy and society through the valuable services provided to Canadians" will guide the next budget, no matter who's in charge.
Imagine Canada has released an Election Readiness kit for use by charities and nonprofits. It's available at http://www.imaginecanada.ca/node/182.
For more information, contact Lindsey Vodarek, Manager, Communications & Public Policy, 416-597-2293 x351, 1-800-263-1178 x351.
