Experts warn charitable status could still be politicized when Parliament resumes after prorogation
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The resignation of Prime Minister Justin Trudeau as Liberal Party leader and the prorogation of Parliament may have delayed a non-confidence vote and immediate election, but experts warn it has not eliminated the risk of charitable organizations losing their status due to religious beliefs or disagreements with government policy. Stakeholders argue that if these measures are implemented, they could destabilize the charitable sector.
The House of Commons finance committee has tabled a report that, if enacted into law, could fundamentally alter the charitable landscape in Canada. Legal experts representing major organizations are raising serious concerns about the committee’s recommendations, which include stripping charitable status from anti-abortion organizations and removing the advancement of religion as a recognized charitable purpose under the Income Tax Act. These proposals, they say, set a dangerous precedent by politicizing charitable status and threatening the sector’s independence.
“The issue is an important one,” said Deina Warren, director of legal affairs with the Canadian Centre for Christian Charities (CCCC). “The recommendation has been formally made by a House Committee and ought to be officially retracted, and advancing of religion as a charitable purpose should be positively affirmed by the government.” The CCCC, an umbrella group representing more than 3,200 member organizations, including churches, educational institutions, and pregnancy centres, has been vocal in its opposition, urging policymakers to reconsider these recommendations.
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In an open letter to then-Finance Minister Chrystia Freeland dated Nov. 15, 2024, the CCCC highlighted the problematic language in the Prime Minister’s mandate letter instructing her to propose the amendments. “We understand that the Prime Minister’s mandate letter instructs you to introduce amendments to the Income Tax Act in order to ‘make anti-abortion organizations that provide dishonest counselling to pregnant women about their rights and options ineligible for charitable status,’” the letter stated.
The CCCC challenged this characterization, arguing it sets a troubling precedent. “By singling out a subset of charities based on a position or beliefs about a particular issue, the proposal appears to be motivated solely by political considerations,” the letter said. “If an organization’s charitable status is removed simply because its views or beliefs are different from those of the government, it would threaten all charities, because their status would depend on government policies which could change each time a new government is elected.”
Critics argue that such a move is not without precedent under this government. Early in its mandate, the Liberals introduced a controversial requirement that Canada Summer Jobs grant applicants declare support for abortion rights as a condition for funding. Stakeholders say that approach has no place in determining the legitimacy of charitable organizations.
Two other groups, the Evangelical Fellowship of Canada (EFC) and the Christian Legal Fellowship, have also strongly objected to the proposed changes. In a letter to Finance Minister Dominic LeBlanc, the EFC emphasized the importance of religious charities to Canada’s social fabric, noting they account for more than 30,000 of the 73,000 registered charities in the country—roughly 42 per cent of the sector. “Religious charities play a significant role within the charitable sector and the life of our country. Of the more than 73,000 charitable organizations registered with the CRA, more than 30,000 fall under the advance of religion, roughly 42 per cent of the charitable sector. Religious charities foster vibrant social networks, spark local volunteerism and foster community resiliency,” the letter stated.
Julia Beazley, director of public policy with the EFC’s Centre of Faith and Public Life, said Canadians must remain vigilant. “Canadians should be vigilant because if implemented the legislation would significantly impact all of these organizations, not to mention their beneficiaries,” she said. Beazley pointed out that while prorogation temporarily halted government business, the recommendations remain on the table. “While all unfinished government business is terminated when Parliament is prorogued, the recommendations still stand,” she said. “The Minister isn’t obligated to adopt the committee’s recommendations, so that doesn’t necessarily mean we’ll see it in the next budget. But whether we see it adopted in the upcoming budget or not, it is significant that this recommendation has been put forward.”
Beazley urged Canadians to act now to ensure these recommendations do not become law. “Committee recommendations can function as a trial balloon. If a recommendation seems widely supported, or at least not opposed, it may encourage the government to move ahead with it. So now that the committee has put this on the table, it’s a good idea for Canadians to express concerns to their local MPs about it, to help ensure it doesn’t go ahead.”
When Parliament resumes on March 24, several outcomes are possible. The session will begin with a Speech from the Throne outlining the government’s priorities, which will require a confidence vote. Opposition parties have already signalled their intent to bring down the government at the earliest opportunity. If the Speech from the Throne fails to secure support, an election could be triggered immediately. Even if the government survives the Throne Speech, it will face confidence votes on spending measures and the upcoming budget, likely tabled in March or April.
Regardless of the political outcome, religious and charitable organizations are determined to continue their advocacy. “Whatever happens, we have asked the government not to adopt these recommendations and are urging people to ask their local MPs not to support this proposal,” Beazley said. She also encouraged voters to make this issue a priority during any election campaign. “When an election is called, whether that’s sooner or later, this is a question people can ask of their candidates: Do you support politicizing charitable status? Do you support protecting the independence of charities?”
For the thousands of organizations advancing religion, supporting communities, and championing diverse causes, this is more than a policy debate. It’s a fight to preserve their existence and independence in the face of government overreach.
Susan Korah is Ottawa correspondent for The Catholic Register, a Troy Media Editorial Content Provider Partner.
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