Federal Budget 2014
Phew, you can sit back in your chairs now, as the 2014 Federal Budget didn’t deliver any earth-shattering news. There are, however, a number of changes that will impact the nonprofit and charitable sector. The changes can be categorized into action areas:
• Encouraging Donations – Expanded carry-forward period for donations of eco-sensitive land & increased flexibility in the tax treatment of charitable donations from estates.
• Reducing Administrative Burdens – Introduction of electronic filing for annual information returns, electronic registration for charities, and charities will be able to use computers to conduct lotteries.
• Capacity Building – Opportunities for nonprofits to benefit from partnerships with highly-skilled graduate students and researchers.
• Skill Development and Employment – Introduction of a number of programs aimed at reducing the gap between skills and available jobs, plus an announcement that the controversial Canada Jobs Grant will come into effect on April 1st.
• Review and Consultations – Review of whether the income tax exemption for NPOs is properly targeted, including public consultation on the income tax framework.
• Preventing Abuse of Charitable Status – New authority to revoke or refuse registration of charities accepting donations from foreign states listed as a supporter of terrorism.
The following resources do a particularly good job explaining, in more detail, some of the changes affecting the nonprofit and charitable sector.
Imagine Canada’s – Items of Interest to Charities and Nonprofits
Drache Aptowitzer – Article on Pre-Budget Rhetoric and Post-Budget Realities for the Sector
Miller Thompson’s – Summary of Changes that will Impact Charities and Nonprofits
Community Foundations of Canada – Review of Key Items of Interest