Federal Budget 2014

The Government of Canada recognizes that the charitable sector plays an essential and irreplaceable role in our society by providing valuable services to Canadians, including to those most in need.
— 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

Mark Blumberg – Answers the Question: How will the Budget affect the Canadian Charitable Sector? 

Community Foundations of Canada – Review of Key Items of Interest