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2018 Fall Economic Statement – Impact for the Charity and Non-Profit Sector

Posted on Friday, Nov 23, 2018

 

The Federal Government’s 2018 Fall Economic Statement was released yesterday by William Morneau, the Minister of Finance. The Statement is geared towards “investing in middle class jobs” and includes an economic update and new proposed plans for the 2018 Budget. There are three main proposals that deal directly with the charities and non-profit sector.

Advisory Committee on the Charitable Sector

In response to the recommendations of the Consultation Panel on the Political Activities of Charities, the Government has announced it is establishing a permanent Advisory Committee on the Charitable Sector. The Committee will be led by CRA and composed of stakeholders from the charitable sector. It will provide advice to the Government on an ongoing basis relating to important challenges and issues faced by the sector.

The Government will provide $4.6 Million in new funding over the 2018-2019 to 2023-2024 period to the Advisory Committee in an aim to improve communication and relations with the charities and non-profits sector.

The Social Finance Fund

In response to recommendations of the Social Innovation and Social Finance Strategy Co-Creation Steering Group, the Government announced plans to create a Social Finance Fund. Social Finance refers to the practice of making investments intended to create social or environmental impact, in addition to financial returns. The Fund aims to help charitable, non-profit and other social purpose organizations access new financing, and help connect them with private investors looking to invest in projects that will drive positive social change.

The Government proposes to make available up to $755 million on a cash basis over the next 10 years for the Fund. Additionally, the Government proposes to invest $50 million over two years in an Investment and Readiness stream, for social purpose organizations to improve their ability to successfully participate in the social finance market.

More details on the fund will be supplied in 2019.

Support for Canadian Journalism

The 2018 Fall Economic Statement announces the Government’s proposal of three new initiatives to support Canadian journalism. The total estimated cost of the tax credits and incentives is an estimated $595 million over the next five years

Access to Charitable Tax Incentives for Eligible News Organizations

The Government will introduce a new category of qualified donee for non-profit journalism organizations that produce a wide variety of news and information of interest to Canadians.

This will qualify eligible non-profit journalism organizations to issue official donation receipts, allowing donors to benefit from tax incentives for charitable giving. It will also qualify these organizations for funding from registered charities.

A New Refundable Tax Credit to Support News Organizations

The Government introduced a new refundable tax credit to qualifying news organizations. This will aim to support labour costs involved in production of original news content and will be generally available to both non-profit and for-profit news organizations. A panel will be established from the news and media community to define eligibility for this tax credit. Once established, the date of eligibility will be January 1, 2019.

A New Non-Refundable Tax Credit for Subscriptions to Canadian Digital News Media

The Government intends to introduce a new temporary, non-refundable 15-per-cent tax credit for qualifying subscribers of eligible digital news media.

For More Information

For more information, visit the Government of Canada’s 2018 Fall Economic Statement webpage here: https://www.fin.gc.ca/n18/18-107-eng.asp or download and read the full statement here: https://budget.gc.ca/fes-eea/2018/docs/statement-enonce/fes-eea-2018-eng.pdf.

 

 

 

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