S-216Bill not proceeded with

Law to Change How Charities Use Money

Charity Money Rules Changed

Introduced Feb 3, 2022·Last discussed May 24, 2024

Summary

This proposed law is about how charities can use their money. Right now, there are rules about how charities can spend their funds. This proposed law would change those rules. It would give charities more freedom to decide how to use their resources. They could use their money in different ways to support their cause. This proposed law would affect all registered charities in Canada. That includes organizations that work on things like poverty, health, education, and the environment. It would also affect the people who benefit from the work that charities do. This proposed law matters because it could help charities be more effective. If charities have more freedom to use their money, they might be able to help more people. They could also be more creative in how they solve problems.

Where This Lands on Key Issues

Where this proposed law falls on the policy spectrums that Canadians care about

Taxes & Government SpendingLower taxes, smaller government

By allowing charities to use their resources more freely, the bill could potentially reduce the need for government spending on social programs, aligning it slightly towards reduced government spending.

This bill

Bill Quality

Solid

This proposed law aims to clarify and modernize how charities can work with non-qualified donees, allowing them to pursue their charitable goals more flexibly. It also sets out clearer guidelines for charities to ensure funds are used properly, but relies on a 'reasonable person' test which could be unclear.

Things to Watch For

The 'reasonable steps' requirement for charities needs clear examples to avoid confusion.
It is unclear how strictly the government will enforce the rules around charities working with non-qualified donees.
The law does not address if small charities will have enough resources to meet the new requirements.
There are no details on how the government will monitor if charities are following the new rules.

Progress

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