QUESTION PERIOD — Finance
Canada Revenue Agency
November 19, 2024
Senator Gold, the government had the misguided idea to change the disbursement quota in order to encourage charities to invest in communities. Charities with more than $1 million in assets are required to spend 5% annually on charitable activities. First and foremost, small community organizations need to focus on preserving their capital. This mandatory distribution quota of 5% could force them to dip into their capital base, which would threaten future distribution and the survival of the organization. This is a real problem that is affecting all regions of Canada.
The Community Foundations of Canada network is present in 200 communities. In Eastern Quebec, our community foundation alone manages 117 different funds that support music schools, and organizations that fight domestic violence, that help people with disabilities and that help kids stay in school.
Thank you for the question and for pointing out the important work that charities do to improve the quality of life of all Canadians.
The policy that you mentioned was intended to ensure that the money raised by charities is used to accomplish the purposes for which it was donated. I will talk to the minister to better understand the challenges that you raised.
Would the government leader agree that it would be wiser to review the disbursement quota policy, to prevent it from undermining the charitable organization ecosystem that we have built, while consulting the foundations involved?
Concerning consultations, I have no information on the subject. I’ll speak to the minister about it.
As for the fundamental question, colleague, the government has always been committed to continually do better and to improve programs and services. I’ll raise the matter with the minister.
