By Terrance S. Carter and Jennifer M. Leddy

The House of Commons Standing Committee on Finance (the “Committee”) released its Report on the Pre-Budget Consultations in Advance of the 2025 Budget (the “Report”) in the House of Commons on December 13, 2024, containing 452 recommendations. Recommendation 430 recommends that the Government of Canada “[a]mend the Income Tax Act to provide a definition of a charity which would remove the privileged status of ‘advancement of religion’ as a charitable purpose.”

Although the Government of Canada is not required to adopt the recommendations from the Committee, it will generally, at a minimum, consider the Committee’s recommendations in determining what to include in the next federal budget.

On January 6, 2025, the Prime Minister requested the Governor General to prorogue Parliament until March 24, 2025. Prorogation halts all parliamentary business, including the activities of committees. Parliamentary bills that have not received Royal Assent before prorogation “die” and must be reintroduced in the next session. While the future of Recommendation 430, is uncertain, the fact that it made it into the Report of the Committee is concerning and needs to be addressed.

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​Read the January 2025 Charity & NFP Law Update