Bill S-216 is a Step Forward in Reforming the Charitable Sector | MP Niki Ashton

On May 16, 2022 MP Niki Ashton spoke in support of Senator Omidvar’s Bill S-216, the Effective and Accountable Charities Act. Watch her speech:

Ms. Niki Ashton (Churchill—Keewatinook Aski, NDP): Madam Speaker, it is an honour for me to rise in the House to speak to Bill S-216, an important bill supporting the good work in the charitable sector.    

I will begin by expressing what we have seen over the last few years, particularly during this pandemic, and how important the work of so many has been, including the many who have gone above and beyond in the charitable sector in our communities to support people in this very difficult time. We saw during this pandemic that many were forced to turn to food banks and soup kitchens and needed help during this crisis. We know that thanks to the volunteering and contributions of many, Canadian charities across various sectors were able to step up.    

I recognize the important work that has been done in northern Manitoba and across the country during this very difficult time. Many charities in our communities share values, such as the importance of community, justice and partnership, and the sense of solidarity that is critical to us moving forward during times of crisis.    

I also want to talk about how the government, especially over the last two or more decades, has turned to charities to take over the work that government should be doing. The government should be foremost responsible for the social well-being of all in our country. It is clear that government must be doing its part to ensure the collective good, rather than overly relying on charities to do its work. The reality is that inequality in Canada has increased over the last number of years in significant ways. Instead of the government stepping in to address that shocking inequality and the rise in inequality, it has often turned to philanthropy and the charitable sector to try to fill in the gaps, and that is not okay.    

The charitable sector cannot and should not replace the government’s social mission. It should have effective tools to be able to accomplish its work. The charitable sector should not be seen as the solution to government programs, particularly government programs targeted at closing the inequality gap in our country. If social justice were fully realized through effective government policies, particularly at the national level, we would not need to rely on charities to do the critical work of feeding people, clothing people and supporting people who are on the margins. Charity is relied on by government and is not a substitute for social justice policy.    

As Paul Taylor, a great activist in Toronto fighting back against food insecurity, has said, “The most effective remedy for food insecurity is also the simplest: provide people with income to purchase food”. This shows clearly that the federal government is not doing enough for people. Food banks, for example, are helping so many, not because food is unavailable in many communities, but because poverty is so high in so many places that people cannot afford to get the food they need. We must recognize that food is a right, not a privilege, and beyond food security, social well-being is also a right, not a privilege.    

Because of inadequate social assistance rates provided by governments and because our social safety net has been cut and privatized, many more people in Canada in recent decades have been pushed into poverty, forced to choose between dangerous housing conditions and homelessness and between paying basic bills and the groceries they need. As we have seen during the pandemic and now with the rise in inflation and the increased cost of living, the reality is that people are suffering and families are crying out for help.

 While charities help and do important work, we cannot rely on them to replace our collective responsibility in government. It is the federal government that should be stepping in to eradicate poverty in our country and close the growing inequality gap here in Canada.    

The solution is clear: Give more to those who have less. I urge the government to take responsibility for helping those in greatest need and to help the most vulnerable with direct support. We saw that take place during the pandemic. I am proud of the work that we did in the NDP to push the government to invest in CERB and to expand supports to students, to seniors and to people living with disabilities. Unfortunately, those supports were only temporary. The reality is that Canadians are suffering and need direct income support now.    

I want to acknowledge the important work of my colleague, the member for Winnipeg Centre, who has pushed for a guaranteed livable income, and the support of many in this regard. I also want to acknowledge the important work of many in pushing for tax fairness and recognizing that the richest among us in our country are not paying their fair share. The rich and corporations ought to be paying their fair share so that money can be reinvested in the social programs that are necessary to close the growing inequality gap in our country.    

Let us turn to the charitable sector as well. It has been clear, in consultations undertaken by the government and the House of Commons, that charities are subjected to outdated, restrictive and onerous rules. Their funds come from donations that are tax-deductible. However, as the rules are now, charities can spend their charitable dollars only on activities that they undertake themselves. In short, a charity must maintain a “direction and control” role in the activities carried out on its behalf and in the use of its resources by the intermediary.    

These restrictions were implemented during the 1950s to ensure that these tax deductions were not diverted to other means than the charitable ones, but it is necessary to recognize that the “own activities” requirement is inefficient and unrealistic. Canadian charities must expend significant time and money to provide their direction and control requirements when they deal with what are known as non-qualified donees.    

As a result, charities do not have flexibility. They have limited resources to fulfill their missions, and they are restricted in entering partnerships with other non-profits as a result. As a consequence, charities cannot fully focus on the essential mission that they have defined for themselves.    

Bill S-216 addresses these shortcomings. It is a step forward in reforming the charitable sector and it should significantly improve the legislative framework for public and social well-being. It would give charities the flexibility they need on how they can enter into partnership to accomplish their charitable purpose.    

Bill S-216 would eliminate the “direction and control” requirement, which would allow charities to transfer their resources to non-qualified donees as long as required measures are taken to ensure that these resources will be used only to fulfill a charitable purpose. This includes the collection of information on the identity, experience and activities of third party recipients before providing resources.    

We believe that this bill can address the challenges that the charitable sector is facing. I want to acknowledge those who have come forward to support this proactive solution.   

Let us be clear: The federal government has failed to meet charitable organizations’ needs with what has been proposed in Bill C-19. We believe that Bill S-216 is a step in the right direction. Let us also be clear that the government’s work must remain primary, and we must catch up on the gaps we have created that are pushing so many Canadians through the cracks. It is up to the government to act to address inequality and end poverty in our country.