Opinion: Charities Need Money, but Also More to Spur Post-Pandemic Recovery

Charities rarely get attention from the media and so I was gratified to read the op-ed that appeared in this paper on the urgency for the sector as it helps Canadians recover from the pandemic.

As the sector leaders noted, the charitable sector has been hard hit by the pandemic at the very time services have increased. They’ve also had to adapt their services at the same time as donation revenue has dried up. Despite these challenges, they have stepped up to the plate when Canadians needed them most. If we go into a fourth wave, charities will once again be called upon to step up and deliver services for Canadians. The money promised to them in the Community Services Recovery Fund needs to get out the door sooner rather than later as time is running out.

The pandemic has also highlighted that the sector forms an integral part of the social infrastructure of the country. Report after report has highlighted its role as being essential to deliver services to children, youth, adults, and seniors. And yet, the sector doesn’t have the ear of the government, past or present—at least not on an ongoing permanent basis. They, and their supporters like me, have done well to push the government and the opposition parties to include the sector in pandemic-related plans and supports. Sector organizations, such as Imagine Canada, have used strong advocacy campaigns to make politicians listen to the concerns of the sector. And despite every politician being sympathetic and supportive of charities, it has been an uphill battle. Plans, such as the wage subsidy, initially didn’t allow the sector to be included. It took much advocacy for them to be included.

This relationship, or lack thereof, was highlighted in the Senate Special Committee on the Charitable Sector report entitled “Catalyst for Change: A Roadmap to a Stronger Charitable Sector.”  Right now, there is no mechanism that allows the sector as a whole to connect with the government on a regular basis. There is no capacity in government to act as an enabler, an interlocutor, and a navigator on matters of legislation, regulations, and programs. Yet, we know that many of the government’s aspirations can only be delivered with the active support and participation of the sector.

The report called for a “home in government” to be created. Its responsibilities would include convening and connecting the sector with various interests of the government. It would also be mandated to table an annual report on the state of the sector. In this way, the sector would find a “home” in government just as other sectors of the economy, such as small business, have.

The government has, through Employment and Social Development Canada, shown a willingness to create the home but has yet to announce it. Perhaps an election will spur them and other parties to sign on to this very important policy choice.

There are many other things that need to be done to strengthen the sector, as highlighted in the Senate charities report. I will focus on two more. First, we need to amend the Income Tax Act to enable charities to establish equal partnerships with non-charities such as non-profits, to empower the voices of BIPOC organizations, while still ensuring accountability and transparency.

The current law and the “direction and control” guidance that flows out of it from the Canada Revenue Agency (CRA) is not only inefficient, ineffective, and costly, but is an example of a quiet but deeply embedded form of systemic racism. Partner organizations are forced to be directed and to give over control of their projects to the charity. Understandably, BIPOC-led organizations are uneasy being directed and controlled, which limits true partnerships with charitable organizations that wish to support their work.

So, what’s the solution? My Bill S-222, the Effective and Accountable Charities Act, passed the Senate in June. Bill S-222 changes the law to provide for more effective partnerships between charities and non-charities but still provide the level of accountability Canadians demand of charities. All parties should support this effort.

Second, it has always been an open secret that, despite charities and non-profits doing so much amazing work to help Canadians from all backgrounds, the sector’s leadership is not that diverse.

Earlier this year, I, with Statistics Canada and sector leaders, designed a survey to provide the first-ever snapshot of diversity in the governance of charities and non-profit organizations. The survey found that outside of gender, the boards of charities were not yet inclusive of indigenous peoples, racial minorities, LGBTQ2+, and the disabled.

The survey was a start but at this point there is no clear path for further studies. To add certainty, the CRA should include questions on diversity in the T3010 and the T1044 tax forms. This way, the data could be fulsome, disaggregated, and present an accurate picture of diversity in the sector on an annual basis. Based on clear, ongoing evidence, the country and the sector could see if progress is being made.

As Canada recovers from the pandemic and potentially fights off a fourth wave, we need lasting change for the charitable sector. We need to move past ad hoc solutions and advocacy. The political parties should be listening and include these ideas into their platforms. The health and vibrancy of the sector and the support it provides to Canadians is on the line.

Click here to read the op-ed in the Hill Times