Press Release: Senator Omidvar welcomes the Government of Canada’s Pledge to Change “Direction and Control” Requirements for Canadian Charities in the 2022 Federal Budget
Ottawa April 8, 2022 – Senator Ratna Omidvar is pleased to see that the Government of Canada has pledged to change the “direction and control” requirements that regulate charities who work with non-charities. But more detail is needed to determine what changes the government will make.
“This is a welcome step by the government,” said Senator Omidvar. “However, we don’t have clarity from the government on what form these changes will take. Will it just be window dressing, or will it be actual change that my bill S-216 calls for?”
Senator Ratna Omidvar has been working on changing “direction and control” requirements through her Bill S-216 by amending the Income Tax Act, the Effective and Accountable Charities Act, which passed the Senate in December 2021. Bill S-216 is now in the House of Commons and is being sponsored by Philip Lawrence, MP for Northumberland-Peterborough South.
In addition to being inefficient, ineffective, and costly, “direction and control” regulations are an example of a quiet but deeply embedded form of systemic racism. Partner organizations are forced to give over control of their projects to the charity. Understandably, many community groups, including BIPOC-led organizations, are uneasy being directed and controlled, which limits true partnerships with charitable organizations that wish to support their work.
“Bill S-216 will get rid of old laws that perpetuate systemic racism and will create more effective partnerships in the charitable sector by enabling charities to work with others for important causes,” said Senator Ratna Omidvar.”
The report by the Special Senate Committee on the Charitable Sector found that the CRA guidelines are inconsistent with contemporary values of equal partnership and inclusion. The Committee recommended moving towards a new approach, away from the language of “direction and control.”
An open letter by 42 top charity lawyers says that “the current rules are inefficient, overly complex, and out of touch with those of other global actors. They create lost opportunities by making it difficult, in some cases prohibitively so, to carry out legitimate charitable work. Further, they impede collaborative partnerships between Canadian charities and their ally organizations across the world…It is time for charity law to do away with the inefficiencies created by these antiquated rules, and instead focus on maximizing the charitable work that can be done.”
We need a strong and functioning charitable sector to take Canada on the road to recovery from the pandemic. It should not have to do so with one hand tied behind its back, and removing these requirements are a step in the right direction.
Direction and Control in the 2022 Federal Budget – https://budget.gc.ca/2022/report-rapport/chap8-en.html#2022-3
For more information visit or contact:
Paul Faucette
Director of Parliamentary Affairs, The Honourable Ratna Omidvar