OTTAWA (CCN) — Liberal MP Karina Gould, the chair of the House of Commons’ Standing Committee on Finance, is signalling the charitable status of faith-driven non-profits will not be revoked in the budget her party’s government is set to unveil on Nov. 4.
The Catholic Register was forwarded an email Gould’s office issued to Rev. Al Postma, the Canadian executive director for the Christian Reformed Church of North America (CRCNA), confirming the federal government will not be reviewing the charitable status of religious organizations..
“Charitable status for religious organizations is not under review, and this government has no plans to change that,” said the email to Postma. “Any suggestion otherwise is false. We respect the role faith-based organizations play in communities across the country, and religious organizations continue to enjoy charitable status under the same rules that apply to all charities in Canada. There have been no policy or legislative changes proposed that would revoke charitable status from religious groups, including churches.”
There is no word what this means for pro-life groups. Concerns about the charitable status for religious organizations and pro-life organizations emerged in December 2024 as the finance committee’s pre-budget consultations report included recommendations, 429 and 430, that called for the Income Tax Act be amended to remove the privileged status of these groups as a charitable purpose.
Gould’s office stressed that this recommendation was made “under the previous government and prior to MP Gould being a member of the Standing Committee on Finance. As such, MP Gould was not involved in its development.”
The staff for the 38-year-old representative for Burlington also implored Postma to “please be assured that MP Gould and the Government recognize the important role many churches play in providing crucial services to their communities and will continue to protect their ability to do so.”
Upon learning about recommendation 430, the Canadian Conference of Catholic Bishops (CCCB), under its former president Bishop William McGrattan and continuing with his successor Bishop Pierre Goudreault, has engaged with the Department of Finance. Letters were issued to Minister of Finance and National Revenue François-Philippe Champagne in March and September. These messages also encouraged not following through with recommendation 429.
In the latter communique, McGrattan wrote that following through with recommendation 430 would alter the well-established common law definition of charitable purpose, which stretches back over 400 years. It would further send a disruptive signal to the charitable sector that the principles of charity legislation can be rescinded without adequate consultation, even before their impact on society is fully understood.”
An estimated 38 per cent of Canadian non-profits fall under the category of advancement of religion.
Efforts by the aforementioned entities to stand up for the faith-driven non-profits are welcomed by Pierre Gilbert. He is the author of a new report for the Frontier Centre for Public Policy titled Revoking the Charitable Status For The Advancement of Religion: A Critical Assessment. The report said such a move would have far-reaching social and financial consequences for churches and faith-based organizations.
“When there is an issue or a policy that signals some kind of overreach by the government, churches should use the power and influence that they do have with MPs, with cabinet ministers and so forth, to signal that something is not right in the land,” said Gilbert.
Silence, he said, is interpreted by a “politician with an agenda” as “either a weakness to be exploited or agreement.”
Gilbert’s report touts research from the Cardus think tank that suggests religious organizations contribute $16.5 billion each year to the economy through education, social services and community programs. He wrote that a charitable status revocation, conversely, would accrue far less money — $1.7 billion to $3.2 billion.
The Register contacted Gould’s office multiple times to request either a direct oral comment or email statement from the MP about recommendations 429 and 430, but no response was issued by press deadline.
Read Gilbert’s full report.
