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Charitable status of churches and religious charities threatened

While the country’s attention was focused on the conflict within the Liberal Party and the threat of new tariffs from south of the border, the Finance Committee tabled a report in the House of Commons with their recommendations for the next budget. Among 462 recommendations, one called on the government to drop “advancement of religion” as a basis for charitable status.

If adopted in the next federal budget, this would threaten over 30,000 charities, making up over 40 percent of all Canadian charities. This includes an estimated 23,000 congregations, as well as many Christian non-profits. Losing charitable status would mean that churches and religious charities wouldn't be able to give charitable tax receipts for donations, or accept donations from foundations and other charities.

In a call to action for its members, the Evangelical Fellowship of Canada (EFC) noted that this is also significant because “it indicates that members of the committee, from all the major political parties, supported the idea.” They explained that although the Conservative Party wrote a dissenting opinion on the report, they didn’t specifically mention opposition to this recommendation.

In their own letter to the Minister of Finance, the EFC made a passionate case for retaining charitable status based on the advancement of religion. “Religious charities foster vibrant social networks, mobilize outreach, spark local volunteerism, and foster community resiliency,” they explained.

“More and more Canadians are grappling with loneliness and social isolation. Polarization and lack of social cohesion are increasing concerns. This is a time to encourage the presence and participation of religious charities, which foster hope, mutual support and belonging, rather than taking steps to destabilize them.”

ARPA Canada noted that:

“In some ways, the favorable tax treatment of religious organizations is also a recognition of sphere sovereignty. It represents respect and appreciation by the civil government for the mission and work of the church and other institutions, to disciple people in the way of God and to minister to the poor and needy.”

The EFC explained that “committee recommendations can function as a trial balloon. If a recommendation seems widely supported, or at least not opposed, it may encourage the government to move ahead with it.”

While it looks likely we’re heading for an election, Christians still need to contact their MPs on this now, in case the Liberal government should survive long enough to present a budget this spring.

And regardless of whether this recommendation is adopted this spring, it should serve as a wake-up call to Christians that we live in a political climate that has shifted from supportive towards faith-based organizations, to lukewarm, and now even hostile at times. This underscores the importance of churches taking the time to build a relationship of mutual trust and respect with their government officials, regardless of which party they are from.