AFP Canada Pre-Budget Submission – Budget 2026

FRANÇAIS

May 11, 2026
Hon. Karina Gould, P.C., M.P.
Chair of the House of Commons Standing Committee on Finance
Sixth Floor, 131 Queen Street
House of Commons
Ottawa ON K1A 0A6

AFP Canada Pre-Budget Submission – Budget 2026

Dear Madam Chair and Members of the Standing Committee on Finance,

On behalf of the Association of Fundraising Professionals (AFP) Canada, thank you for the opportunity to contribute to the Government of Canada’s pre-budget consultations.

The charitable and non-profit sector (the charitable sector) in Canada generates $225 billion in annual economic activity, representing 8.2% of our country’s GDP, and employs 2.9 million people, or one in every ten people in the workforce. That’s more than mining, oil and gas, agriculture or transportation. However, even as a major economic and community partner that benefits Canada on so many fronts, our sector still lacks a permanent federal home to coordinate policy, reduce barriers and strengthen impact.

Representing more than 3,000 fundraising professionals across Canada, members of AFP Canada serve charities of all sizes, in every province, and across all sub-sectors—from health and education to housing and conservation. We advocate not only on behalf of our membership but for the whole sector, as our work empowers organizations and their missions across the country that in turn impact countless Canadians. The charitable sector is integral in making Canada the country that it is today and strives to be in the future.

It is why we come to you today with the following recommendations:

• Recommendation 1: Establish a Permanent Charitable Sector Secretariat: Create a well-funded, centralized Secretariat within the federal government to coordinate policy, streamline coordination and engagement with the sector, reduce waste and administrative burden for both charities and government.
• Recommendation 2: Include Charities in All Economic Relief and Support Programs: Ensure charities are always eligible for economic support programs, especially during these times of crisis or disruption, on par with other sectors.
• Recommendation 3: In support of recommendation 1, provide up to $100,000 in funding to conduct an updated, comprehensive economic impact study of the charitable sector.

Recommendation 1: Establish a Permanent Charitable Sector Secretariat.

Currently, there is no existing mechanism for consultation between the charitable sector and the federal government. While the Advisory Committee on the Charitable Sector (ACCS) was established in 2019 to encourage meaningful dialogue between the government and the charitable sector, it remains a periodic consultative body that has only met once since the fall of 2024.

What is missing is a permanent federal mechanism that can coordinate across departments, identify impacts early on and ensure policies affecting the sector are designed with implementation in mind.

The time for a dedicated federal secretariat for the charitable sector is overdue. It was recommended by the Special Senate Committee on the Charitable Sector in 2019 and endorsed by Government in its response in 2021. In this time of fiscal restraint, we don’t believe this needs to be a large new bureaucracy but rather an opportunity to invest in a small but permanent coordinating hub inside government that strengthens impact while eliminating waste. A secretariat would be supported by a political champion, with a mandate to convene across departments, improve policy coherence and bring the sector’s realities into decision-making earlier. For inspiration, we can look to fellow Commonwealth countries such as Australia, New Zealand and the United Kingdom, all of which pair political leadership with an administrative focal point inside government that are separate from their respective charitable sector regulator.

AFP Canada believes that this secretariat would fit best under Employment and Social Development Canada, as endorsed by the federal government in 2021.

Recommendation 2: Include Charities in All Economic Relief and Support Programs.

Our sector, while resilient, continues to be negatively impacted by the lack of a single focal point in government. This was evident during the COVID-19 pandemic, where even as the sector rapidly responded to our new reality, we were initially excluded from the critical Canada Emergency Wage Subsidy. As the sector navigated pressures of the pandemic, including a greater demand for services in the face of diminishing revenue, we also faced proposed changes to the Alternative Minimum Tax. These changes, proposed without any true consultation with our sector, saw transformational gifts to universities, hospitals and other vital social services, key to building a stronger Canada, placed at risk before the changes were eventually revised.

In addition to our sector being once again missed from the latest round of tariff-related supports, we more recently saw the Strategic Response Fund, while open to the charitable sector, was launched for projects of $20 million or more, even though 78% of charities operate with less than $500,000 in annual revenue. These examples point to the same problem: federal policy is too often developed without a practical understanding or concern for how the sector operates.

According to a recent study by PwC, the impact of tariffs on the charitable sector could result in a $100m reduction in giving in 2026 alone. When paired with a sharp increase in demand for services and rising costs of goods, both resulting from tariffs on our economy, our sector will face an even greater pressure to do more with less. This is why it is vital that it be included in all economic relief programs.

The government also recently announced the pillars of its Artificial Intelligence (AI) strategy, which will include measures to drive AI adoption, create new economic opportunities, strengthen public services, and improve our quality of life. AFP Canada welcomes these developments and calls on the government to ensure that the charitable sector is not forgotten once again, but rather thoughtfully included, in the rollout of this strategy to ensure its success economically and socially.

Recommendation 3: In support of recommendation 1, provide up to $100,000 in funding to conduct an updated, comprehensive economic impact study of the charitable sector to quantify its impact and potential for Canada.

Our sector has been sporadically studied by government, with the last full report conducted in 2019 by the Canadian Senate. Since that time, we have seen major events such as the pandemic, rising inflation, and tariff-related economic pressures which have fundamentally transformed the sector. The full extent of the sector’s contributions to Canada’s economy and social wellbeing remains underappreciated and misunderstood.

It is why AFP Canada believes that it is time to undertake an updated, more comprehensive economic impact study, which will include an assessment of how broader economic pressures, such as tariffs, are affecting the sector’s capacity, costs, and ability to serve communities. Ultimately, we believe that this study, when accounting for the sector’s contribution of $225 billion in economic activity and its employment of 2.9 million people in Canada, would ultimately underscore the need for a permanent dedicated secretariat for the charitable sector.

Our recommendation would provide up to $100,000 in funding to AFP Canada or a consortium of sector partners to undertake an economic impact study of the charitable and non-profit sector in Canada.

Conclusion

The world is rapidly changing, and Canada is rising to the challenge by returning to our roots as a nation of builders. While we know that the path forward will be hard, the charitable sector remains committed to partnering with the federal government to build a strong Canada.

We believe that the creation of a dedicated charitable secretariat is vital to equipping the federal government with an understanding of the sector’s priorities, engage it in meaningful policy development, and ensure that the sector can continue to meet the diverse and evolving needs of Canadians, both now and in the years ahead.

AFP Canada, our 3,000 members, and the 2.9 million people working in our sector from coast to coast stand ready to help Canada chart its new path forward. Together, we will build Canada strong.

Sincerely,

Neil McEachern
Chair, Government Relations Committee
AFP Canada