AFP Submits Pre-Budget Recommendations to Finance Committee

As part of its advocacy mandate, AFP recently participated in the Standing Committee on Finance’s Pre-Budget Consultations in advance of the 2019 budget, submitting three key proposals.

The Pre-Budget Consultation process is one of the main ways by which AFP’s and other organizations’ recommendations are communicated to the government. The Finance Committee’s Consultations are often where proposals, such as the elimination of the capital gains tax on charitable gifts of listed securities and the permanent recognition of National Philanthropy Day, gain legislative momentum.

AFP’s main policy proposal was to designate a federal department—the Ministry of Innovation, Science and Economic Development (formerly Industry Canada) —to have economic policy responsibility for the nonprofit sector. In doing so, it would provide a better framework to develop data-driven, charitable giving policies that would in turn foster a stronger nonprofit sector.

AFP also recommended Imagine Canada’s proposal of allocating $1 million to Statistics Canada annually, for the purpose of collecting, analyzing and disseminating comprehensive data about the nonprofit sector. In addition, AFP has signed on to a separate letter from Imagine Canada and other organizations to the Department of Innovation, Science and Economic Development, asking it to prioritize funding for data and statistical gathering about the sector and to support Statistics Canada’s one-time update of the Satellite Account for Non-Profit Institutions and Volunteering.

AFP’s third recommendation was for the permanent elimination of the capital gains tax on charitable gifts of private company shares and real estate. It has been estimated that this proposal would enable the charitable sector to access an estimated $170 to $225 million of incremental funding from the private sector with a tax revenue cost to the government of only $50 to $65 million.

“Our recommendations this year cover a wide range of issues, focusing not just on how the proposals would support the nonprofit sector, but the overall economy as well—which was the lens through which the Standing Committee on Finance was asking organizations to consider and submit their ideas,” said Dan Brunette, chair of the AFP Canadian Government Relations Committee and director of development and donor services for the Ottawa Community Foundation. “We received some very good feedback about our recommendations at the Canadian Leadership Retreat, and I think they’ll receive serious and positive consideration from the committee this year.

If you have any questions about AFP’s submission (see Attachments section) or would like to provide feedback, please email Lisa Davey, vice president, AFP Canada, at lisa.davey@afpglobal.org.