Canada’s Charitable Sector Needs a Federal Home

FRANÇAIS

Hill Times Op-Ed – Published April 21, 2026 (Read original article on the Hill Times website)

The charitable sector is a major economic and social force in Canada, with charities and nonprofits contributing $225 billion in economic activity annually, accounting for 8.2% of GDP. We employ 2.7 million people, more than the mining, oil and gas sector, or agriculture, transportation and retail. Yet despite that scale, the sector still has no clear, permanent home in the federal government. No part of government is tasked with supporting the health, growth and success of the sector. 

Although an 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 not met since the fall of 2024. And while consultation matters, it is not enough. 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.

As Canada looks to navigate a more uncertain economc reality, we must ensure that the charitable sector has a true seat at the table. We can no longer afford to ignore a sector that employs 1 in 10 Canadians and delivers essential services in every community across the country. If Ottawa is committed to efficiency and impact, then federal policy needs to work better for the institutions Canadians already rely on.

Our sector is resilient, asked every day to do more with less, and continues to rise to the occasion. But resilience should not become the premise for neglect. The consequences of weak consultation are real: the sector’s initial omission from the Canada Emergency Wage Subsidy during the COVID-19 pandemic; the proposed changes to the Alternative Minimum Tax, which put transformational donations to universities, hospitals and other vital social services at risk before they were eventually revised; and the more recent Strategic Response Fund, which was open to the charitable sector but only 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.

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 the government in its response in 2021.  This need not be a large new bureaucracy. It could be a small but permanent coordinating hub inside government, 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.

What might a Canadian model look like? The Association of Fundraising Professionals Canada, a longtime advocate for a dedicated secretariat for the charitable sector, sees the creation of a permanent, central and respected mechanism with the authority to convene across government. It would have a clear mandate focused on cross-cutting sector-wide issues, recognizing the sector’s economic and social contribution while reducing barriers and strengthening capacity. Critically, it would complement existing programs and funding roles of departments rather than duplicate them.

The challenges facing our country are not small, and the charitable sector remains steadfast in helping build a strong Canada. But we cannot continue to do this in isolation. Canadians, the sector and the federal government would all benefit from a more coordinated and practical relationship.

It is time to give this sector a permanent home and voice in federal policy development and implementation that affects our work.