Federal Government Announces New Advisory Committee and a Social Finance Fund
The Department of Finance released its 2018 Fall Economic Statement which includes several items of interest for nonprofits and charities. Not only does it highlight the new legislation introduced October 29 to remove limits on political activities, but it also establishes a permanent Advisory Committee on the Charitable Sector.
Led by the Canada Revenue Agency, the Advisory Committee will be made up of stakeholders from the charitable sector and will provide advice to the government on important issues facing charities on an ongoing basis. The government is providing $4.6 million in new funding over the 2018–19 to 2023–24 period for the Advisory Committee to strengthen the relationship between government and this important sector.
Additionally, the government have announced the creation of a Social Finance Fund to help charitable, nonprofit and other social purpose organizations access new financing and to help connect them with private investors looking to invest in projects that will drive positive social change. The government proposes to make available up to $755 million on a cash basis over the next 10 years, as well as investing $50 million over two years in an Investment and Readiness stream, for social purpose organizations to improve their ability to successfully participate in the social finance market.
According to the report, a Social Finance Fund like the one the government is proposing could generate up to $2 billion in economic activity, and help create and maintain as many as 100,000 jobs over the next decade. Details on the governance and parameters of the fund will be developed further in the coming months and released in early 2019.