SoVote

Bill S-216

44th Parl. 1st Sess.

May 16, 2022

This bill, called the Effective and Accountable Charities Act, amends the Income Tax Act to allow registered charities to provide their resources to individuals or organizations that are not qualified donees, as long as they take reasonable steps to ensure that those resources are used exclusively for a charitable purpose. The bill also emphasizes the importance of promoting local capacity-building, ownership, and collaboration when working with communities, both in Canada and abroad. The bill will come into effect two years after it receives royal assent and the Minister of National Revenue will conduct a review of the provisions within five years of its enactment.

Steelman Argument in favor of Bill S-216: The amendment proposed by Bill S-216 allows registered charities to provide their resources to a person who is not a qualified donee, as long as they take reasonable steps to ensure that those resources are used exclusively for charitable purposes. This amendment recognizes the importance of efficiency and flexibility in the operations of registered charities while still maintaining accountability and adherence to the charitable purpose. Supporters argue that this amendment promotes collaboration and partnership between registered charities and other organizations or individuals who may not meet the strict criteria of a qualified donee. By allowing resources to be made available to non-qualified donees, registered charities can expand their reach and impact by working with a wider range of partners who may have valuable expertise, resources, or networks. Moreover, the amendment recognizes tha

Steelman Argument Opposing Bill S-216: While the intention of Bill S-216 may be to allow charities more flexibility in using their resources for charitable purposes, there are potential concerns and risks associated with this amendment to the Income Tax Act. 1. Accountability and Transparency: By allowing charities to provide their resources to individuals or organizations that are not qualified donees, there is a risk of misuse or misappropriation of funds. Without strict regulations and oversight, it may be difficult to ensure that the resources are used exclusively for a charitable purpose. This lack of accountability and transparency can undermine public trust in the charitable sector. 2. Impact on Charitable Activities: The amendment may divert resources away from direct charitable activities. If charities are permitted to use their resources for non-qualified donees, it may lead to a dilution of their primary charitable mission