The federal government says it has no plans to remove “advancement of religion” as a recognized charitable purpose under the Income Tax Act, rejecting recommendations from a Commons finance committee that called for an end to special status for religious charities.Blacklock's Reporter says Finance Minister François-Philippe Champagne made the pledge in a written response to dozens of protest petitions submitted to Parliament after the finance committee recommended changing the legal definition of charity in advance of the federal budget.“The Government of Canada is not considering amending the Act to remove the advancement of religion as a qualifying charitable purpose, nor is it actively developing policy on this issue,” Champagne wrote.The controversy stemmed from recommendation 430 in the Commons finance committee report titled Pre-Budget Consultations In Advance Of The 2025 Budget. The recommendation proposed amending the Income Tax Act to eliminate “advancement of religion” as a charitable purpose.Champagne rejected the proposal outright, writing that religious organizations continue to play a major role in supporting vulnerable Canadians and communities across the country.“Canada recognizes the vital role that charities, including religious charities, play in delivering essential services to some of the most vulnerable in Canadian society,” he wrote.The minister added registered charities receive tax benefits, including the ability to issue official donation receipts, because they support a broad range of social and community causes.Champagne noted Canadian law has long recognized several categories of charitable work, including poverty relief, education, religion and other public benefit causes such as health promotion and environmental protection.“Today Canada is home to over 85,000 registered charities,” he wrote.According to Statistics Canada, donations to religious charities total roughly $5 billion annually — more than donations to disease prevention groups, social service charities, environmental organizations or post-secondary institutions..Statistics Canada also reported charitable giving across all sectors declined during and after the COVID-19 pandemic as organizations faced rising costs, labour shortages and growing demand for services.Charitable donations currently receive a minimum federal tax credit of 15%, while donations to political parties qualify for credits as high as 75%.Parliament previously rejected attempts to equalize those rates. In 2016, Conservative MP Ted Falk sponsored private member’s bill C-239, which sought to amend the Income Tax Act.“God’s word reminds us freedom does not come from bureaucrats, global bodies or unelected elites,” Falk said at the time.“It comes from hard work, personal responsibility and the recognition of a higher authority.”
