Seeking clarity from Finance Minister on charitable status of religious groups

The EFC has asked Finance Minister François-Philippe Champagne to reassure their supporters that he does not plan to pursue changes to charitable status that would remove advancing religion as a charitable purpose.

The Evangelical Fellowship of Canada (EFC) wrote a letter to the finance minister June 3, asking for clarification about recommendation 430 of the House of Commons Standing Committee on Finance report, which recommended that the government “Amend the Income Tax Act to provide a definition of a charity which would remove the privileged status of ‘advancement of religion’ as a charitable purpose.”

The Hon. François-Philippe Champagne
Minister of Finance and National Revenue
Department of Finance Canada
90 Elgin Street
Ottawa, ON K1A 0G5
 
Dear Minister Champagne,
 
Congratulations on your election victory and your new portfolio. We pray for wisdom and clarity for you and your staff as you serve in these critical roles in turbulent times. May God bless you, be gracious to you and give you strength for each day.
 
We’d like to bring to your attention the thousands of churches and faith-based organizations across Canada that are religious charities which benefit their participants, their communities and Canadian society as a whole. Religious charities foster vibrant social networks, mobilize outreach and spark local volunteerism.
 
Religious communities foster personal resilience, as well. Religion teaches us that we are not alone. It helps to provide a purpose for living and hope for the future. Religion also helps to build resilient communities which provide support for one another. Congregations of faith foster social cohesion, as adherents who join together in worship provide a supportive community for one another.
 
Although their core purpose is worship and advancement of religion, many religious communities offer comprehensive help – pastoral, social, physical – to those outside of their community, as well. Those actions flow from their religious beliefs and identity. Statistics Canada notes that frequent religious service attenders are among the core of volunteers and charitable donors.
 
In this time of isolation, polarization and lack of social cohesion, religious charities can foster hope, mutual support and belonging. Religious communities’ existence and ministry benefits Canadian society in ways far beyond the religious adherents themselves.
 
The Evangelical Fellowship of Canada (EFC) is the national association of evangelical Christians in Canada. Our affiliates include 49 evangelical denominations, comprised of over 7,000 local churches, hundreds of individually affiliated churches, more than 80 ministry organizations and 30 Christian higher education institutions.
 
Our constituency is very concerned about recommendation 430 of the House of Commons Standing Committee on Finance report, Pre-Budget Consultations in Advance of the 2025 Budget, which recommended that the government, “Amend the Income Tax Act to provide a definition of a charity which would remove the privileged status of ‘advancement of religion’ as a charitable purpose.”

Approximately 40% of Canada’s registered charities advance religion. If adopted, this change would have a devastating impact on religious charities, the people they serve and Canadian society as a whole.
 
We are encouraged that this change to charitable status was not part of the Throne Speech or any party’s platform during the election campaign.
 
Could you clarify your position and confirm that you do not plan to pursue changes to charitable status that would remove advancing religion as a charitable purpose? We respectfully request the opportunity to meet with you or your staff to discuss this issue. We would like to be able to share the status of this proposal with our constituency.
 
Sincerely,
 
Julia Beazley
Director, public policy

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Following are links to several comments on the issue, from ecumenical bodies and publications (not related to the EFC letter above):

  • Deina Warren blogged on the Canadian Centre for Christian Charities site December 20, 2024: ‘CCCC responds to troubling recommendations on charitable status.’
  • Fr. Raymond de Souza wrote for the National Post December 29, 2024: ‘Proposal to strip religious groups of charitable tax status would eviscerate Canada’s charities.’
  • The EFC posted a comment on the issue December 31, 2024: ‘Finance Committee’s troubling recommendations on charitable status.’
  • The Canadian Conference of Catholic Bishops wrote to the Minister of Finance March 18, 2025: ‘Important concerns regarding recommendations 429 and 430 on charitable status.’
  • Deina Warren followed up on the CCCC blog April 15, 2025: ‘Staying informed about charitable status.’

An article about the issue was posted on Church for Vancouver January 8; it pointed out that Vancouver Kingsway NDP MP Don Davies was one member of the standing committee which made the recommendation.

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