Update On Bill S-216: The Effective And Accountable Charities Act

A year ago, Senator Ratna Omidvar tabled a bill (originally Bill S-222) proposing changes to the Income Tax Act (Canada). The changes would allow charities to collaborate with other organizations more efficiently, furthering the potential to create positive impact in both local and international communities. The Social Impact Group at Miller Thomson has been following this Bill through the legislative process with keen interest.

The proposed changes, as described in detail in our previous article, would eliminate the requirement for charities to exercise "direction and control" when providing resources to "non-qualified donees", such as non-profit organizations. The Bill, if accepted into law, would allow a charity to make a transfer to a non-qualified donee, so long as the charity takes reasonable steps to ensure that the transferred resources are used exclusively for a charitable purpose. If approved, the changes to the Income Tax Act would come into effect two