Charity Highlights of Budget 2017

Authored By Philip A.S. Milley Associate Director, Legal Affairs

Today the Hon. Bill Morneau tabled Budget 2017 (the “Budget”). Like Budget 2016, which we previously reviewed, Budget 2017 contains only two minor references to charities. Both references appear at pages 207 – 208 and relate to removing minor tax incentives for certain charitable donations.

The first reference relates to the removal of additional tax incentives to Canadian corporations (i.e., pharmaceutical companies) that donate medicine to eligible registered charities. The Budget cites high compliance costs and low take-up as the rationale for repealing this incentive. Consequently, corporations that donate medicine to charities will be limited to receiving tax incentives on the fair market value of the medicine donated.

The second reference pertains to the First-Time Donor’s Super Credit which was scheduled to expire in 2017. The Budget confirms that the 2017 tax year will be the last year in which the First-Time Donor’s Super Credit may be claimed. The Budget also cites low take-up and small average donation amounts as the rationale for not extending this incentive.

The full budget can be accessed here.

Noteworthy is provided for general information purposes and does not constitute legal or professional advice. Every organization’s circumstances are unique. Before acting on the basis of information contained in this blog, readers should consult with a qualified lawyer for advice specific to their situation.