A graduated disbursement quota and a commitment to amend the Income Tax Act so that charities can more easily work with non-qualified donees are two direct wins for impact sector advocates in federal Budget 2022 tabled yesterday. As Imagine Canada notes, this is the second consecutive budget with meaningful reference to the nonprofit and charitable sector and sets a new 'floor' for future recognition.
Thinking about Collaboration and Collective Voices
These specific measures – Miller Thomson Lawyers review them in more detail here and Carters here – promise increased collaboration within the nonprofit sector, with more money flowing among charities, better relationships between charities and nonprofits without charitable status and, ideally, new ways of working together among those with resources and those who face barriers.
It also signals heightened collaboration between the public and nonprofit sector. Sometimes explicitly named (e.g., as a partner in providing housing) and sometimes not, nonprofit organizations are also key service providers in nearly all of the budget's priority areas – from environment to anti-racism and from childcare to housing affordability – and are central to Chapter 8: Safe and Inclusive Communities. As we proposed in Pillar's pre-budget submission, the nonprofit sector is a ready partner in delivering on government priorities.
Budget 2022 also sends a message about how collaboration can help a minority government get things done. It's certain to pass because of the Liberal-NDP confidence and supply agreement but, also because of that cooperation, those two parties are able to deliver on election promises made to and endorsed by a large part of the electorate.
Finally, the budget makes commitments to a substantial number of issues our members care about. Remembering that none of us will achieve our visions unless we all do, we're giving considerable space to briefing all of you on some of those items – those getting headlines, and those that aren't. We should all take note, together, of progress where it's happening, supports that are still needed, and opportunities to add our voices as a sector and as people. Representatives from Pillar Nonprofit Network continue to meet with provincial and national partners about the budget and even getting ahead of the 2023 budget process. If there are questions or issues you'd like us to bring forward, please email policy@pillarnonprofit.ca.
In the meantime, here are a few more items of interest to impact organizations and equity-deserving communities from Budget 2022:
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$625 million for an Early Learning and Child Care Infrastructure Fund.
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$5.3 billion over five years and $1.7 billion each year thereafter for a national dental care program.
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$593.3 million over five years to help prevent gender-based violence and support survivors.
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$20 million over two years to expand New Horizons for Seniors
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$100 million over three years to help Health Canada deal with the opioid addiction crisis.
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An additional $11 billion over six years to support Indigenous children, families and communities with money earmarked for communities to document, locate, and memorialize burial sites at former residential schools.
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An additional $190.5 million investment in the Indigenous Community Support Fund to help Indigenous communities and organizations mitigate the ongoing impacts of COVID-19.
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$50 million in additional funding for the Supporting Black Canadian Communities Initiative, which aims to build the capacity of Black-led and Black-serving organizations.
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Funding to support the new Special Representative on Combating Islamophobia.
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$29.6 million to support the co-development of an Indigenous Climate Leadership Agenda.
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$85 million to support the new Anti-Racism Strategy and National Action Plan on Combating Hate.
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$100 million to support the implementation of the Federal LGBTQ2+ Action Plan.
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$272.6 million to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund.
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An additional $50 million in 2022-23 to the Department of Canadian Heritage, the Canada Council for the Arts, and Telefilm Canada.
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$22.5 million over five years starting in 2022-23, and $5 million ongoing, to Canadian Heritage for the Canada Arts Training Fund.
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$15 million to support local journalism in underserved communities and to help racialized and religious minority journalists present their experiences and perspectives.
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$500 million in funding and $1 billion in loans for a new Co-operative Housing Development Program that the Co-operative Housing Development Program says "sets the stage to build the next generation of co-op housing."
What Else, and the Work Ahead
In many cases, our member organizations and other sector advocates may find the above investments underwhelming. Other items are missing entirely. The issues we care about can take a long time – many elections and many budgets – to get to full implementation and "mission accomplished." Here are some items where the work is not done – issues for future advocacy, future elections, and future budgets:
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For sector issue advocates, the recognition of their advisory role in Chapter 8 is a good step, but the Budget did not create a "home in government" that would help ensure ongoing consultation. This will remina a focus for Pillar and our national partners.
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For those advocating for expanded health care, the rollout of a national dental care is a huge win -- "a good start," says the Canadian Labour Congress -- but the lack of urgency on pharmacare and Just Transition requires a renewed commitment to advocacy.
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The Canadian Centre for Policy Alternatives (CCPA) also praised the dental care plan but calls Budget 2022 "a huge missed opportunity to move forward on pharmacare" and other measures.
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In a pre-budget statement, the Canadian Health Coalition called for "a firm financial commitment of – at a minimum – $3.5-billion" towards pharmacare; an investment of $9-billion over five years to meet the government’s election promise to work collaboratively with provinces and territories to support seniors through a Safe Long-Term Care Act with enforceable standards; and an increase in federal health care spending with provinces and territories...with strict reporting mechanisms to ensure accountability in public health care. All three remain subjects for future advocacy.
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The budget is weak on climate action measures generally, with no new support for public transit, for example. (See the Council of Canadians' "Federal Budget Throws Public Transit Under the Bus Again.")
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Relatedly, the CLC and 350 Canada note a lack of investment in Just Transition (mentioned just once in the budget), with 350 Canada pointing out that the investment in carbon capture amounts to a new subsidy to the fossil fuel industry.
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The Smart Prosperity Institute calls the Budget's approach to housing "The First Step in a Long Journey," applauding the recognition of supply issues, but noting that there are no specific measures incentivizing the housing density needed to align housing targets with climate action targets.
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Writing for the CCPA, Katherine Scott notes that "low-income communities are still waiting for promised Employment Insurance reforms and the Canada Disability Benefit."
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And the Assemblée de la francophonie de l'Ontario (AFO) – the political voice of Francophonie in Ontario – issued a statement expressing surprise at the lack of mention of Francophones.
Again, more advocacy, more elections, more budgets.
In the meantime, more resources:
- Read or download Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable
- Review the Finance Committee's Recommendations for Budget 2022
- Review Imagine Canada's "What is the Sector Asking for?" and "Why does funding organizations without charitable status matter?"
- Read Imagine Canada's "Budget 2022: A Step Forward and New Opportunities for Collaboration with the Nonprofit and Charitable Sector" and "Budget 2022: A Federal Budget that Recognizes the Role of the Charitable and Nonprofit Sector"
- Pillar's Written Submission in Advance of Federal Budget 2022: Working Together to Build Stronger Communities
- Read Future of Good's "22 Budget Highlights you May Have Missed" and Future of Good compares the 2022 federal budget to mandate letters issued to eight cabinet ministers
- National Association of Friendship Centres - Budget 2022 fails to address urban Indigenous realities
- Network for the Advancement of Black Communities: Federal Budget 2022 Review
- Canadian Health Coalition Responding to Federal Budget 2022
- Cooperation Canada is encouraged by the increase to international assistance in the 2022 federal budget
- Philanthropic Foundations Canada - Budget includes PFC recommendations for major changes to the regulatory regime of Canada’s charitable sector
- Green Budget Coalition member statements
- Canadian Partnership for Women and Children’s Health (CanWaCH) - Budget 2022: Key Highlights for CanWaCH Members and the International Development Sector
- Generation Squeeze - Hard Truths about Budget 2022: Beyond the Talking Points
- Miller Thomson Lawyers 2022 Federal Budget Review
- Carters Federal Budget 2022: Impact on Charities and Not-for-Profits
- Ontario Chamber of Commerce pre-budget submission
- Canadian Chamber of Commerce statement: Federal Budget a Mixed Bag