One of the last acts of the Trudeau Government’s House of Commons Standing Committee on Finance called for the removal of “Advancement of Religion” as a charitable purpose under the Income Tax Act. This proposal threatens to undermine the vital contributions of faith-based organizations to our society. As we approach the April 28, 2025, federal election, it’s imperative that we engage in a thoughtful discussion about the role of faith in Canada and find a balanced approach that respects both religious and secular freedom.
As I searched the myriad briefs that were filed with the Committee it appears that this recommendation stems from concerns about fairness and religious neutrality, fueled by groups like the BC Humanist Association. They argue that religious charities should not receive preferential tax treatment, pointing to examples like the Clergy Residence Deduction (CRD) as evidence of unwarranted religious privilege. While their concerns deserve consideration, we must not lose the larger context.
Removing “Advancement of Religion” as a charitable purpose would be a drastic measure with far-reaching consequences. It would disproportionately harm the thousands of religious charities that provide essential services, support vulnerable populations, and contribute to the moral fabric of our nation.
For centuries, the common law has recognized the advancement of religion as a public benefit. This isn’t some antiquated notion; it reflects a deep understanding of the ways in which faith-based organizations contribute to the well-being of individuals and communities. Religious communities historically played a vital role in building Canada, particularly in areas like education and social support.
Organizations like the Ottawa thinktank CARDUS have consistently demonstrated the tangible benefits that religious charities provide. Their research highlights how these organizations improve personal outcomes, reduce strain on social services, cultivate prosocial attitudes and behaviors, generate tangible community benefits through social capital and infrastructure, and underpin the very foundations of liberal democracy and a pluralistic society.
The benefits of religious charities extend far beyond the purely “spiritual.” They engage in a remarkable range of activities that build and support Canadian civic society, including adoption and fostering, schools and teaching, language training, summer camps, broadcasting and publishing, clothing distribution, environmental advocacy, disaster relief, employment services, food security, healthcare, housing, human rights advocacy, and community support such as nursing homes.
Removing charitable status for “advancement of religion” could impact almost 40% of Canadian registered charities. The Canadian Centre for Christian Charities (CCCC), representing over 3,200 Christian charities, notes that none of these organizations were consulted on this recommendation. Moreover, research shows that the “halo effect” of religious congregations alone is 10.47 times the value of any tax exemptions and credits they receive. Religiously active donors are also significantly more likely to volunteer and donate to charitable causes.
It’s true that concerns about religious privilege and fairness must be addressed. The BC Humanist Association’s report, “An Extra Burden,” highlights that the Clergy Residence Deduction (CRD) cost the federal treasury an estimated $105 million in foregone revenue in 2021 and over $1 billion between 2011 and 2021. Critics argue that the CRD violates the government’s duty of religious neutrality by explicitly supporting religion over non-religion and favoring some religions over others.
However, the solution is not to dismantle the entire framework of charitable status for religious organizations. Instead, we need to find a balanced approach that addresses legitimate concerns while preserving the vital role that faith plays in our society. The fact remains that those running religious organizations are often at a very low salary as they committed themselves to the betterment of society even at personal loss. Government tax benefits is but a small tip of the hat for those who sacrifice for the public good.
The government is also seeking to remove the charitable status of pro-life groups – Recommendation 429. Making charitable status dependent on political favor, rather than a recognition of public benefit, sets a dangerous precedent.
Government is now politicizing charitable status.
The Canada Summer Jobs (CSJ) controversy, where organizations were required to attest to supporting the government’s position on abortion and marriage, serves as a warning sign of how easily political ideology can be used to discriminate against religious organizations.
The government’s most recent proposal to exclude pro-life groups from having charitable status is, in my view, a continuation of the Canada Summer Jobs debacle. Pro-life groups are facing political pressure at the moment – including calls from Abortion Rights Coalition of Canada (ARCC) to remove registered charitable status from ‘anti-abortion agencies.’
While there is no right to public tax advantages, we need to consider whether government discrimination against religious and pro-life groups because of a political or partisan ideology, does not raise a concern that such discrimination is in fact a violation of fundamental rights. Giving tax breaks and government funding to only those who follow government ideological positions would require further constitutional scrutiny. And where does this kind of thinking lead us? How far should it go – does it not open the door to further discrimination of government on other “grants” of public recognition or status? For example, as we have seen in the Trinity Western University Law School Cases – the Supreme Court of Canada was willing to deny as Christian University the “privilege” to have a law school accredited because of its teachings on sexual morality. Is charitable status now subject to the same kind of reasoning?
So, what can we do?
First, we must maintain “Advancement of Religion” as a charitable purpose, but with clear and objective guidelines to ensure that religious charities operate in a way that is consistent with Canadian traditional understanding that religious communities provide public benefit as seen throughout our history. These guidelines should address concerns about discrimination, transparency, accountability and allow for religious communities to carry on with providing the public service they consistently done throughout the history of this country.
Second, we must recognize that government has a role to continue its oversight and accountability for all charities, including religious charities, to ensure that they are using their resources effectively and in accordance with their stated purposes. This includes ensuring that charities are not being disadvantaged because they have different ideological positions of the government. Especially when such charities have given decades, if not a century, of faithful public service without discrimination.
Third, we must foster dialogue and understanding between religious and secular communities to address concerns about religious privilege and promote a more inclusive society. This requires open and honest conversations about the role of faith in the public square and a willingness to find common ground.
Fourth, and most importantly, we must engage with our elected officials and candidates to ensure that they understand the importance of protecting faith’s vital role in our society. We need to ask them:
- Do you recognize the vital role that religious charities play in our communities?
- Will you commit to maintaining “Advancement of Religion” as a charitable purpose under the Income Tax Act, while also addressing concerns about fairness and religious neutrality?
- How will you ensure that religious freedom and diversity are protected in Canada, while also upholding the rights for the non-religious?
- What is your position on Finance Committee’s Recommendations 429 and 430 and the politicization of charitable status?
The upcoming election presents an opportunity to shape the future of faith in Canada. By engaging in thoughtful dialogue, advocating for balanced policies, and holding our elected officials accountable, we can ensure that religious charities continue to play a vital role in building a more just, compassionate, and inclusive society for all. We need to let them know. We need to encourage them to see through the political fog to keep our religious charities registered that they may continue providing public benefit. The time to act is now.
For more information on this topic check out:
Barry W. Bussey, The Status of Religion and the Public Benefit in Charity Law, Anthem Press (Feb. 29 2020).
