On September 14, 2018, the Department of Finance released draft legislative proposals to amend the Income Tax Act which relate to charitable activities of registered charities. In response to the recent Canada Without Poverty decision, this draft legislation proposes to make amendments to the Act to the effect that:
- most references to political activities with respect to charities (including the 10% buffer for non-partisan political activities) will be removed;
- charities will continue to be prohibited from providing direct or indirect support of, or opposition to, a political party or candidate for public office; and
- it will be clarified that charitable organizations must be constituted and operated exclusively for charitable purposes.