When you have a wobbly government, you get questionable public policy. The Finance Department has announced that they will be giving an extension for donors to make charitable donations for the 2024 tax year to February 28, 2025. We discussed this proposition and our concerns in our article Should Finance extend the deadline for donations to charities beyond December 31, 2024?
It is interesting that the change is announced today as opposed to January 1, just as many of the procrastinators are finally getting ready to donate – I guess they will have another couple of months to procrastinate.
It is interesting that so much time was given for the extension. The strike that ended on December 17, 2024, was only 32 days long, but the extension is for 2 months. Normally, charities in January and February are finalizing their past year’s receipts to be sent out by the end of February. Now, some charities may delay and will be scrambling, perhaps at the beginning of March, to finalize receipts. People will be wondering where their receipts are as they are preparing their personal income tax returns. This is going to artificially inflate the “donations” of 2024 and will probably result in a hit to the “2025 donations”.
We noted in the concluding paragraph of our blog:
In the current political climate, this particular proposal may be successful as it would be a way for Finance to say yes to a proposal from the charity sector that does not require much effort or cost on the part of Finance. If this extension proposal turns out to be a massive headache for charities and donors, Finance can just say that it was a proposal requested by some groups in the charity sector and the Premiers! With all of the uncertainty people, businesses, and charities are dealing with, especially those relating to the US, the extension proposal is one complexity people don’t want to have to deal with.
Here is the text of a news release from the Department of Finance.
Government of Canada announces extension of 2024 charitable donations to February 28, 2025
News release
December 30, 2024 – Ottawa, Ontario – Department of Finance Canada
Today, the Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, along with the Honourable Élisabeth Brière, Minister of National Revenue, announced that the federal government intends to amend the Income Tax Act to extend the deadline for making donations eligible for tax support in the 2024 tax year, until February 28, 2025.
Canada’s charities work tirelessly to address poverty and hunger, improve socioeconomic outcomes for Canadians, and keep communities connected and informed. Many charities depend on the generous donations of Canadians and businesses, particularly during the holiday season, to carry out this valuable work.
This extension will mitigate the impacts of the four-week Canada Post mail stoppage by providing donors with sufficient time to ensure their contributions are received and processed, helping charities ensure they can deliver vital services to the communities that depend on them.
The government will introduce legislation effecting these changes once Parliament returns in the new year.
Quotes
“Charities are at the heart of communities across Canada, lending a helping hand to those in need. This extension recognizes the impact that the Canada Post service disruption had on their fundraising campaigns, and will give charities additional time to receive and process donations so that they can continue their vital work.”
– The Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs
“Registered charities play an important role in our society and provide valuable services to Canadians—especially the most vulnerable among us. The Government of Canada is dedicated to the strength and vitality of charities, as we know these organizations are important to the social fabric of Canada and the well-being of Canadians.”
– The Honourable Élisabeth Brière, Minister of National Revenue
Quick facts
- There are approximately 86,000 registered charities in Canada, each carrying out activities in support of one or more of the four recognized categories of charity—the relief of poverty, advancement of education, advancement of religion, and other purposes beneficial to the community.
- The Government of Canada understands that registered charities are an important part of Canadian society, and it encourages Canadians to donate generously through the Charitable Donation Tax Credit for individuals and the deduction for charitable donations for corporations.
- Federal tax assistance for donations to charities and other qualified donees is projected to be almost $5 billion for 2024.
Associated links
Contacts
Media may contact:
Gabriel Brunet
Press Secretary
Office of the Minister of Finance and Intergovernmental Affairs
Gabriel.Brunet@iga-aig.gc.ca
819-665-6527
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries:
Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca