Miller Thomson provides insights on the 2025 Budget affecting the charitable and NPO sector, beginning with new legislative proposals and measures that will directly affect and/or be of interest to charities including but not limited to the following highlights.
NPO Reporting Requirements
The Government is going back to the drawing board with its new NPO reporting requirements. Ottawa is also pushing the application date of the new reporting requirements to the 2027 tax year, or possibly later.
Regulatory Framework Governing Stablecoins
The 2025 Budget proposes several measures that will impact, and be of interest to, Canada’s charities and non-profit organizations (NPOs) including developing a regulatory framework governing stablecoins—a potential new way to give to charity. Learn more about The Government plans to introduce new legislation to govern the issuance of fiat-backed stablecoins in Canada.
Extension of 2024 Charitable Donation Deadline
The 2025 Budget also confirms that Ottawa will move forward with several previously announced measures and existing legislative proposals that are relevant to the sector. These include several technical amendments to the ITA, as well as draft legislation to extend the 2024 charitable donation deadline.
Electronic Notice
CRA will be permitted in certain circumstances to provide notices to charities and qualified donees electronically via My Business Account, where it was previously required to send notice by registered mail.
Expanded CRA Audit Powers
The amendments to the ITA will augment CRA’s existing audit powers. This includes a power to issue a “notice of non-compliance” (with monetary penalties for organizations that are served with such a notice), and the ability to compel representatives of a taxpayer to answer questions and provide documents under oath. New monetary penalties will also apply for a failure to comply with a compliance order. Charities and NPOs will need to be aware of these powers, all of which add to CRA’s power to compel the provision of information and increase the potential consequences of non-compliance.
Learn more about these and additional highlights including Federal funding opportunities.