Tax, Charities Rules under Scrutiny as Liberals Craft Social Finance Strategy

By Press, Jordan | The Canadian Press, November 5, 2017 | Go to article overview

Tax, Charities Rules under Scrutiny as Liberals Craft Social Finance Strategy


Press, Jordan, The Canadian Press


Tax changes probed in social finance review

--

OTTAWA - A group of experts is considering whether a niche should be carved out of the tax system to unlock billions in private cash for a range of programs that could help the homeless get off the street or boost the incomes of Indigenous Peoples.

The heads of the advisory group say the issue is one of many being studied as part of work on a federal strategy on social finance, an area that looks to link the charitable and private sectors to deliver services that have a social or environmental benefit.

What makes the approach attractive to governments is that it shifts the financial risk from taxpayers to investors in the delivery of social programs.

The federal government currently identifies 69 companies as social enterprises, such as a 35-year-old Halifax bakery that employs marginalized people, and an online sock store that donates a pair for each one ordered.

But there are many more that meet the criteria and multitudes of others that want to get involved.

Rejigging the tax system was the most ambitious of five ideas presented in a briefing note late last year to the top civil servant at Employment and Social Development Canada. The ideas ranged from creating tax credits for charities running for-profit businesses with a social mandate to letting them earn as much as they want tax-free so long as the profits are reinvested in the operation.

The Canadian Press obtained a copy of the briefing note under the Access to Information Act, among dozens of pages that outline the hurdles the social finance strategy is trying to overcome.

Non-profits and charities have increasingly turned to the world of social finance as a way to tap new sources of funding as traditional sources like donations dry up.

Various estimates suggest so-called impact investors in Canada are sitting on between $2 billion and $5 billion with the potential to grow to $30 billion within a decade.

In some instances, governments pay private backers a premium for their investment if certain benchmarks are met, such as a marked improvement in essential job skills for participants. In other cases, the profits from a social enterprise go to investors, are reinvested in the business, or a combination of both.

The Liberals made their first move on the social finance strategy in 2016 through tax changes to allow charities and amateur athletic associations to be involved in a limited way in a for-profit business without losing their charitable status. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Tax, Charities Rules under Scrutiny as Liberals Craft Social Finance Strategy
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.