Current Situation
The federal government announced its intention to extend the 2024 charitable donation deadline to February 28, 2025. However, Prime Minister Justin Trudeau’s decision to prorogue Parliament until March 24, 2025, has complicated the legislative process.
Implications for Donors and Charities
- Despite the uncertainty, there are reasons to remain optimistic:
Likely Implementation: Tax experts believe that even if the current government doesn’t pass the proposal before a potential election, the next government is likely to move forward with it. CRA Acceptance: If the Canada Revenue Agency (CRA) accepts tax returns based on the announced extension, it would be difficult for a new government to reverse the decision. - Extended Opportunity: This potential extension offers donors additional time to support causes they care about while potentially lowering their 2024 tax bill.
FUNDING matters® Inc. Perspective
As a leader in philanthropic services, FUNDINGmatters® Inc. advises clients and partner charities to proceed with cautious optimism:
Continue Fundraising: Charities should maintain their fundraising efforts through February, capitalizing on this potential extended giving window.
- Donor Communication: Keep donors informed about the situation, emphasizing the potential tax benefits while acknowledging the current uncertainty.
- Flexible Planning: Develop contingency plans for both scenarios – whether the extension is officially implemented or not.
- Documentation: Ensure all donations received during the extension period are carefully documented, should retroactive confirmation be necessary.
While the prorogation of Parliament has introduced some complexity, the charitable sector remains resilient. FUNDINGmatters® Inc. is committed to navigating these changes alongside our clients and partners, ensuring that philanthropic efforts continue to make a significant impact in our communities.
To discuss this and other funding matters please contact us.