The last year brought considerable changes to the charitable sector in Canada. In 2023 we experienced a disbursement quota increase, CRA’s acceptance to allow grants to non-qualified donees for some charities, and additional reporting for donor advised funds on the tax filing. Recently, the Government has increased Capital Gains Tax inclusion rates from 50% to 66.67% for individuals, corporations and trusts effective June 25, 2024. However, for individuals, amounts under $250,000 of annual gains will continue to benefit from the 50% inclusion rate. For many, the new capital gains inclusion rules have no impact on gifts of publicly listed securities because the capital gains on the gift will still be considered $0. Donors subject to AMT can now claim 80% of the charitable donation tax credit, better than the 50% proposed in the 2023 budget. Lastly, there are increasingly calls in our sector to re-examine it’s focus on donors as opposed to the communities we are here to serve.

Despite all this, Benefaction donors continue to put their trust in us, with $136 million in donations and $56 million in grants disbursed. As we grow, we have an opportunity to give back more, not just via donor recommendations. The Board of Directors, specifically the Grants Committee have a giving back strategy to demonstrate our key area of focus - an ongoing commitment to education and philanthropic values. In 2023 we continued to support organizations that promote philanthropy and charitable gift planning by fostering knowledge development and encouraging good practice in the charitable sector. We also remained committed to our Reciprocity Fund to support Indigenous philanthropy in Canada.