Budget 2026 measures for nonprofits focus on administrative streamlining with targeted investments in key areas

Vision for a stronger, more sustainable nonprofit sector missing as government consults on charitable framework

On November 5, 2026, the Minister of Finance and National Revenue presented Budget 2026 in the House of Commons. The document lays out a plan to become “masters of our destiny” through fiscal discipline paired with targeted investments in areas including housing, productivity, reconciliation and culture.

We know that the nonprofit sector is deeply intertwined with this vision of a strong, more affordable country where we take care of each other. Nonprofits account for 8.4% of the country’s GDP and employ 1 in 10 Canadian workers, making us major players in the Government’s mission to make Canada’s economy the strongest in the G7. We are present in communities from coast to coast to coast, working in priority areas ranging from housing and workforce development to nature protection and immigration settlement.

We are pleased to see nonprofits and charities named as important partners in the government’s ambitious housing plan. Additionally, investments in areas including culture, mental health, the Black Justice Strategy and gender equality are important signals that the government is relying on the partnership, expertise, relationships and service delivery capacity of the nonprofit sector to deliver on its agenda.

However, whereas the 2026 Spring Economic Update recognized that nonprofits “are an important driver for the Canadian economy, create well-paying jobs and supplement the social safety net”, Budget 2026 is lacking a similar acknowledgement of our sector’s economic and social role. It does not lay out a policy plan for building the strong, modern, caring sector that will be needed to realize the government’s vision for the future of our country.

We welcome the announcement of administrative changes which will streamline certain charity regulation matters, including the elimination of the excess corporate holdings regime for private foundations. We are also pleased with the decision to move forward with expanded reporting for nonprofits and will continue to work with the government to address the recommendations outlined in the Federal Nonprofit Data Coalition’s submission on this matter. However, these measures do not constitute a plan of the ambition and intention merited by the third pillar of our economy.

The communities Canadian nonprofits serve, both in Canada and around the globe, are facing complex challenges and rapid political, economic, environmental and technological changes. Nonprofits are there for workers who have been laid off due to tariffs and for families displaced by natural disasters. They are providing affordable cultural and recreational activities that brighten up our days and caring for the next generation. They are constantly innovating and proposing new solutions to complex societal challenges. However, they are also being forced to do more with less due to rising costs, funding instability and falling rates of volunteerism. A strong Canada relies on a strong social safety net, supported by tens of thousands of nonprofits across the country.

With the consultation on the modernization of the charitable framework wrapping up shortly, we look forward to learning more about the government’s vision for our sector in the 2027 Spring Economic Update and Budget. We are ready to work with the government to ensure that our sector has a strong policy environment that allows organizations to focus on what they do best: serving people and pursuing their missions.