Canadian Liberal MP Karina Gould confirms no changes to charitable status for Catholic and faith-based non-profits in Nov. 4 budget, easing concerns from religious groups.
Newsroom (23/10/2025, Gaudium Press ) In a move welcomed by Catholic leaders, Canadian Liberal MP Karina Gould, chair of the House of Commons’ Standing Committee on Finance, has confirmed that the charitable status of faith-driven non-profits, including Catholic organizations, will remain intact in the federal budget set for release on Nov. 4.
The assurance, communicated in an email from Gould’s office to Rev. Al Postma, Canadian executive director for the Christian Reformed Church of North America (CRCNA) and shared with The Catholic Register, quells fears sparked by earlier recommendations that threatened the tax-exempt status of religious groups. “Charitable status for religious organizations is not under review, and this government has no plans to change that,” the email stated. “Any suggestion otherwise is false. We respect the role faith-based organizations play in communities across the country.”
The email underscored that Catholic and other religious organizations will continue to operate under existing charitable rules, with no policy or legislative changes proposed to strip them of their status. This commitment is particularly significant for Canada’s Catholic community, which operates an estimated 38 percent of the nation’s non-profits under the “advancement of religion” category, providing vital services such as education, healthcare, and support for the marginalized.
Concerns arose in December 2024 when the finance committee’s pre-budget consultation report included recommendations 429 and 430, which called for amending the Income Tax Act to remove the charitable status of religious and pro-life organizations. Gould’s office clarified that these recommendations were made under the previous government, before her tenure on the committee, and do not reflect her or the current government’s position.
The Canadian Conference of Catholic Bishops (CCCB) has been steadfast in its advocacy on this issue. Former CCCB president Bishop William McGrattan and his successor, Bishop Pierre Goudreault, sent letters to Finance and National Revenue Minister François-Philippe Champagne in March and September, urging the rejection of recommendations 429 and 430. In the September letter, McGrattan warned that implementing recommendation 430 would upend a 400-year-old common law definition of charitable purpose, risking disruption to the charitable sector without sufficient consultation. Such a change, he argued, would undermine the Church’s ability to serve communities and live out its mission of charity and evangelization.
The CCCB’s efforts are echoed by Pierre Gilbert, author of a new Frontier Centre for Public Policy report, Revoking the Charitable Status For The Advancement of Religion: A Critical Assessment. Gilbert, a Catholic advocate, emphasized the Church’s critical role in Canadian society, citing Cardus research that estimates religious organizations contribute $16.5 billion annually through schools, hospitals, food banks, and community programs. In contrast, revoking their charitable status would yield only $1.7 billion to $3.2 billion in revenue—a paltry sum compared to the societal loss. Gilbert called on Catholic leaders to engage with policymakers, warning that silence could be exploited by those with agendas contrary to the Church’s mission.
The status of pro-life organizations, many of which are rooted in Catholic teachings on the sanctity of life, remains unaddressed in Gould’s assurance, leaving some uncertainty for these groups. The Catholic Register sought direct comment from Gould but received no response by press deadline.
As the Nov. 4 budget looms, Canada’s Catholic community finds reassurance in Gould’s pledge but remains vigilant. The Church’s legacy of service, grounded in the Gospel call to love and serve the least among us, continues to shape its advocacy for the protection of its charitable mission.
- Raju Hasmukh with files from Catholic Register
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