S-216Effective and Accountable Charities Act
An Act to amend the Income Tax Act (use of resources of a registered charity)
Senate public bill, introduced in the Senate on November 24, 2021
- Status
- Defeated at second reading in the House of Commons
- Sponsor
- Ratna OmidvarSenator
- Senator
What it does
Lets registered charities give resources to some non-qualified donees if they take reasonable steps to ensure the resources are used for charitable purposes.
What it does
- Expands charitable activities to include public policy dialogue and development work done to further a charitable purpose, and lets charities provide grants, gifts or transfers to people who are not qualified donees if they meet the bill’s safeguards.
- Sets out what counts as reasonable steps, including collecting information about the recipient before giving resources and using measures, restrictions or conditions to make sure the resources are used only for a charitable purpose.
- Changes the spending rules for charitable organizations and charitable foundations, including how they meet disbursement quotas and how gifts to qualified donees are treated.
- Lets the Minister of National Revenue, on application, specify an amount that will count as charitable spending for a year.
- Updates winding-up, penalty and assessment rules, including a 110% penalty for some gifts from one non-arm’s-length registered charity to another and new rules for spending during the post-assessment period.
Who it affects
- Registered charities
- Charitable foundations
- Non-qualified donees
- Qualified donees
- Charity administrators
Background
The bill amends the Income Tax Act rules that govern charitable activities, disbursement quotas and gifts between registered charities and qualified donees.
Where it is
Senate
First reading
Completed.
Second reading
Completed.
Committee
Skipped. Skipped
Third reading
Completed.
House of Commons
First reading
Completed.
Second reading
Defeated here. Defeated
Committee
Not reached.
Report stage
Not reached.
Third reading
Not reached.
Royal assent
Royal assent
Not reached.
Introduced by a senator. If the Senate passes it, it goes to the House of Commons, where an MP must agree to sponsor it. How a bill becomes law
How the House voted
No recorded votes yet
What MPs said
Each party’s first speech on this bill in the House, from Hansard. Excerpts are the speaker’s opening sentences, unedited.
LiberalKevin Lamoureux· May 16, 2022
“However, before I do that, I would like to recognize Bill S-216 and thank the senator for the fine work she has done in ensuring that it comes for debate in this chamber. What we are debating today is in good part being discussed in one of our standing committees.”
Read the full speech on openparliament.caConservativePhilip Lawrence· May 16, 2022
“It gives me great joy and pleasure to rise in this House to talk about a very important piece of legislation, Bill S-216. I do, at the outset, want to talk about the budget implementation act, as well as the budget, because it claims to want to have the spirit of Bill S-216 within the budget and the eventual budget implementation act.”
Read the full speech on openparliament.caBlocMarie-Hélène Gaudreau· May 16, 2022
“I rise today to speak to Bill S-216, which seeks to amend the Income Tax Act. I will begin by saying that the Bloc Québécois is in favour of this bill, which eases the fiscal framework for non-profit organizations, or NPOs.”
Read the full speech on openparliament.caNDPNiki Ashton· May 16, 2022
“Bill S-216 addresses these shortcomings. It is a step forward in reforming the charitable sector and it should significantly improve the legislative framework for public and social well-being.”
Read the full speech on openparliament.ca
Read the source
LEGISinfo status: Bill not proceeded with. Bill data from LEGISinfo, votes from openparliament.ca and the House of Commons. Last updated October 13, 2026.