The Government of Canada released its 2026 Spring Economic Update [Spring Economic Update 2026 – Canada Strong For All] on April 28, including a brief reference to modernizing tax rules for charities on page 107 of the report. The full Spring Economic Update is available as a PDF from the Government of Canada.

Under the heading “Modern Tax Rules for Charities,” the report states:

The Government of Canada’s tax incentives for charitable giving aim to mobilise private capital for public needs, creating an attractive environment for donors while supporting affordability, social security and our communities across the country. The government recognises that the charitable sector, and non-governmental organisations, are an important driver for the Canadian economy, create well-paying jobs and supplement the social safety net.

With advances in technology and digitisation, the government will undertake an exercise to modernise the framework for the charitable sector in 2026-27. As a first step, the government will undertake a consultation with key stakeholders and relevant agencies for them to provide feedback and align with best practices adopted by other G7 countries.

While further details have not yet been released, the update indicates that consultation with key stakeholders and relevant agencies will be the first step in the modernization process.

Charity lawyers across the country have also prepared responses and opinions on what this could mean for the sector.

Read more here:

• Canadian Charity Law
• Carters Professional Corporation
• Miller Thomson