Bill C-470 is a proposed law that would impose new reporting requirements on charities and see the federal government regulating compensation in the charitable sector.

Imagine Canada has taken a lead role in promoting transparency and accountability, through efforts such as our Ethical Code and Standards Initiative. We have serious concerns about Bill C-470, though, and the impact it will have on the sustainability and day-to-day operations of charities.

We have prepared a Frequently Asked Questions document that explains the provisions of Bill C-470 and its consequences. A Supplementary Questions document provides further details.

In an effort to encourage the sector to speak with a strong and consistent voice, Imagine Canada has prepared talking points that your Board members might find helpful if they have any discussions with Members of Parliament.

Imagine Canada recently wrote to the leaders of all four parties in the House of Commons explaining our position and outlining the unintended consequences of Bill C-470. The letter was co-signed by charity leaders from across Canada.

For further information on our activities regarding Bill C-470, please email Bill Schaper, Senior Manager, Public Policy at bschaper@imaginecanada.ca

Bill C-470 Update - December 1, 2010

Imagine Canada has been invited to appear in front of the House of Commons Finance Committee on December 6, to testify regarding Bill C-470. Our Chair, Don McCreesh, will take the lead in testifying. Our invitation to appear reflects, in part, the leadership role we have played in educating MPs about the Bill's consequences and in bringing together affected organizations to make their voice heard.

The Committee had a great number of witness requests and limited time; those wishing to appear had to submit a one-page brief outlining our position and why we should be invited. Imagine Canada's submission can be found here. We outline our major concerns about the effect the proposed compensation cap will have on the entire sector, and the disproportionate impact that the proposed disclosure requirements will have on smaller charities and their staff.

The Committee held its first meeting on Bill C-470 on Monday, November 29. Albina Guarnieri, the Bill's author, appeared and proposed amendments that would eliminate the compensation cap and limit the effects on smaller charities by placing a $100,000 floor on compensation that would be publicly divulged. This is a significant development and reflects the strong, united, and measured messages that the sector has sent to Parliamentarians.

We have also developed, in consultation with others, a two-page document outlining existing provisions the Canada Revenue Agency has in place for transparency and accountability and for dealing with excess compensation. One of the arguments we still plan to make is that C-470 is in many ways redundant and that where increased transparency is desirable, it may be better achieved through administrative reforms rather than legislation.

The Finance Committee has until December 17 to report to the House of Commons on Bill C-470. We will update you as soon as there is more news.