In an opinion published by The Globe & Mail on Jan. 22, Professor Benjamin Alarie, Osler Chair in Business Law and founder and CEO of Blue J, a leading legal technology company, and Daniel Lyon, a board member of the Canadian Artists Network (formerly CSARN), a registered charity dedicated to supporting Canada’s senior professional artists, write about the impact of the Canada Post strike on charitable donations:
Last month’s postal strike disrupted year-end giving across Canada, dealing an extra blow to charities that rely heavily on December donations. In response, the Department of Finance introduced a temporary measure allowing donations made in January and February to be applied toward the previous year’s tax return. While this offers immediate relief, its true significance lies in the long-term policy potential. By making this change permanent, Canada can modernize its charitable tax framework, benefiting donors and organizations of all sizes.
Currently, charitable giving is effectively tied to the calendar year, with donors required to contribute before Dec. 31 to claim tax benefits. This deadline creates a frenetic year-end rush, fostering “donor fatigue” as people face countless urgent appeals. Smaller charities, typically lacking major marketing budgets, struggle to stand out amid the holiday crunch. Many report receiving more than 40 per cent of their annual donations in December alone, creating significant operational challenges. A permanent extension would help level the playing field, allowing these organizations to plan longer, more strategic campaigns outside the December rush.
Read the full commentary in The Globe and Mail (paywall)
