Social Sector Infrastructure Fund

A self-financing way to strengthen Canada’s charitable sector without new government spending.Now is the time to build it.

Why Canada needs it

Parliament’s Finance Committee recommends a Social Sector Fund for Budget 2026.

About 1 in 5 Canadians relied on charitable services in 2023.

Canada’s charities deliver services that millions of Canadians rely on. In 2023, about 1 in 5 Canadians were using charitable services to meet essential needs.

However, demand is outpacing capacity. Volunteering and the number of donors have fallen, and charities lack sustained investment in the needs they share: their workforce, technology and AI adoption, data and evidence, and the economies of scale that come from working together.

On September 22, 2026, the House of Commons Standing Committee on Finance recommended that Budget 2026 establish a dedicated Social Sector Fund (Recommendation 16).

The ask: Amend the Income Tax Act so that qualifying foundations make a modest annual contribution, counted toward their existing Disbursement Quota, to an independent fund that invests in sector infrastructure and capabilities which individual charities cannot efficiently build alone.

Key stakeholders support this initiative.

Learn more

Social Sector Fund – Key Facts

StatusRecommended by the House of Commons Finance Committee (Rec. 16, Sept. 22, 2026)
Public support80% of Canadians surveyed support it (Ipsos survey with GIV3, July 2024), as does a majority of operating charities (GIV3 survey, August 2024)
Cost to governmentNo new federal spending
Funding0.025% of foundation assets or 1% of investment income; counts toward the Disbursement Quota
GovernanceIndependent, arm’s-length agency representing sector stakeholders
Estimated size$50–150 million a year, depending on the option and rate chosen (as of 2026)
Use of fundsWorkforce, generosity, evidence, technology, innovation and shared services

Note: On this site, “social sector” means Canada’s registered charities and non-profit organizations, including social-purpose financing that delivers community benefit (for example, affordable housing).