What did the Finance Committee recommend for the Social Sector Fund?

The Committee’s Recommendation 16 in full

Establish a dedicated social sector fund by amending the Income Tax Act to strengthen the capacity of the charitable and non-profit sector through targeted investments in shared infrastructure and capacity building. Budget 2026 should finance this fund through a modest, sector-based contribution – either a 0.025% annual levy on unused foundation assets or a 1% tax on foundation investment income, with contributions counting toward Disbursement Quota obligations – while ensuring the fund is governed by an independent, arm’s-length agency representing sector stakeholders.

The committee further recommends that the fund operate under a clear national strategic plan with strong governance safeguards, transparency requirements, and a mandatory five-year review to assess effectiveness and accountability.

House of Commons Standing Committee on Finance, Pre-Budget Consultations for Budget 2026, Recommendation 16