Tax Code for Charities Contributes to Systemic Racism: Ontario Sen. Ratna Omidvar

OTTAWA – Independent Sen. Ratna Omidvar says the Income Tax Act is perpetuating systemic racism and colonialism in Canada in how it deals with charitable organizations.

She is pushing for changes that would stop limiting charities to funding work they either undertake themselves, or over which they maintain full “direction and control.”

Her private member’s bill would instead require charities to make “reasonable” efforts to track the use of their funds, without forcing any recipients to give up control.

The Income Tax Act places strict limitations on charities because they receive tax benefits through charitable donation tax credits.

But Omidvar says Ottawa can keep charities accountable without forcing them to exert full control over projects they undertake with non-profits and international organizations.

She says the groups that need the most help are often from marginalized and racialized communities and forcing them to give up control to an outside agency is perpetuating systemic racism and colonialist thinking.

Click here to read the full article on the Toronto Star website