Local charities are urging the federal government to extend the deadline for claiming charitable donations on tax returns to the end of February. This measure, they say, would help mitigate funding losses caused by the Canada Post strike and encourage donors to maintain their giving habits through 2025.
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The Impact of the Canada Post Strike on Charitable Giving
The Canada Post strike, which began on November 15 and ended on December 17, halted the delivery of mailed donations during the critical holiday fundraising period. Many charities, including Calgary-based organizations, rely on this time of year for up to 50% of their annual funding. With postal delays extending into January, many donations have yet to be received, leaving charities scrambling to close significant funding gaps.
Philip Calvert, Chief Development Officer at The Mustard Seed, explained the financial toll: “That’s $750,000 that just went poof … it’s gone. And so for us, that’s a significant thing. Obviously, that’s a large amount of money.”
While some charities were able to pivot to online campaigns—with The Mustard Seed’s Giving Tuesday campaign raising 50% more than the previous year—a $600,000 funding gap remains. Similarly, The Salvation Army saw a 50% drop in holiday donations due to the strike, losing access to about three million pieces of donor mail.
Why an Extension Matters for Charities
Charities argue that extending the tax receipt deadline would allow donors impacted by the postal delays to claim their donations for the 2024 tax year. Without an extension, these donors may delay giving until the end of 2025, compounding the financial strain on non-profits.
Calvert highlighted the double impact on charities: “It’s essentially a two-for-one hit to any charity because you miss the revenue in 2024 and then you miss the opportunity for that person in 2025 [to donate].”
Heather Morley, CEO of Inn From The Cold, echoed this concern. Her organization, which relies on community donations for half of its annual revenue, set a goal of $1 million for holiday giving but fell 20-30% short due to the strike. “We did manage to get our direct mail out, but it just landed in people’s inboxes today,” she said.
Government and Organizational Support for the Extension
Imagine Canada, a national organization representing charities, has joined other advocacy groups in calling for an extension. According to their recent poll, 65% of Canadians planned to donate during the holiday season—up from 49% in 2023—but the strike hampered the ability of charities to receive those donations.
Ontario Premier Doug Ford, speaking on behalf of Canada’s premiers, also voiced support for the extension in a letter to Prime Minister Justin Trudeau. “Charitable organizations across Canada depend on year-end fundraising to support their operations throughout the year,” Ford wrote. “However, this year’s efforts have been severely impacted by the Canada Post strike.”
Consequences of Lost Funding for Charitable Services
The financial shortfall caused by the strike could have lasting repercussions on the services charities provide. Calvert noted that his organization may need to cut back on critical programs: “That equals up to 10,000 meals that we simply can’t provide because that revenue is missing.”
Similarly, Morley expressed concerns about the impact on families experiencing homelessness. “Every dollar that we raise goes to support our shelter and services for families, and so any decrease in donations will have an impact on how we can help those families,” she said.
The Growing Need for Charitable Support
The demand for charitable services continues to rise. According to The Salvation Army, the number of Canadians seeking their assistance increased from 2.7 million three years ago to over 3.2 million last year. This trend underscores the critical role charities play in supporting vulnerable populations and the importance of securing stable funding.
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Conclusion
An extension of the charitable donation tax deadline to February 28 would provide a lifeline to Canadian non-profits still recovering from the postal strike. By taking this step, the federal government could help charities recoup lost funding and ensure they can continue delivering essential services to those in need.
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