The social sector is demanding a renewed focus on community and supportive housing, less restrictive access to social assistance, and more transparency in the non-profit and philanthropic sectors. 

These are a handful of recommendations presented by non-profits and social purpose organizations in pre-budget submissions ahead of the fall budget, which the federal government is expected to table in October.

Canadians—individuals and organizations—are invited to submit ideas prior to the finalization of the federal budget. This year, with the federal budget being tabled later than usual, Canadians were invited to participate in pre-budget consultations on two separate occasions: the House of Commons Standing Committee on Finance held a pre-budget consultation process until Aug.1, after which it would present a report to the House. 

The Department of Finance also ran a public consultation process until Aug. 28, which included an online survey and an opportunity to send formal written submissions to the Department. 

Several social purpose organizations submitted to one of the two processes, with several noting that the ongoing cost-of-living crisis is disproportionately affecting marginalized groups through inadequate housing, insufficient social assistance, and a lack of affordable food. 

Others warned the crisis showed no sign of slowing down, especially with U.S. tariffs increasing the prices of basic goods, while simultaneously risking Canadian jobs. Some organizations made suggestions for protecting Canadian sovereignty and jobs in this environment. 

Based on the lived experiences of their clients, communities and frontline workers, here is what social purpose and advocacy groups would like to see reflected in Budget 2025. 

A rights-based approach to affordable housing 

This year, the National Right to Housing Network (NRHN) and the Canadian Centre for Housing Rights both called on the federal government to commit to housing as a human right and combat the financialization of housing—in other words, housing stock that is built for investors over and above affordable, community, and/or supportive housing. 

The NRHN also recommended that the federal government collect and share more data about who is investing in residential real estate, and who is subject to no-fault evictions and renovictions. 

Research has shown that Canada lost 230,000 affordable rental units between 2016 and 2021. Michele Biss, executive director at the National Right to Housing Network, added that Prime Minister Carney’s ‘build, baby, build’ approach to housing development carries no guarantees of shelter for people experiencing homelessness and the precariously housed. 

“We’re going to build more empty towers,” she said, adding that the government needs to be ‘laser-focused’ on meeting core housing needs and ending homelessness. 

Access to – and reform of – social assistance 

Several submissions pointed to the inadequacy of current social assistance mechanisms and benefits, which are not rising to meet inflation and leaving claimants close to, if not under, the poverty line. 

The Canadian Centre for Housing Rights recommended that the federal government consider increasing and expanding the Canada Housing Benefit to reflect the current cost of renting a home. Meanwhile, the Income Security Advocacy Centre recommended that the government strengthen Employment Insurance (EI) by guaranteeing weekly benefits for at least 52 weeks. 

The Centre pointed to the insufficiency of the Canada Disability Benefit (CDB) and the Disability Tax Credit as key examples of issues they are seeing in the community. For instance, the CDB, which was newly introduced by the federal government in 2025, is based on an individual’s total income, meaning that if they qualify for the CDB, they may have other income-tested benefits reduced. 

“Treating social assistance as income both punishes recipients and diminishes the impact of an already modest benefit,” the Centre wrote. 

The CDB was intended to bridge the gap between the Market Basket Measure, which signals Canada’s official poverty line, and the social assistance a person receives, said Asif Khan, research and policy analyst at the Income Security Advocacy Centre. However, the CDB only amounts to $2,400 per year, or $200 monthly. 

Khan would like to see expanded eligibility criteria for the CDB and an increase in the amount handed out. 

“That gap [between the poverty line and total social assistance] is $7,000 [per year] for a single person in Ontario with disabilities. The $2,400 that is provided doesn’t do a lot,” he said. 

He added that provincial governments are expected to top up the CDB to make up for the shortfall. 

Healthy, nutritious food for all 

Canada’s largest food bank, Daily Bread, has found that one in every 10 people in Toronto now relies on food bank visits. Their annual Who’s Hungry report states there is an strong link between food insecurity and housing, insufficient incomes, and barriers to meaningful employment. 

In their pre-budget submission, Daily Bread also calls upon the government to improve access to the Canada Disability Benefit. The organization suggests that “a fully funded CDB requires $10-12 billion annually to lift people with disabilities above the poverty line.” 

The federal government has committed $1 billion annually for six years. 

They added that the government should streamline the application process for such benefits, especially if they are already receiving existing social assistance from provincial or territorial sources. 

Daily Bread has also found that among the 80 per cent of food bank clients who are renters, 87 per cent live in unaffordable housing and 20 per cent spend their entire income on housing. As a result, they are also urging the government to improve the Canada Housing Benefit and integrate it with other existing programs. 

Daily Bread also recommended the government legislate a permanent National School Food program across the country, as well as a federal tax credit for farmers who donate fresh food to charities and community food programs. This tax credit policy already exists in Ontario and Quebec: in Ontario, farmers can receive a credit that is worth 25 per cent of the fair value of the food donated, while in Quebec, agricultural and food processing businesses that donate goods to food banks receive generous deductions on taxable income. 

Boosting Canadian arts and creative jobs 

The Canadian Arts Coalition recommended the Government of Canada “permanently allocate at least one per cent of its overall spending towards arts, culture and heritage. To achieve this for the 2025-26 fiscal year, the Government should increase its allocations by $330 million.” This would be split between the Canada Council for the Arts and the Department of Canadian Heritage. 

The Professional Association of Canadian Theatres (PACT) added that this investment “will reap immediate and visible differences for theatres across Canada who rely on core funding from the [Canada Council for the Arts].” According to PACT, 78 per cent of theatres depend on core funding.

PACT also wants a tax credit for performing arts organizations that spend at least 75 per cent of their labour expenses on Canadian talent. The association said this could encourage more well-paying jobs for Canadians working in the performing arts sector, while strengthening downtown revitalization efforts as “restaurants and businesses report an 18 per cent increase in sales on performance days.”

Business/Arts, a charity that creates opportunities for business investment in the arts and culture sectors, recommended that the government stimulate philanthropic giving through two mechanisms: eliminating capital gains tax on donations of company shares and real estate to charities, and lowering the tax credit threshold to encourage donations from younger and less affluent donors. 

“Evidence shows that reliance on high-net-worth donors tends to benefit larger institutions, while leaving smaller and mid-sized organizations – particularly those serving rural and remote communities – more vulnerable,” the organization wrote.

A transparent, accountable non-profit sector

Charity law firm Blumbergs is recommending more transparency in the non-profit sector. In particular, they would like to see the T1044 – the Non-Profit Organization Information Return form – made public, like some parts of the T3010, which is the equivalent form for registered charities. 

The law firm is also advocating for a change to a section of the Income Tax Act that would “allow the CRA to disclose serious non-compliance with legal requirements by registered charities and other non-qualified donnees.”

Additionally, Blumbergs would like to see the federal government increase the disbursement quota, suggesting that foundations should aim to distribute eight to 10 per cent of their assets. At present, the disbursement quota is at five per cent. 

“This will result in billions of additional dollars for operating charities,” writes Mark Blumberg. 

In its pre-budget submission, Philanthropic Foundations Canada (PFC) notes that the government had committed to reviewing the disbursement quota in 2027 and should now “begin preparations for an evidence-based consultative process.” PFC would like the rate to be regularly reviewed according to a formula that takes into account inflation and rates of return on investment portfolios. 

PFC would also like the Government of Canada to play a role in “derisking philanthropic investments.” 

“Many investment committees remain timid due to perceived fiduciary risk of focusing investments on anything other than a financial return,” the submission reads. PFC would like the Government to commit to underwriting the investments of philanthropic foundations, which the coalition believes would encourage more funding towards social good projects. 

And more: community finance, immigration and Canadian sovereignty

Equitable finance 

Catalyst Community Finance, SVX, Tapestry Community Capital and the Canadian Coalition of Community Capital are calling upon the government to consider a national Community Finance Strategy. 

In particular, it would entail creating a tax credit to incentivize investors to channel money into “community enterprises and mission-driven funds ” and allowing registered retirement accounts to hold community investments. 

Focusing on the Trump administration’s economic policy and its effects on Canada, Social Capital Partners advocates for a “new approach to the economy and national security that must be governed by a historic pivot away from dependence on the United States.” 

Crucially, the organization would like to see more Canadian ownership of Canadian assets and increased ”access to wealth and ownership for young people, workers, communities, Indigenous peoples and independent entrepreneurs.” 

This would include encouraging business succession plans, enabling more community investment, and strengthening employee ownership trust legislation. 

According to Dan Skilleter, director of policy at Social Capital Partners, some of this concentration of ownership is “by design” and can be changed with new public policy direction. 

Social Capital Partners wrote in their pre-budget submission that the federal government should “track and report on key ownership metrics.” In the absence of this information, Skilleter notes that researchers are staying on top of shifts in ownership by compiling what he calls “anecdotal datasets” about mergers and acquisitions. 

Skills and Education

Build a Dream shared its ambition to bridge the talent gap in Canada by encouraging more diverse representation in what they call high-demand sectors, such as construction, energy, manufacturing and advanced technology. 

The organization, which focuses on opening doors to STEAM and skilled trades for women and marginalized groups, said in its pre-budget submission that the government should invest in youth programming, reduce financial barriers to apprenticeship training, and expand opportunities for women.

World Education Services (WES) – the designated provider of Educational Credential Assessments for Immigration, Refugees and Citizenship Canada – would like to see Canada commit to a ‘whole-of-government’, cross-ministerial approach to immigration planning.

In addition, WES has raised the alarm about the lack of recognition of foreign credentials in Canada, which leads to underemployment and underutilization for newcomers. The organization recommends that the government remove barriers to foreign credential recognition and licensing and support temporary to permanent residency pathways.

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