UPDATE: Prime Minister Justin Trudeau resigns as Liberal Party leader

Prime Minister Justin Trudeau resigned as the federal Liberal Party Leader on Monday, putting the charitable giving deadline extension at risk along with potential future funding. 

“We are at a critical moment in the world,” Trudeau told a throng of media outside Rideau Cottage Monday at a press conference at 10:45 a.m.

“I’m a fighter. Every bone in my body has told me to fight because I care deeply about Canadians and this country,” he said. “The fact is, despite best effort to work through it, parliament has been paralyzed for months.

“That’s why this morning I advised the Governor General that we need a new session of parliament. She has granted this request and the house will now be prorogued until March 24.

“I intend to resign as party leader, as prime minister, after the party selects its next leader in a robust, nationwide selection process.”

Three weeks of disruption

Former Finance Minister Chrystia Freeland resigned on Dec. 16, citing a conversation she had with the prime minister about moving her from finance to a cabinet position tackling U.S.-Canada relations instead.

Calling it a demotion, she wrote an open letter to Trudeau, saying, “The only honest and viable path for me is to resign.

“For the past number of weeks, you and I have found ourselves at odds over the best path forward for Canada.”

Freeland cited the looming threat of President-elect Donald Trump’s inauguration and his economic nationalism, as well as Trudeau’s “costly political gimmicks,” implying she did not agree with Trudeau’s GST holiday and promised $250 cheques to Canadians.

Her resignation was a turning point in the growing calls by Trudeau’s own MPs for him to step down, although Freeland did not echo those calls.

This came at an already disruptive time for charities, as the Canada Post Strike lingered, preventing direct mail from reaching donors during the holiday giving season. 

A letter-writing campaign by thousands of charities prompted the federal government to propose legislation to extend 2024’s charitable tax deadline to Feb. 28, 2025.

However, that legislation has yet to be passed and is now at risk.

The implications of proroguing for the charitable sector

While proroguing parliament means that all parliamentary business is paused, it does not dissolve parliament, so MPs do not lose their seats.

This means debates, committee meetings, and any bills or legislation in progress are now paused, and the session is ended.

“These initiatives weren’t just words on a page—they were commitments, hard-fought wins that reflected years of advocacy and hope,” said Tyler Boyce, Executive Director of The Enchanté Network, noting that several LGBTQ+ initiatives are at risk, including modernization of the Employment Act, which would add the community as a protected category for the first time.

The Enchante Network will continue to work with Liberal leadership candidates to ensure the LGBTQ+ community remains a priority, he added.

“When the path forward is unclear, that’s when we dig in, roll up our sleeves, and keep moving.”

Imagine Canada was one of the organizations leading the campaign to encourage the federal government to consider a deadline extension.

According to president and CEO Bruce Macdonald, there is “nothing to suggest that there will be any disruption to the announcement,” since it was always intended to be applied retroactively.

He cited a previous postal strike, in 1998, where such legislation was passed long after the strike ended.

Imagine Canada will also be publishing a document to help organizations understand the tax deadline extension, especially in light of political turmoil.

Macdonald said he and his team will continue working with Finance Canada and the Canada Revenue Agency to confirm these deadline changes. “The political announcement of the extension has been made, and we’re now working with the civil servants,” he said.

Given that Parliament will not be returning until late March, organizations should also be able to plan pre-election activities and any budget submissions, he said.

Although the timeline is a little clearer, the staffing changes might also lead to a “messy period,” he added.

He advised that non-profits take a “business-as-usual” approach.

“Organizations should be crafting evidence-based language for all political parties,” Macdonald said.

“You might have nuanced language for different parties, but the issue around poverty or homelessness stays the same.”

Kate Higgins of Cooperation Canada said the leadership transition comes at a critical juncture for Canada.

“Canada’s international cooperation efforts face a pivotal moment amid mounting global challenges,” the executive director said, noting crises in Gaza, Haiti, Sudan and Ukraine all need Canadian aid.

“These challenges underscore the need for renewed Canadian engagement and partnership.”

Cooperation Canada will work with Canada’s next prime minister and government, she added.

“Canadians and charities alike have responded positively to the Dec. 30 announcement by the federal government of their intention to extend the 2024 charitable tax deadline to Feb. 28 in response to the Canada Post strike that negatively affected charities across the country. The prorogation of Parliament means that the proposed legislation will be part of the new session of Parliament and will be applied retroactively if passed,” said Duke Chang, President and Chief Executive Officer of CanadaHelps.

“We believe this is a non-partisan action that will benefit all Canadians and charities and we call on Parliamentarians to keep the promise made to Canadians. Although the 2024 potential tax benefits are an added incentive, we are encouraging all Canadians in the financial position to continue supporting the causes they care about by making a financial donation.”

“To move policy forward in 2025, advocates will have to work together to minimize the noise between their competing demands,” said Karim Bardeesy, Executive Director of The Dias at Toronto Metropolitan University. “And they need to be laser-focused on leveraging the relationships they’ve built in previous years for very specific results.

“To build for the future, it’s important to cut through the noise and build credibility, through the power of your work and by reaching out to people you disagree with. Our approach at the Dais is to provide non-partisan, data-based insights to inform policy decisions and build leadership on issues related to today’s supercharged technology.”

“Establishing relationships and understanding for the nonprofit sector and our priorities with government takes time,” said Karen Ball of The Nonprofit Chamber.

“All elections, including those that result in a change of leader and those that deliver a new government, are both a loss of relationships and an opportunity to begin a new dialogue around priorities for the sector.”

Over at Indigenous Peoples Resilience Fund, executive director Janine Manning shrugged her shoulders.

“Because Indigenous communities and organizations are unfortunately accustomed to being historically and chronically underfunded, I don’t give much thought to announcements like these…we will continue to be resilient no matter the outcome.”

-With files from Shannon VanRaes, Sharlene Gandhi and Jahanzeb Syed Hussain

What does Trudeau’s resignation mean to you and your organization? Email elisha@futureofgood.co with your comments or concerns.

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