Tax exemptions or direct funding? Grassroots data analysis finds differences in non-profit and industry budget submissions

According to preliminary analysis, non-profits are more likely to ask for direct funding from the federal government, while industry associations ask most for policy changes and considerations.

Why It Matters

More than 900 submissions have been made to the federal government’s pre-budget consultations. This year, the non-profit sector has continued its advocacy for affordable housing, social assistance, and a robust arts sector. However, there are competing forces at bay, with companies and other organizations often advocating for policy change, reform and funding that is directly in opposition to the sector's work.

Image caption: There were 948 total submissions by companies, industry / professional associations, and non-profit and advocacy groups to the federal government during pre-budget consultations. (Canva/Supplied.)

New analysis of pre-budget consultations across Canada has revealed that non–profits are much more likely to ask for direct funding and funding policy reform than other types of organizations. 

In comparison, industry and professional associations are likely to focus their pre-budget submissions on policy considerations, regulatory reform, and tax amendments. 

The database is being collated by Terra Loire Gillespie, a strategist supporting the non-profit sector, unions and grassroots groups. Gillespie has also found that of the submissions they have analyzed so far, non-profits are much more likely to have costed out their exact requests of the government than corporations and industry associations.  

“There is a huge accountability gap,” Gillespie said, adding that corporations are still asking for dollars through tax exemptions and new regulatory frameworks.

“We’re talking about organizations that are asking for billions in tax exemptions versus organizations that [want] $5 million over three years to do [their activities],” they said. 

Lack of accessible data on pre-budget submissions

The federal government has compiled all pre-budget submissions into a webpage, with 948 submissions searchable by keywords. 

Gillespie has not only noticed errors in the data and categorization of each submission but also pointed out that the PDFs make it challenging to aggregate and analyze the information. 

They have analyzed more than 220 of the 948 total submissions made to the federal government in advance of the Fall Budget, adding the organization type, request made in the submission, and how much funding each organization or company has requested, if at all. 

“It’s really illuminating to see everything side by side,” Gillespie said. 

For example, the federal government has promised to pour funding into Canada’s artificial intelligence economy and received private sector recommendations on how to do so. Several groups have stressed the need for an equitable and sovereign approach to AI development, including the Canadian Union of Public Employees, the Canadian SHIELD Institute, and Action Canada for Sexual Health and Rights.

Once the budget drops, Gillespie plans to add columns to the database to show which recommendations have been adopted.

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  • Sharlene Gandhi is the Future of Good editorial fellow on digital transformation.

    Sharlene has been reporting on responsible business, environmental sustainability and technology in the UK and Canada since 2018. She has worked with various organizations during this time, including the Stanford Social Innovation Review, the Pentland Centre for Sustainability in Business at Lancaster University, AIGA Eye on Design, Social Enterprise UK and Nature is a Human Right. Sharlene moved to Toronto in early 2023 to join the Future of Good team, where she has been reporting at the intersections of technology, data and social purpose work. Her reporting has spanned several subject areas, including AI policy, cybersecurity, ethical data collection, and technology partnerships between the private, public and third sectors.

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