Cheap ways to look after charities
By John Mohan

Manitoba charities have not been adversely affected (so far) the same way other Canadian provinces or charities have been.

But it doesn't mean hard times may not be on the horizon. And diminishing private donations is not the only threat to charities this year as government could reduce support to agencies.

With forecasted deficits, there'll be no thought of addressing the diminishing affordable housing stock across Canada that was already ignored during the surplus years.

Although an optimist by nature, I'm not hopeful of any major spending increases to reduce national or local poverty and homelessness.

However there are things each level of government can do to support the charities servicing our less fortunate without adding to taxpayer burdens.

Streamline funding processes: Governments are notorious for the time lapses between making funding announcements and actually delivering on their promise. For agencies the wait is excruciating. The federally-driven Homelessness Partnering Strategy (HPS) commonly makes two-year announcements to fund non-profit agencies to prevent and reduce homelessness only to allow (or create) a year of lapsed time before money makes its way to selected agencies.

Further, they usually wait until the old agreement has fully expired before starting the whole process all over again.

Ottawa seems to be waiting to see if homelessness has been eliminated before committing to future funding. This forces organizations to consider termination of successful programs or even puts the organization at risk of closure.

Give us a break: It would be a huge help and good-will gesture if Crown corporations (like Manitoba Hydro) provided their services and products at a markedly reduced rate to the agencies that are improving the lives of Manitoba's needy. How much more money do government-owned businesses need to build another building or pay high-end executive salaries and bonuses anyway?

Eliminate taxes on non-profits: Leading my organization through the past four years of growth and construction, on one occasion we requested provincial assistance to build a $50,000 ramp so wheelchair-bound homeless people could access our building and services. While declining to support the minuscule project, the province gladly accepted the 7% PST attached to building the ramp.

The feds at least give back half of the GST registered charities incur.

Siloam Mission paid more than $43,000 in payroll taxes last year to the province. We sent nearly $11,000 to the city in annual property taxes but receive no core funding from the city.

While not every non-profit reports these numbers we're all paying taxes to serve our needy. As a non-profit CEO I abhor the thought of sending privately donated funds to pay PST or a payroll tax or property taxes. Registered charities improving the lives of Manitoba's less fortunate who are falling between the cracks of government services and benefits should be tax exempt. In these economically uncertain times, strong non-profits are needed by governments more than ever -- but not to bankroll them.

Originally printed in the Winnipeg Sun, Wednesday, January 14, 2009.
Reprinted with the permission of Sun Media Corporation.