Bill-S-279 the Registered Charity Board Diversity Data Collection Act and How it can Improve DEI in Canada’s Charities
I cannot believe it is the end of July…where more than half of 2024 has gone?! I hope you are enjoying your summer.
Today, I am exploring new legislation Bill S-279, the Registered Charity Board Diversity Data Collection Act. This law will amend Canada’s Income Tax Act and require charities to report on the diversity of their board of directors when they file their annual T-3010 reports to CRA. This is a fabulous way to collect data across the 85,000 registered charities across the country.
It is widely recognized that Canada’s registered charities contributes enormously to Canada’s economic output by employing a large number of people and adding to our GDP. As Senator Ratna Omidvar, who introduced the bill, said in parliament:
“This bill is pretty straightforward. It’s pragmatic. It’s entirely achievable within the context of our ongoing discussions on anti‑racism, diversity, and inclusion. It concentrates on a single sector, albeit a profoundly significant one, which plays a crucial role in aiding Canadians in both ordinary and extraordinary circumstances. I’m referring to the charitable sector, which extends its services across every corner of our nation and touches every aspect of our lives, encompassing religion, health, culture, poverty, and the environment, to name a few.
The sector employs close to 2.5 million individuals and contributes 8.2% to our GDP, almost similar to the agricultural sector, yet it grapples with a dearth of data collection and, therefore, a lack of evidence.”
Having standardized diversity data for the charitable sector will be incredible. We will finally have an accurate picture of the sector that we can benchmark and monitor each year. Although Statistics Canada conducted a survey of the sector in 2020, this was voluntary and did not capture information from all registered charities. This bill will fill the data gap.
Currently, Canadian for-profit corporations are required to report on the diversity of their governance structures to the CRA annually. The data offers a helpful insight into DEI on corporate boards regarding Indigeneity, gender, race, and disabilities. It makes sense for charities to now report on the diversity of their boards.
In our report “The State of Workplace DEI 2022”, we reviewed the most recent data and found areas of improvement for both for-profit corporations and charities. Having more complete data sets will allow for accurate analysis, monitoring, and evaluation. As well, researchers can offer recommendations to make marked improvements.
This Bill is a great move forward on Canada’s journey to create workplaces that are diverse, equitable, and just. Do you agree or disagree? Let me know at michelle@mvdconsulting.ca. And if your charitable organization needs support in creating your DEI goals and making a plan for how to achieve these, book a free 1:1 consultation.
Michelle
CEO
Your Workplace DEI Consultant