Opinion: We need to cut red tape for charities and nonprofits, too

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Nonprofits also face unreasonable requirements that eat up time and moneyLast updated 13 minutes ago This Thanksgiving, charities and non-profits will continue showing up for Canadians, just as they always do. Governments should do the same and remove the red tape in their way. Photo by imageBROKER/Danko Natalya/Getty ImagesThis Thanksgiving, many Canadians will be picking up food hampers from local food banks to make ends meet. Children will make handprint turkeys with new friends at their local nonprofit daycare. Those with nowhere else to go will turn to shelters as colder weather arrives.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAcross the country, charities and non-profits support millions of Canadians everyday. They provide food, housing, mental health services, mentorship programs and countless other services that strengthen communities. Yet too much of their time is spent navigating excessive government paperwork instead of serving people. Every hour spent filling out forms is an hour not spent helping someone in need. Every unnecessary delay means fewer resources reaching the people who depend on them.This advertisement has not loaded yet, but your article continues below.When most people think about who is affected by red tape, they think about businesses. At the Canadian Federation of Independent Business (CFIB), we hear daily about complicated approvals, duplicative forms, outdated regulations and bureaucratic delays that drain time and money from small businesses. But the same obstacles affect charities and non-profits.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe difference is that when red tape slows down a charity the cost is measured, not in dollars, but in meals not served, beds not prepared, children with less access to mentorship and people who wait longer for support.Nonprofits receiving federal funding are asked to complete frequent, complicated and redundant reports, often without clear evidence the information collected is being used to improve programs or measure impact meaningfully. Lengthy funding renewals can lead to cancelled contracts, gaps in programming and layoffs.In recent research from Imagine Canada and the Élisabeth-Bruyère School of Social Innovation at Saint Paul University, one Northern nonprofit with only three staff reported having spent the equivalent of 14 working days in a month responding to federal funding requirements, redirecting staff time away from delivering programs.This advertisement has not loaded yet, but your article continues below.Fair Funding for Nonprofits hears stories like that of one organization being asked to provide more than 1,000 pieces of proof to justify a single financial claim. Another nonprofit was asked to reveal sensitive health information, including the home addresses of people accessing mental health support, to justify mileage claims. Others are asked to provide monthly detailed activity and financial reports or do multiple intensive financial monitoring exercises despite consistently having outstanding results on all reviews.Canadians rightly expect governments to ensure organizations are accountable for public dollars. The problem is not sensible oversight. The problem is what happens when layers of rules accumulate over time, departments fail to co-ordinate and organizations are repeatedly asked for information government already has.Accountability clearly matters. No one disputes that. But there is a difference between reasonable accountability and bureaucracy for bureaucracy’s sake. According to CFIB research, the average small business spent 92 business days on regulatory compliance in 2024. Of those, 32 business days were spent specifically on red tape.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.As the country grapples with the impacts of tariffs, both small business and nonprofits need to be able pivot quickly to meet community needs and protect jobs. Reducing red tape does not require new government spending. It requires governments to take a closer look at the rules already in place and ask a simple question: does this rule or request still serve a purpose?That principle is at the heart of CFIB’s annual Red Tape Awareness Week, which for nearly two decades has challenged governments to identify and eliminate unnecessary regulatory burdens. But real progress happens only when that mindset extends beyond one week each year.Effective red tape reduction requires action at every level of government. Political leaders need to make it a priority. Policymakers need to review regulations regularly and eliminate outdated requirements. Frontline public servants need to be empowered to identify inefficient processes and be confident their suggestions for improvement will be acted on.This Thanksgiving, charities and non-profits will continue showing up for Canadians, just as they always do. Governments should do the same by removing unnecessary administrative barriers that stand in their way.Keyli Loeppky is senior director of interprovincial affairs with the Canadian Federation of Independent Business. Alexia Riche, executive director of the PEI Community Sector Network, is on the steering committee of Fair Funding for Nonprofits. We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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