Implications of Ontario Budget Cuts for Ontario Not–For-Profits

Introduction

On April 11, 2019, the Ontario Government released the 2019 Budget (“Budget”),[i] which included a number of financial measures that will result in a reduction in provincial government funding for many not-for-profits in Ontario. The Ontario Nonprofit Network (“ONN”) recently released a summary of the Budget, which provided the ONN’s perspective and views on the Budget for the not-for-profit sector in Ontario.[ii]

Any material reduction in government funding may have serious consequences concerning the viability of impacted charities and other not-for-profits. Boards of organizations facing either a reduction or an elimination of government funding will be faced with serious decisions and choices concerning the continued operation of their programs, or possibly even the continued existence of the organization itself. The purpose of this Bulletin is to provide an overview of some of the more important issues that charities and other not-for-profits facing imminent reduction or elimination of provincial government funding may need to consider.