Charity & NFP Law Update
By Terrance S. Carter, Nancy E. Claridge, and Sean S. Carter
The Canadian government recently introduced Bill C-2, titled “An Act respecting certain measures relating to the security of the border between Canada and the United States and respecting other related security measures”. This proposed legislation, introduced on June 3, 2025, by the Minister of Public Safety, is an “omnibus bill,” meaning it proposes amendments to a wide array of existing Acts. While its broad scope touches on various security measures, its provisions have raised specific questions and concerns for the charitable and not-for-profit sector, with a primary focus on new restrictions concerning cash donations.
For charities, the most direct and impactful change proposed by Bill C-2 is found in Part 11, which introduces a prohibition on large cash donations. This part of the bill would amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Specifically, a new subsection 77.5(1) would make it an offence for any “person or entity engaged in a business, a profession, or explicitly the solicitation of charitable financial donations from the public”, to accept a cash payment, donation, or deposit of $10,000 or more. This prohibition applies to a single transaction or a prescribed series of related transactions that total this amount. The definition of “cash” refers to Canadian coins and bank notes as per the Currency Act, or coins and bank-notes from countries other than Canada. Should a donation be made in a foreign currency, its equivalent value in Canadian dollars must be calculated either in accordance with the exchange rate published by the Bank of Canada for the date of acceptance, or, if not available, the exchange rate the entity would normally use in its ordinary course of business at the time of the transaction.
The penalties for violating this prohibition are significant. On summary conviction, an offender is liable to a fine. However, on conviction on indictment, the fine can be much higher, not exceeding three times the amount of the accepted payment, donation, or deposit. Furthermore, for prosecution of an offence under this section, it is sufficient to prove the offence was committed by an employee or agent of the accused, whether or not that individual was identified or prosecuted. Proceedings related to a conviction for this offence can be instituted within eight years after the time when the subject-matter of the proceedings arose.