Every year, the Government of Canada releases a federal budget before the new fiscal year begins. It outlines how public funds will be spent, where revenue is expected to come from, and what priorities they will focus on. These budgets often introduce new priorities, funding programs, and reporting rules that affect charities and nonprofits across the country. For small organizations, especially those led by volunteers or working with limited staff, it can be hard to know what affects your organization and what you should really be focusing on. In this article, we provide an overview of the types of changes that tend to appear in federal budgets, and how small teams can respond.

Understanding the New Reporting Requirements

Recent budgets have proposed new reporting rules for nonprofit organizations, including yearly filing requirements based on revenue levels. This means that more organizations will be expected to share basic information about their activities and finances. If your team does not currently track donor activity or program outcomes, now is a good time to start thinking about what you will need to report, and how you will gather that information. You do not need to build a full system overnight, but knowing what kinds of data you will eventually need can help you prepare in the future, and reduce the risk of burnout.

Reviewing the New Gift Acceptance Rules

Gift acceptance rules are another area where small organizations may see changes, and while not every update will apply to every organization, it is helpful to know how they might affect your work. Some recent proposals have focused on rules related to anti‑money laundering, including limits on large cash donations and closer oversight of financial gifts. These changes may not affect every organization, but they do show a shift toward more oversight and clearer expectations for how gifts are handled. If your organization receives cash gifts, in‑kind donations, or support from businesses, it is worth reviewing your gift acceptance policy and making sure you understand what is being tracked. Taking some time to update your policy now can make it easier to handle gifts in a clear and consistent way, not only for the new gift acceptance rules but also in general when receiving gifts from those who support your cause.

A Simple Guide to Non‑Cash Gifts

As the charitable sector evolves, donors are exploring alternative ways to give beyond traditional cash donations. Even if your team doesn't plan to accept these gifts immediately, it's helpful to understand the basics. Digital assets like cryptocurrency and securities are part of this trend, and future budgets may include new rules or incentives related to these types of gifts. Knowing how they are treated and what is required to issue proper receipts is useful and helpful for nonprofits looking to diversify their funding model. And, by recognizing what counts as a non‑cash donation and understanding how to record it correctly, your organization will be better equipped to handle these types of donations when they occur. By being prepared, you'll be able to respond confidently if a donor approaches you with a non-traditional gift outside your usual process.

Using Funding Priorities to Strengthen Your Messaging

Federal funding priorities change from year to year. One year may focus on housing and infrastructure, another on climate action or youth employment. Your priorities do not need to match every funding priority, however, it is worth asking whether your work aligns with any of the current public goals. Even if you are not applying for government grants, showing that your mission supports broader national efforts can help donors understand your impact more clearly.

Your organization can also use your case for support, which explains why your work matters. By linking those core messages to issues that are receiving public attention, you can demonstrate to donors how your work fits into a larger picture. Furthermore, you do not need to quote the budget or reference specific programs; you can simply connect your mission to the issues that may be top of mind for people.

Steps to Stay Ready as Budget Priorities Shift

Small nonprofits do not need to overhaul their systems every time a new budget is released. Below are a few simple actions that can help your team stay informed and ready for changes without adding extra workload.

Have a short conversation with your board or leadership team. Talk about how current funding priorities, or policy changes might relate to your mission. Even a brief discussion can support clearer decisions and help everyone understand what may need attention.
Strengthen Your Messaging to Show Your Community Impact. Review your messaging to make sure it clearly shows how your work fits within broader community initiatives. Additionally, check whether your current messages highlight the impact you have and how your work connects to the issues your community is working on. Even small adjustments can help people see where your organization fits and why your work matters.
Track the types of gifts your organization receives. Track the types of gifts your organization receives. Whether it is cash, in‑kind support, or something less common, it is important to know what you have received and how it is recorded. This helps you stay organized, understand what support you are receiving, and be prepared if any rules or expectations change in the future.
Stay informed about compliance updates. Rules and expectations may continue to change, and having a general sense of these changes can help your organization prepare in advance.

As the federal budget continues to shift each year, preparation like this helps small teams stay focused on their mission while adapting to a changing landscape. Start with the step that feels manageable and fits your capacity, and build from there.

If you are planning for the year ahead, a clear fundraising plan can help everyone understand their role. Subscribe to our weekly newsletter and receive our free Fundraising Plan Template, designed for small nonprofits and charities looking for guidance on how to map out their annual fundraising.