Centre for Social Innovation - Where Change Happens!

CSI is proud to be home to the Ontario Nonprofit Network, that has once again, played a leadership roll in moving the cross-sectoral issues affecting the nonprofit sector, forward in government. This time, their focus is on the Harmonized Sales Tax and what is means to your organization. Check it out below and at wwww.ontariononprofitnetwork.ca.

Ontario's Harmonized Sales Tax (HST):

Find out how it will impact your organization

In June 2010 the Province of Ontario will do away with its provincial sales tax (PST) and the Harmonized Sales Tax (HST) will come into effect. The stated intent of the Ontario Government is that the impact of HST on our nonprofit sector is revenue neutral. Indeed, the provincial government made a significant effort to ensure this was so by establishing an 82% rebate rate for the PST portion of the HST. The government, however, did not have all the information to truly understand the full impact of HST on the sector, nor did we.  

Towards this end, ONN convened a cross-sectoral work group, which included a tax expert and lawyer, to examine the potential impact of the harmonization of the PST/GST on the sector and its public. Our HST Constellation wrote a detailed brief which we have submitted to various government ministries, including Revenue, MCI, Culture and the Premier's Office. The brief explains how we think the sector will be impacted and makes eight recommendations on which we hope to see some action.  A shorter Executive Summary is also available.

The sector is very diverse and various sub-sectors and organizations will be impacted differently by the harmonization, depending on the features of their GST status. Organizations in the nonprofit sector fall into one of four different classes of sales tax status and, to help you assess the impact of the HST on your organization, ONN has created a “How To” guide.

All three of our documents can be accessed on ONN’s website.

The Ontario Nonprofit Network works to serve the more than 43,000 nonprofit and charitable organizations in Ontario in order to strengthen our ability to provide public benefit to the people of Ontario. Every Ontario community and every person in Ontario is enriched and supported by our vibrant nonprofit organizations in the fields of arts, social services, sport and recreation, housing, environment, community health and so on. Indeed, we have one of the most robust public benefit sectors in the world, however, it has been too often neglected or overlooked in the development of policies that affect the sector. ONN hopes to change this and ensure Ontario communities continue to be good and creative places to live and raise families.