Two months following Pride Toronto’s decision to apply for charitable status, questions remain about the benefits and drawbacks of a successful application. Pride Toronto, currently a not-for-profit, is responsible for the city’s annual Pride celebrations and for the World Pride 2014, which will take place in Toronto.
Charities are exempt from income and property taxes — and crucially, their donors are exempt from paying income tax on donations.
“Most nonprofits believe being charitable enhances their ability to raise money from the public,” explains Doug Kerr, a member of the executive committee for the Lesbian Gay Bisexual and Trans Giving Network. “Some sources of funding like foundations can only make grants to charities — organizations like community foundations and the United Way.”
