Finance gives more details on phasing out of penny and charity fundraising

Finance put out a press release today announcing “Phasing out the penny ... In Economic Action Plan 2012, the Government announced it would phase out the penny from Canada’s coinage system. To help consumers, businesses, charities and financial institutions to plan, a transition date of February 4, 2013 has been set after which the Royal Canadian Mint will no longer distribute pennies. On this date, businesses will be encouraged to begin rounding cash transactions.”  I know the whole penny discussion can result in lots of jokes - I will not at this point oblige.  I will just remind Finance that the charity sector has revenue of approximatley $207 billion according to the 2010 T3010 information.  Fundraising revenue is around $13 billion.  Canadian charities receive about $130 billion from various levels of government.  If government cuts its support of the charity sector by say 10% of revenue (ie. 13 billion) it will require that charities fundraise 100% more than they fundraise right now to make up the difference.  Not much likelihood of that.  In other words the charity sector needs long term, predictable, stable and accessible government funding.  Yes that is in addition to the pennies!