Madam Minister of National Revenue, the Honorable Diane Lebouthillier,
Madam Chair of the Board of Directors of the Canada Revenue Agency, Suzanne Gouin,
Recent information tells us that the Canada Revenue Agency (CRA) will finally render its decision on the application for qualification of the Duty as a Registered Journalism Organization (RJO), allowing it to issue tax receipts to its generous donors. It should be recalled that the support measures for journalism, including the philanthropic support component, were adopted as part of the June 2019 budget law, more than two and a half years ago. The delay in defining the guidelines subsequently prevented The duty submit their application before December 2020.
Even today, the CRA tells the public that “for a democracy to work well, it is essential to have a strong and independent press industry”, according to the documentation explaining the measures to support Canadian journalism. The government lists its three flagship measures to support journalism, including “the addition, from 1er January 2020, RJOs as a new category of qualified donees targeting not-for-profit journalism organizations”.
Yet nearly three years later, only two news organizations in all of Canada have earned the designation. We do not believe that the Trudeau government’s intention was to limit access to philanthropic revenues for the Canadian media, to which it wanted to provide broader support, to such an extent.
The board of directors of Duty and its senior management are apprehensive about the decision that will be rendered shortly by the CRA. We could not understand or explain to our donors a possible unfavorable decision. It would be contrary to the spirit of the support measures for Canadian journalism.
Review of our annual campaign
Last October, The duty launched its annual philanthropy campaign with an original new concept (“News shapes our world. The duty helps you understand them. Once again, the support community of the Duty responded to our appeal with remarkable generosity.
Nearly 3,300 individual, corporate and institutional donors sent us approximately $570,000. We thank them warmly, on behalf of the Duty and Les Amis du Devoir, the non-profit organization that supports us in our efforts. While there are so many causes and missions to support in these difficult times, The duty considers itself privileged to count on the support of donors and its readers, who, let’s not forget, also contribute to our growth through their subscription to our digital and printed editions.
However, we could have done much better. Our philanthropy campaign has been hampered by the uncertainty surrounding the tax status of Duty.
This year, many donors preferred to delay or decrease their donations until the CRA rules on our request. In addition to penalizing our individual donors, the current situation means that large foundations cannot support us since their rules of governance require that we have OJE status. According to our estimates, we are thus deprived of potential donations of one million dollars per year. Needless to say, these are significant sums for the future projects of the Duty.
A single model
The situation is all the more deplorable because The duty has been active in philanthropy since 1916, the year of the creation of the Friends of Duty. We have always been able to count on a loyal base of donors who did not wait for a tax slip to support our activities and our remarkable and successful digital transformation. They consistently and loyally encourage the journalistic work of our team. Through their commitment, they ensure the sustainability of a daily newspaper that is a veritable institution in Quebec.
Thus, since 2015, we have received more than three million dollars in individual and corporate donations. These sums have made it possible to accelerate our digital transformation, improve certain areas of coverage and introduce our readers to the world thanks to Transat’s special support in this regard.
Over the past few months, The duty and his advisers have gone to great lengths to explain to the CRA our unique model and to propose simple and clear solutions to qualify as RJO The duty or, failing that, Les Amis du Devoir, without changing the rules of the game.
Our legal structure is fully compatible with the objective pursued by the federal journalism support program. The duty operates under the umbrella of Fiducie Le Devoir, controlling shareholder of Le Devoir inc. This trust was set up for social purposes, not for profit, a prerequisite to qualify as an OJE. The Trust also guarantees the independence and inalienability of the Duty, in accordance with the wishes expressed by our founder, Henri Bourassa. Les Amis du Devoir, a non-profit organization that exists and supports from time to time The duty for more than 100 years, is governed by an independent board of directors.
This structure helps to preserve the heritage of the Duty as an independent, rigorous, credible media that is deeply rooted in the intellectual life of Quebecers.
The current situation is unfair to The duty. We are limited in our ability to attract major donors. Our donations are stagnating at a crucial time in our development, while we are banking on a revenue diversification strategy.
A social contract with its community of readers
The duty has a very strong social contract with its readers and donors, who provide it with nearly two-thirds of its income. This strong relationship between media and its audience is the best guarantee of financial stability and credibility that we can hope for. It should be encouraged and nurtured by the government instead of being held back.
Over the past two years, the health emergency, the fight against climate change and the polarization of political debates have highlighted as never before the importance of providing citizens with verified information and rigorous analysis. The duty encourages its readers to exercise their critical judgment and participate in democratic debate. The duty is an essential media for reflection that sheds light on the debate of ideas. It is one of a short list of socially responsible media companies that serve the interests of the community before their own.
Our support community is filled with wisdom. She has long considered us a philanthropic organization dedicated to the pursuit of the common good.
Will the Canadian state, so anxious to help journalism, finally recognize it in turn? Otherwise, we will not be able to remain silent in the face of such inconsistency.