moved:
That the Standing Committee on Finance be instructed to undertake a study of the current tax incentives for charitable donations with a view to encouraging increased giving, including but not limited to (i) reviewing changes to the charitable tax credit amount, (ii) reviewing the possible extension of the capital gains exemption to private company shares and real estate when donated to a charitable organization, (iii) considering the feasibility of implementing these measures; and that the Committee report its findings to the House.
Mr. Speaker, charities are vital to the well-being of our society. They touch the lives of all Canadians. They inspire us through the arts, enlighten us through education, heal us through health institutions and medical research, nourish our faith, support us through hard times and make us the caring and compassionate society of which we are very proud.
We all know how important charitable organizations are to improving the quality of life in our communities. That is why Canadians generously contribute to their chosen charities, and it is why our government supports various charities through program funding and encourages private support through charitable tax incentives.
Since 2006, this Conservative government has taken numerous steps to enhance support for the charitable sector. For example, we removed the capital gains tax on gifts of publicly listed securities in 2006 and reformed disbursement quota rules to reduce administrative complexity in 2010.
Today I am introducing a motion that continues this positive momentum. My motion asks:
That the Standing Committee on Finance be instructed to undertake a study of the current tax incentives for charitable donations with a view to encouraging increased giving, including but not limited to (i) reviewing changes to the charitable tax credit amount, (ii) reviewing the possible extension of the capital gains exemption to private company shares and real estate when donated to a charitable organization, (iii) considering the feasibility of implementing these measures; and that the Committee report its findings to the House.
If this motion passes, and it is certainly my hope that it does, the resulting committee study could lead to recommendations that would benefit both the charitable organizations that serve our communities and the donors who support them.
Through my own personal previous involvement with charitable organizations such as the United Way and the MS Society, I have seen first-hand the positive impact that these organizations have on the individuals and the communities that they serve.
I have also seen and have been inspired by the dedication and the commitment of both staff members and volunteers at these organizations. They all share and are motivated by a common higher purpose: to make a difference in the lives of others.
Since I was elected as a member of Parliament in 2008, I have been building partnerships and becoming more involved with the many charitable organizations in Kitchener—Waterloo. I am constantly impressed by the remarkable work they are doing, and I commend them for making our region such a caring and compassionate community.
However, I also recognize that our charities face significant challenges that impede their ability to carry out their missions and achieve their goals.
Last week I hosted a round table with leaders from a cross-section of our region's community organizations. The round table included representatives from the United Way, Habitat for Humanity, the House of Friendship, Lutherwood, Leadership Waterloo Region, Focus for Ethnic Women, KW Access-Ability and KidsAbility. All of these organizations do incredible work in the Waterloo region and touch the lives of each of our families, our friends and our neighbours.
This forum gave me an opportunity to get their knowledgeable perspectives on the charitable sector in our community and to listen to their ideas and suggestions on ways that we could assist in strengthening this sector and developing strategies for the future.
An overriding and constant concern was finding adequate financial resources to carry out their mandates. Donations of individual Canadians continue to be one of the principle sources of funding for these organizations.
During difficult economic times such as we have seen recently, charities face significant challenges as they experience increased demand for their services but at the same time lower levels of charitable donations.
As we begin to emerge from the global recession, thanks to the economic action plan, we are seeing increased job creation and new opportunities for growth and prosperity. In Kitchener--Waterloo I am very excited about the enormous potential of our thriving high tech sector to generate long-term economic growth, create good quality jobs and ensure a very high quality of life for our citizens.
There is no doubt that we are on the right track on the economy, but as a community we must also ensure that everyone benefits from economic progress and that no one gets left behind.
That is why I believe that in addition to nurturing and supporting businesses, we must also nurture and support the not-for-profit sector and the charitable organizations that provide critical services to our community.
Besides providing the vital services that our communities need, there is another reason our government should continue to build strong partnerships with the charitable and not-for-profit sector. This sector is a significant part of our economy. It employs over 1.5 million people, generates an estimated $100 million or, in fact, represents 7% of our GDP. It is larger than the tourism industry, the automotive manufacturing industry or the agricultural sector.
It is in everyone's best interest to ensure a vibrant, innovative and response network of charitable and not-for-profit organizations.
My Motion No. 559 is just one step in strengthening government support for charities. I believe our government should be looking at ways to further promote charitable giving and finding new ways for Canadians to support the causes that are important to them.
Tax relief is not the main reason that Canadians choose to support charities. Over 85% of Canadians donate to charities and most do out of a sense of compassion toward people in need, to help a cause that directly affects them or to give back to their community.
However, tax incentives do play a role, especially among larger donors. The reduction and subsequent elimination of capital gains tax from donations of public shares stimulated substantial increases in charitable giving. In fact, Donald K. Johnson, a champion of this initiative, has estimated that over $3 billion in public securities has been donated to charities since these changes began in 1997.
With increasing levels of social engagement, many donors are becoming more strategic in their giving as well. They are looking for ways that their philanthropy will make a tangible impact and considering charitable donations in their long-term financial planning decisions. These changes offer a new method of giving and bring a new awareness to planned and sustainable donations.
The charitable tax credit also provides an incentive for charitable giving. The 2007 “Canada Survey of Giving, Volunteering and Participating” found that 54% of Canadians would give more if they received a larger tax credit for their donations.
It is my hope that Motion No. 559 will result in a committee study that will investigate the many facets of charitable giving, consider the costs and benefits of any changes and put forward recommendations on measures that would further support charities through our tax system.
While providing incentives to increase charitable donations may ease financial challenges, charities face other complex challenges. As society and communities evolve, charitable organizations are faced with changing needs and priorities. Our community agencies are on the front line dealing with day-to-day realities and challenges and they are often the first to identify new areas of concern and responsibility.
However, these challenges also lead to new opportunities. I believe that our charitable sector has the ingenuity and the imagination to respond effectively to new challenges in our communities. In fact, the answer is innovation.
My riding of Kitchener—Waterloo is very well-known for innovation. This is not limited to only the high-tech sector. We also have organizations committed to social innovation, finding creative ways to engage individuals and businesses developing new models and building networks and partnerships to address the changing needs in our community.
One such organization is Capacity Waterloo Region. Although this is a new organization, it is already making waves, stimulating discussion and dialogue and creating collaborative opportunities for change.
As government, we need to further enhance our partnerships with this sector, better support it and equip it to carry out the role that our society asks it to do and work together to provide the best quality of life for all Canadians.
In Waterloo region, we have been very fortunate to have had the leadership of Dr. David Johnston, former president of the University of Waterloo, who applied the spirit of a traditional barn raising to community involvement.
Now he is our Governor General, and very proudly so. His vision of Canada as a “Smart and Caring Nation” inspires all of us to contribute and to build a society where all Canadians can develop their potential, all Canadians can succeed and all Canadians can serve their families, their communities and their country.
In my community, and all across Canada, we are blessed to have many dedicated volunteers and organizations that respond to the needs of others and contribute to building healthy, strong and compassionate communities.
I would like to take this opportunity to thank all of the people who work in the charitable organization sector in Waterloo region. Their efforts are making a noticeable difference in our community and ensuring that it continues to be an ideal place to live, work and raise our families.
As the member of Parliament for Kitchener—Waterloo, I am committed to strengthening my partnerships with the many organizations in my community, celebrating their accomplishments, listening to their ideas and suggestions and working with them to ensure that they have a voice in Ottawa.
With our economy on the upswing, now is the time to collaborate and enhance our partnership so that everyone in our society enjoys the benefits of a revitalized economy and experiences a prosperous future.
In conclusion, I ask all members to support my motion, Motion No. 559. I believe it is incumbent upon all of us, as members of Parliament, to study this issue that could have a profound impact on the charitable organizations that make such a significant contribution to all communities across Canada. I encourage all of my colleagues in the House to become fully engaged in this important dialogue as we seek to assist our charitable organizations and work with all of them to improve our society.
