I'll just add that I do have some sensitivity for the perspective that at some point the income tax subsidy for charities becomes so extensive that the sector actually will become somewhat indistinguishable from government. That is a relevant policy consideration to take into account.
But I'll counter that with this observation. Just because it might be more efficient to provide a particular program through a direct state subsidy does not make it a preferred program. Nor does the fact that a particular tax subsidy is inefficient. For example, if each dollar of foregone tax revenue only generates 60ยข of donations that would not otherwise have been made, and if that's the case with a particular tax credit, it does not mean that the tax credit should be abandoned, for the very reasons Professor Reid referred to: that foregone revenue is an investment in a particular kind of society and a particular kind of program delivery. It fosters competition among charities to provide better services. People want to support it. It fosters a pluralism of services that might not otherwise exist. There's a wealth of literature that supports this.
So I would emphasize very, very strongly for the committee in deliberating on the various proposals that efficiency is not a predominant consideration. It's relevant, but it's not determinative.