Thank you, Mr. Rajotte and members of the House of Commons Standing Committee on Finance.
My name is Len Lifchus and I'm the chief executive officer of the United Way of Burlington and Greater Hamilton. I'd like to thank you for the opportunity to address you today on the needed tax incentives for charitable donations.
I've had the pleasure of working in the not-for-profit sector for 34 years, the last 17 as the chief executive officer of United Way in Kelowna, Peterborough, and now Hamilton-Burlington. Over the course of my career with United Way I've had the privilege of meeting many of the donors whose philanthropy has provided such essential programs and services in their communities. Some support of many of these programs has become particularly crucial and urgent because of funding changes to programs previously supported by all three levels of government.
From my experience, there is a broad spectrum of people who support Canadian charities. Most of our donors are middle-income earners working in the private sector. Still others are blue-collar workers, and many work in the public sector. Some of our donors are low-income wage earners who have experienced poverty and want to help in any way they can, knowing from personal experience just how difficult life can be. Some come from very affluent backgrounds and have the ability to give very generously.
In Hamilton and Burlington our campaign has grown from $6.4 million in 2007 to $6.9 million in 2011. Corporate giving has grown from $1.5 million to $1.6 million in that same period, although the number of corporate donors has declined. As well, the number of individual donors has also declined, with fewer donors giving more money.
When I look at our investments in local programs and services, the demands far exceed our capacity. In fact, this year we anticipate a $600,000 shortfall between requests for funding and the amount of money we will actually be able to raise. We currently support 133 programs and services provided by 73 agencies in these two communities. Last year these agencies reported over 291,000 client visits. What is very much needed is a shift in philanthropic thinking. We must find new ways to encourage more individuals to step up.
I know that some argue that it is government's responsibility to provide for all social programs and services, but I am not foolish enough to believe that the government can or should be the sole provider of social services in our country. Changes to the income tax laws, similar to what is being proposed by Imagine Canada's stretch tax credit for charitable giving, provide an incentive to individuals to increase their philanthropic efforts. This is one method of rewarding those individuals who make a personal financial contribution to the social health of their community.
As a funder, I ask that changes to the tax legislation be made a priority. If additional dollars are not raised by the charitable sector, we will increasingly be faced with the prospect of defunding programs that our communities have come to depend on. The stretch tax credit is an easy win for us all, providing needed dollars to benefit all Canadians. You can greatly assist us by ensuring an enabling and predictable regulatory environment for Canadian charities that supports the important work we do. We are very proud of our partnership, and together we can ensure that a strong, vibrant, and secure Canada is available to all.
Thank you.