Mr. Speaker, I am pleased to have this opportunity to discuss Bill C-239, which proposes to amend the Income Tax Act to increase the tax deduction for individuals with regard to charitable gifts to registered charities.
First, the government recognizes that charities are vital to the well-being of our society. They touch the lives of all Canadians, inspire us through the arts, enlighten us through education, heal us through institutions and medical research, support us through hard times, and make our nation the caring and inclusive society that has earned Canada a world-wide reputation for compassion and a social conscious.
I am proud to say that Canada has one of the largest charitable and non-profit sectors in the world. Estimates suggest that Canada has more than 170,000 charities and non-profit organizations, making it the second largest in the world.
Approximately two million people are employed by these organizations, representing 11% of the economically-active population. The sector represents $106 billion, or 8.1%, of Canada's GDP, making it larger than our automotive, retail, or manufacturing industries.
Remarkably, more than half of the charities in Canada are run entirely by volunteers. Through their work, these individual volunteers are living proof that the dedication of one's time to improve the quality of life of people who need a helping hand is a cornerstone of a healthy civic life and a vital exercise in leadership. Volunteers are remarkable people who make a real difference in people's lives without seeking monetary reward.
At the same time, the government recognizes and supports the vital role that thousands and thousands of Canadians play in providing their generous financial support to the sector in recognition of its important work. To support Canadians in this charitable giving, the government provides tax incentives for charitable donations, which have been described as being among the most generous in the world.
For example, registered charities are exempt from tax on their income and may issue official receipts for donations received. Donors may use those receipts to reduce their taxes by claiming the charitable donations tax credit for individuals or the charitable donations tax deduction for corporations. Also, for most taxpayers who give more than $200, the charitable donations tax cut eliminates any tax payable on most donations and reduces other taxes payable.
Taken together, federal tax assistance for charitable donations exceeded $3 billion in the last fiscal year. Certainly, these incentives have an important role to play in supporting a strong and effective charitable sector in Canada.
Charities are also highly diverse in their revenue sources. Some depend primarily on donations from the public, some raise considerable income from fees, while others operate relatively from the support of businesses. Still others depend highly on funds from the federal and provincial governments. However, as we have seen, the most remarkable support for charities in Canada is from Canadians themselves.
According to a 2015 Statistics Canada General Social Survey, 82% of Canadians made donations to a charity or non-profit organization. Furthermore, only 26% of donors chose the income tax credit as a primary reason for making a charitable donation, while 91% chose compassion toward people in need, and 88% chose personal belief in a cause.
Canadians know that charities play a vital role in our communities and provide valuable services to Canadians. However, like Canadians—