Mr. Speaker, I appreciate the opportunity to lend my strong support for today's motion, introduced by the member for Kitchener—Waterloo, to look at ways we can better support Canada's charities. I had the honour to second the motion.
Let me applaud the member for Kitchener—Waterloo for the great job he has been doing here in Ottawa for his constituents. Since his election in 2008, he has proven to be a strong advocate for members of his riding, ensuring that their interests are at the table, as well as contributing to the debate on national issues with great insight and innovative solutions.
He is building on that record with today's forward-looking motion that would have the Standing Committee on Finance conduct an in-depth study on how we could better support the great work of charities in Canada through our tax system.
The member for Kitchener—Waterloo has put forward a strong method for studying an issue, getting members together from all political parties, bringing together the best minds on the issues, bringing in all the charity groups, both small and large, holding public hearings and then coming up, after all of those consultations, with the best recommendations.
I understand that the members of the finance committee welcomed this idea and are more than willing to set aside time to look at this important issue. Indeed, all parliamentarians understand the importance of charities and their tireless work in communities across Canada. Every day, charities both large and small play an invaluable role in the daily lives of Canadians in need and much more.
As Ray Pennings of the noted social policy think tank Cardus observed in the Telegraph Journal recently:
Of Canada's 161,000 charities and non-profits, two-thirds report annual revenues of less than $100,000. Yet, they all combine to provide services, many of them essential, which enrich the social, physical, and spiritual lives of Canadians.
A strong charitable sector including universities, hospitals and hospices, arts and sports groups, poverty and publishing programs, synagogues and churches, provides ways for Canadians to be their best and show compassion to the least.
Charities are not vehicles for greed, excess or profit. They are the products of our generosity, kindness and creativity--vital components of a healthy society without which financial economies cannot thrive.
The recent global economic downturn also highlighted the vital role charities play in our communities and towns, especially in those communities that were harder hit. In recognition of that vital work, the study the member for Kitchener—Waterloo is proposing is the right thing to do. I know all parliamentarians agree that we need a healthy and strong charitable sector. That is something that benefits all Canadians.
I would also hope they believe we need to ensure charities, and the people who tirelessly give of themselves with those charities, have the right tools to keep doing the great work they perform in helping those in need. Canadians value the work of our charities through their generosity, both in time and in financial support.
Indeed, Statistics Canada shows that Canadians given approximately $8 billion to registered charities each year. What is more, over 80% of the population aged 15 or older will make a financial donation in any given year. Even better, nearly 12.5 million Canadians, roughly half of our population, will volunteer about two billion hours of their time to help charities in their communities. That is great to hear and we applaud all those Canadians who give of their time and some of their hard-earned money to support charities. Our Conservative government has understood the importance of encouraging and supporting those who give to charities.
The tax system provides many incentives for Canadians to give generously. The charitable donations tax credit is the most prominent and long-standing incentive in the tax system. The tax credit encourages charitable giving by providing higher tax assistance as donations increase. Specifically it forgoes 15¢ in tax revenue for every dollar donated up to $200, and 29¢ for every dollar donated above that $200 mark. Our Conservative government has built on that tax credit with further incentives to encourage increased giving to support Canada's charities.
Indeed, since taking office in 2006 we steadily have been increasing the generosity of the charitable donation tax incentives. For instance, in 2006 we completely exempted capital gains on the donation of publicly listed securities to public charities. We also extended the exemption of donations on ecologically sensitive lands to public conservation charities. In 2007 and 2008 we further extended the exemption of donations of publicly listed securities to private foundations and to certain donations of exchangeable shares. When those positive tax incentives were announced they were really very well received by Canadians at the time.
Community Foundations of Canada applauded it and exclaimed, “We all win when the government encourages people to give. This tax relief will be welcome news”. Philanthropic Foundations Canada also applauded it as well, remarking, “This tax change will spur donations and enable private foundations to do even more for Canadian communities”.
I am happy to report that in the years following the introductions of those numerous tax incentives the results have been extremely positive and the action effective. Indeed, listen to what was reported in the Toronto Star, which is no fan of our government, in January which I will quote at length: “In 2006, the federal government changed the tax laws to make donations of securities to registered charities exempt from capital gains taxes”.
“It has become much more accessible for the average donor”, said CanadaHelps' chief executive officer, Owen Charters. “We've been quite surprised by the popularity. It was small steps at the beginning, but it has really grown”.
Last year about $1.2 million in donations of securities went through CanadaHelps. That is up 65% from the year before, and it is an approach that is becoming more and more popular as more Canadians learn about the tax advantages.
Canadian hospitals, universities and charities have gained millions of dollars from donations of securities. “We're definitely seeing an increase in this type of giving”, said Julie Gorman, vice-president of resource development for United Way.
However, we realize there is much more to do. During the worst of the global recession we have seen the number of Canadians making tax supported donations fall. We have also heard concerns about the rising average age of Canadians making donations along with the fears that some Canadians may be falling out of the habit of donating. Indeed, as noted through the recent survey findings from Imagine Canada, a national organization representing Canada's charitable and non-profit sector, half of the charities surveyed felt some degree of financial pressure.
Clearly, we should take this opportunity, as parliamentarians, to determine what more we can do in a fiscally responsible manner through Canada's tax system.
The motion of the member for Kitchener—Waterloo provides an excellent opportunity for parliamentarians to do just that. Once more, it will allow us to do that by hearing directly from those involved in the good work of Canada's charities. I strongly support this motion. I urge all members to support it as well, and I applaud the member for Kitchen—Waterloo.