Key Takeaways
- Charitable giving in Canada is declining, with fewer Canadians donating and a lower value of donations.
- The percentage of taxpayers reporting donations decreased from 20.1% in 2013 to 17% in 2023.
- Canadians are giving a smaller share of their income to charity, down from 0.55% in 2013 to 0.52% in 2023.
- Manitoba leads the country in charitable giving, with 18.7% of taxpayers donating and 0.71% of aggregate income given to charity.
- Quebec and Newfoundland and Labrador have the lowest share of income donated, at 0.27%.
- Canadians give less than Americans, with U.S. residents donating about 1.03% of their income in 2022, roughly double the Canadian rate.
Introduction to Charitable Giving in Canada
Charitable giving in Canada is on the decline, according to the Fraser Institute’s latest generosity index. The study analyzed tax returns to track private donations across the country and found that fewer Canadians are donating, and the value of donations has also fallen. This trend is concerning, as charitable giving plays a crucial role in supporting various causes and organizations that benefit society as a whole. The decline in charitable giving in Canada is a complex issue, and understanding the underlying factors is essential to addressing this trend.
Decline in Charitable Giving
The study shows that in 2013, just over 20% of taxpayers reported giving to at least one organization, while in 2023, that number had dropped to about 17%. This decline is significant, as it indicates a decrease in the number of Canadians who are willing to support charitable causes. Furthermore, Canadians are also giving a smaller share of their income, down from 0.55% in 2013 to 0.52% last year. This decrease in the percentage of income donated suggests that Canadians are becoming less generous over time. The decline in charitable giving is not limited to the number of donors and the value of donations; it also affects the overall percentage of income donated.
Regional Variations in Charitable Giving
Generosity varies across the country, with some provinces leading the way in charitable giving. Manitoba leads in both the share of people donating (18.7%) and the percentage of income given (0.71%). Ontario follows, while Quebec ranks third for participation, with 17.1% of taxpayers reporting donations. On the other hand, Quebec and Newfoundland and Labrador have the lowest share of income donated, at 0.27%. New Brunswick saw the smallest proportion of donors at 14.4%. These regional variations suggest that there are differences in cultural, economic, and social factors that influence charitable giving across the country.
Comparison with the United States
The report also notes that Canadians give less than Americans. In 2022, U.S. residents donated about 1.03% of their income, roughly double the Canadian rate. This difference is significant, and several factors likely contribute to it, including income, tax treatment of donations, age, education, religion, and volunteering. Understanding these factors is essential to addressing the decline in charitable giving in Canada and identifying opportunities to increase generosity. The comparison with the United States highlights the need for Canadians to re-examine their charitable giving habits and consider ways to increase their support for various causes and organizations.
Conclusion
In conclusion, charitable giving in Canada is declining, with fewer Canadians donating and a lower value of donations. The decline in charitable giving is a complex issue, and understanding the underlying factors is essential to addressing this trend. Regional variations in charitable giving suggest that there are differences in cultural, economic, and social factors that influence generosity across the country. The comparison with the United States highlights the need for Canadians to re-examine their charitable giving habits and consider ways to increase their support for various causes and organizations. By understanding the factors that influence charitable giving, Canadians can work towards increasing their generosity and supporting the various causes and organizations that benefit society as a whole.
