Demographics another Reason to Support 29to42

Yesterday the Parliamentary Budget Officer Kevin Page issued a report indicating that the federal government has a structural deficit that will grow to almost $19 billion in 2013-14. A major reason for this is our demogrphic challenge: more people will be retiring (draw Old Age Security and CPP payments) than joining the workforce (thus earning incomes and paying income tax).

Be prepared to hear a lot more about this, not just as it relates to the federal government's budget but almost every area of life. For example, in the recent study of Generosity in Canada published by Cardus a few months ago, we looked at the implications for giving, volunteering, and belonging and concluded that the civic core of Canadians who do their disproportionate share in support of charities is shrinking by 1-2% per year, with demographics playing a significant role in this. We are doing further research regarding the implication of this for the supply and demand of charitable services in the decade to come. Obviously measuring this precisely is a challenging task but the basic narrative is clear - supply is going down while demand is going up.

Demographics are just another reason why it makes sense for the federal government to structurally address the issue of capacity in the charitable sector. Cardus' proposal to increase the charitable tax credit from 29 to 42% for charitable donations would provide the tools for charities to work to broaden their constituencies of support. If you haven't yet, sign the 29to42 manifesto and pass the word on to your friends asking them to do the same.