Honourable senators, I rise today to speak at second reading of Bill S-279, An Act to amend the Income Tax Act (data on registered charities).

I thank Senator Omidvar for introducing this bill which seeks to promote diversity in the upper echelons of leadership in Canada’s growing charitable sector by collecting and disseminating diversity data on the directors, trustees, officers or like officials of registered charities. This was one of the many recommendations from the Senate’s seminal report on the charitable sector from 2019.

Only once we have access to this data will we be able to paint a clearer picture of the level of diversity in our charitable sector. Canadians will then be better positioned to further help promote, encourage and advocate for greater diversification of leadership. We will know where there are shortcomings, where there is room to grow and where to focus our efforts.

For data is knowledge, and without knowledge, how can we improve the world we live in?

But first, we need the data.

If federally regulated companies are required to provide this data to the Canada Revenue Agency, I have no problem with charities and non-profit organizations doing the same.

Promoting diversity in the leadership of Canadian charities will have many positive effects on the millions of Canadians they serve.

We often underestimate this sector’s contribution to our economy. Charities often fill a void that the government is unable to fill, making them an essential part of Canada’s well-being and prosperity.

It is estimated that there are over 170,000 registered charities and non-profit organizations in Canada. The sector represents 8.7% of Canada’s GDP and employs roughly 2.5 million people. Some 13 million Canadians give their time to charitable organizations.

These figures are astonishing, and something to be proud of.

I strongly believe that organizational diversity could improve performance significantly. When corporate management and leadership teams are constructed with gender and racial diversity in mind, they are far more likely to outperform teams that are not as diverse.

Canada is increasingly more diverse, and we need leadership to be equally diverse in order to better serve the needs of our population. The top needs to be a reflection of the reality on the ground.

Additionally, the more diverse an organization is, the higher their employee retention rate is likely to be. Creating a place where diverse ideas and people are promoted is critical to building a healthy work environment. This starts with diversifying leadership.

And a positive, healthy workplace environment is especially critical for charities that depend on volunteers and people’s willingness to contribute their valuable time. Developing a space where employees and volunteers feel welcome and supported by their leaders is key to retaining them for years to come and to lowering training costs and staff turnaround.

Finally, as we all know, good ideas are about more than just intelligent individuals. They are about a group of people from diverse backgrounds working together to find the right solutions. Canadian charities are being called upon more than ever and are under increased pressure to meet the growing needs of our citizens. Their success will depend heavily on smart ideas from our brightest and most diverse individuals, and these bright minds need to be in leadership roles.

As I always say, manage results and you will get results. If you manage activities, you will get activities. Managing results should always be prioritized over managing activities. Managing diversity will lead to results and should be managed.

If we want to make real and lasting progress in diversity in this country, we must know what we are working with. This starts with Bill S-279 and the obligation to publish non-specific statistics on diversity in leadership positions within the charitable sector.

We need to have this raw information available to help spread diversity across all levels of the charitable sector. Bill S-279 is a modest, but necessary first step in putting diverse teams at the helm of Canada’s charitable organizations. Naturally, this should help charities better serve their clientele.

When Senator Ratna Omidvar spoke to the bill at second reading in February, she reminded us of a critical issue this industry is facing. She said, “The sector might espouse diversity in its rhetoric, but it has yet to fully implement it in practice.”

As our honourable colleague reminded us, evidently, there is a gap between rhetoric and practice that needs to be closed.

Organizations, foundations, non-profits and charities are all committed to diversifying, but I predict the data we will eventually collect — should this bill become law — will show us that much work still needs to be done to be truly representative of the Canadian population. This bill is not about shaming anyone. It’s about improving and getting better.

Not only are the efforts of this bill meaningful, but they have been well-received by industry leaders.

Prior to my appointment to the Senate, I served on the board of many non-profits. I reached out to friends, former colleagues and experts in the charitable sector, and I have received very positive feedback on Bill S-279.

One industry expert welcomed this initiative and felt the additional reporting requirements would likely not be onerous. This is good news because we don’t want to add more administrative work for charities that are already often short-staffed.

Another colleague felt Bill S-279 would help make Canada more inclusive and saw this bill as a definite step in the right direction.

Diversity is a no-brainer. As a former banker and senior executive at the Royal Bank of Canada, diversity was part of our DNA. We recognized early the positive impact diversity could have on our organization at all levels, particularly in the top echelons.

The list of advantages of having a diverse workforce is long. It can expand global business opportunities. It can strengthen relationships with the people it serves, whether they are clients, customers, patients, suppliers or other important stakeholders. It can enhance creativity, innovation, capacity and decision making. It can enhance organizational reputation. It can improve recruitment and retention of top talent. It can lead to greater growth and return on investment. It can improve corporate culture and brand identity. The list goes on.

The business case for diversity is undeniable. All of these advantages lead to bottom-line results, whether measured by profits, shareholder value, customer satisfaction, the effective delivery of programs and services or the number of new products brought to market.

While this bill may not be the cure to a lack of diversity in Canada’s charitable and non-profit sector, it will help us confirm the diagnosis.

The first step in addressing an issue on such a scale is by assessing where we stand now because if we do not know where we stand, we will never know how far we must go.

Bill S-279 is truly a win-win situation for all parties involved. It should promote good business practices for charities, provide more opportunities for diverse Canadian talent and should also help in better serving Canadians.

A vote in favour of this piece of legislation is a vote in favour of the advancement of diversity in our country.

If we want to put the pedal to the metal with conviction and ambition, we first need to know what’s hidden underneath the hood. Only then can we hit the road, cross the finish line and get to a place where diversity is an integral and natural part of the charitable sectors’ top brass.

I know what you are all thinking: More changes to the Income Tax Act? Is the act not already overly complicated, convoluted and burdensome for Canadian taxpayers, businesses and tax professionals? I agree that the act desperately needs reform and simplicity. After all, it’s only 3,400 pages in length.

Adding new provisions to the act is not ideal. However, if passed, the bill would only add a few additional sentences to the act. I think it’s well worth it.

Honourable colleagues, I want to end my remarks by thanking Senator Omidvar once again for introducing this bill and for being a strong and vocal advocate for the charitable sector. As we know, our colleague will soon be retiring from the Senate.

In her honour, in support of our charities and in solidary with Canada’s diverse population, I think it would be wonderful if we agreed to send her bill to committee before the summer break so it gets one step closer to the finish line. We should all get behind this bill.

Thank you, meegwetch.