Charities, Charitable Fundraisers Applaud Enhanced Incentive for
OTTAWA, March 20 /CNW/ -- The Association of Fundraising Professionals
(AFP) today lauded provisions set forth in the federal budget released
yesterday that extend the elimination of the capital gains tax on gifts of
appreciated securities to include private foundations.
The elimination of the capital gains tax for such gifts to registered
charities in last year's budget has already increased gifts to many
organizations. The expansion of the provision to include private foundations
is expected to further increase giving.
"AFP has worked for many years to educate all levels of government about
the importance of charitable giving and incentives to encourage such behavior,
and clearly government is beginning to understand," said Susan Mullin, CFRE,
director of development at the York University Foundation and chair of AFP's
Government Relations Committee. "The charitable sector, including the critical
private foundation subsector, plays a huge role in improving the quality of
life for all Canadians everyday, and these giving incentives are critical to
make that happen."
The policy of eliminating the capital gains tax on gifts of appreciated
securities to charities is also proven to work. When the capital gains tax was
lowered by 50 percent for such gifts in 1997, a subsequent study showed a
marked increase in giving of securities to many different kinds of
organizations. Over a five-year period, gifts of securities went from being a
de minimis factor for most organizations to accounting for, on average, 10
percent of a charity's receipted donations.
AFP will now be encouraging the government to expand the provision
further to include gifts of real estate, as well as gifts of art.
"Much wealth in Canada is not only tied up in securities, but also in art
and real estate," said Paulette Maehara, AFP's President and CEO. "Applying
the capital gains tax exemption to gifts of art and real estate would create a
new and powerful avenue for private donors to make major impacts on charitable
organizations and the programs they provide."
AFP also called for the adoption of a government-sponsored day to
recognize and increase public awareness of philanthropy and charitable giving.
In previous years, a bill has been introduced in the Senate that would declare
Nov. 15 as National Philanthropy Day, a day that would celebrate the
achievements that philanthropy and charities have made in Canada.
For more information, contact Susan Mullin, CFRE, Chair, AFP Government
Relations Committee, (416) 650-8202, or Walter Sczudlo, AFP Executive Vice
President at (800) 666-3863, or email@example.com.
The Association of Fundraising Professionals (AFP) represents nearly
28,000 members in over 185 chapters throughout the world -- including 14
chapters and more than 2,500 members in Canada -- working to advance
philanthropy through advocacy, research, education, and certification
programs. The Association fosters development and growth of fundraising
professionals and promotes high ethical standards in the fundraising
profession. For more information, go to http://www.afpnet.org.
For further information:
For further information: Walter Sczudlo, Executive Vice President,
Public Policy, +1-800-666-3863, ext. 455, or Jason Lee, Director, Government
Relations, +1-800-666-3863, ext. 484, both of Association of Fundraising
Professionals Web Site: http://www.afpnet.org