Tax Change is Good News for Charities & Communities - Community foundations say tax break will encourage more giving



    OTTAWA, March 19 /CNW Telbec/ - The federal government's decision to
extend a tax incentive to include private foundations will help philanthropy
continue to grow and will benefit charities across the country, says Community
Foundations of Canada (CFC), the membership organization for the country's
155+ community foundations.
    The May 2006 federal budget eliminated the capital gains tax on gifts of
appreciated securities when given to only public foundations, including
community foundations, and other charitable organizations. This provision will
now be extended to private foundations.
    The difference between a public and private foundation is that a private
foundation gets more than half of its capital from one source, and often has
family or other non-arm's length board members, while a public foundation gets
its capital from more than one source and has an arm's length board.
    "We all win when the government encourages people to give," said Monica
Patten, President and CEO of CFC, the largest network of public foundations in
the country. "This tax relief will be welcome news to existing foundations and
individuals eager to create and manage their own organization."
    Community foundations attract donors who want the benefits associated
with running your own foundation, but without the administrative component.
They are used by wealthy Canadians as well as those with more modest means.
    "Taxes are only one part of the equation for our donors," said Patten.
"They want to be involved in their giving and they want to see real results in
their community. We can connect them with the causes that matter most -- to
them and their community. Our deep knowledge of local priorities and
organizations is what our donors value the most."
    In 1997 the federal government reduced capital gains tax on donations of
publicly traded securities by 50 per cent. The result was a three-fold
increase in gifts of publicly traded securities to charities -- from
$69.1 million to $200.3 million between 1997 and 2000. The percentage of stock
donations jumped from 1.6% to 3.9% of all donations.
    Community Foundations of Canada is the national membership organization
for the 155 community foundations located in rural and urban communities from
coast to coast. Canada's community foundations hold collective assets of
$2.7 billion and contributed more than $137 million to a wide range of
charities last year.




For further information:

For further information: Anne-Marie McElrone, Community Foundations of
Canada, (902) 461-8284, (902) 223-0674

Organization Profile

Community Foundations of Canada

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FEDERAL BUDGET REACTION 2007

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