Donation level and number of these types of donations fall to lowest
level since the elimination of the capital gains tax
TORONTO, May 13 /CNW/ - The financial crisis has impacted donors that
give appreciated securities to The Salvation Army, according to new figures
released today. For the year ended March 31, 2009, The Salvation Army saw a
$5.8 million, or 83 percent, drop in securities-related giving. While dollars
raised declined from nearly $7 million in 2007 to $1.2 million in 2008, the
number of planned securities gifts also declined precipitously from 289 to 142
- a 51 percent drop.
The Salvation Army is heavily dependent on donations and investment
income, both of which can be negatively impacted in challenging financial
times. Regular cash donations have seen a slight rise, but this increase has
been offset by the significant decline in gifts of securities due to the
decline in the markets. This net decrease in donations is especially worrisome
as demand for the organization's services continues to increase by 10-30% in
virtually every province.
"Clearly, the economic downturn is hitting charities hard," said Lois
Flemming, Territorial Director of Major Gifts and Planned Giving for The
Salvation Army. "As stock values have declined, so too have the number of
donors making gifts of publicly traded securities that generate millions of
dollars to help us serve people in need."
In the last few years, the number of appreciated security donations to
The Salvation Army rose, largely because of changes to Canadian tax law, which
eliminated the capital gains tax on gifts of appreciated securities which were
donated directly to charity. But, in 2008, that number dropped for the first
time to its lowest level since the approval of the new regulation in May 2006.
"Security giving was a trend that we saw increase dramatically after the
passage of the capital gains tax exemption," said Lois Flemming. "Now, we are
seeing fewer of these sorts of gifts and the gifts we are seeing are generally
smaller as would be expected in the current market."
The new data is being released in the midst of the Army's annual Red
Shield fundraising campaign. During the month of May, The Salvation Army is
raising funds and awareness for the more than 3.5 million Canadians living in
poverty today. As the largest non-governmental provider of service in Canada,
these funds support programs like the Army's shelter care, transitional
housing, substance abuse and employment training services. The Red Shield
Campaign is an annual event that has been a May tradition for 90 years.
"It's a double-whammy for The Salvation Army as an organization - as need
is increasing, these critical gifts decline," said Graham Moore, Territorial
Secretary for Public Relations and Development. "Our commitment to serving
those who need it most has not wavered, but we are increasingly reliant on
fundraising streams such as direct mail and online giving."
Securities may be transferred as a donation to The Salvation Army either
by electronic transfer through a broker, or by physical delivery of a security
document (e.g. stock certificate). To arrange a gift of securities or to
obtain more information on gift planning contact The Salvation Army by phone
at 1-800-SAL-ARMY or by email at firstname.lastname@example.org.
About The Red Shield Campaign:
The Red Shield fundraising Campaign is an annual fundraising and public
awareness campaign held annually in May. The Salvation Army utilizes online,
phone, direct mail and door-to-door appeals to solicit donations from generous
Canadians. Giving to The Salvation Army offers an opportunity to invest in the
future of marginalized and overlooked people in your community. 88 cents of
every dollar raised by The Salvation Army goes directly to support those
in-need. To learn more about the campaign please visit: www.SalvationArmy.ca
About The Salvation Army:
The Salvation Army is an international Christian organization that began
its work in Canada in 1882 and has grown to become the largest
non-governmental direct provider of social services in the country. The
Salvation Army gives hope and support to vulnerable people today and everyday
in 400 communities across Canada and 118 countries around the world. The
Salvation Army offers practical assistance for children and families, often
tending to the basic necessities of life, providing shelter for homeless
people and rehabilitation for people who have lost control of their lives to
an addiction. When you give to The Salvation Army, you are investing in the
future of marginalized and overlooked people in your community.
News releases, articles and updated information can be found at
For further information:
For further information: Andrew Burditt, Territorial Public Relations
Director, The Salvation Army, (416) 845-8231,