Community Foundation News
The following news release was sent to Island media today.
NEWS RELEASE
Community Foundation Applauds New Federal Tax Change
Incentive is good news for donors and local charities
The Community Foundation of Prince Edward Island (May 10, 2006) -
Charitable giving got a significant boost from the federal government in
its recent budget, with a tax change that will benefit donors, community
foundations and the local charities they support, said John Robinson,
President of the Community Foundation of Prince Edward Island.
Canadians who donate stock to their local community foundation will now
pay no capital gains tax on the growth of those shares, thanks to the new
provision announced in the recent Federal budget.
"This is fantastic news for donors who want to make a difference in their
community and are looking for ways to reduce their tax bill at the same
time," said Mr. Robinson. "Community foundations saw a dramatic increase
in donations when the capital gains tax on shares was reduced. Eliminating
the tax on gifts of stock is an incredible incentive to give."
In 1997 the federal government reduced capital gains tax on donations of
stock 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.
A recent TD Economics report shows that Canadians hold $1.3 trillion in
stocks . almost half of which are unrealized capital gains.
"This change could translate into hundreds of millions dollars in new
donations," said Monica Patten, President and CEO of Community Foundations
of Canada.
In 2000, during the high-tech boom, more than 60% of community foundation
donations came in the form of securities. Last year community foundations
received more than $40 million in gifts of appreciated securities. "While
precise figures were not available for CFPEI," said Mr. robinson, "we are
noticing an increase in the number of donors making contributions through
the use of securities."
The Community Foundation of Prince Edward Island, established in 1993, is
governed by a Board representative of the Island. CFPEI awards grants to
charitable organizations; it also offers scholarships to individual
Islanders. Donors contribute to a number of existing funds as well as
create endowments in support of their personal charitable interests.
Contact: John Robinson
Community Foundation of Prince Edward island
Phone: 902-892-3440
Email: foundation@cfpei.ca
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