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In their open letter to The Right Honourable Paul Martin, P.C., M.P., Prime Minister of Canada and The Honourable Ralph Goodale P.C., M.P., Minister of Finance, the coalition group acknowledged that one public policy initiative throughout Canada does have the support of the Conservatives, the Bloc Quebecois and the New Democratic Party. The proposal is to make a simple amendment to the Income Tax Act to eliminate the remaining capital gains tax on gifts of listed securities. In the letter they stated this action would stimulate greater donations to every area of the charitable sector across Canada. The beneficiaries would be their universities, hospitals, the United Way/Centraide, community foundations, research institutes, and arts and cultural organizations. They noted that the 50 percent reduction introduced in the 1997 budget led to over $1.5 billion in additional gifts of stock, including pledges. One dramatic example took place at the United Way of Greater Toronto, where the total gifts of stock rose from only $44,000 from 1956 to 1996 to more than $24 million from 1997 to 2005. Canadians would also be surprised to learn that the not-for-profit organizations in Canada employ over 2 million Canadians. These charities are vital to making Canadian communities desirable places in which to live and work. The proposal from the coalition group is recognized as being tax effective, as it is estimated to cost the federal government only $50 million in foregone annual tax revenue. Further, they opine the cost would be shared equitably among the donor, the federal government, and the provinces. For a typical gift of stock, the federal government would provide tax assistance of 40 percent and the provinces 20 percent, leaving the donor’s after-tax share at 40 percent. Very importantly, there is no tax revenue cost to municipalities and most charities are located in cities. They also noted that the mayors of 24 cities from every Canadian province have, on behalf of their charities, written letters of support to the Finance Minister. The group concluded their plea by urging the Prime Minister and the Minister of Finance to implement this proposal as part of the fall fiscal update. They reported this action to remove the final barrier to charitable giving and allow their charities to tap into the generosity of Canadians. Individuals with modest incomes but significant stock assets have often said they would be willing to make significant donations upon passage of this measure. Most important for AHP, the sector, and philanthropic giving is the simple fact that this coalition formed around a burning issue that would be beneficial to all parties involved. While AHP has provided some coordination and support for our government relations efforts in Canada, it is only through the expertise, commitment and hard work of Pearl F. Veenema, FAHP, our government relations chair, and Cathy Chrones, CFRE, our AHP Canada regional director, in positioning AHP and AHP Canada effectively in this proposal. Finally, we want to thank all involved for the leadership provided and for arranging to have this appeal published as a full-page ad in the Globe and Mail. A copy of the coalition’s letter can be reviewed on the AHP Web site or can be seen in the Friday, October 21, 2005 Report on Business section of the Globe and Mail newspaper. conferences | membership | fund | education | roundtables | bursaries | government issues |
