Trent University Welcomes Charitable Giving Incentive in 2006 Federal Budget
FOR IMMEDIATE RELEASE
Wednesday, May 3, 2006, Peterborough
Representatives from Trent University and the Trent University Foundation applauded today the federal government's announcement of a provision in the 2006 budget to eliminate capital gains tax on gifts of appreciated securities.
"We are delighted that the federal government has come through on its commitment to charities," stated Trent president and vice-chancellor Bonnie Patterson. "This measure demonstrates the government's recognition of the invaluable role the charitable sector plays in making our communities strong."
Dianne Lister, Trent's vice president, external relations and advancement, emphasized the magnitude of the impact on Trent and other charitable organizations.
"Donations of stock or other securities to charity could increase by 50% as a result of this incentive," she noted. "Some economists are estimating that this could provide more than $100 million in additional funding to charities across Canada. This is very welcome news for the charitable sector, and great news for our donors, whether they have small or large portfolios to draw upon. At Trent, many students and vital research projects are going to benefit from this new support."
Dianne Lister is a member of the Canadian Government Relations Committee of the international Association of Fundraising Professionals (AFP). AFP has been a constant leader on this issue since 1997.
Indeed, the federal government's announcement represents the culmination of many years of dialogue between the government and the charitable sector. President Patterson had written most recently on this matter to Minister of Finance Jim Flaherty during pre-budget consultations in April 2006. Walter Howell, Chair of Trent University's Foundation, had raised the issue with the previous government and commended the Honourable Jim Flaherty for his decision.
"Many of us who are active in the charitable sector had been urging the federal government to make this incentive a priority for some time," commented Mr. Howell. "This not only provides a wonderful opportunity for donors to increase their giving today, but it also opens up significant opportunities for individuals to plan their giving later in life as well."
The Conservative Party's election platform included the stated intention to eliminate the capital gains tax on donations of publicly-listed securities to charities. Support for this measure was expressed by all Parties, underlining widespread and strong endorsement for seeing the measure included in this government's first budget.
In her submission to the Minister of Finance during pre-budget consultations in April, President Patterson had emphasised that an innovative philanthropic strategy can best be supported by a federal tax framework that unleashes new investments, adding to the university sector and complementing the government's own economic agenda.
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