Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 13, 2009, Winnipeg, Manitoba m y k a 03_ Jan 13 09_ Gray How the january 27 the2009 budget can strengthen Canadas charities during a period of economic crisis a tax effective stimulus for our not for profit sector to the right honourable Stephen Harper p. C., m. P. The honourable Jim Flaherty p. C., m. P. Prime minister of Canada minister of finance cd or. Michael Ignatieff m. P. Or. Gilles Dueppe m. P. The honourable Jack Layton p. C., m. P. Leader Liberal party of Canada be chef do bloc Qutb Cois Leader new democratic party Canadas universities hospitals social service agencies arts and cultural organizations and Community foundations Are facing unprecedented challenges As a result of the global financial and economic crises. With the collapse of the Stock Market during the past few months Many donors have been reducing the level of their charitable giving. Compounding the problem for charities is the decline in the value of endowment funds which were heavily invested in the Stock Market. Endowment funds have had to reduce their annual disbursements which provide crucial support for professors healthcare professionals researchers students and social service agencies. At the same time the Federal government is moving into a fiscal deficit at a time when it is under pressure to introduce economic stimulus programs in the upcoming budget. There Are Many policies that can be introduced to strengthen our not for profit sector. We Are proposing three specific measures that can be implemented immediately in the upcoming budget. They will stimulate greater private sector funding for charities. They Are also tax effective for both the donor and the government. The three proposals Are 1. Exempt gifts of private company shares from capital gains taxes 2. Exempt gifts of real estate from capital gains taxes 3. Level the playing Field Between arms length and non arms length employees who exercise Stock options and give the shares to a Charity within 30 Days. To address concerns about the valuation of private company shares and real estate the majority of which have a Low Cost base we propose that the donor would receive a tax receipt when the assets Are monetized and the Charity receives the Cash proceeds. The first and second proposals simply capitalize on the enormous Success of the governments measure to eliminate the capital gains tax on gifts of publicly listed securities. The third proposal would stimulate donations from family directors and executives of Public companies that Are family controlled. Private Canadian corporations and real estate represent huge potential sources of untapped charitable giving. In the u. S., gifts of private company shares and real estate Are already exempt from capital gains taxes. Now is the time to level the playing Field with the u. And unlock greater private wealth for Public Good importantly All four parties the conservatives the liberals the nip and the bloc quebecois unanimously supported the 2006 budget. There is every reason to believe that All four parties will support these measures As Well. Our not for profit sector employs 2.1 million canadians and provides essential services that Benefit virtually All canadians. It is also relevant that All six former prime ministers support these proposals in principle the right honourable Paul Martin Jean Chretien Brian Mulroney Joe Clark John Turner and Kim Campbell. There is nothing More important than for All of us to give Back to our communities. As Winston Churchill once said you make a living by what you get. You make a life by what you give al Hatton president & ceo United Way Canada Centra de Canada representing 119 members across Canada Pamela Fralick president & ceo Canadian health care association representing the federation of provincial and territorial Hospital and health organizations across Canada Linda Saunders regional director association for health care professionals representing 500 members across Canada Monica Patten president & ceo Community foundations of Canada representing 165 members Richard Ivey chair the Canadian Institute for advanced research Amanda Gellman chair government relations committee association of fundraising professional Asp Diane Mcdonald executive director Malcolm Burrows Canadian association of gift planners representing 1,330 members Clint Davis president & ceo Canadian Council for aboriginal business cab representing 61 members Donald k. Johnson c. M., member of the 2008 major individual giving Cabinet United Way of greater Toronto director Toronto general and Western Hospital foundation business for the arts advisory Board Richard Ivey school of business Toronto foundation for student Success chair vision Campaign Toronto we Stern Hospital. Nichole Anderson president & ceo business for the arts representing 50 members Jean Giguere chair 12th annual Canadian arts Summit Harvey p. Weingarten president and vice Chancellor University of Calgary David Naylor president the University of Toronto Paul Davenport president and vice Chancellor the University of Western Ontario Heather Munroe Blum principal and vice Chancellor Mcgill University Luc Vinet rec eur University de Montreal Tom Traves president and vice Chancellor Dalhousie University David Barnard president University of Manitoba a 03_ Jan 13 09_ Gray a1 1/ 12/ 09 5 32 36 pm ;