TORONTO, May 2, 2006 -- The federal government has eliminated the capital gains tax on gifts of appreciated securities made to charities. Finance Minister, Jim Flaherty, made the announcement on Tuesday, May 2, in the context of the federal budget. The government recognizes that donations made by individuals help build capacity in the charitable sector, which benefits Canada’s overall prosperity. This new legislation will make gifts of appreciated securities traded on North American and international exchanges an even more attractive philanthropic option for all donors.
“This is a huge opportunity for Canada’s charities,” said Susan Mullin, director of development at the York University Foundation and chair of the Association of Fundraising Professionals’ Government Relations Committee. “This policy change will dramatically enhance charitable giving in Canada. There are major donors across the country who have been waiting for this type of incentive so they can make their gift. The opportunities for organizations to build their capacity and expand their programs have now multiplied with this provision.”
This improved tax measure builds on the provision first introduced in 1997 that reduced the capital gains inclusion rate for gifts of publicly-listed securities by 50 per cent.
Donors to the York University Foundation wishing to make a gift to York of publicly-listed securities will be able to do so without triggering capital gains inclusion. This is best illustrated by the following example which outlines the approximate tax savings possible for a gift of securities with a
cost base of $40 and a current fair market value of $100:
Using appreciated securities to make a gift to York allows donors to have a larger impact than they may originally have thought possible, on an area of personal significance. Gifts of securities may be directed to a donor’s area of interest including student support, a specific program, York's libraries, international internships and much more. For even more impact, gifts may be eligible for one-to-one or even two-to-one matching through the OTSS, OGS or OGSST programs.
York University is the leading interdisciplinary research and teaching university in Canada. York offers a modern, academic experience at the undergraduate and graduate level in Toronto, Canada’s most international city. The third largest university in the country, York is host to a dynamic academic community of 50,000 students and 7,000 faculty and staff, as well as 190,000 alumni worldwide. York’s 10 faculties and 22 research centres conduct ambitious, groundbreaking research that is interdisciplinary, cutting across traditional academic boundaries. This distinctive and collaborative approach is preparing students for the future and bringing fresh insights and solutions to real-world challenges. York University is an autonomous, not-for-profit corporation.
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Media please contact:
Susan Mullin
Director of Development
York University Foundation
Office - 416-650-8210
Cell - 416-738-2025
mullins@yorkfoundation.yorku.ca
