A new lobbying effort is being led by Donald K. Johnson, O.C. [BSc(EE)/57, LLD/08] a Canadian philanthropist and University of Manitoba graduate.
In 2006, the federal government eliminated the capital gains tax on gifts of listed securities when those securities were donated to a registered charity.
In an open letter to Prime Minister Stephen Harper and Minister of Finance Jim Flaherty, Johnson proposed that the federal government expand that tax credit to include gifts of private company shares and taxable real estate.
The letter, which ran in national and local newspapers including the Winnipeg Free Press in February, was signed by Johnson, University of Manitoba President and Vice-Chancellor Dr. David Barnard and other community leaders.
Johnson argues that donations of these assets to charities should have the same tax treatment as share donations of publicly listed companies. He also points out that both of these appreciated capital assets are exempt from capital gains taxes in the United States, and Canadian charities should have the same opportunity to access donations from the private sector.
Johnson’s pivotal point is that since the need for services provided by the not-for-profit sector has never been greater, and governments are struggling to decrease their budget deficits, expanding these tax credits would allow private sector companies to increase funding to not-for-profit organizations and decrease pressures on funding from governmental sources.
If you agree with these measures, we encourage you to contact your federal MP or the Minister of Finance. You can reach them via the Government of Canada website at http://canada.gc.ca/directories-repertoires/direct-eng.html#mp