Media Release

May 8, 2006

The Community Foundation of Ottawa applauds new federal tax change - incentive is good news for donors and local charities

(OTTAWA) – Charitable giving got a significant boost from the federal government in its recent budget, with a tax change that will benefit donors, community community foundations and the local charities they support," said Barbara McInnes, President and CEO of the Community Foundation of Ottawa.

Canadians who donate stock to their local community foundation will now pay no capital gains tax on the growth of those shares, thanks to the new provision announced in Tuesday's budget.

"This is fantastic news for donors who want to make a difference in their community and are looking for ways to reduce their tax bill at the same time," said Barbara McInnes. "Community foundations saw a dramatic increase in donations when the capital gains tax on shares was reduced. Eliminating the tax on gifts of stock is an incredible incentive to give."

In 1997, the federal government reduced capital gains tax on donations of stock by 50 per cent. The result was a three-fold increase in gifts of publicly traded securities to charities -- from $69.1 million to $200.3 million between 1997 and 2000. The percentage of stock donations jumped from 1.6% to 3.9% of all donations.

"This change could translate into hundreds of millions dollars in new donations," said Monica Patten, President and CEO of Community Foundations of Canada. In 2000, during the high-tech boom, more than 60% of community foundation donations came in the form of securities. The Community Foundation of Ottawa saw its assets triple in six months over that period. Last year, community foundations received more than $40 million in gifts of appreciated securities.

The Community Foundation of Ottawa is a public, non-profit organization created by and for the people of Ottawa. It connects donors who care with causes that matter and serves as a trusted resource for addressing issues and leveraging opportunities in the community. It attracts and manages a growing endowment, the invested earnings of which provide grants to charitable organizations. The Foundation's role is as neutral broker in support of all charitable causes that contribute to the community's quality of life. With its growing profile, the Community Foundation of Ottawa has built an enviable reputation for astute financial management, high-quality donor services, strategic grantmaking and innovative partnerships.

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Contact:
Iona Green

Senior Associate, Marketing and Communications

(613) 236-1616 X 232

Cell (613) 791-3128

igreen@cfo-fco.ca