Budget 2012: No New Donation Incentives
No new measures to increase incentives for charitable giving.
Budget 2012 focuses largely on measures dealing with the perceived lack of transparency and accountability concerning charities devoting their resources to political activities. This will create new challenges for registered charities conducting political activities, but generally speaking the scope and impact of this budget is not as broad as that of 2011.
It is worth noting that Budget 2011 established a new House of Commons Standing Committee on Finance for the study of how current tax incentives for charitable donations might be improved. Alas we will have to wait until 2013, but the sector remains hopeful as Budget 2012 at least confirmed the Standing Committee will continue to review submissions.
Let’s have a quick look at one of those. The Canadian Association of Gift Planners (CAGP-ACPDP™) proposes encouraging and enabling Canadians to meet their philanthropic goals by supporting the following planned giving incentives:
• Stretch Charitable Tax Credit: This incentive is a broad measure in which increases in giving year on year receive increased tax recognition.
• Gifts of Real Estate: This incentive means that the capital gains realized on gifts of appreciated real estate would be exempt from tax.
• Gifts of Private Company Shares: This incentive extends the exemption from tax on capital gains realized on gifts of public company shares to the capital gains realized on the disposition of certain gifts of private company shares.Source: Carters.ca, Charity Law Bulletin No. 280, March 30th 2012; Miller Thomson, Charities and Not-for-Profit Newsletter, March 2012; CAGP-ACPDP™ Submission to the House of Commons Standing Committee on Finance Study on Tax Incentives for Charitable Donations.