SURREY – Charitable giving got a significant boost from the federal government in its recent budget, with a tax change that will benefit donors, community foundations and the local charities they support, said Dan Effa, Surrey Foundation’s President.

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 Effa. “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.

A recent TD Economics report shows that Canadians hold $1.3 trillion in stocks – almost half of which are unrealized capital gains.

“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. Last year community foundations received more than $40 million in gifts of appreciated securities.

The Surrey Foundation is a non-governmental community foundation that accepts donations and endowment gifts to hold in trust and invest for the citizens of Surrey. Managing funds of over $800,000, the Foundation supports community needs, responds to local issues or concerns, and encourages initiatives that provide opportunities to improve the welfare of our community and its residents.


Media Contact:
Danielle Callens
Surrey Foundation
P: 604-591-2699
info@surreyfoundation.org