In late December 2006, the Federal Standing Commitee on Finance released Canada: Competing to Win, a pre-budget report that includes recommendations to guide the development of the Federal Government's 2007 budget.

The report includes the following recommendations that are specific to the voluntary sector:

Elimination of Capital Gains Tax on Certain Donations Recommendation 20

The report recommends that the Income Tax Act be amended to:

• eliminate capital gains tax on donation of publicly listed securities and ecologically sensitive lands to private foundations for a five year trial period; and
• eliminate the capital gains tax on the donation of real estate and land to publuc charities and private foundations for a five year trial period .
• Donors should be allowed to make charitable contributions for 60 days beyond the end of the calendar year for inclusion in the previous year's income tax return.

Tax Measure to Recognize Volunteer Activity Recommendation 21

That the government study the feasibility of a tax measure that would recognize and reward hours of volunteer activity. The study is to be completed by September 30, 2007.

Funding for the Arts Recommendation 22

The report recommends that funding increases be considered for:

• The Canada Council for the Arts (over $300 million in two years)
• The Canadian Broadcasting Corporation
• The Canadian television Fund
• Telefilm Canada.

To see other recommendations for health, Lifelong learning, incentives to work, competitive communities, environment, arts and culture, international trade and international aid, and more, visit the Standing Committee on Finance online.