March 20: CCVO's Budget Response

Elimination of capital gains tax on publicly-listed securities donated to private foundations
CCVO applauds this move and encourages the Federal Government to extend tax measures to include other asset classes and to consider measures that would benefit all charities and foundations.

Additional information on changes to capital gains tax on donations can be found on pages 382-389 of Annex 5 of the Budget Plan; highlights may be found here.

CRA regulations for charitable donations to private foundations are now available online.

An interpretation of legal issues can be found in Drache LLP’s 2007 Budget Commentary Charities - Be Careful What You Ask For!

No budget measures to support the recommended changes to Grants and Contributions?
A number of measures that support the reduction of the paper burden for Canada’s small businesses were outlined. We were disappointed that the government did not place similar priority on implementing the recommendations of the Blue Ribbon Panel which would reduce the paper burden and increase the efficiencies and effectiveness of government Grants and Contributions programs.

Following the announcement of February 14, 2007 by the Honourable Vic Toews, President of the Treasury Board of Canada, to improve how Grant and Contribution programs are managed, we look forward to the development of the action plan.

A short section on Reforming Grant and Contribution Programs may be found on page 187 of the Budget Plan; highlights may be found here.

Budget Items of Interest to Nonprofits and Charities

The government introduced several targeted measures like the Registered Disability Savings Plan (RDSP) and the Working Income Tax Benefit (WITB). The Registered Disability Savings Plan (RDSP) is a new tax measure that will allow families to shelter up to $200,000 from tax in a Registered Disability Savings Plan to finance care for a severely disabled family member. The Working Income Tax Benefit (WITB) will apply to the 2007 tax year, with payments of up to $500 for individuals and $1,000 for families starting in 2008.

More information on the Working Income Tax Benefit (WITB) can be found here.  More information on the Registered Disability Savings Plan (RDSP) may be found here.

Canada Summer Jobs Program
Earlier this year, the government introduced this replacement program for the Summer Career Placement Program cut in the fall. The new program is more targeted to create jobs for students in communities with high youth unemployment, in rural regions or high crime areas. Given Calgary's current low unemployment rate, there is some question of whether local not-for-profit organizations would be able to benefit from this program. Still, Calgary-based organizations that intend to recruit students from visible minorities and Aboriginal communities and students with disabilities may find that they are eligible for funding.

This program is part of the Youth Employment Strategy mentioned on page 132 of the Budget Plan; highlights, under A New Approach to Labour Market Training, are available here.

The deadline for applications for this program is March 30, 2007. Applications may be submitted online.

Cultural and Arts organizations
Budget 2007 contains several targeted measures for Canada’s arts and cultural sectors. Support for arts and heritage festivals may be found here.  The same section of the Budget Plan includes support for a summer student internship program specifically for museums; a description may be found here.

The Canadian Museums Association was surprised that despite verbal commitments of support for their sector, a promised museum policy and new funding did not materialize. View their press release here.

The Canadian Arts Coalition, Canada’s largest group of artists, arts executives and business leaders, issued a press release expressing their disappointment with the lack of attention in the budget for professional arts funding. View their press release here.

Similarly, the Professional Association of Canadian Theatres, a member-driven organization serving professional Canadian theatres and founding member of the Canadian Arts Coalition, voiced their concerns. View their press release here.

Literacy and Settlement Organizations
Local groups are reviewing the Budget Plan’s New Labour Market Program. In partnership with the Provinces, the new program is to include literacy skills building, support for newcomers and the recognition of foreign credentials. It is not clear how those measures might support literacy and settlement programs in Calgary.

Descriptions can be found in Chapter 5 in the Knowledge Advantage section of the Budget Plan; highlights of their approach to labour market training may be found here.  Highlights of budget measures to support immigrants can be found here and here.

Others responding to the budget

The Canadian Association of Social Workers, a national voice for the social work profession in Canada, has issued a press release.

Community Foundations of Canada, the national organization for rural and urban community foundations across Canada praised the extension of donor tax incentives to include private foundations. View their press release here.