The elimination of the disbursement quota in Budget 2010 is a welcome change for the charitable sector, and we applaud the Federal Government for taking this step. Several other changes had been proposed to the Minister of Finance which would increase the flow of funds to charities in the wake of the recent recession. These included proposals from Imagine Canada, Cardus, and the CD Howe Institute for an enhanced donation tax credit – which would provide increased tax recognition for gifts from ordinary Canadians to the extent that their charitable giving increased from previous years – as well as proposals for tax exemptions for capital gains realized on charitable gifts of real property and private company shares.
Unfortunately, it appears these changes will have to wait until subsequent budgets. We continue to hope that the Minister of Finance will work with the voluntary sector to develop changes to the current tax and regulatory regime that will further support the charitable sector.