Harper announces tax reductions for Canadian charities

January 7, 2006

Will eliminate capital gains tax on donations of stocks to charities

NEW HAMBURG – Conservative leader Stephen Harper today announced that a Conservative government would remove the capital gains tax on listed stocks donated to charities. This measure is part of the Conservative plan to reduce income taxes that includes a broad range of other measures announced in the campaign.

“Canadians have a proud tradition of charitable giving,” Harper said. “Governments should make it easier for Canadians to support charities of their choice.”

About one quarter of all Canadians give to charity, with the average donation being $1200. In 2004 the amount donated to the nearly 80,000 charities in Canada came to just under $7 billion dollars. Currently, donations of listed stocks to a registered charity pay only half of the normal rate of capital gains tax. Eliminating the remaining capital gains tax will cost $250 million over five years.

The charitable sector plays an invaluable role in helping Canadians and making our communities strong. They provide important services and often partner with governments to provide services Canadians need and depend on. Eliminating capital gains taxes on donations of listed stocks will put millions of dollars into this important sector – a sector which employs millions of Canadians whether as paid employees or as volunteers.

“Canadians should not be penalized when they contribute to charities,” Harper concluded. “That is why we are eliminating this tax on charities.”

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