P.E.I. charities hope to make capital gains tax break on donations an election issue

Ten non-profit organizations and charities on P.E.I. have taken out a full-page newspaper ad calling on the federal party leaders to remove the capital gains tax on gifts of private company shares and real estate, if they form government after the Oct. 21 election.

The groups include the United Way of P.E.I., Big Brothers Big Sisters, the Confederation Centre of the Arts Foundation and the Queen Elizabeth Hospital Foundation.

Fred Hyndman, chair of the board of the Confederation Centre of the Arts Foundation, said the groups are asking that the issue become part of the election platform and discussion.

He said he wants the federal government to extend capital gains tax relief for people who give proceeds of the sale of a private business or land "in the same manner that is enjoyed by people who own and donate shares of publicly traded companies."

Same principle

"The principle is exactly the same but the treatment is very different," he said.

It's very very important to hospitals and organizations. Fred Hyndman

"It's very very important to hospitals and organizations, many of which are listed on that ad,which will benefit them. They need all the help they can get, as you can well imagine. The publicly traded program has been part of Canadian tax law for a very long time and it works very well. And I believe this would as well."

The group said their proposal will resonate with small business owners who want to give back to their communities, "particularly in a smaller place like Prince Edward Island where many businesses and enterprises and firms are privately owned, family owned."

"The day comes when they get sold, the proceeds become taxable as capital gains. And if the option was available to donate some of those proceeds to a charitable organization, why I think people would take that choice."

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