The 2013 Federal Budget contains a number of items that will be of interest to charities. The government references a continued dialogue with the charitable sector on measures that can increase the number of Canadians making donations. Initiatives promoted by the charitable sector, such as the ‘stretch tax credit’ or capital gains tax relief on donations of private company shares or real estate were not included. Many of the recommendations contained in the Report of the Standing Committee on Finance – Tax Incentives for Charitable Giving in Canada (February 2013) remain just that – recommendations.
That said, there are measures of interest – a good summary is found in the Charities and Not-for-Profit Newsletter published by Miller, Thomson, a Toronto law firm.
Canada Cultural Investment Fund: Endowment Incentives Component
For large charities, extremely positive news in the Budget – the $10 million limit on matching funding through the Endowment Incentives Component of the Canada Cultural Investment Fund is being increased to $15 million for the life of the program ( 2015.)
Economic Action Plan 2013 announces that the Endowment Incentive component of the Canada Cultural Investment Fund will increase to a maximum benefit of $15 million over the life of the program, an increase of 50 per cent. The Endowment Incentives Component of the Canada Cultural Investment Fund helps promote corporate philanthropy and private investment in the arts by providing government grants to match private sector donations.
Starting in 2013, the amount of funding an arts organization can benefit from, over the life of the program, will increase from a maximum of $10 million to $15 million, an increase of 50 per cent. This will help ensure that large arts organizations such as the National Ballet of Canada, the Orchestre symphonique de Montreal, the Banff Centre and the Stratford Festival can continue to demonstrate leadership in building private sector support, while maintaining access to the program for small- and medium sized arts organizations. With this program adjustment, the Government of Canada is taking concrete steps to help ensure that Canada’s arts and culture sector contributes to a strong economy, with arts organizations becoming more resilient and self-sustaining through the continued support of the private sector