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BUILDING the COMMUNITY SPIRIT PROGRAM Your Input Is Important

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BUILDING the COMMUNITY SPIRIT PROGRAM Your Input Is Important BUILDING THE COMMUNITY SPIRIT PROGRAM Your input is important www.communityspiritprogram.ca Improving Albertans’ quality of life SHARE YOUR FEEDBACK WITH US Table of Contents Part A. Background on the Initiative. 4 I. Overview. 4 The Origin of the Community Spirit Program. 4 Why is the Community Spirit Program Important to Alberta?. 4 MLA Committee . 4 Receiving Input from Albertans. 5 What is the Timeframe of the Consultation?. 5 II. Charitable Giving in Alberta - A Snapshot . 6 The Non-profit/voluntary Sector in Alberta. 6 Who Donates in Alberta and How Much do they Give?. 7 III. 2007 Alberta Budget Announcement on the Charitable Tax Credit Enhancement. 8 Part B. Discussion Questions. 10 Part A: Background on the Initiative I. Overview The Origin of the Community Spirit Program In December 2006, the Minister of Tourism, Parks, Recreation and Culture was asked by Premier Stelmach to lead the establishment of an MLA Committee to develop recommendations for a Community Spirit Program in the following areas: · Support increases in private charitable donations through tax credits · Establish a Community Spirit Fund to provide matching grants for eligible philanthropic donations to Alberta-based registered charities Why is the Community Spirit Program Important to Alberta? Two of the key priorities of our government are building a stronger Alberta and improving Albertans’ quality of life. “Albertans are already among the most generous and community-minded people anywhere. This committee will look for opportunities to further encourage and celebrate Albertans’ charitable giving and volunteerism.” ~ Premier Ed Stelmach As Albertans, we are fortunate to live in a dynamic and prosperous province. As our province grows, so do the demands for charitable giving. These initiatives will provide opportunities for Albertans to work in partnership with this government to give back to their communities in a real and tangible way, contributing to our overall quality of life. As a result of Albertans’ efforts, the spirit of giving, the spirit of sharing and the spirit of doing is strong in our communities. MLA Committee Members of the MLA Committee are: Gord Graydon, MLA for Grande Prairie-Wapiti (Chair) Tony Abbott, MLA for Drayton Valley-Calmar Moe Amery, MLA for Calgary-East Pearl Calahasen, MLA for Lesser Slave Lake Doug Griffiths, MLA for Battle River-Wainwright LeRoy Johnson, MLA for Wetaskiwin-Camrose Dave Rodney, MLA for Calgary-Lougheed Shiraz Shariff, MLA for Calgary-McCall 4 5 Receiving Input from Albertans The MLA Committee is interested in hearing from Albertans regarding the proposed Community Spirit Program. The information gathered from this consultation process will assist the MLA Committee in establishing the recommended program parameters for the Community Spirit Fund to ensure that it operates effectively and is sustainable. What is the Timeframe for the Consultation? This consultation process with Albertans will take place from early June until July 31, 2007. This workbook will be made available on the Community Spirit Program website (www.communityspiritprogram.ca), at local MLA constituency offices or upon request by mail. Responses will be analyzed and summarized for the MLA Committee’s consideration. The MLA Committee will submit their recommendations on program parameters to the Minister of Tourism, Parks, Recreation and Culture this fall. “This fund will enable government to partner with the charitable sector to continue to enhance Albertans’ quality of life. Developing the Community Spirit Program was one of the key priorities provided to me by the Premier. I look forward to hearing from Albertans through the committee’s recommendations.” ~ Minister Hector Goudreau 4 5 II. Charitable Giving in Alberta - A Snapshot The Non-profit/Voluntary Sector in Alberta The non-profit/voluntary sector affects all Albertans in every community in the province and directly contributes to building a stronger Alberta and improving Albertans’ quality of life. Over the course of their daily lives, many Albertans take the time to help others and better their communities by making charitable donations or volunteering their time to charities or non-profit organizations. According to Statistics Canada’s National Survey of Non-profit and Voluntary Organizations (NSNVO) conducted in 2003, there are approximately 19,000 non-profit/voluntary organizations in Alberta. Of these 19,000 non-profit/voluntary organizations, approximately 8,800 are charities registered with the Canada Revenue Agency (CRA). For the purpose of this workbook/questionnaire, the following definitions will apply to “Societies” within the non-profit/ voluntary sector and “Charities” registered under the Federal Income Tax Act with the Canada Revenue Agency (CRA). % of Albertans made either a financial or an in-kind 93 donation to a charity or non-profit organization. 82% of financial donations come from just25% of the donors. Category Definition Societies The group of approximately 19,000 non-profit and voluntary sector organizations are (typically) Incorporated“ Societies” under The Societies Act of Alberta. They are incorporated for any benevolent, philanthropic, charitable, provident, scientific, artistic, literary, social, educational, agricultural, sporting or other useful purpose, but not for the purpose of carrying on a trade or business. They are not able to issue official income tax receipts to donors for charitable donations. Charities Some of the approximate 19,000 non-profit/voluntary sector organizations (Societies) decide to apply for charitable status and register under the Income Tax Act with the Canada Revenue Agency (CRA). Once approved by the Canada Revenue Agency, these charities are referred to as “Registered Charities”. They are eligible to issue official income tax receipts annually to donors for charitable donations. Under the Federal Income Tax Act, the purpose of a registered charity must fall within one or more of the following categories: · The relief of poverty, · The advancement of education, · The advancement of religion or · Other purposes beneficial to the community in a way the law regards as charitable. In Alberta, there are approximately 8,800 registered charities under the Federal Income Tax Act with the Canada Revenue Agency (CRA). 6 7 Who Donates in Alberta and How Much do they Give? According to results from a national survey conducted by Imagine Canada in 2004, Albertans demonstrate a willingness to give not only their money in the form of donations, but also their time through volunteering. · Donors generally give for altruistic reasons, such as feeling compassionate about those in need (88%), believing in a worthwhile cause (88%) and wanting to contribute to their community (76%). · Albertans are most likely to make a donation as a result of being asked to sponsor someone in an event (35%), door-to-door canvassing (32%), church collection (32%) and in response to mail requests (27%). · 59% of donors contributed to health organizations. · Albertans are more likely to give spontaneously than to plan their giving but those who plan ahead make larger donations. Percentage of Donor Rate, by Selected Organization Type, Percentage of Donation Value, by Selected Organization Population Aged 15 and Older (Alberta, 2004) Type, Population Aged 15 and Older (Alberta, 2004) -' ,0 +0I\c`^`fe (- ?\Xck_ ,' ((JfZ`XcJ\im`Z\j ,>iXek$dXb`e^#]le[iX`j`e^ Xe[mfclekXi`jdgifdfk`fe +' *. *<[lZXk`feXe[i\j\XiZ_ ** *JgfikjXe[i\Zi\Xk`fe *@ek\ieXk`feXc *' (8ikjXe[Zlckli\ (CXn#X[mfZXZpXe[gfc`k`Zj )' /Fk_\i (. (+ (' 0 < < < - - < < * ' ?\Xck_ I\c`^`fe @ek\ieXk`feXc JfZ`XcJ\im`Z\j 8ikjXe[Zlckli\ JgfikjXe[i\Zi\Xk`fe <[lZXk`feXe[i\j\XiZ_ >iXek$dXb`e^#]le[iX`j`e^ CXn#X[mfZXZpXe[gfc`k`Zj Xe[mfclekXi`jdgifdfk`fe ;fefiiXk\ Lj\n`k_ZXlk`fejdXccjXdgc\j`q\ Source: Giving, Volunteering, and Participating in Alberta Findings from the 2004 Canada Survey of Giving, Volunteering, and Participating. Imagine Canada, Statistics Canada Survey Program 6 7 Donations Claimed by Individual Alberta Tax Filers for the Purposes of the Charitable Donations Tax Credit 2001 2002 2003 2004 2005 Donations (Millions) $671 $724 $811 $821 $1,116 Donations Growth (%) 6. 1% 7.9% 12.0% 13.7% 21.1% Personal Income Growth (%) 10. 1% 3.0% 4.8% 8.4% 9.1% Source: Statistics Canada 2006 III. 2007 Alberta Budget Announcement on the Charitable Canada Revenue Agency (CRA) Registered Charities Enhancement On April 19, 2007, the Government of Alberta announced a charitable tax credit enhancement for donations to charities registered under the Federal Income Tax Act with the Canada Revenue Agency (CRA). This means that Alberta’s portion of the tax credit for annual charitable donations over $200 has increased from 12.75% to 21%. Albertans, therefore, will receive $500 back in total federal and provincial tax credits per $1,000 in total donations over the $200 threshold. The first $200 in annual donations will continue to be eligible for the existing 10% Alberta tax credit. The enhanced charitable tax credit will be limited to donations made on or after January 1, 2007. Individuals will not be able to carry forward past years’ donations to 2007 to benefit from the enhancement. This enhancement heralds an important step that the provincial government has taken in its commitment to improve the quality of life of Albertans. It will complement the work of the MLA Committee in its examination of new ways to increase private charitable donations. The MLA Committee is eager to learn from Albertans, whether you are a donor, or a volunteer or work in the charitable/non- profit sector, about how you view this charitable tax credit enhancement and how this might help the sector by encouraging greater charitable giving in Alberta. 8 9 Building Stronger Communities through Giving, Volunteering and Participating 8 9 Part B: Discussion Questions All Albertans are encouraged to complete the questionnaire included in this workbook. Your response to the questionnaire will remain anonymous. Only aggregate data will be reported. Responses will be analyzed and summarized for the MLA Committee’s consideration and will not identify any personal information that may have been included in a survey question.
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