Imagine calls for stock donations without capital gains tax.

Toronto--Imagine Canada has asked all party leaders in the current federal election to back a controversial proposal to grant complete tax exemption on capital gains from on publicly traded securities that are donated to registered charities.

The proposal was immediately endorsed by Stephen Harper, leader of the Conservative Party. Other party leaders have not taken a stand on the issue. Harper estimated that the cost to the government would be approximately $50 million per annum.

This proposal has been before every finance minister since the late 1970s but no action has been taken.

In a letter to the four national party leaders, Imagine points out that "Charitable and nonprofit organizations are the cornerstones of our communities, acting as key partners to government in ensuring the best quality of life for Canadians." The letter says that the sector which "fills the gaps between government and private enterprise" is faced with heavy workloads, increased service demands, and shoe-string operating budgets. "Staff burnout and dwindling funding sources challenge the ability of the sector to serve our communities and those who need help the most--seniors, children and persons with disabilities."

Imagine asks that the federal government support the sector and offers these additional recommendations:

* Federal funding to the sector provide full cost recovery for overhead and administrative costs on the programs and services being delivered,

* Entrench the Accord between the Government of Canada and the Voluntary Sector and the Codes of Good Practice on Funding and Policy Dialogue in all relationships and contracts with the charitable and nonprofit sector,

* Extend the preferential tax treatment on capital gains to apply to other classes of capital assets such as real estate;

* that preferential treatment on capital gains be extended to private foundations. www.imaginecanada.ca