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Katherine van Kooy, president and CEO of the Calgary Chamber of Voluntary Organizations, said she was shocked the PC government slashed the tax credit during an downturn when many social agencies had been subjected to “unremitting” demands when the economy was booming.

“When we’re looking at a downturn, that will probably push more people into situations where they need support,” Kooy said. “I don’t know where organizations are possibly going to get the resources to be able to respond to that.”

But the government maintains the credit rate of 21 per cent — introduced in 2007 under premier Ed Stelmach — was meant to encourage higher donations to charities, but didn’t prove to be as effective as anticipated and that donors are “often motivated by factors other than tax savings.”

Campbell was unavailable for interviews Friday, but in a statement said the tax credit had limited success in encouraging higher total donations — although he was open to reconsider the decision in a year.

“We have serious budgetary challenges and this was one of the many tough choices we’ve had to make,” he said. “I’m open to reviewing the tax credit in a year to see if there is evidence that the change has had an adverse impact to the non-profit sector.”

Campbell said Albertans typically donate in larger numbers and at higher rates than the Canadian average. “Albertans are generous donors with or without tax credits,” he said.

Kooy said it was odd the province would, on one hand, encourage Albertans to voluntarily contribute more to sustain and support charities, while not recognizing the importance of encouraging that support through the tax system.

“I find there’s something quite perverse about that,” she said.

Wildrose Leader Brian Jean has called for all the tax hikes in the province to be reversed, including the changes to the charitable donation credit.

In an interview Friday, Jean said he was “disgusted” by Prentice’s move on the credit.

“We should look at ways of increasing charitable giving, not decrease it,” said the Wildrose leader. “He’s destroying the opportunity for people to be encouraged to give.”

With files from James Wood, Calgary Herald

thowell@calgaryherald.com