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Charitable Donations

Updated: Jun 6, 2019

"We make a living by what we get, but we make a life by what we give."

- Winston Churchill


In our communities, people fall on hard times and need a hand up. Worldwide, children are born into poverty every day.


If you have surplus and could help someone else, then you might consider donating to a worthy cause. By donating funds to a charitable organization, you are giving the experts in the field the resources they need to carry out vital work and make the biggest impact possible.

How do you choose a cause to support?

Select a charity that is aligned with your values and that will make you feel good!


Make the most of your money

In recent years there is concern regarding how much of the funds raised are used to cover the administrative costs of a charity versus how much is allocated towards the actual mission. There is nothing wrong with doing a little due diligence prior to contributing.

Consider concentrating your donation to one or just a few charities because each charity has costs associated with processing donations.


For example: a donation of $100 to a single charity might cost $2 in processing fees, but the total processing fees for donations of $10 to ten different charities could be around $20.


Think globally

Expand your sense of community and give to charities that help the world's poorest: those who live with less than $1.90 per day.


In Peter Singer's book "The Life You Can Save" he recommends also contacting the government to ask that our country's foreign aid is directed to the world's poorest people.


"Of course, we have to respond to our immediate family, but, once they're okay, we need to expand the circle. A larger sense of family is a radical idea, but we get into trouble as a society when we don't see that we're in the same boat."

- Chuck Collins, Responsible Wealth


Donate Shares

Some charities will also accept gifts of publicly traded shares and stock options. If you donate this way, you may be eligible for an inclusion rate of zero on any capital gains realized on the exchange of shares gifted. Contact us if you are considering this type of donation and we can provide guidance.



Save Tax

The Government of Canada encourages Canadians to donate by issuing a tax credit for citizens who give money to registered charities. The Government of Canada Charitable Donation Tax Credit Rates lists the tax credit percentages used in calculating the amount taxpayers get back after filing their tax returns.


Depending on your income bracket and province, and the amount you donate, the tax credit ranges from 25% to 42%. A simple example taken from the Government’s website is that someone who earned $40,000 in 2017 and donated $700 to charity would get $300 back in tax credits the following year.


Contact Us

There could be other points to consider based on your personal situation. We are happy to discuss your circumstance and come up with a donating strategy that works best for you.

info@ggtcpa.com

403-475-8033


"No one has ever become poor from giving."

- Anne Frank


The information in this publication is current as of May 9, 2019.


This publication has been carefully prepared; however, it was written in general terms and should not be seen as legal or tax advice. This publication should not take the place of professional advice specific to your own family circumstance. GGT Chartered Professional Accountants, its partners and employees do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken based on a decision made in relation to the concepts discussed in this publication.

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