What's In It for Me? Video 2
Ever since you were a kid, you've seen charities in action. From car washes to bottle drives, to door-to-door canvassers, to concerts and events… and today you can even text a donation to many charities! Raising money for doing good is everywhere.
When you support charities, you help make a positive impact on the daily lives of all Canadians, including yours.
Not to mention that giving to certain organizations can have a positive impact on your personal bottom line.
We're the Canada Revenue Agency, and we've prepared this three part video series to talk to you about registered charities.
Okay… hang on a sec.
Have you ever stopped to think about the significant contributions that Canada's registered charities make to Canada, Canadians, and people around the world? It's pretty incredible.
Helping the disabled, youth and children, seniors, neighbourhoods, communities… feeding the poor and helping people have better lives, providing health research, education, and services. Museums. Music. Environmental causes. Religious organizations. All supported by your donation dollars.
If these organizations couldn't provide the services they do… it would be bad. Very bad.
So, their ability to survive and thrive is really tied to the money they receive from donors like you.
And when you give, you keep a key part of our charitable sector going, keeping the country's registered charities doing the helping work they need to do. So… when you give, you're making a difference—a difference that can be felt in every corner of the country and in places all over the world. Not a bad investment, right?
If you donate cash, goods, land, or listed securities (like stocks) to a registered charity or other qualified donees, you can get an official donation receipt and a tax credit.
That tax credit can be applied to your income tax and benefit return to help you reduce your income tax.
Let's crunch some numbers.
Your charitable claim earns you both a federal and provincial or territorial tax credit.
So A (federal tax credit) plus B (provincial or territorial tax credit) equal C (your total charitable tax credit). In certain cases, the benefit to you can be as much as half of what you give.
And you can benefit from donations of any amount—just make sure you have an official donation receipt.
If you dig a little deeper, you'll find that there are two charitable tax credit rates. Any amount you give above $200 is eligible for a higher rate.
Here are a few tax tips:
You can claim receipts up to five years after you've made a donation. So, it may be to your advantage to hang on to your receipts and then claim them all at once.
You can also combine your receipts with those of your spouse or common-law partner.
If this sounds a little complicated, don't worry. It's all laid out for you on our Web site at cra.gc.ca/donors.
Take a look at the site, and think about your giving patterns as they relate to… you guessed it—registered charities.
When you add it up… giving can be a pretty sweet deal!
This video is part of a series of three that explains the relationship between Canada's registered charities, the CRA, and you. If you think this series would be of interest to a friend or colleague, please send it to them. Thanks for watching!
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