Giving in difficult times

“Donating helps everyone – you the taxpayer and those in need,” says Chartered Accountant Rosa Maria Iuliano, Tax Partner, Collins Barrow Ottawa LLP in Ottawa.

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"Donating to Canadian registered charities has many benefits – both personal and tax wise. Not only are you helping out your neighbours, but you can also take advantage of the non-refundable tax credits. Donations are eligible for a federal tax credit of 15 per cent of the donation amount on the first $200 you donate, and increase to 29 per cent of the amount over $200. You can claim all or part of this amount to a limit of 75 per cent of your net income.” For gifts of certified cultural property or ecologically sensitive land, you may be able to claim up to 100 per cent of your net income. In addition, you will be eligible for a provincial tax credit. You can also claim donations on your income tax return. Often times, charitable organizations will not automatically provide receipts if the amount is less than a certain sum. However, you should always request a receipt, regardless of the amount. “You require the tax receipt to support your charitable donation deduction,” advises Iuliano. “So be mindful of whom you give money to. Be sure the organization is a registered charity and, if you are not sure, you can look on the CRA website ([url=http://www.cra-arc.gc.ca/tx/chrts/menu-eng.html]http://www.cra-arc.gc.ca/tx/chrts/menu-eng.html[/url]) to confirm the registration.” Brought to you by the Institute of Chartered Accountants of Ontario.