Your Guide to Charitable Giving

Donate to Charity

Sometimes that’s just a few dollars for those stamps, or money turned over via your child at school for things like Remembrance Day. In lieu of flowers at a funeral, we will write a cheque to the suggested non-profit. Some give every month to a charity they really believe in, others sponsor overseas children in need. Those with large incomes make charitable donations to support causes they believe in and help offset their taxes.
Whatever your story, be aware that you’ll probably give this year — maybe a lot, maybe just a little. Best to do so with an eye to the ethics and finances behind your giving. So in this post i will be trying to give you full fledged guide to charities.

Charity for Kids

The biggest downside of donating is you may end up supporting a group that doesn’t deserve your money, and may even be doing harm with it. Every few months or so, there’s a media scandal involving a charitable organization that is mismanaging funds, or something along those lines.

Whenever you give, do some due diligence to make sure the organization you’re supporting is legitimate and honest. (Of course, many scandals have involved large, well-known groups that seemed legit before. It’s almost impossible to tell when a high-profile organization is having problems.)
Revenue Canada has some specific suggestions for avoiding fraud. Best overall advice: use common sense at all times when giving money. When someone calls you or comes to your door, verify that these people work for the organization at hand, and check up on that group to be sure they exist and are legitimate and a registered charity. (You can search for registered charities here.)

If the person asking for donations is ever vague, hostile, or rushes you into giving money, walk away. Be sure you have a way to get back in touch with this group and that they have a working toll-free number and a web site.

Best non Profits

For many, one of the major draws to giving to charity is getting a tax receipt. Particularly if you have a high income, donations can do a lot to lower how much tax you pay at the end of the year.
An income tax receipt from a charity allows you to claim a nonrefundable tax credit on your tax form. This will lower the taxes you owe.

There are two charitable tax credit rates: federal and provincial. The federal government offers 15 per cent for amounts under $200 and 29 per cent for over that amount. The provinces have similar staggered rates: check here for a full list. After it’s all added up, your donation can be almost entirely tax deductible. (Note: if you have not been claiming donations, you can still claim gifts that are less than five years old in this tax year.)
To claim the credit you must have properly filled out receipts from a registered charity and include them when you file your taxes. Hence, it’s crucial to be sure your charity is registered and that you have contact information in case there is a problem with your receipt.

While there are financial incentives to donating your money over the course of the tax year, the other reasons — supporting causes you believe in and helping others — are equally important. But just like any other move that impacts your money, use your head just as much as your heart when you give.