More organizations than ever are doing fundraising.
Over the last few years, tax law changes in Canada have made it more appealing for us to give to charities. It’s therefore no surprise that this month (also the month of Christmas) is the one of most donations in the year.
Statistics Canada says we give $13 billion annually, and 40% of that is given in the last 6 weeks of the year.
Donations bring us tax credits. Donating under $200 per year gives a tax credit of 15%, and if it’s above $200 it almost doubles, to 29% (this latter rate is the highest Federal tax rate).
If the Federal Liberals follow through on their campaign promise to raise the top tax bracket rate from 29% to 33%, the question then becomes whether charitable donations above $200 will receive that higher tax credit rate as well.
If they do, the incentive for many Canadians (not just “the top 1%”) to donate will increase dramatically. Stay tuned.
This ad ran in the Richmond News on December 4, 2015.