As Canadians, we are fortunate to live in one of the wealthiest countries in the world. A recent study found that three of the world’s five most “liveable” cities are in Canada. However, with that advantage comes the opportunity to share with those who don’t have as much.
We all have been entrusted with a certain amount of social capital – money that will support those less fortunate than us. Much of this money is collected in taxes and administered through government program. However, there are also over 85,000 registered charities in Canada, so you are guaranteed to find one that you can believe in that does work you find meaningful.
Many people believe they do not have the funds available to them to donate. While at the same time, they resent the amount of income tax they pay. There is a simple answer to both of those concerns.
When you make a charitable donation to a registered Canadian charity, you can receive federal and provincial tax credits of up to 50% of the value of the donation. If you live in Alberta and give $1,000 to a homeless shelter, or a research facility, or an animal rescue foundation, or a youth sports organization, you will pay up to $500 less in taxes.
Basically, you are choosing to personally choose where your social capital is going to be spent instead of giving your money to the government in the form of income taxes and allowing them to make that choice for you through their programs.
You can visit CRA’s website to find out more information about registered charities.