Charity Begins in Your Heart
I believe that the saying goes “Christmas is a time for giving.” But while that may be true, there is an easy way to give all year round, and it’s something that both the federal and provincial governments recognize that this is a valuable undertaking — so valuable in fact, that a tax break is given to those who donate when they file their income tax.
There are many charities in need of funds. I have five charities to which I donate each year. If I donate $200, the federal government will give me a tax credit of 15% or $30. On this same $200, the government of Alberta gives me a tax credit of 60%, for a dollar amount of $120. Therefore, I receive a combined tax credit of $150. (My $200 donation only puts me out of pocket by $50).
After $200, the tax credit rates change. The federal government gives 29% for any amount over $200, and the provincial government gives 21% for any donation over $200. So, if you donate $1000, you will receive tax credits of $262(federal) and $288(provincial) for a total of $550.
The above examples are all for Alberta residents. Every province sets its own tax credit rates, which you can check following this link.
Whether it be your place of worship, the SPCA, Cancer Research, Heart & Stroke, the Alberta Retired Teachers Charitable Foundation, or the numerous other places that need our support, consider giving. Every little bit helps. Choose where you would like your donation to go. However, make sure to check to see if your donation is going to a registered charitable organization. Only registered charities can issue tax receipts.
The Canada Revenue Agency has a helpful list of charities that are approved to issue tax receipts. Beware scammers who are pretending to be charities but will keep the money for themselves!
And, as always, this information is for educational purposes only. Please ensure that you contact an accountant, lawyer, or other financial professional if you have questions about charitable giving this holiday season, or throughout the rest of the year.
Enjoy the season. Spread the cheer.
Lawrence Hrycan
ARTA Treasurer and Pension and Financial Wellness Chair