Free No Slide Title - Canada

Giving to charity: Information for donors

Who regulates registered charities in Canada?

The Canada Revenue Agency
·

What does the Canada Revenue Agency (CRA) do for charities?
· · · ·

registers charities under the Income Tax Act; offers advice and guidance on operations; audits and ensures charity compliance with tax requirements; and revokes registration when necessary.

·

What does the CRA do for you?
·

It offers useful information about donating to charities via its Web site at www.cra.gc.ca/donors and its toll-free phone line at 1-800-267-2384.

Canadians and giving
·

There are more than 82,000 registered charities in Canada. In 2005, more than 5.8 million Canadians donated almost $8 billion to charity. About 25% of Canadians claimed a donation on their tax return in 2005.

·

·

How can giving to charity reduce my income tax?

Tax savings for donors
·

You can reduce your income tax by making a donation to a registered charity. To be a registered charity, an organization must have one of the following charitable purposes:
· · · ·

·

the relief of poverty; the advancement of education; the advancement of religion; or other purposes that benefit the community in a way that the courts have determined are charitable.

Tax savings for donors (continued)
·

rates)

Federal tax credits (based on 2006 tax
On amount of Donations up to donation above $200 $200 Federal Tax Credit 15% 29%

·

Provincial tax credits may be available. The amount of the provincial tax credit varies between provinces.

Tax savings for donors (continued)
·

Donations can be made in cash, goods, land, or securities. You must have an official donation receipt to claim a tax credit. Maximize your tax credits:
·

·

·

Combine your donations for multiple years on a single year's tax return. You have 5 years to report a donation. Combine your donations with those of your spouse or common-law partner and report them on a single return.

·

How can you protect yourself against charity fraud?

Learn and confirm
·
·

Why should I learn more about a charity before I donate to it?
To confirm that an organization is registered with the CRA, and is, therefore, authorized to issue official receipts for income tax purposes. To make sure that you understand and support the charity's activities. To help protect yourself against fraud.

· ·

·
·

How do I learn and confirm?
1. Internet

2. Telephone

Learn and confirm online
·

Consult the CRA's Charities Listings, an online, searchable list of every registered charity in Canada. Using the listings to access a charity's Registered Charity Information Return. Each return includes:
· · ·

·

contact information; a description of the charity's activities; and financial information such as income, expenditures, assets, and liabilities.

·

Visit the charity's Web site to learn more about its work.

Learn and confirm by phone
Contact the charity by phone to:
· · ·

ask for its annual report; learn more about its finances or fundraising activities; and confirm that it can give you an official receipt for your donation.

Contact the CRA
·

Call 1-800-267-2384 to confirm that a charity is registered.

Protect yourself from fraud
Learn and Confirm
· ·

Research the charities you want to support. Beware of copycats who use names similar to those of respectable organizations.

Take Action
·

·

Don't donate if you are highly pressured to give immediately or are offered a receipt for more than you actually donate. These are signs of fraud. Write cheques to organizations and not to individuals.

Protect Yourself from Fraud
Take Action (continued)
·

If you have concerns about a registered charity's activities or practices, contact the CRA at 1-800-267-2384. If you suspect you have been a victim of fraud, contact Phonebusters, the Canadian anti-fraud call centre, at 1-888-495-8501, or online at www.phonebusters.com.

·

Thank you!
For more information, visit our Web site at www.cra.gc.ca/donors