Charitable Donations Can Bring Significant Tax Benefits

One of the many options to consider when making a charitable donation to the Dave Greber Freelance Writers Awards is to donate stock.  The tax savings for this type of giving can be larger than you think. 

Most people in Canada give primarily for altruistic reasons and many are not aware on how tax credits for charitable donations work in Canada and can be of benefit.  Tax credits for donations to registered charities are available to individuals for both the federal and provincial portions of your income tax. The federal rate is standardized across Canada and the provincial rate will vary from province to province. 

Tax Benefits of Donating Stock
A recent article in the Calgary Herald by Mario Toneguzzi called “Charitable Giving Has Social And Tax Benefits” talks about the various reasons that prompt people to make charitable donations and touches on the tax advantages available for those donating securities that have appreciated in value.  The author spoke to several individuals in the investment industry on the benefits of donating stocks.  In the article, he quotes Jo-Anne Ryan, vice president of philanthropic advisory services for TD Waterhouse, who said:

“"People do give a lot of stock that government eliminated the capital gains for donating securities in the federal budget of 2006. So a lot of people have really gotten used to donating securities when they have appreciated in value,” . The article goes on to say that TD Waterhouse runs the Private Giving Foundation, an independent public charity dedicated to encouraging charitable giving that has donated more than $16 million to charities.  Ryan also pointed out that:

"(Alberta) has the most generous tax incentives for charitable giving compared to any other province," says Ryan. "If you make a donation, you're going to get a tax credit of 50 per cent right back. And of course if you donate securities, you're going to eliminate the capital gains that you would normally have to pay. If you were to sell that security, 50 per cent would be taxed as income."  "Good tax incentives to give," she says.”

Quick Tax Credit Calculator
To find out both the federal and province by province basic tax credits available to individuals for donations,  please view the CRA Charitable donation tax credit calculator, HERE.  As an example, a $1000.00 donation made by a resident of B.C. in the 2010 tax year would be eligible for a combined tax credit of 389.72.

Charitable Donation Tax Credits Deadline
The April 30th deadline for individuals to file their tax returns for 2010 has now come and gone but  the CRA deadline for self-employed individuals to file their personal tax returns is still upcoming on June 15 so for many there is still time to make your donation for the 2010 tax season.

Our Green the Award fund raising campaign is on now.  Green is the symbol of growth and greening the earth and is also the colour of a twenty-dollar bill. When you donate $20.00 you will contribute to the growth of the awards.Help us achieve this year's goal of ten thousand dollars by making a donation online, by mail, or by calling us at the Jewish Community Foundation of Calgary at (403) 640-2273 or toll free at (877) 271 3283