The real cost of charitable donations
Sylvain Moreau, Tax Partner at Raymond Chabot Grant Thornton, is now a columnist for the Journal de Montréal and the Journal de Québec. His first column on charitable donations was published December 1, 2016 in these two major Québecor newspapers. You can read his regular column in the Argent – Dans vos poches (Money in your pocket) section. Here’s an excerpt of the article:
Many organizations ask us to contribute to their fundraising campaigns for numerous, varied causes. While all of the causes may be worthy, we are instinctively drawn to those that particularly hit home.
For the usual emotional reasons, we let ourselves be convinced to make a charitable donation to these organizations without really thinking about the true cost of our action.
Since the amounts are not necessarily significant, the whole point is not to reduce our taxes but rather to contribute to the cause. But are you truly aware of what your donation is costing you? Would this information encourage you to give more? Let’s take a closer look!
Planning is worth the effort
Since your donation qualifies for a federal and provincial credit, this can indeed significantly decrease your tax bill. So charitable donations could be worth it. It gives back on two levels: contributing to the cause you’ve chosen and reducing your tax bill. A charitable donation made while you’re alive can also be an important component in your estate planning.
Planning donations can be very useful for reducing the tax impacts on death. Let’s try and determine the real cost of your donation as well as any benefits it can have on your tax bill… Read the rest of the article (in French only) also published on the Journal de Montréal website.