With tax time approaching, clients often ask about their charitable contributions from the previous year or are beginning to gather their donation tax receipts.
CPA BC has some important reminders to keep in mind when choosing which charities to donate to. Their reminder is clear- it’s important to be informed when spending your money, even when it’s giving to charity. You want to make the most informed decision, and know that the majority of your donation is going to the cause that you care about.
Their tips include:
- Ensure a Charity is registered. This can be done with a simple search on the CRA website. Link here.
- Find their financial statements
- Review how much percentage of your giving goes directly to the cause.
- Look for results. Do some research on what this charity is doing with their donations, and see if they are forthcoming with examples of how they are spending the donations.
To read the full article:
Four Important Things to do Before You Donate to a Charity
Online Tax Credit Calculator:
Another interesting online tool is the tax credit calculator. The Red Cross has a simple to use online calculator to determine how much tax credit you could receive depending on the size of donation.
https://www.redcross.ca/donate/donation-tax-credit-calculator
Cahill CPA Can Help!
Make sure to let us know when we are preparing your return, if you have made charitable donations this past year. We can help you determine how much to claim on your income tax return, what you might wish to carry over for next year, and give you advice on how best to maximize your donations in the future.