Charities

Children charities in Canada

Children charities in Canada work to advance equality and rights and improve the lives of children and their families. Charities such as Plan International, the Canadian Children’s Shelter of Hope Foundation, and Canadian Feed the Children are actively working to overcome poverty and child vulnerability.

Canadian Children's Shelter of Hope Foundation

Founded back in 2007, the foundation offers shelter, care, dental and medical care, and education to children and their families. It provides financial and material support to help children reach their potential by offering tuition financing (https://www.lifeoncredit.ca/), scholarships, and treatment to children with disabilities. One of its main initiatives is the building of a medical services centre that will offer speech, medical, and physical therapy to children with special needs. The charity collaborates with the PEACE Punta De Mita Foundation, Banderas Bay Charities, and other partners.

Plan International Canada

Plan International works to achieve equality and advance rights for girls by supporting communities, families, and children. The main focus areas include education, sanitation and water, healthcare, participation in decision making, and economic security. Plan International helps families to find income sources and build sanitary facilities to have access to clean water. It also offers programs with a focus on child protection to address problems such as school corporal punishment and child trafficking. Other focus areas include sexually transmitted diseases, support and care for youth and children living with AIDS and HIV, and urgent relief for emergencies.

Canadian Feed the Children

This charity works with communities and local partners to develop initiatives with a focus on environmental sustainability and gender equality. Canadian Feed the Children offers programs that enable children to access primary education and early childhood development centres and to have balanced meals at school. Its main goals include climate action, quality education, and poverty eradication. By collaborating with local partners, the charity provides financing for snack, lunch, and breakfast at schools in First Nations communities and offers nutrition education to local communities and families.

Save the Children

Save the Children is a Canadian charity that works to improve the lives of marginalized and vulnerable children. The charity is committed to increasing literacy levels in indigenous communities that face problems such as high rates of incarceration, homelessness, poverty, and unemployment. By partnering with Scholastic Canada and the Maskwacis Cultural College, the charity delivers books to indigenous communities and educational organizations and programs in Saskatchewan and Alberta. Save the Children also works to improve access to healthcare services in First Nations communities in areas such as mental health, child, infant, and fetal health, and maternal health. The charity also runs emergency and resilience programs to help children and their communities to recover from disasters. It works with Inuit, Metis, and First Nations communities and offers resources, emergency training, and emergency plans to ensure that children are safe in times of crisis.

Other charities that work to improve the lives of children include UNICEFF Canada, Starlight Children’s Foundation Canada, and Rainbows for All Children Canada.

Charities

Tax Benefits for Charitable Donations

Canadians who donate to charitable projects and organizations are entitled to receive benefits in the form of charitable tax credits.

Eligible Donations

Tax credits can be claimed for donations made to qualifying donees, including the UN and its agencies, registered public and municipal agencies and municipalities, and registered housing corporations and Canadian arts service organizations. Donations made to national amateur athletic associations and charities also qualify.

Types of Eligible Donations

Eligible donations include money and capital property such as cottages and equipment, buildings, and land in rental or business operations. Securities are also eligible gifts, including bonds and stocks. Other gifts of value that qualify for tax benefits include prescribed debt obligations, capital stock shares in mutual funds, and rights, debt obligations, and shares on stock exchanges. Businesses and individuals can also claim benefits on donations such as ecologically sensitive land, immovable and real property, and inventory. Personal property is also eligible and is classified as listed personal property. This category includes items such as coins, stamps, and rare books, manuscripts, and folios. Other examples of personal property to donate include jewelry, sculptures, paintings, drawings, etchings, and prints. Finally, cash also qualifies for tax benefits, be it in the form of bank drafts, money orders, or cheques.

Donations made to charitable organizations in the U.S. also qualify, given that the business has an income stream in the U.S. In some cases, charities are required to return donations under law. If a charity receives donations for a certain project or initiative that is not held, all cash and assets received must be returned to the donors.

Documents Required

Canadians claiming tax benefits should keep the receipts received from charities, together with proof of payment such as a bank statement, stub, or credit card slip https://www.lifeoncredit.ca/top-6-secured-credit-cards-for-canadians/. When donating cash, receipts must include details such as the eligible amount, advantages received by the person donating, gift amount, and address and name of the donor. Other details that receipts must include are the year and date of receipt of the gift, location of receipt, CRA’s registration number, unique serial number, and address and name of the registered charity. When donating capital property and other non-cash gifts, the receipt must include details such as description of the gift, date of receipt, and address and full name of the appraiser.

Calculating Tax Benefits

Canadians may claim up to 75 percent of their net incomes, except for ecologically sensitive land on which 100 percent may be claimed. For example, if you donate $500 to a charitable organization, a 15-percent federal tax rate applies to the first $200 and a 29-percent rate applies to the remaining $300. The combined credit will be $30 (0.15 percent x $200) + $87 (0.29 percent x $300) = $117. A territorial or provincial tax rate also applies. If the donation was made in Alberta, for example, a tax rate of 10 percent applies to the first $200 and 21 percent to amounts over $200. Thus, the combined tax credit will be $20 (0.10 percent x $200) + $63 (0.21 percent x $300) = $83. The combined federal and provincial credit is $200 ($117 + $83). The highest provincial tax rates on the first $200 are in Quebec (20 percent) and Manitoba (10.80 percent) and the lowest rates are in Nunavut (4 percent) and Ontario (5.05 percent). The highest tax rate on amounts over $200 is also in Quebec (24 percent).

It is important to note that donors are only eligible to get tax refunds on tax owed. Canadians who do not owe any taxes are not eligible to receive a refund. If a charitable organization gives to a donor tickets, passes, or anything else of value, it is treated as an advantage and must be deducted from the donated amount to calculate the eligible amount.