While Canada, as a whole, is donating more, the number of
individuals who are donating has decreased. Fewer charities
are benefiting from the generosity as those who give tend to favor
a few select charities. The Stretch Tax credit is an example of a
current initiative that promotes giving. Charities are going to
have to evolve to appeal to the masses and to find additional ways
for people to give (e.g. donation of time, products, etc.).
Please see related article in today's Toronto Star
Canadians need to reverse troubling trend on charitable
A smaller percentage of Canadians are giving to charities than
in the past, though those who do are giving more. As a society
we're digging deeper into fewer pockets. It's not a healthy
By world standards Canadians are generous givers. Collectively
we reported giving nearly $8.5 billion to charities in 2011, a
2.6-per-cent hike, according to Statistics Canada and Revenue
Canada. That's an average $1,482 per tax filer, a fairly hefty
sum at a time when many find it hard to make ends meet.
Ontarians on average gave $1,668. And in Toronto, it was
But despite this healthy impulse to support Canada's social
fabric, Imagine Canada and other groups that promote
charities and non-profits warn that a worrisome trend is taking
hold. Relatively fewer people are giving than in the past. Those
who do — and people who make $80,000 or more give half of all
donations — are giving more. As a society we're digging
deeper into relatively fewer pockets.
In 2011, about 5.7 million Canadians reported charitable donations on their tax
returns. That's 23 per cent of all tax filers, down from 23.4
per cent the year before and significantly down from 29.5 per cent
in 1990, when 5.5 million contributed.
This disconnect spells trouble not only for the churches and
religious causes that top donors' giving lists, but also for
universities, colleges, hospitals and a panoply of community
services and foreign aid agencies that rely on private generosity
to better the lives of millions of people. A donor base that
shrinks relative to the growing population leaves charities
vulnerable as demands on them increase.
Alert to the problem, successive Liberal and Conservative
governments have adjusted federal tax policy to encourage wealthy
donors. Deduction limits have been raised and incentives have been
increased for donations to charities and foundations not only of
property, but also of securities and ecologically sensitive
Imagine Canada has also lobbied Ottawa for a measure known as
the Stretch Tax Credit that would provide an
incentive for donors to increase their giving year over year. There
is evidence that such a credit could significantly increase the
median donation — the point at which half of those claiming a
donation gave more and half less. It was $260 nationally in 2011
and $320 in Ontario. The stretch credit would also encourage more
people to become donors. The Commons finance committee has urged
the government to explore it.
These relatively modest median numbers serve as a timely
reminder, too, that even small donations add up. So here's a
thought to carry through 2013: By setting aside a loonie a day for
charity, less than the cost of a cup of coffee, anyone can be a
leader in building up the fabric of their community, and help
reverse a troubling trend.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
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