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This would be a good time for the Canadian government to eliminate the tax deductibility of charitable donations.
Or at least reduce it to pre-2000 levels. It’s done a lot of damage, transferring public funds into questionable private hands, and this was just a slice of it.
Or at least reduce it to pre-2000 levels. It’s done a lot of damage, transferring public funds into questionable private hands, and this was just a slice of it.
Most Canadians who give to charity say they’d do so even without any tax benefit. Canadians are not big charitable givers, and most do it out of conviction. But there is a significant slice of wealthy people whose in-kind and monetary donations are tax strategies
The widening of deductions early in the 2000s facilitated a big rise of “social enterprises” — profit-seeking companies that have charitable status in order to get donations (which are in good part redirected public funds).
I should note that the majority of tax-deducted charitable donations in Canada go to religious groups.
Would eliminating tax deductibility of donations hurt legit charities? No, it would benefit them, if Ottawa, instead of allowing wealthy individuals to redirect its funds, instead used that tax revenue to fund charities directly.
And they’d still get 95% of their donations
And they’d still get 95% of their donations
Instead, we have a situation where Ottawa loses tax revenues in order to have funds directed to religions and flaky social enterprises that send rich kids on poverty-tourism trips.
That forfeited tax income could be granted to real charities at a far greater level than now
That forfeited tax income could be granted to real charities at a far greater level than now
