In the majority of circumstances, when you donate to charity you are eligible for a tax receipt. This receipt – if you claim it on your tax return – can reduce the amount of income tax you owe.
But if Canadian’s are fully entitled to claim their charitable tax receipts, why are so many of us failing to declare them when its comes to filing our income tax returns? Is it, perhaps, because the benefits of doing so aren’t always clear?
So then, why claim your charitable tax receipts?
Your giving costs you less – somewhere between 40% and 53% less, depending on what province you live in*.
And when you’re giving costs you less, it means you’ve got a little bit more money in your pocket. Which actually means you’ve got a little bit more money to use towards creating the change you want to see in the world – and growing your charitable impact.
A win win situation, don’t you think?
The majority of Canadians don’t give to charity purely to receive a reduction in their tax obligations, they give because they want to see change in the world. However, donors giving to charities (and other qualified donees) are entitled to receive, and claim charitable tax receipts. In fact, by not claiming your tax receipts, you don’t save charities any money – your donations just cost you more.
Did you know that the Canadian Income Tax Act was drafted to create a financial incentive for Canadians to give charitably? In other words, the tax receipt helps you to make the most of your generosity. And if you’re looking to optimize your impact, claiming your charitable tax receipt this year is an important step.
The majority of engaged donors give to more than one charity each year, which can cause trouble when managing and tracking your tax receipts. Filing tax returns is a headache without having to worry about finding receipts buried in email or folders around the house. When giving with CHIMP, your total donations and tax receipts are all stored in one place, and are easily accessible online at anytime – regardless of how many charities you choose to support. This means your charitable admin is all taken care of. Easy, fast, and tax efficient!
So this year, be sure to report your charitable donations and claim the tax credits that you’re entitled to. And with a CHIMP Account, doing the same thing next year will prove easier than you ever imagined.
*After your first $200 given every year.