It’s April: spring time, blossom time and…. tax time! While many of us scramble to make donations to our favourite charities by the end of December, it’s really in April that we see the usefulness of our generosity from a tax perspective.
Our tax system provides a great incentive for making gifts to charities like the Comox Valley Community Foundation. “Donors get a credit against any taxes they pay on their income,” explains local accountant Brenda Kelm, Treasurer of the CVCF. “The credit is even better if taxpayers donate more than $200. Anything over that amount gets a credit at the highest tax rate — even if the taxpayer is not a high income earner.”
As a public foundation, the CVCF holds funds in perpetuity and disburses the annual income to local charitable groups to support important community initiatives. It is registered with the Canada Revenue Agency and gives charitable receipts to donors.
“There are so many ways the federal government encourages Canadians to support whatever charities we prefer,” says Andrea Rowe, past President of the CVCF and a former Chair of the NIC Foundation. “There are special breaks if the donation is of publicly traded shares or if the taxpayer is a first time donor. And, the government recently introduced legislation to give more flexibility — and better access to tax breaks — to those who give at death through a Will.”
For most Canadians, philanthropy and charitable giving is all about improving our communities and enriching the lives of our neighbours and families. Still, it’s always nice to have that tax break bonus and to be reminded as we file our T-1 tax returns this month that our generosity can create many different benefits.
To learn more about charitable tax credits and the many ways the Comox Valley Community Foundation works to enrich lives in the Comox Valley, visit the website
