Wednesday, December 18, 2013

Donate wisely this holiday season!

Did you know?

The Canada Revenue Agency (CRA) regulates more than 86,000 registered charities in Canada. To make sure your donation goes to a legitimate charity, the CRA advises you to follow a few tips.

Important tips

  • Confirm that the organization is a Canadian registered charity.
    Registered charities have to devote their resources to charitable activities and are monitored by the CRA. Only charities that are registered with the CRA can issue official donation receipts, which can be used by the donor to claim a charitable tax credit. To check if an organization is registered, go to the CRA Charities Listings at www.cra.gc.ca/charitylists or call the CRA at1-800-267-2384.
  • Get to know the charity.
    Start by visiting the charity's website to learn about its activities and how it's managed. You can also review its financial information and activities by looking at its information returns using the CRA’s Charity Quick View at www.cra.gc.ca/charitylists. One of the best ways to learn about a charity is to volunteer.
  • Beware of gifting tax shelter schemes that promise you returns greater than your donation.
    There are many risks associated with these donation schemes and, in many cases, less than 1% of the funds donated are used for charitable works. The CRA strongly advises that you not participate in gifting tax shelter schemes. As of the 2013 tax year, if the amounts you have donated to a gifting tax shelter are in dispute, you are now required by law to pay 50 per cent of the taxes you may owe.
  • Learn to recognize the signs of fraud.
    Signs of fraud could include inappropriate pressure to give immediately, individuals who demand cash only or ask that you write a cheque payable to them rather than the charity. In addition, fraudulent organizations sometimes use names that are similar to well-known and respected registered charities.
Learn more about donating wisely this holiday season. Visit www.cra.gc.ca/donors.

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

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