Making the most of charitable giving – Part I

Canadians are, for the most part, a very generous group.

According to Statistics Canada, Canadians donated an all-time record high of $6.5 billion for 2004, an increase of 6.3% from the prior year.

And given the tremendous support Canadians have offered towards the high profile disaster relief efforts such as the Indonesian tsunami and U.S. hurricane relief, it is apparent that charitable giving remains among Canadians’ top priorities.

Canadians can choose from a variety of charitable giving to fulfill their philanthropic goals. However, the method and timing of the donation may impact their tax situation.

This is the first of a two-part bulletin, which will review the charitable donation tax rules and outline the tax implications of the various donation methods. You, along with the assistance of your financial advisor will then be better equipped to devise an appropriate personal donation strategy.