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Protecting the vulnerable

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02.02.2019

By Robert Granke | February 2, 2019

In challenging economic times, many governments are either eliminating or considering the removal of the tax credit for charitable donations. Several countries such as Austria, Finland, Ireland, Italy, Sweden and Switzerland have removed the tax benefit.

In Canada, removing the tax credit would translate to more than $6 billion being available to the Federal government. Could this money be used in more effective ways by government to provide social benefits to Canadians? Is it time for a rethink of this practice which has been in effect for decades? What impact would the elimination of this tax incentive on charities and their ability to raise resources?

It is a question that could well surface in our upcoming Federal election campaign. While I am not aware of any federal political party policies that are suggesting that a change is needed, recent editorials in at least one major newspaper has raised the issue.

Many donors to charities will contribute to their favorite causes regardless of the tax deduction. Some charities aggressively use the credit as a leverage to raise funds. Most take a quieter approach and seek not to play up to the self-interest of some. To be clear, the tax credit is a........

© ChristianWeek