Donate Wisely

Think about the last time you made a charitable donation. Odds are, you were approached by a friend, neighbour, or co-worker, and you made a donation based on the amount of cash you had on hand. You probably gave little thought to how the charity would use your money. Next time, why not turn your good intention into a wise move by using the tips below.

Plan your donations
Make charitable donations a part of your budget, and use the Canada Revenue Agency’s Charities Listings at www.cra.gc.ca/donors to find a charity that is right for you.

Determine whether your donation is eligible for a tax credit
Only registered charities and qualified donees can issue official donation receipts for gifts of money and goods. With these receipts, you can reduce your taxes when you file your annual income tax and benefit return. To confirm whether a charity is registered, go to www.cra.gc.ca/donors.

Get to know your charities
Start by visiting the charity’s Web site that interest you and then review their publications. Learn about their activities and how they are managed.

Review financial information filed with the Canada Revenue Agency
All registered charities have to provide the Canada Revenue Agency with detailed financial information each year. This information is available to the public at www.cra.gc.ca/donors. If you have questions or concerns about the information, contact the charity for answers.

Ask questions
When you’re asked to make a donation, ask yourself, “How will my money be used? Is the organization a registered charity?”

You have the right to say “no”
Refuse to donate if there is inappropriate pressure to give immediately or you are offered a receipt for more than you actually donate.