The Federal Department of Finance has recently released its Report on Federal Tax Expenditures: Concepts, Estimates and Evaluations 2019. For those interested in tax policy and tax incentives it always provides some interesting reading.
There is a detailed description of the Charitable Donation Tax Credit on page 73 of the report for individuals and page 82 for corporations.
On page 143 there is a discussion of the approximately $1 billion cost of "Exemption from GST for certain supplies made by charities and non-profit organizations".
On page 146 the Report discusses the now abandoned First-Time Donor’s Super Credit.
On page 174 there is a description of the "Non-taxation of capital gains on donations of cultural property".
On page 176 there is a description of the "Non-taxation of capital gains on donations of ecologically sensitive land".
On page 178 there is a description of the "Non-taxation of capital gains on donations of publicly listed securities".
On page 189 there is a description of the "Non-taxation of non-profit organizations"
On page 194 there is a description of the "Non-taxation of registered charities" but no estimate is made of this very important tax benefit for charities. It is not clear to me why they can estimate the non-taxation of non-profits but not registered charities.
On page 220 there is a description of the "Rebate for qualifying non-profit organizations", on page 221 "Rebate for registered charities" and on 222 "Rebate for schools, colleges and universities".
The report has a section on "Impacts on the Male-Female Distribution of Income" on page 306. It notes that "Credits for foreign taxes, charitable donations, political contributions, the purchase of a first home and adoption expenses were also of relatively more benefit to men in 2016." I had thought that one day we might lose our tax incentives for giving because Canada will follow the US lead in which about 90% of Americans no longer receive any benefit for donating to charity as a result of US tax reform - but perhaps the charitable donation will be removed because it is viewed by this government as being more beneficial to men than women! On page 309 it goes into numbers including that the average benefit for men is $638 and for women $394. So men are getting about 65% of the benefit and women 35%.
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.