Survey Shows Over Half of Canadian Donors May Not Claim Tax Benefits for Charitable Donations

TORONTO, March 14, 2024 – A surprising finding from a recent Ipsos poll reveals that a significant portion of Canadian donors may not be taking full advantage of the tax benefits associated with charitable contributions. The study, commissioned by CanadaHelps, indicates that only 56% of those who made charitable donations plan to claim these contributions on their 2023 income tax returns. This trend raises concerns that the philanthropic efforts of Canadians are not being financially recognized to the extent possible under current tax legislation.

Understanding the Tax Benefits of Charitable Contributions

Charitable contributions in Canada provide donors with a tax credit, effectively reducing the amount of income tax they owe. As a non-profit organization, CanadaHelps facilitates online donations and fund-raising initiatives, playing a pivotal role in supporting a wide array of charitable causes. Yet, according to the Ipsos poll results, a considerable number of Canadians are seemingly unaware or unmotivated to claim these tax benefits. The poll suggests a potential gap in public understanding of tax incentives available for philanthropy, which could serve to encourage even greater levels of donation if more widely understood and utilized.

The Potential Impact on Charitable Giving

The findings of the Ipsos survey may have implications for both donors and charitable organizations. By not claiming the tax credits they are entitled to, donors miss out on a chance to reduce their tax bill, potentially affecting their willingness to give more. Conversely, charities could face challenges in sustaining or increasing donations if supporters do not perceive a financial benefit to their generosity. This gap between donation and claimed tax benefits could also prompt discussions among policymakers on how to better incentivize charitable giving in Canada.

tax, donations, charity