Lending a Hand: How Federal Tax Policy Could Help Get More Cash to More Charities

Abstract

Federal government policies support the work of Canadian charities and the people and organizations that donate to them. Ottawa does so directly through government grants to charities and indirectly through tax relief. A marked trend in the pattern of charitable giving over the past 20 years, however, points to the need for reform of Ottawa’s policy tools. The share of tax filers reporting donations has fallen and the sector’s reliance on higher-income taxpayers for donations has increased. The result: a significant increase in large donations that stacks the tax playing field against charities that predominantly rely on smaller gifts. The purpose of this e-brief is to consider how best to r..