Charitable Tax Incentives In Canada: Overview And Opportunities For Expansion

This article addresses the thematic parameters of Canadian charitable tax policy and opportunities for new charitable giving incentives. The author outlines the shift in tax; policy since 1996 to encourage donations of assets (typically capital property) rather than income, which has made the Canadian incentive system the most generous in the world. Recent tax policy changes have increased giving but have (perhaps) done so at the expense of small charities and “ordinary” donors. Some recently proposed measures to boost giving are outlined, with particular emphasis on increased tax credits and the elimination of capital gain on real estate and private company shares. The balance between philanthropy and tax support may be close to being reached in the Canadian system.