Stretch Tax Credit for Charitable Giving
Canadians support charities that are working to build stronger communities at home and around the world. Let’s make it easier for Canadians to support the causes that matter to them the most!
Imagine Canada proposes the Stretch Tax Credit for Charitable Giving, a new and simple tax incentive for all Canadians.
The purpose of the Stretch Tax Credit for Charitable Giving is to encourage more Canadians to give and to support those who do give to give more.
How it works: The Stretch Tax Credit for Charitable Giving would increase the federal charitable tax credit for individuals by 10% on all NEW giving that exceeds previous donations. This incentive will allow Canadians to “stretch” their giving even more.
In the most recent version of our proposal, in our August 2011 prebudget submission to the House of Commons Standing Committee on Finance, the first new dollar of donation – regardless of level – would be eligible for the Stretch Tax Credit.
Why we need it: Charities and nonprofits in every community work on behalf of Canadians to provide services and supports that contribute to quality of life and economic prosperity. We need to act now to renew and grow Canada’s charitable sector and donor base to ensure organizations working across the country and around the world can meet the changing needs and growing demands of the individuals, families and communities they serve.
Support the Stretch Tax Credit
Tell your local Member of Parliament to support the Stretch.
Join our Twitter Awareness Campaign taking place from now until the start of the Christmas holidays to inform and encourage local MPs to support the Stretch Tax Credit in advance of Budget 2013.
To participate, visit our Stretch Tax Credit Twitter Campaign page where we have a list of MP Twitter handles and sample Twitter messages to help get you started! Your participation is crucial in helping us push the Stretch Tax Credit forward for inclusion in the 2013 federal budget.
Your participation is crucial in helping us push the Stretch Tax Credit forward for inclusion in the 2013 federal budget.
House of Commons Standing Committee on Finance recommends the Stretch Tax Credit
February 12, 2013. Finance Committee report recommends the Stretch Tax Credit.
January 17, 2012. Imagine Canada submitted a brief to the Standing Committee on Finance (FINA) concerning their Study of Tax Incentives for Charitable Donations. Marcel Lauzière, President & CEO, will appear before the Committee on February 7, 2012.
November 8, 2011. As part of our multi-prong strategy to promote the Stretch Tax Credit, our Sector Champions endorsed this letter to Finance Minister Flaherty.
December 9, 2009. The House of Commons Standing Committee on Finance released their report (pgs 74 & 78 of PDF) recommending the implementation of the proposed Stretch Tax Credit. In the weeks to come, it is critical to maintain the momentum and visibility of the stretch tax credit proposal to increase the likelihood of its inclusion in the next federal budget.
This innovative initiative has also generated interest in the media. Here is a selection of media coverage referring to the Stretch Tax Credit starting with the most recent:
- Changing charity rules. Chronicle Herald, January 18, 2012.
- Do the math before changing tax credits for charity. Globe & Mail, January 17, 2012.
- Marcel Lauziere from Imagine Canada responds to Charles Adler's column (podcast): "Charities and other false prophets". Chales Adler, January 16, 2012.
- House committee to study ways to boost charitable giving. Globe & Mail, January 15, 2012.
- Feds consider tax breaks for charitable donations. CP24, January 15, 2012.
- Imagine Canada Letter to the Editor : Globe & Mail, January 12, 2012; Vancouver Sun, January 13, 2012.
- United Way on track to fall $3-million short for year. Globe & Mail, January 11, 2012.
- For Canada's charities, this is a time of crisis and a moment of opportunity. Globe and Mail, Oct 28, 2011.
- Tax incentives could reverse decline in charitable giving. Winnipeg Free Press opinion editorial. Dec 12, 09.
- Stretch Tax Credit TV interview with Michelle Gauthier, our Vice-president, Public Policy & Outreach with Kevin Gaudet from the Canadian Taxpayers Federation. CHCH News Hamilton Live at 5:30pm and News at 11, Nov 24, 09.
- Stretch Tax Credit TV interview with Michelle Gauthier our Vice-president, Public Policy & Outreach. CHCH News Live Hamilton, Nov 23, 09.
- Give, in the downturn. Globe & Mail opinion editorial. Nov 19, 09.
- Charities facing tough times. CBC News, Nov 16, 09.
- AFP’s Philanthropy in Action Globe & Mail insert. In this insert we shared with readers details on the proposed Stretch Tax Credit in an opinion editorial and advertisement made possible in part with the generous support of The Muttart Foundation.
Additional Resources on the Stretch Tax Credit for Charitable Giving
- Pre-budget brief submitted by Imagine Canada to the House of Commons Standing Committee on Finance: Marcel Lauzière, President and CEO for Imagine Canada, appeared before the House of Commons Standing Committee on Finance on Thursday, October 8. In his presentation to the committee, Mr. Lauzière, reiterated Imagine Canada's three key recommendations for Budget 2010 as per the written brief submitted in mid-August.
The development of the Stretch Tax Credit for Charitable Giving proposal reflects the collaborative nature of the charitable and nonprofit sector. We would like to extend out gratitude to the many organizations and individuals who gave of their time and expertise to develop and refine the Stretch Tax Credit initiative. We also would like to acknowledge the efforts of partner organizations that have sought to promote and advance this proposal among their own networks and/or in their engagement with government, business and community stakeholders.
Comments or questions on the Stretch Tax Credit for Charitable Giving proposal can be sent to the attention of Michelle Gauthier, Vice-President, Public Policy and Outreach via email at firstname.lastname@example.org
Did you know that there are 161,000 nonprofilts and charities in Canada?
Did you know that Canada’s nonprofit and voluntary sector is the 2nd largest in the world?
The sector represents $79.1 billion or 7.8% of the gross domestic product
The sector is larger than automotive and manufacturing. It generates $112 billion in revenues and employs 2 million people
Canadians donated $10 billion in 2007
Newfoundland and Labrador, Prince Edward Island and New Brunswick have the highest donor rates.
Canadians volunteered 2.1 billion hours in 2007
Young Canadians aged 15 to 24 are more likely to volunteer than Canadians in any other age group
One percent of nonprofits command 60% of all revenues flowing to the sector
Canadians with the lowest household incomes give a greater percentage of their income than others
Saskatchewan has the highest volunteer rate in the country, followed by the Northwest Territories and the Yukon
Those exposed to giving and volunteering activities early in life are more likely to continue those behaviours as adults